Husky pleads guilty to three charges related to 2018 oil spill
$2.5 million in fines suggested as penalty
Husky Oil Operations Limited pleaded guilty to three of the six charges it was facing related to a Nov. 16, 2018, 250,000-litre crude oil spill at the White Rose Field about 350 kilometres southeast of St. John’s, which is believed to be the largest in the province’s history.
A joint sentencing submission of $2.5 million was suggested by Crown prosecutor Glen Scheuer and counsel for Husky, Brad Gilmour.
Husky pleaded guilty to a breach of the Canadanewfoundland and Labrador Atlantic Accord Implementation Act; one count under the Fisheries Act of failing to without delay notify an inspector, a fishery officer, a fishery guardian or an authority prescribed by the regulations of a deposit of a deleterious substance in water frequented by fish; and a charge under the federal Migratory Birds Convention Act of unlawfully depositing a substance harmful to migratory birds.
CHARGED IN 2021
The company was charged by the Canada-newfoundland and Labrador Offshore Petroleum Board (CNLOPB) in 2021.
Up to a dozen different government and private entities, including the CNLOPB, investigated the spill, including the Department of Fisheries and Oceans, the Canadian Coast Guard, and the federal department of environment.
According to an agreed statement of facts read in court on Feb. 28, the incident occurred due to a failure in a flowline connector after a controlled shutdown and restart of production and the troubleshooting staff undertook at the time when they noticed a drop in pressure.
Scheuer said a third-party technical review of the incident determined it was “fair to assume that a loss of containment would be very unlikely” in the circumstances, which aligned with the review Husky had completed on the spill.
When the loss of pressure was detected, staff attempted to troubleshoot the issue, Scheuer said, and “based on the available data, the onshore team should have considered a relatively large subsea leak to be likely” and a second attempt at troubleshooting should not have been carried out.
Weather conditions at the time, and the following days, prevented an immediate response and two days later the components of crude oil that didn’t evaporate had dispersed rapidly into the water.
Third-party water sampling conducted between Nov. 16 and Nov. 27, 2018, detected no hydrocarbons in the area, Scheuer said, and sediment samples taken Dec. 8, 2018, and Jan. 6, 2019, from the sea floor in the same area were also below detections for hydrocarbon components.
No fish were discovered or reported as being harmed as a result of the spill, he said, but 18 potentially oiled birds were observed, eight of which were captured. Of the birds captured, two were dead and the rest were sent to a rehabilitation centre to be cleaned. Two of those were released after treatment, but the remaining birds died or were euthanized. Testing on three of the birds showed a positive match to White Rose crude oil.
It was highlighted by both counsel that Husky had cooperated with all aspects of the investigation and had made changes to its procedures after the spill.
Gilmour pointed out in his submissions that Husky recognizes it is culpable for the incident, but stressed that it was not deliberate or intentional.
He said attempts to restart production that day were premature, and the second troubleshooting steps should not have occurred, but the issue with the flowline connector could not have been predicted.
The case is scheduled to return to court on April 26 for a ruling.