$550K in penalties levied against 2 oilfield companies in explosion that killed 2 workers

A judge's chair seen inside a courtroom in Edmonton, Alberta (THE CANADIAN PRESS/Jason Franson)

Two oilfield companies have been penalized $550,000 collectively for a workplace incident that killed two workers.

The deaths happened on a site southeast of Slave Lake on Nov. 12, 2022.

The workers were cutting a large tank with torches when there was a fatal explosion.

Tamarack Valley Energy Ltd. and Peace Pipefitting Inc. pleaded guilty to one charge each under occupational health and safety (OHS) laws and were sentenced on April 30 in Slave Lake.

Tamarack Valley Energy Ltd., as a prime contractor, pleaded guilty to failing to establish a system or process to ensure compliance with OHS laws.

Nineteen other counts were withdrawn by the Crown.

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The company received a total penalty of $500,000, including a $25,000 fine that includes the 20 per cent victim fine surcharge.

Under a creative sentence, the company was ordered to pay:

• $225,000 to fund welding and safety awareness for high school students;
• $150,000 to Energy Safety Canada for simultaneous operations guideline/session and subsidized supervisor training; and
• $100,000 to Threads of Life for young worker safety awareness and Alberta high school presentations, Speaker’s Bureau volunteer training, Family Forum and Alberta-based safety videos.

Peace Pipefitting Inc., as a supervisor, pleaded guilty to one count under the OHS Act for failing to take all precautions necessary to protect the health and safety of workers.

The company received a penalty of $50,000, including a $20,000 fine that includes the 20 per cent victims fine surcharge.

Under a creative sentence, the company was ordered to pay $30,000 to Threads of Life for young worker safety awareness and Alberta high school presentations, Speaker’s Bureau volunteer training, Family Forum and Alberta-based safety videos.

Both companies and the Crown have up to 30 days to appeal the conviction or penalties.

Creative sentences are provided for under the OHS Act so that funds that would otherwise be paid as fines are directed to an organization or project to promote or improve workplace health and safety.

Equipment fabricator Voltegic Energy Services Ltd., as an employer, is charged with 11 counts related to this incident and is scheduled to be sentenced May 28 in the Slave Lake.

Five counts against welding contractor 1282446 Alberta Ltd. as a supervisor were stayed on July 17, 2024.