Algoma Steel Inc. has been fined $1.2 million for a 2022 oil spill into the St. Marys River, while two companies in Toronto have received separate penalties totalling $15,000 for violations involving excess soil management at a Scarborough property.
The Algoma Steel conviction stems from a gear oil tank overflow at its Sault Ste. Marie facility that released an estimated 1,000 to 1,250 litres of oil into the river.
The Toronto convictions involve failure to comply with a provincial officer’s order and the unauthorized use of a waste disposal site for excess soil.
Algoma Steel fined for St. Marys River oil spill
Algoma Steel was sentenced on September 10, 2026, in the Ontario Court of Justice in Sault Ste. Marie after pleading guilty to one count under the Fisheries Act and one count under the Migratory Birds Convention Act, 1994, according to a court bulletin.
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The convictions followed an investigation by Environment and Climate Change Canada (ECCC) enforcement officers into a gear oil tank overflow at the company’s steelmaking facility between June 8 and 9, 2022.
The incident resulted in an estimated 1,000 to 1,250 litres of gear oil entering the St. Marys River, which supports fish species including lake sturgeon, walleye and northern pike, as well as migratory birds.
Under the Fisheries Act, gear oil is considered a deleterious substance because it can degrade water quality and harm fish. It is also classified as a substance harmful to migratory birds under the Migratory Birds Convention Act, 1994.
The federal legislation prohibits the unauthorized deposit of harmful substances into waters frequented by fish or migratory birds, as well as areas where those substances could enter protected waters or habitats.
The $1.2-million fine will be directed to the federal Environmental Damages Fund, which supports projects intended to repair environmental damage or provide other environmental benefits, with an emphasis on areas affected by violations.
As a result of the conviction, Algoma Steel’s name will also be added to the federal Environmental Offenders Registry.
Toronto companies fined over excess soil violations
In a separate enforcement action, two Ontario companies were fined a combined $15,000, plus $3,750 in victim fine surcharges, following an investigation into excess soil stockpiled at 4570 Sheppard Avenue East in Toronto.
The property is owned by 2546229 Ontario Inc. and was leased to 2408688 Ontario Inc. from May 1, 2020, to April 30, 2022.
According to a court bulletin from the Ministry of the Environment, Conservation and Parks (MECP), the tenant company had discussed plans with the property owner to establish a landscaping brick-making operation using excess soil.
In February 2022, the MECP inspected the property after receiving a complaint from the owner about the stockpiling of excess soil.
Following the inspection, a provincial officer issued an order to both companies requiring them to take several actions, including retaining a qualified person to assess the excess soil.
Neither company complied with the order, prompting an investigation by the MECP’s Environmental Investigations and Enforcement Branch.
The offences occurred between approximately May 14, 2022, and November 12, 2024, and involved failure to comply with a Provincial Officer’s Order and establishing, operating or using a waste disposal site for excess soil without ministry approval.
The resulting penalties were:
- 2408688 Ontario Inc.: Convicted of one violation under the Environmental Protection Act and fined $10,000, plus a $2,500 victim fine surcharge.
- 2546229 Ontario Inc.: Convicted of one violation under the Environmental Protection Act and fined $5,000, plus a $1,250 victim fine surcharge.
The convictions were registered on December 5, 2025, and January 16, 2026. Both companies were given 30 days to pay their respective penalties.
