Canadian Horizontal Drilling Ltd. Charged with Failure to Comply with 2004 Court Order, in Violation of the Fisheries Act

EDMONTON, August 11, 2006 – Canadian Horizontal Drilling Ltd. of Wetaskiwin, Alberta, has been charged in Alberta Provincial Court with one count of violating Section 79.6 of the Fisheries Act for allegedly failing to comply with a court order. This current charge relates back to Canadian Horizontal Drilling Ltd.'s original conviction and sentence from March 8, 2004 where Canadian Horizontal Drilling Ltd. pleaded guilty to a violation under subsection 36(3) of the Fisheries Act, which protects fish-bearing waters from the deposit of any substance that is deleterious to fish and aquatic life.

In December 2000, when Canadian Horizontal Drilling Ltd. was installing a pipeline under Gunderson Creek for Anderson Exploration Ltd, drilling mud was released into the creek, a spawning ground for bull trout. Drilling mud is harmful to fish and destroys fish habitat. Charges under subsection 36(3) of the Fisheries Act were subsequently laid in December 2002, after an investigation by Environment Canada.

As a result, Canadian Horizontal Drilling Ltd. received a Sentencing Order from the court pursuant to section 79.2 of the Fisheries Act requiring that Canadian Horizontal Drilling Ltd. pay a penalty of $25,000 including a contribution of $20,000 towards the Environmental Damages Fund. This fund is administered by Environment Canada and is used to help restore ecosystems. Canadian Horizontal Drilling Ltd. was also ordered to comply with voluntary industry guidelines for horizontal directional drilling which minimize the environmental impact of these activities.

The Court Order also required Canadian Horizontal Drilling Ltd. to publish an article by the end of September 2004 in a publication widely available to the horizontal drilling industry in Alberta. The article was to relate directly to the offence committed in the initial December 2000 drilling project. Canadian Horizontal Drilling Ltd. has allegedly failed to publish the article, resulting in this further charge being laid.

Environment Canada investigates alleged offences under the Canadian Environmental Protection Act, 1999 and the Fisheries Act, in order to ensure that companies, governments, their employees and the general public comply with legislation and regulations that protect Canada's environment.

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