Akzo Nobel Chemicals Ltd. Pleads Guilty to Fisheries Act Violation for Chemical Spill

SASKATOON, Saskatchewan– March 23, 2005 - Akzo Nobel Chemicals Ltd. appeared in Saskatoon Provincial Court today, and pleaded guilty to one charge of violating subsection 36(3) of the federal Fisheries Act. An additional charge against former plant manager Grant E. J. Flory was stayed.

The charge was laid by Environment Canada following an incident on
August 10, 2002, when over 1400 litres of Redicote C-2914 were spilled into the plant’s effluent system and later discharged to the South Saskatchewan River. The spill was caused by the unsupervised loading of a truck at the Saskatoon plant. Redicote C-2914 is used in the application of asphalt.

The company was sentenced to a total penalty of $80,000, including a fine of $10,000 and a payment of $70,000 to the Environmental Damages Fund for research, studies, habitat or fisheries enhancement work along the South Saskatchewan River.

In addition, a court order was issued requiring the company to improve their material safety data sheets and employee training for Redicote C-2914, and to share this information with other Akzo plants. It is also anticipated that Akzo Nobel Chemicals Ltd. will spend approximately $1.4 million on its effluent system in order to comply by December 31, 2005, with an Inspector’s Direction issued by Environment Canada under the Fisheries Act.

Subsection 36(3) of the Fisheries Act protects fish-bearing waters from the deposit of any substance that is deleterious or harmful to fish and aquatic life.

First offences under subsection 36(3) of the Fisheries Act are punishable by a fine of up to $300,000 for each offence. Subsequent offences are punishable by a fine of up to $300,000, a term of imprisonment of up to six months, or both.

The Environmental Damages Fund, administered by Environment Canada, serves as a special holding or trust account to manage funds received as compensation for environmental damage. The purpose of any contribution to the Fund is to allow money to be directed towards future projects that contribute to the remediation of damages to the environment in a cost effective way and to deter other parties from causing damage in the future.

Environment Canada investigates alleged offences under the Fisheries Act and the Canadian Environmental Protection Act, 1999, in order to ensure compliance with legislation and regulations that protect the Canadian environment.

For more information, please contact:

Kent Siegele
Enforcement Officer
Saskatchewan Division
Environmental Protection Branch
Environment Canada
(306) 780-6462
(306) 537-6980 Cellular

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