The C-NLOPB has applied an Administrative Monetary Penalty (AMP) of $28,000 to Hibernia Management and Development Company Ltd. (HMDC) in response to an August 17, 2019 spill of petroleum from the Hibernia Platform.
The spill was a breach by HMDC of its obligations under the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act (the Accord Act), and a violation calculated under the Canada-Newfoundland and Labrador Offshore Petroleum Administrative Monetary Penalties Regulations (the Regulations).
The Regulations classify violations into two categories: “Type A” violations are of an administrative or record-keeping nature and “Type B” includes all other violations, including violating safety or environmental requirements. The AMP issued to HMDC was a Type B violation. Penalty amounts are determined on a case-by-case basis in accordance with the Regulations.
Following the spill on August 17, 2019, a controlled shut-in of production operations on the Hibernia platform was immediately conducted and a formal C-NLOPB Enquiry initiated on August 19, 2019. On September 26, 2019, after conducting an extensive review of HMDC’s management system, plans for the HMDC Pre-start-up Management System Review and associated risk assessments, approval for HMDC to resume production operations was granted by the C-NLOPB.
The original Notice of Violation for $40,000, was issued by C-NLOPB staff to HMDC on August 13, 2021. HMDC filed a Request for Review, pursuant to section 202.2 of the Accord Act. On conducting this review, a Review Committee of the Board determined that the penalty to be paid by HMDC be reduced to $28,000.
The Enquiry into the July 18, 2019 spill from the Hibernia Platform is ongoing.
For further information, the Administrative Monetary Penalty Guidelines can be found here.
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