Alberta Court Declines To Extend Limitation Period For Contamination Claim

• Published date: 21 June 2022
• Subject Matter: Environment, Environmental Law
• Law Firm: Bennett Jones LLP
• Author: Ms Laura Gill, Sarah Gilbert, Julia Schatz and Niall Fink

Environmental Protection and Enhancement Act Does Not Lengthen Limit for Contamination Claims Against Other Contributors

Section 218 of Alberta's Environmental Protection and Enhancement Act, RSA 2000, c E-12 (EPEA) is not available to extend the limitation period for a party liable for remediation costs to make claims against other alleged contributors, the Court of Queen's Bench has recently ruled.

In Paramount Resources Ltd v Grey Owl Engineering Ltd, 2022 ABQB 333 [Paramount] the Court found that section 218 could not save a pipeline owner's claim against an engineering firm whose allegedly negligent construction work in 2004 contributed to a spill that occurred in 2018. The case adds clarity to the application of this unusual environmental remediation provision to claims for contribution from third parties in respect of remediation orders issued under the EPEA.

Background

Section 218 of the EPEA permits a judge to extend any limitation period provided in an Alberta law, including the 10-year ultimate limitation period under Alberta's Limitations Act, RSA 2000, c L-12, where the basis for the proceeding is an alleged adverse effect resulting from the alleged release of a substance into the environment. The EPEA provision is unique among Canadian provinces. Most provincial legislation offers no exception to the limitation period for environmental contamination claims. In Saskatchewan, section 97 of the Environmental Management and Protection Act, SS 2010 c E-10.22 exempts all environmental claims (as defined in that Act) from the application of Saskatchewan's 15-year ultimate limitation period set out in The Limitations Act, SS 2004, c L-16.1, and extends the limitation period for environmental claims to six years from the discovery of the environmental contamination (as opposed to the standard limitation period of two years). In Ontario, section 17 of the Limitations Act, 2002, SO 2002, c 24, provides that there is no limitation period in respect of an environmental claim that has not been discovered. Section 218 of the EPEA is unique in its explicit requirement that judges consider whether or not an extension of a limitation period is justified in the individual circumstances.

In considering an application for extension under section 218 of the EPEA, a judge must consider the factors enumerated at subsection (3), including when the alleged adverse event occurred, whether the claimant was duly diligent in uncovering the contamination, potential...