AER issues penalty to Murphy Oil Limited for 2015 spill

CALGARY, ALBERTA--(Marketwired - Feb. 28, 2017) - The Alberta Energy Regulator (AER) has issued a $172 500 administrative penalty to Murphy Oil Company for a 2015 pipeline spill near Peace River.

The spill, which went undetected from approximately January 15 to March 1, 2015, released 1429 m³ of condensate into the environment. Murphy has since repaired the pipeline and continues to remediate the impacted area.

The investigation found that Murphy failed to take reasonable steps to ensure that the leak detection system was capable of early detection of leaks, failed to evaluate operating or discontinued pipelines, failed to report the release of condensate, and failed to conduct remedial actions on the condensate that was released, which caused damage to public lands.

Based on the findings, Murphy was found to have breached requirements in provincial legislation, including the Public Lands Act, the Pipeline Rules, and the Environmental Protection and Enhancement Act. Because of the severity of the incident, the penalty issued to Murphy is $172 500.

A copy of the AER's final investigation report can be found on the Compliance Dashboard.