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Department of National Defence faces hefty fine for improper storage tank system

October 21, 2020

The Department of National Defence was recently fined $175,000 under the federal Canadian Environmental Protection Act, 1999 for failing to comply with the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations. This regulation came into force in 2008 to help reduce the risk of soil and groundwater contamination due to spills and leaks of petroleum products by establishing requirements for storage tank systems under federal jurisdiction.

One of the requirements under this regulation is that storage tank owners must identify their system and display the identification number issued before the first transfer of product into the system. This ensures compliance with the regulations and reduces the risk of releases of petroleum products into the environment.

An investigation by Environment and Climate Change Canada enforcement officers revealed that the Department of National Defence had operated a storage tank system for which an identification number had not been issued. On June 22, 2020, the Department of National Defence pleaded guilty to contravening the Regulations.

The resulting fine will be put towards the Government of Canada’s Environmental Damages Fund, a program administered by Environment and Climate Change Canada to advance environmental and conservation projects with positive impacts. In addition to the fine, the court ordered that the Department of National Defence complete a third-party environmental audit of the areas where the offence occurred, including a review of the Department’s environmental management systems to ensure compliance with environmental legislation.If you have any questions or comments about the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations, whether it applies to you, or how you can ensure your compliance, please contact Richard Bereti at [email protected] or anyone else from our team listed on the Author page.

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Important Notice: The information contained in this Article is intended for general information purposes only and does not create a lawyer-client relationship. It is not intended as legal advice from Harper Grey LLP or the individual author(s), nor intended as a substitute for legal advice on any specific subject matter. Detailed legal counsel should be sought prior to undertaking any legal matter. The information contained in this Article is current to the last update and may change. Last Update: January 16, 2024.

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