The Alberta Energy Regulator has assessed Pengrowth Energy Corporation a $250,000 administrative fine in connection with a 2013 incident at Red Earth Creek in which a pipeline breach went undetected for 48 days. The release along the pipeline right of way and into a frozen slough at 09-08-94-03W5 near Red Earth Creek occurred between Dec. 1, 2013 and Jan.

18, 2014. The penalty was based on two offences under the Environmental Protection Act: that it failed to report, as soon as it ought to have known, the release into the environment of a substance that is causing, has caused or may cause, adverse effects and that it failed to conduct remedial actions as soon as it ought to have known of the release. The requirement to immediately selfreport and remediate releases that cause an adverse effect and or loss or damage to public lands as soon as the responsible party ought to have known is a cornerstone of the AER Compliance Assurance Framework, said the regulator.

Not being aware of the release for 48 days is an aggravating factor. On a third count under the Public Lands Act, the AER found that Pengrowth released 537.2 cubic metres (3,400 bbls) of oil emulsion that may have caused loss or damage to a forested area and a water body. The AER investigation revealed that Pengrowth lacked adequate knowledge, training and management oversight concerning pipeline operations including pigging, leak detection, and hot oiling process, Rob Borth, director of enforcement and surveillance for the AER, said in his final decision.

Aggravating factors include the fact that indicators of the poor performance and operation of the pipeline in question were not well understood, field staff made incorrect assumptions and procedures were not followed, he said. These issues continued for an unreasonable amount of time, including at the time of the eventual discovery of the release. Pengrowth failed to ensure its operators were competent in pipeline integrity maintenance and procedures and failing to contact the area integrity specialist and not visually inspecting the right of way are aggravating factors that contributed to the extent, damage and adverse effect to the environment, according to the table explaining how the AER calculated the penalty.

Also contributing to the penalty was the fact that Pengrowth received written warnings in 2009 and 2013 as well as several high risk enforcement responses related to pipelines.