Significant Fines Upheld In Sunrise Propane Explosion

The appeal decision in R. v Sunrise Propane Energy Group Inc.1 highlights the importance of being duly diligent and having preventative systems in place when conducting inherently dangerous business operations.

On November 27, 2017, the Ontario Superior Court of Justice (ONSC) released its decision on the appeal by Sunrise Propane of the charges resulting from the explosions at the Sunrise Propane storage facility in 2008.

In 2016, the Ontario Court of Justice (OCJ) slapped Sunrise Propane and its directors with $5.3 million in fines plus victim fine surcharges for breaches of the Environmental Protection Act2 (EPA) and Occupational Health and Safety Act3 (OHSA). See our previous article about the trial decision titled, 5.3M in Fines Against Sunrise Propane and Directors for Fiery Propane Explosion.

Sunrise Propane appealed to the ONSC to overturn the convictions and sentences. The ONSC dismissed the appeal and upheld all convictions and sentences.

The Explosion and Charges

Sunrise Propane conducted truck to truck transfers of propane at its propane refill centre in Toronto. In 2006, Sunrise Propane began to upgrade its facility in response to a Technical Standards and Safety Authority (TSSA) Director's Public Safety Order prohibiting truck to truck transfers. The TSSA allowed an exception for facilities that met a certain storage capacity. In June 2007, the TSSA codified this requirement with the publication of a Code Adoption Document.

By 2008, Sunrise Propane did not meet the requirements to be exempted from the prohibition, yet Sunrise Propane continued conducting truck to truck transfers.

In August 2008, a propane leak during a truck to truck transfer caused numerous explosions resulting in the death of an employee and property damage. Numerous contaminants were released into the environment, including "heat, gas vapour, asbestos, dust, metal and other forms of discarded matter."4

The Ministry of the Environment (now the Ministry of the Environment and Climate Change) issued an Order to remediate the site. Sunrise Propane was also charged under section 14 of the EPA for discharging a contaminant into the natural environment that caused or could cause an adverse effect.5

The Trial Court Decision

The OCJ convicted Sunrise Propane and its directors under the EPA for discharging a contaminant that caused or could cause an adverse effect and for contravening a Provincial Officer's Order.6 Sunrise Propane also received a conviction under the...