HMDC fined $250K in relation to 2013 oil spill.
Company pleads guilty to one charge, three others withdrawn by crown
Equipment failure in the Hibernia platform’s offshore loading system and inclement weather in 2013 will cost the Hibernia Management and Development Company Ltd. a combined $250,000 in fines.
Lawyers for the company appeared before judge David Orr in provincial court on Friday to plead guilty to one of the four charges they were facing as a result of failing to comply with the Atlantic Accord Implementation Acts following an oil spill that released an estimated 6,000 litres of crude oil.
In exchange for a guilty plea to the fourth charge of unlawfully resuming ceased work without assuring it can be done safely and without pollution, the crown withdrew the three other charges.
In a joint sentencing submission, the company was fined $80,000 under the Accord Act — which has a maximum fine of $100,000 — and an additional $170,000 payable to the environmental damages fund to be used for purposes related to the protection or restoration of the environment or for research into the same.
The crown is asking that the federal government make that money to be distributed within the province.
Details of the 2013 spill were rendered in an agreed statement of facts.
On Dec. 27, during the transfer of oil from the platform to the tanker Kometik using the South single anchor loading (SAL) system, crew aboard the vessel informed HMDC personnel of sheen on the surface near the North SAL. Five hours later, loading was stopped so the sheen could be observed while the SAL was inactive.
After 90 minutes, loading recommenced for another 73 minutes until weather forced it to be halted. The sheen near the North SAL was still present the morning of Dec. 28 when HMDC restarted loading via the South SAL, a process that took roughly another nine hours.
On Dec. 30, weather conditions allowed for the deployment of a remotely operated vehicle (ROV) that confirmed the North SAL was leaking.
In an effort to mitigate, HMDC opted “to flush the remainder of the crude oil from the accessible portions of the (offshore loading system) back to the (gravity based structure).
“Flushing resulted in an increase leak rate from the (hose end valve) which was observed by the ROV. As a result, HMDC immediately suspended flushing operations and determined that the North foot valve must not be fully closed. Several attempts were then made with the supply vessel to obtain a successful isolation with the North foot valve. “
On Jan. 1, 2014, the valve was successfully closed and the North SAL isolated from the loading system and on Jan. 18, the hose end valve was secured until it could be recovered and replaced, which took place at the end of March.
In a statement to the Telegram, HMDC, who had pleaded not guilty to all four charges in September 2015, says it deeply regrets the incident.
“The cause of the incident was due to equipment failure, although the offshore loading system equipment was newly installed in 2012,” the statement read.
“We have put additional operating procedures, inspections and maintenance routines in place to specifically address the issues we encountered with the equipment.”