A significant oil spill occurred in 2022 along a pipeline in British Columbia, during servicing operations conducted by Pavilion Energy Corp. The spill took place approximately 20 kilometres north of Fort St. John when the company decided to pump oil through the pipeline to accommodate a load of water. An estimated 20,000 litres of oil were spilled when the pipeline broke. The B.C. Energy Regulator (BCER) confirmed the incident and initiated investigations to ascertain potential contraventions of the Energy Resources Activities Act.
The BCER sent a letter to Pavilion Energy Corp. and its contractor, Hurley Well Service Ltd., in August 2024, indicating consideration of penalties for alleged violations. A contravention report compiled by a BCER investigator revealed that the pipeline pressure surged to 20,700 kilopascals (kPa) at the time of rupture, nearly triple the safe value, though the recommended pressure was not specified. The rupture was discovered two days into the work, leading to concerns about potential negligence.
Patrick Smook, the BCER acting executive vice-president for safety and compliance, concluded on February 18 that neither Pavilion Energy Corp. nor Hurley Well Service Ltd. contravened the act. Administrative penalties could have reached up to $500,000 had non-compliance been established. However, the regulator can dismiss a finding of non-compliance if it is proven that due diligence was exercised.
“That the pin did not shear is not in dispute and is compelling evidence against the allegation that the Hurley rig pump was the source of pressure that ruptured the pipeline.” – Patrick Smook
Smook further elaborated on the effectiveness of safety measures in place during the incident.
“I accept that the pressure relief valve with such a pin setting would have been effective at automatically stopping the pumping operation if pressures were approaching those needed to rupture the pipeline,” – Patrick Smook
The incident raised questions about operational safety and regulatory oversight within the energy sector. While the BCER had yet to respond to requests for comment from Business in Vancouver (BIV) by publication time, Smook's findings suggest a comprehensive review of evidence was conducted.
“at least as persuasive as the allegations” – Patrick Smook
