The Alberta Energy Regulator (AER) has ordered AlphaBow Energy Ltd. to pay a $25,000 fine for constructing pipelines without approval.
Between Nov. 11 and 17, 2021, AlphaBow performed work to construct two pipeline segments, near Hardisty, Alta. The AER became aware of AlphaBow’s actions on Nov. 17, 2021, when the company submitted a notification for a pipeline pressure test to the AER, leading to an inspection of the pipelines by the AER.
While AlphaBow had applied for pipeline licences, the AER had not approved the applications prior to construction. As a result, the AER ordered the company to stop work, issued two notices of non-compliance and launched an investigation. Based on the investigation findings, the AER is taking enforcement action against AlphaBow by issuing a fine.
A fine – or an administrative penalty – is one enforcement tool the AER can use when companies break the rules. The penalty amount is based on an assessment of the seriousness of the contravention and the effect (or potential effect) it has on public safety, the environment or resource production.
Before constructing energy-related infrastructure, such as pipelines, companies must apply to the AER for the necessary licence. This process enables the AER to assess the risks and effects associated with the activity, which is fundamental to ensuring the safe and responsible development of energy resources within Alberta. In this case, AlphaBow did not obtain licences under the Pipeline Act, prior to construction.