Announcement - February 07, 2023

The AER continues to commission independent, third-party water quality testing at the Imperial Oil Kearl Oilsands Project site. Test results were taken from multiple locations in Waterbody 3 (WB3) on April 6 and reported to the AER on April 10. Some of these tests confirmed the ongoing presence of F2 hydrocarbons and naphthenic acids in WB3. These components are potential indicators of industrial wastewater in WB3, a fish-bearing waterbody on the northeastern edge of Imperial's Kearl lease. As a result of these tests, the AER is communicating directly with Indigenous communities, stakeholders and government authorities about these results.

Consistent with the last round of testing, F2 hydrocarbons were found in one location close to the seep. However, the most recent testing indicates levels of F2 hydrocarbons at 0.2mg/L, an amount that exceeds the Surface Water Quality Guidelines for the Protection of Freshwater Aquatic Life (AEP PAL) for F2 hydrocarbons at 0.11mg/L.

Also consistent with the last round of testing, naphthenic acids were detected at low levels at two locations close to the seep, as well as at one new location close to the outlet of the waterbody that connects to a tributary of the Firebag River. No guidelines exist for Naphthenic acids. It is important to note that naphthenic acids are naturally occurring in the region.

Imperial has been notified and is required to take additional measures to reduce and restrict the outflow of water from WB3. An action plan detailing the proposed actions is due from Imperial no later than 4:30 p.m. April 12, 2023.

There is no indication of a change in drinking water quality at this time and no adverse impacts to fish or wildlife have been observed at this time.

Intensive water monitoring is ongoing as the AER has commissioned significant third-party monitoring and the Government of Alberta is also planning high frequency monitoring of up to 4 times per week during the spring melt near the Kearl oil sands operation and along the Firebag River. In addition, Imperial and ECCC are also conducting regular testing.

The AER is ensuring strong regulatory oversight of Imperial’s ongoing actions to meet the EPO with regular onsite inspections, testing and monitoring. We have an interdisciplinary team of dedicated experts overseeing Imperial's actions and will provide ongoing updates on testing when results become known.

April 4, 2023

Third-party water quality testing commissioned by the AER continues at the Imperial Oil Kearl oil sands site. We are also monitoring and reviewing the water testing data provided by Imperial to ensure compliance with the environmental protection order (EPO) issued on February 6, 2023.

The presence of F2 hydrocarbons and naphthenic acids in the April 3 samples taken at the two sites closest to the seep location are potential indicators of industrial wastewater in Waterbody 3 (WB3), a fish-bearing water body on the northeastern edge of the Kearl lease.

Current data shows that levels of F2 hydrocarbons do not exceed the Surface Water Quality Guidelines for the Protection of Freshwater Aquatic Life (AEP PAL) and the Canadian Council of Ministers of the Environment Environmental quality guidelines (CCME CEQGs). No guidelines exist for naphthenic acids; however, testing has detected naphthenic acids in low concentrations.

Public safety and the protection of the environment remain our priorities. We have not observed any change in drinking water quality or adverse effects on fish or wildlife. It is premature to make any conclusions based on these test results; we will continue to monitor for the presence of these components and any changes over time.

We are communicating this development to affected Indigenous communities and the public as part of our commitment to transparency.

We directed Imperial to provide a plan within 24 hours by April 12 for preventing potential effects on water bodies downstream of WB3. We will continue the third-party monitoring to ensure the appropriate oversight of WB3 and downstream water bodies. 

The AER will join the Fort Chipewyan Working Group established to bring government and community representatives together to discuss monitoring in areas downstream of the Kearl oil sands site. The AER's multidisciplinary team of experts is working with government counterparts to ensure public health and safety with regular on-site inspections, testing, and monitoring.

Our investigation into the Kearl incidents is ongoing. You can find more information on mitigation, cleanup, and more in the AER's EPO and Imperial's public updates.
We are committed to sharing updates and information with stakeholders, Indigenous communities, and the public within the parameters of the investigation.

March 06, 2023

The Alberta Energy Regulator (AER) continues to oversee Imperial Oil’s (Imperial) compliance with the Environmental Protection Order (the order) issued on Feb. 6, 2023, to ensure the regulator’s top priorities of public safety and the protection of the environment.

Today, Imperial provided an update further detailing onsite activities underway for the containment and cleanup of both incidents. The first incident, reported in May 2022, involves industrial wastewater seeping from the External Tailings Area both on and outside the boundaries of the Kearl site. The second incident was a drainage pond overflow with a spill volume estimate of 5300m3, which was reported to the AER by Imperial on Feb. 4, 2023, with a public statement released Feb. 7, 2023.

Members of the AER senior leadership team are also engaging with stakeholders both directly and in-person including visiting the work underway on-site at Imperial Kearl and meeting directly with Indigenous communities including the Mikisew Cree First Nation Chief and Council to answer questions and actively listen to concerns raised by the Nation.

The AER will continue to provide updates to potentially affected communities and is actively monitoring the situation at the Kearl site for Imperial’s ongoing compliance to the order. 

March 02, 2023

The Alberta Energy Regulator takes its responsibilities regarding oil sands operations extremely seriously, this includes the regulation of tailings ponds. We derive our tailings management structure from the Government of Alberta’s Lower Athabasca Region: Tailings Management Framework for Mineable Athabasca Oil Sands, which contains a set of principles that guide our regulatory approach when working with companies involved in oil sands mining.  

Impacts to the public and environment are of primary concern to the AER. This is why on February 6, 2023, we issued an Environmental Protection Order (EPO) requiring Imperial Oil to ensure measures are in place to safeguard, contain and monitor these priorities. The AER has also initiated a formal investigation. Water monitoring shows that at this time no waterbodies have been impacted.  

On February 7, the AER informed the Athabasca Chipewyan First Nation (ACFN) that the EPO had been issued. It is the licensee’s responsibility to report fluid releases to affected or potentially affected parties as soon as they become aware of the release. Under the requirements of the EPO, Imperial Oil has submitted and is required to implement a communications plan providing for regular updates to potentially affected parties, including Indigenous communities such as ACFN. 

Imperial Oil is currently compliant with the requirements of the EPO and has provided specific details on actions taken in their required public updates, as follows:  

" Wildlife monitoring continues around the Kearl site and no impacted wildlife have been identified to date. Impacted areas north of the lease had wildlife sweep work conducted in fall and winter 2022/23. No wildlife den features were identified in these areas."

"Based on our monitoring to date, there are no reported impacts to wildlife and no measurable impact to local waterways. Since that time, we have been working to determine the cause and have implemented mitigations, including installing additional monitoring and pumping wells. Some of the actions that we plan to implement are additional monitoring and control measures, including water catchment features, and additional monitoring and pumping wells." 

Matters reported on the Compliance Dashboard include enforcement decisions, administrative sanctions and directions of an inspector pursuant to the Environmental Protection and Enhancement Act including orders, suspensions, and cancellations of reclamation certificates. Notices of noncompliance (as were issued to Imperial) are not enforcement decisions and therefore are not publicly posted. Regulator notification procedures were followed in this case. In addition, the AER posted a public statement on February 7, 2023, the day after the EPO was issued to Imperial. 

The AER is always looking for opportunities to modernize our requirements and make them more effective, as well as improve relationships and engagement with Indigenous communities. If this event highlights an opportunity to do so we will pursue it. 

The AER works to protect public safety and the environment by enforcing its rules and requirements at each stage of development. Companies not in compliance with AER requirements may be subject to enforcement actions.

Outside of this statement, as the Imperial Kearl matter is under active investigation, we are unable to provide further details relating directly to the incidents at this time.

Further information on Tailings management is contained within Directive 085, Fluid tailings management for oil sands mining projects.  

February 7, 2023

An Environmental Protection Order (EPO) was issued February 6, 2023, by the Alberta Energy Regulator (AER) to Imperial Oil Limited (Imperial) in response to two containment incidents at the Kearl Oil Sands Project (Kearl). Kearl is an Imperial owned and operated oil sands site in the Athabasca Oil Sands Region of Alberta, 45 kilometres northeast of Fort McKay. 

The AER has issued the EPO ordering Imperial to contain the releases and develop and submit plans for wildlife protection, environmental remediation, and public notification. The EPO can be found here.

The first incident, reported earlier in 2022, involves industrial wastewater seeping from the External Tailings Area in four locations both on and outside the boundaries of the Kearl site. At this time, there are no public impacts.

Prior to the issuing of the Order, the AER issued two notices of non-compliance, conducted site inspections and assessments and required Imperial to monitor and sample wastewater and submit results to the AER. The AER also worked with Imperial to commence the installation of additional seepage wells and delineation groundwater wells along the perimeter of the site.

In a separate, second incident, also at the Kearl site, Imperial reported an uncontrolled release of industrial wastewater from an overflow drainage pond, that occurred on Saturday, February 4, 2023. The spill volume initial estimate is 5,300 m³.

Provisions in the EPO address both incidents.

At this time, no impacts to wildlife have been reported in relation to either incident.

An EPO is a compliance order designed to prevent, stop, or mitigate adverse environmental impacts or risks to public safety, and ensure responsible resource development and must be completed within prescribed deadlines.

It is Imperial's responsibility to manage these incidents and prepare action plans according to EPO stipulations. The AER will hold the operator to account in completing the work, including effective measures for wildlife deterrents, cleanup, and remediation of any impacts to the environment.

Alberta's Energy Regulator will enforce both the mitigation and remediation actions required to fully resolve these issues. The Government of Alberta sets standards and conditions of approval for licensees and the AER's mandate is to ensure that companies operate within those requirements. Imperial is accountable to now complete and publicly communicate their strategy to attend to this matter.

The AER has investigations underway, and no further statements will be made at this time.