An Alberta oil field services company received a fine of almost $ 450,000 for insecure storage and that illegally benefits from industrial wastewater that was not authorized to accept.
In a decision issued last week, Alberta Energy Regulator, based in the AER Network, was penalized by Alberta Energy Regulator for a series of infractions that date back to the summer of 2023.
The investigation found that the company was illegally benefiting from the storage of industrial wastewater at its subsurface well elimination site in Stettler, Alta. The wastewater from an industrial center based on agriculture were incompatible with the company’s license and the elimination of such highly concentrated waste inside a deep injection well is strictly prohibited.
The company’s founder and CEO, Terrance O’Connor, admitted to the contraventions, but blamed its own staff or third parties that had supplied the liquid for infractions.
In response to the investigation, O’Connor made accusations of conflict of interest against an Aer inspector and said that the regulator had no jurisdiction over his company because he is indigenous.
The regulator rejected those accusations and ruled the terrace industries was only responsible for the waste he accepted.
The company has not responded to requests for comments.
Non -approved wastewater
Aer’s research identified five key contraventions focused on the company’s Stettler elimination well, which the company has had since the 1980s.
Stettler is about 80 kilometers east of Red Deer.
The most significant violation was to accept and eliminate the industrial wastewater not approved.
The investigation found that the company illegally accepted 14,196 cubic meters of wastewater for 40 days in June and August 2023.
The name of the installation that generated the waste, the truck company that delivered it and the names of some Aer officials are drafted from the regulator’s decision.
The contravention was considered an “important” infraction due to the risk of environmental and human health.
By accepting substances not approved, in this case the waste not approved, an effective regulatory supervision by the AER cannot occur.– Decision of the Alberta Energy Regulator
One of the wastewater samples confirmed the presence of polyfluoroalquilo substances, often called “chemical products forever.”
PFSA are a complex group of long -term synthetic chemicals that cause adverse environmental and health effects.
Industrial wastewater contain significant amounts of non -human waste and higher concentrations of pollutants than domestic wastewater and under the legislation of Alberta, the elimination of such waste through the injection of the subsoil is strictly prohibited.
“When the waste not approved are received by an elimination center, there is the potential of a higher risk of an adverse effect for the environment and human health, the complete effects may not be known for some time,” says Aer’s decision.
“By accepting substances not approved, in this case the waste not approved, effective regulatory supervision by the AER cannot occur.”
Storage tank problems
The investigation also found several deficiencies related to a storage tank on the ground where industrial wastewater was carried out.
These included operating the tank without a secondary containment system, leak detection or a spill control device. It was also discovered that the base of the tank was designed incorrectly, raising the risk that it could be demolished.
The company was fined for generating illegally income from its storage of unauthorized waste, which resulted in $ 298,980 of an administrative fine. The fine also increased due to the degree of “intentional negligence” demonstrated by the company.
The total fine was $ 448,980.
Terroco Industries could not meet the previous warnings about its operational requirements, according to the investigation.
Aer also pointed out that he discovered shipping receipts, known as tickets of the boarding bill, which “seem to have altered” to align with the types of waste approved for the installation.
The company’s officials denied that he had tried to mistakenly identify shipments, but told the regulator that he would investigate whether others had tried to deceive the company about the classification of waste.
In a written presentation, the company’s CEO requested a “fair and fair review” with a reduction in penalty to more accurately reflect the “Teroco deficiencies in the trial and due diligence that were exploited by others.”
O’Connor said Aer’s investigation was influenced by “personal ties.”
He also expressed concern that the Aer was only directing letters to him, that the research approach was in him and suggested that one of his staff felt threatened by an Aer inspector, states that the regulator denied directly.
Of the source
Company officials told investigators that he had agreed to accept waste not approved after discussions with a person from a truck company that was transporting waste for another installation.
The authorities told Aer that they “erroneously interpreted” the disposition of the transport truck company to deliver waste to the Terroco industries to mean that the liquid was suitable for elimination.
O’Connor told researchers that he believed that the company “had something to do with cattle,” but assumed that brine water was being eliminated.
According to the investigation, the manager of the Stettler installation said he had not received formal training and that he had to learn “as he advanced.”
“The responsibility for the detection of incoming waste was greatly put in consignator and transport companies instead of Teroco, in itself,” says the Aer report.
“The managers of Teroco sites in the installation of Stettler confirmed that there was a lack of formal training, a lack of knowledge about the difference between the classes of elimination wells and an inexperience with the elimination requirements.”
Challenged jurisdiction
At a July 2025 meeting between the company and the regulator, Terroco Industries challenged the jurisdiction of Aer.
According to the Aer report, O’Connor read a document that brought “oral proclamation” aloud and provided printed copies to the attendees.
That document “continues to affirm that, as Terrance is a sovereign indigenous person, the Aer does not have” jurisdiction to judge this case “, and that the Aer” will abandon all the charges. “
According to the Aer, the company’s officials did not provide new evidence during the meeting, but said there was a relatively small volume of “washing water” inside the tank and not industrial wastewater.
According to the company’s claim on washing water, some of the infringement fines were adjusted. But the regulator rejected the rest of the statements, while affirming the jurisdiction of the AER on the company.
The regulator found that there is no conflict of interest and that the investigation was integral, impartial and fair.
“Terroco, as a licensee, is ultimately responsible for understanding the type of waste received and how it is managed,” the report said.
