Company sentenced to pay $3.5 million for Obed Mountain mine spill

Athabasca River
Shoreline of the Athabasca River. Photo Credit: Wikimedia Commons

Prairie Mines & Royalty ULC (formerly known as Coal Valley Resources Inc.) pleaded guilty in Alberta Provincial Court on June 9, 2017, to two counts of violating the Fisheries Act. The Honourable Judge C.D. Gardner sentenced the company to pay monetary penalties totaling $3,500,000.

According to Environment and Climate Change Canada (ECCC), on October 31, 2013, a dike that was holding back a large volume of wastewater at the Obed Mountain Mine failed, resulting in more than 670 million litres of contaminated water and sediment (made up of coal, clay and sand) spilling into the Apetowun Creek and Plante Creek, and additionally impacting the Athabasca River.

Prairie Mines & Royalty ULC pleaded guilty to:

  • One count of carrying on a work, undertaking or activity that resulted in the harmful alteration or disruption, or the destruction, of fish habitat in contravention of s.35(1) of the Fisheries Act; and,
  • One count of depositing or permitting the deposit of a deleterious substance of any type in water frequented by fish in contravention of s.36(3) of the Fisheries Act.

ECCC said $1.15 million of this sentence will be put into a trust to be managed by the University of Alberta to create the Alberta East Slopes Fish Habitat and Native Fish Recovery Research Fund. The remaining $2.15 million will be directed to the Environmental Damages Fund.

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This case was a coordinated multi-year joint investigation by Fisheries and Oceans Canada, Environment and Climate Change Canada, and the Province of Alberta.

To view the original release, visit:


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