Apache Canada Ltd Subject to AER Enforcement Action

CALGARY, ALBERTA--(Marketwired - July 7, 2015) - The Alberta Energy Regulator (AER) has directed Apache Canada Ltd to address the integrity of its pipeline management system, implement recommendations from third party audits, and submit plans for future action. These directed actions are a result of a comprehensive investigation into the company for its failure to follow provincial legislation and AER requirements.

Between January 23, 2009, and November 6, 2013, the AER issued 12 high risk enforcement actions to Apache for noncompliances with the Pipeline Act and Pipeline Rules. Between June 1, 2013, and October 29, 2014, Apache reported six pipeline incidents that caused loss or damage to public lands and resulted in or had the potential to impact the environment. The company failed to appropriately report and remediate some of the sites as required by the AER.

The AER has directed Apache to take steps necessary to address issues with its internal pipeline management system. The AER has issued an administrative penalty of $16,500 and four orders:

• Oil and Gas Conservation Act section 22 order
• Public Lands Act enforcement order
• Environmental Protection and Enhancement Act enforcement order and environmental protection order

The orders direct the company to:

• Complete a third-party audit of its pipeline integrity management system by December 31, 2015, and implement recommendations by December 31, 2016.
• Submit, for AER approval, a plan to prevent future releases for all its high risk pipelines by July 31, 2015, for implementation by September 31, 2015.
• Implement recommendations specific to the Zama operating field by December 31, 2015.
• Submit, for AER approval, a communication plan that describes, at a minimum, monthly progress updates on its website.

The Compliance Dashboard has been updated; two incident investigations remain open and may be subject to enforcement actions.

The Alberta Energy Regulator ensures the safe, efficient, orderly, and environmentally responsible development of hydrocarbon resources over their entire life cycle. This includes allocating and conserving water resources, managing public lands, and protecting the environment while providing economic benefits for all Albertans.

FOR BROADCAST USE

Following a series of noncompliances, the Alberta Energy Regulator has taken action against Apache Canada Ltd. As part of the enforcement action, the AER has directed the company to address issues with its pipeline management system, implement recommendations, and submit plans for future action.