Imperial Oil CEO 'deeply apologetic' in Commons committee testimony on oilsands tailings leak

Imperial Oil president and CEO Brad Corson presented himself as humbled and "deeply apologetic" on Thursday in Ottawa during testimony at a parliamentary committee studying the leak of oilsands wastewater into the northern Alberta ecosystem.

In his opening statement, Corson acknowledged his company has set relations with Indigenous people back by failing to notify impacted First Nations for months following the first sign of the spill.

"We have broken this trust with these incidents," said Corson, telling MPs that the "communication breakdown" sparked the spread of misinformation, fuelling fear, confusion and anger in the communities.

"We profoundly regret this incident," he said.

"It never should have happened."

Corson and other Calgary-based Imperial Oil executives were called to explain why it took nine months to tell First Nations and governments that wastewater from a Kearl oilsands mine tailings pond had spilled into four areas about 100 kilometres north of Fort McMurray, Alta.

Despite the apology and admission of environmental failure, Corson faced skepticism and criticism from frustrated MPs as he urged them to trust his company's assessment that the spill is contained and poses no or low risk to wildlife and fish.

"You have lost the trust to be able to say that we should trust anything you bring forward," said Alberta NDP MP Heather McPherson in response.

When pressed by McPherson, Corson confirmed the company is still pumping wastewater into the pond that leaked. He also confirmed the ponds are designed with the knowledge they might fail.

"The tailings ponds that we use are designed with recognition that some level of seepage could and can occur," he said.

The events in question began in May 2022, when routine water sampling identified an orange discolouration in the Kearl area that was determined to contain industrial wastewater. The Alberta Energy Regulator was notified then, according to Imperial's latest update.

But neither the regulator nor Imperial Oil told First Nations until February 2023, after a separate spill of 5.3 million litres, enough to fill two Olympic-sized swimming pools, overflowed a containment pond.

Oilsands tailings ponds are man-made reservoirs where byproducts of oil extraction are stored. Tailings consist of silt, clay, water and residual bitumen and may hold chemicals like arsenic, ammonia, lead, mercury, naphthenic acids, hydrocarbons and phenolic compounds.

Alberta's oilsands tailings reservoirs would collectively cover an area more than twice the size of Vancouver if set beside each other, according to a 2022 report by Environmental Defence and the Canadian Parks and Wilderness Society.

Calls for accountability, regulatory change

Before the hearing began, a small group of demonstrators gathered a block away from Parliament Hill to show solidarity with Indigenous communities impacted by the spill, chanting for Imperial Oil to face charges over the leak.

"We want to hold Imperial Oil accountable," said Tori Cress, who is Anishinaabe from Beausoleil First Nation in Ontario and communications manager for Indigenous-led environmental organization Keepers of the Water.

"Their toxic water entered those fish-bearing waters. In northern communities, that's the food system for Indigenous people."

She wants to see energy regulators change their ways across the country, not just in Alberta. The regulatory regime is captured by industry and no longer serves the public interest, she said.

Aliénor Rougeot, a program manager with Environmental Defence and organizer of the rally, drew attention to the fact that the ponds are designed with the knowledge they can seep.

She said Ottawa's hands-off approach mixed with an ineffective provincial regulator is a recipe for bad oversight.

"It leads to an industry that's essentially self regulating, and so Indigenous nations end up bearing the brunt of it," she said.

In Monday committee testimony, First Nations and Métis leaders lambasted the Alberta Energy Regulator and called for its disbandment.

"The Alberta Energy Regulator is a joke," said Chief Allan Adam of the Athabasca Chipewyan First Nation.

"A complete joke."

After the hearing, the regulator's CEO, Laurie Pushor said the regulator "listened thoughtfully" to the testimony but couldn't provide more information to protect multiple active investigations.

On Monday before the testimony, federal Environment Minister Steven Guilbeault said "it is clear the seepage was not communicated to affected communities in a timely or appropriate way," which he called "deeply concerning." 

On Thursday, Green MP Elizabeth May asked Corson just one question, a rhetorical one: "How do you sleep at night?"

The committee chair hesitated at the question, but Corson offered a brief answer.

"I take these situations very seriously," he replied, calling himself proud of the firm's work on climate change.

"I am committed to ensuring this sort of incident does not happen again. I want to improve our trust with these communities."