Sinopec’s Canadian subsidiary has been ordered to pay $307,000 in fines after the company pleaded to guilty to violations related to a 2012 pipeline spill in Alberta.
Calgary-based Sinopec Daylight Energy pleaded guilty to two regulatory charges for a pipeline spill that released 84,000 gallons of toxic water into Marshead Creek in northern Alberta, Upstream said.
The water, called process water, came from a Sinopec operated gas well near the spill site and contained saline and trace amounts of hydrogen sulphide and hydrocarbons.
China’s Sinopec said a contractor failed to disable an emergency shut off valve after finishing work on the pipeline, causing pressure to build up that eventually led to a rupture.
Two separate fines were leveled against the company.
The court ordered a $176,000 fine for violations of the federal Fisheries Act and a $132,000 fine for failing to promptly report the spill under Alberta’s Environmental Protection & Enhancement Act.
Sinopec spent $9.7 million cleaning up the spill site over the course of a year.