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Wednesday, Feb 8, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Canada Energy Regulator upholds penalties against Trans Mountain Pipeline

The commission also lowered the previously issued penalty of $88,000 to $4,000

Canada Energy Regulator upholds penalties against Trans Mountain Pipeline
Photo via Trans Mountain

The commission of the Canada Energy Regulator (CER) decided to uphold an administrative monetary penalty (AMP) to Trans Mountain Pipeline ULC for failing to implement management system processes for worker-related operations.

On Thursday, the commission announced it would also lower the previously issued penalty of $88,000 to $4,000. According to the commission, Trans Mountain failed to verify all employees and contractors were trained and competent, it failed to supervise workers to ensure a safe environment and lastly, it failed to coordinate and to control all operational activities for further work safety.

This February, the CER issued a penalty for the Trans Mountain Expansion Project (TMEP) for violating paragraphs 6.5(1)(k) and 6.5(1)(q) of the Canadian Energy Regulator Onshore Pipeline Regulations (OPR).

A month after the penalties were issued, Trans Mountain requested a review the AMP.  The Commission had to decide whether Trans Mountain did commit the violation and whether the penalty amount was correct. The Commission determined that Trans Mountain did commit the violation. The Commission also determined that the amount of the penalty was not calculated in accordance with the CER’s AMP Regulations and was required to change it to $4,000 from $88,000Trans Mountain has 30 days to pay the fine.

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Some of the goals of issuing an AMP to companies are to promote compliance with the Canadian Energy Regulator Act and regulations and to prevent similar incidents from happening again.

Other enforcement tools available to the CER include Notices of Non-Compliance, Inspection Officer Orders, Safety Orders, and revocation or suspension of a company’s authorization to construct and operate a project. For companies, the maximum possible penalty for a single violation is $100,000 per day.

 

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