The Offence Of Failing To Assist An Inspection - R V Land Petroleum International Inc., 2021 ABPC 76

• Published date: 05 April 2021
• Subject Matter: Environment, Energy and Natural Resources, Environmental Law, Oil, Gas & Electricity
• Law Firm: McCarthy Tétrault LLP
• Author: Canadian ERA Perspectives, Kimberly J. Howard, Paul R. Cassidy and Sou Semalulu

Recently, the Provincial Court of Alberta found Land Petroleum International Inc. (Land Petroleum) guilty of the rarely prosecuted offence of failing to permit or assist an inspection ( 2021 ABPC 87). Specifically, Land Petroleum was ordered to pay a $92,000 fine for failing to permit and assist an inspector from the Alberta Energy Regulator (AER) with access to its gas plant facility near Ponoka, Alberta (Facility) for the purpose of conducting an inspection pursuant to section 96(4) of the Oil and Gas Conservation Act ( Act).

Pursuant to the Act, the AER, and any person authorized by it, may enter and inspect any place used or occupied in connection with a well or place where oil or gas is refined, produced, handled, processed or treated. All persons are required to permit and assist the AER in such inspections. Failing to fulfill this statutory duty is an offence under the Act.

Similar provisions appear in many regulatory statutes across Canada, providing inspectors with not only the power to enter and inspect facilities, but also putting an obligation on owners, operators and other persons present at the facility to assist the inspectors (including by furnishing relevant information). See for example: Alberta's Environmental Protection and Enhancement Act (see section 209), British Columbia's Environmental Management Act (see sections 109 and 110), Ontario's Environmental Protection Act (see section 184) and the federal Canadian Environmental Protection Act, 1999 (see sections 227 and 228). While the specific wording of each of these statutes must be examined to determine the scope of the powers they grant to inspectors, this court decision is nevertheless helpful to gain an understanding of the general scope of the obligation to assist inspectors, and how a failure to provide assistance may be treated by the courts.

1. The Facts

The AER scheduled an inspection of Land Petroleum's Facility for August, 2018. Following a request, the AER agreed to re-schedule the inspection provided that certain information was provided by Land Petroleum by an agreed upon deadline. When Land Petroleum failed to provide the requested information by the deadline, the AER provided notice that the inspection would proceed on an expedited basis and authorized three inspectors (Inspectors) to inspect the Facility.

On August 20, 2018, the AER Inspectors requested access to the Facility. However, the Inspectors were informed by an employee of Land Petroleum that they would be...