Murphy Oil fined $172,500 for pipeline spill

Spill went undetected from January to March 2015, releasing about 1.4 million litres of condensate.

CALGARY — The Alberta Energy Regulator says it has issued a $172,500 fine to American oil and gas producer Murphy Oil Co. for a 2015 pipeline spill 80 kilometres north of Peace River in northwestern Alberta.

The spill went undetected from January to March of that year and released about 1.4 million litres of condensate, a light oil used to dilute heavy oil to allow it to flow in a pipeline.

The AER says Murphy has since repaired the pipeline and continues to remediate the 1.3-hectare impacted area.

Murphy was found to have failed in several areas, including taking reasonable steps to ensure it could detect a pipeline leak, evaluating its pipelines, reporting the release of condensate and immediately conducting remedial action after the release.

The AER and Murphy reported at the time that no harm to wildlife had resulted.

The regulator says no damage was done to major waterways.

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