Edmonton

Statoil fined $190,000 for water license violation

Statoil Canada has been fined $190,000 by a provincial court judge for breaking the terms of its temporary water licence.

Statoil Canada has been fined $190,000 by a provincial court judge for breaking the terms of its temporary water licence.

The oil company pleaded guilty Monday to diverting water near Conklin, Alta., between Dec. 15, 2008 and May 29, 2009 in a manner not covered by the licence.

According to a statement of facts, Statoil under-reported the volume of water that was diverted from a lake.

The company also did not have permission under the license to divert water from two sources known as Waterhole 1 and Waterhole 2.

Waterhole 2, an unnamed stream in the area, was rejected as a water diversion source by Alberta Environment in Dec. 2008. However, diversions continued until Feb. 18, 2009, the court document said.

As part of the sentence, the court directed Statoil to put $185,000 of the fine into a trust account operated by the Canadian Association of Petroleum Producers to create an online training site for sharing best water diversion practices with other oil companies.