In an exceptional gesture, the federal government has just launched legal action against the oil company Husky Oil, responsible for a major oil spill in the marine environment, off the coast of Newfoundland. Since this event, the Trudeau government has yet authorized the company to carry out new drilling, in addition to offering it $ 41 million in public funding.
According to what the Department of the Environment of Canada announced Thursday, three charges have been laid against “Husky Oil Operations Limited”, for alleged violations of the Fisheries Act and the Migratory Birds Convention Act 1994. These charges are in addition to those filed by the Canada – Newfoundland and Labrador Board.
All of these charges stem from the spill of more than 250,000 liters of crude oil (1,572 barrels) in November 2018 off the coast of Newfoundland as part of the company’s operating operations.
According to details provided by the federal government, a hearing is scheduled for November 23. The minimum fine for such offenses is $ 100,000. In the case of the Fisheries Act violation, it cannot exceed $ 200,000. The first appearance for this case will be in Provincial Court of Newfoundland and Labrador in St. John’s on November 23.
Drilling authorizations
Following the spill caused by the activities of the oil company, the Trudeau government has given the green light to new exploratory drilling in the marine environment by Husky Oil, in partnership with ExxonMobil Canada
The Minister of the Environment, Jonathan Wilkinson, in fact authorized on March 16, 2020 the oil companies Husky Oil and Exxon to conduct at least 10 exploratory drilling in the marine environment by 2027, in an area targeted by the industry and located on the Grand Banks of Newfoundland, in the Atlantic. Seismic surveys and possible production tests are also authorized.
Minister Wilkinson argued at the time that this new oil and gas exploration project “is not likely to cause significant adverse environmental effects.” The report produced by the Canadian Environmental Assessment Agency also concludes that the risk of a major oil spill is “extremely low”.
According to the “worst” spill scenario mentioned in their impact study, an “eruption” could leak more than 40,000 barrels per day. This means that in seven days, the spill could be as large as the oil spill caused by the oil tanker Exxon Valdez in 1989.
According to the proponents’ impact study, the maritime region where the drilling will be carried out includes “areas of ecological and biological importance”, several species of cetaceans (some of which are threatened) and seabirds, but also an important commercial fishing activity.
Financial support
In addition to authorizing Husky to launch a new marine exploration project, the Trudeau government granted it $ 41 million in December 2020 to maintain jobs related to a development project off the coast of Newfoundland.
This grant was part of a $ 320 million envelope provided by Ottawa to support workers in the sector. The federal government has also entrusted the task of formulating “recommendations” on ways to invest these public funds to a committee controlled by people close to the oil industry. The Husky Company had one member on the committee.
To support the development of oil exploration projects in the marine environment off the coast of Newfoundland, the Trudeau government also decreed in the spring of 2020 the abolition of the environmental assessment process so far in effect for all drilling. exploratory studies carried out over a territory of 735,000 km2 east of Newfoundland.
This decision came after a comprehensive environmental study was carried out for this entire maritime region. According to the government, it was entirely reasonable to proceed in this way, since the report produced by the committee which carried out the regional assessment “concludes that the effects of exploratory offshore oil and gas drilling are well known, causing minor disturbances. , localized and temporary, and are not likely to be significant if standardized mitigation measures are in place ”.
This Ottawa decision is part of Newfoundland’s desire to double its oil production after 2030 to reach 235 million barrels per year. This objective requires the completion of at least 100 new boreholes by the end of the decade. Since the start of 2021, dozens of boreholes have been authorized.