North West Redwater Partnership pays into environmental damages fund to avoid prosecution

Environment and Climate Change Canada has announced that a partnership made a significant payment to the environmental damages fund as an alternative to prosecution for charges under the Canadian Environmental Protection Act 1999.

CNR (Redwater) Limited and North West Refining Inc., operating as the North West Redwater Partnership, paid $280,428 to the fund as a result of an environmental protection alternative measures agreement with the Attorney General of Canada.

The environmental damages fund, initiated in 1995, serves as a program administered by Environment and Climate Change Canada. It directs funds received from fines, penalties, court orders, and voluntary payments toward projects to repair or benefit the environment, focusing on investing in areas where the damage occurred.

The payment to the fund is an alternative to prosecution for a charge related to the alleged negligent filing of a document containing false or misleading information. Although the charge has been stayed, the payment is part of the agreement reached to address the environmental concerns raised.

Under the Renewable Fuels Regulations outlined in the Canadian Environmental Protection Act, primary fuel suppliers must meet specific renewable fuel content thresholds when producing or importing fuel. Additionally, suppliers must submit annual reports to Environment and Climate Change Canada detailing the generated renewable fuel content, with these reports subject to third-party audits.

In April 2019, the North West Redwater Partnership submitted its annual report for the Sturgeon Refinery, indicating compliance with renewable fuel content requirements for 2018. However, a subsequent third-party audit revealed an overreporting of the renewable fuel dispensed. The company's internal review further identified discrepancies in fuel meter recordings, concluding that 721,712 fewer units of renewable fuel were dispensed than reported, amounting to $180,428.

The total payment to the environmental damages fund includes this monetary value and an additional $100,000. The company has also conducted a comprehensive review of its policies, procedures, and renewable fuels regulations compliance program, providing progress reports to Environment and Climate Change Canada every 90 days for a year.