Canadian Horizontal Drilling Ltd. Fined for Environmental Violations

Edmonton, March 9, 2003 – Canadian Horizontal Drilling Ltd (CHD) of Wetaskiwin, Alberta, was sentenced yesterday after pleading guilty in Alberta Provincial Court to one count of violating Subsection 36(3) of the federal Fisheries Act. This subsection protects fish-bearing waters from the deposit of any substance that is deleterious to fish and aquatic life.

In December 2000, when CHD was installing a pipeline under Gunderson Creek for Anderson Exploration Ltd, drilling mud was released into Gunderson Creek, a spawning ground for bull trout. Drilling mud is harmful to fish and destroys fish habitat. Charges were laid in December 2002, after an investigation by Environment Canada.

The sentence included a fine of $2,500, a payment of $2,500 toward Environment Canada’s investigative costs and a contribution of $20,000 to the Environmental Damages Fund. This fund is administered by Environment Canada and is used to help restore ecosystems. As part of a creative sentencing process, Canadian Horizontal Drilling Ltd will submit an article to an industry publication describing what went wrong with this drilling project. CHD is also required to comply with voluntary industry guidelines for horizontal directional drilling which minimize the environmental impact of these activities.

First offences under Subsection 36(3) of the Fisheries Act are punishable on summary conviction by a fine of up to $300,000, and for subsequent offences, a fine of up to $300,000 or six months imprisonment, or both.

Environment Canada's Environmental Protection Enforcement staff investigates potential pollution offences under the Canadian Environmental Protection Act, 1999 (CEPA, 1999) and the federal Fisheries Act. They help ensure that companies, government employees, and the public comply with legislation and regulations that protect Canada's environment.

For more information, please contact:

To receive automatic e-mail notification of all Environment Canada news releases, media advisories, and statements, please click on this URL to subscribe: http://www.ec.gc.ca/mediaroom/newsrelease/e/subscribe_e.cfm