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Oil Leak Undiscovered For 15 Months, Company Fined $438k

By Benjamin Gerow Jul 9, 2026 | 10:01 AM

An oil rig drills a well under moon light near Cremona, Alta., Sunday, Sept. 24, 2023. THE CANADIAN PRESS/Jeff McIntosh GAC

The Alberta Energy Regulator (AER) has issued a penalty decision against Calgary-based Entrada Resource Inc, for an oil emulsion leak that lasted more than a year.

The AER made the announcement on July 2nd because Entrada had “released or permitted the release of oil emulsion”.

According to AER’s assessment, the leak is estimated to have lasted from June 2022 to September 2023. The results of the leak are large amounts of soil contamination and possible livestock impacts.

In addition, the AER had penalized the company for not reporting the spill and corrosion causing the leak not being spotted in inspections.

Additionally, leak remediation efforts required clearing 6.4 acres of land, including more than 26,000 square metres of trees, and disposing more than 61,000 tonnes of soil to a landfill, according to the assessment.

The leak was first discovered by someone who used the affected area for rearing livestock, and the exact date of the discovery was not made public. Satellite imagery from June of 2022 clearly shows the oil staining and distressed vegetations, but AER has concerns the impacts could go back further.

 

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