April 26, 2004

Federated Pipe Lines levied $200,000 penalty for Chetwynd oil spill

PRINCE GEORGE, BC-Federated Pipe Lines, a subsidiary of Pembina Pipeline Income Fund, pleaded guilty to a charge under the federal Fisheries Act in connection with a July 2000 spill of crude oil into the Pine River near Chetwynd, British Columbia. An agreed statement of facts was jointly filed by Crown and defense counsel with the BC provincial court, which levied a $200,000 penalty, including a $5,000 fine and a payment of $195,000 to the Environmental Damages Fund administered by Environment Canada. A lengthy investigation of the incident by Environment Canada, Fisheries and Oceans Canada and BC's Conservation Officer Service found that on July 31, 2000, a pipeline operated by Federated Pipe Lines ruptured, releasing crude oil into the environment. The rupture was caused by a defect in the pipeline. The company co-operated with Environment Canada officials throughout the investigation. As a result of the investigation, Environment Canada charged Federated Pipelines with depositing a deleterious substance into water frequented by fish, contrary to section 36(3) of the Fisheries Act. More information is available from Patrick Fraser, senior enforcement officer at Environment Canada's Pacific region office, 250/561-6904.
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