Canada Energy Regulator’s Commission upholds violations against Trans Mountain
Commission corrects penalty amount to $4,000
For Immediate Release
December 22, 2022
Today the Commission of the Canada Energy Regulator (the Commission) released a decision upholding an Administrative Money Penalty (AMP) issued to Trans Mountain Pipeline ULC (Trans Mountain) earlier this year. The Commission’s decision also corrected the penalty amount.
In February 2022, the Canada Energy Regulator (CER) issued an AMP to Trans Mountain for violating paragraphs 6.5(1)(k) and 6.5(1)(q) of the Canadian Energy Regulator Onshore Pipeline Regulations (OPR), relating to multiple spreads of the Trans Mountain Expansion Project (TMEP).
In March 2022, Trans Mountain requested that the Commission 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 $88,000. Trans Mountain has 30 days to pay the fine.
Trans Mountain failed to implement management system processes for:
- verifying all employees and contractors were trained and competent;
- supervising all workers to ensure the environment is protected; and
- coordinating and controlling all operational activities so that every worker is aware of each other’s activities, to ensure the environment is protected.
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. An AMP is only one tool in the CER’s enforcement toolkit. 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. In addition to enforcement actions, we share what we learn with regulated industry so we can work together to find solutions and prevent a similar event in the future.
- An AMP is a financial penalty the CER can issue to companies or individuals for not being in compliance with the CER Act, regulations, decisions, permits, orders, licenses, or certificate conditions.
- The CER’s AMP Regulations state how penalties are calculated and include a schedule of set base penalty amounts, as well as which criteria must be considered to determine the overall gravity value of the penalty, which can raise or lower the base penalty amount. For companies, the maximum possible penalty for a single violation is $100,000 per day.
- Review Decision by the CER’s Commission
- Notice of Violation AMP-001-2022
- Inspection Officer Order No. DLB-001-2021
- Administrative Monetary Penalties Regulations
- Administrative Monetary Penalties Process Guide
- CER Enforcement Policy
- Trans Mountain Expansion Project
The Canada Energy Regulator (CER) works to keep energy moving safely across the country. We review energy development projects and share energy information, all while enforcing some of the strictest safety and environmental standards in the world. To find out how the CER is working for you visit us online or connect on social media
Canada Energy Regulator
Telephone (toll free): 1-800-899-1265
Facsimile (toll free): 1-877-288-8803
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