Environmental coverage back in headlines after huge spill

It may be time to remind clients how important it is that they carry sufficient coverage as yet another environmental disaster hits

Environmental coverage back in headlines after huge spill

Insurance News

By Lyle Adriano

Yet another devastating and costly oil spill reminds energy companies of the importance of securing environmental coverage.

The provincial government of Saskatchewan announced Monday that a pipeline in the region has leaked 200,000 liters of oil in an aboriginal community - in the lands of the Ocean Man First Nation, 140km southeast of Regina. On Friday, Ocean Man Chief Connie Big Eagle said that the spill was 15 meters in diameter and that no homes were near the affected area.

Learn more about pollution and contamination insurance here.

Reuters reported that the government was notified late in the afternoon on Friday of the spill. According to Doug McKnight, assistant deputy minister in the Ministry of the Economy, about 170,000 liters have since been recovered.

The last major oil spill incident in Saskatchewan occurred seven months ago, in which a Husky Energy Inc. pipeline leaked 225,000 liters into a major river, depriving two cities of their drinking water source.

It was not immediately clear how the spill occurred, or which company owns the pipeline that caused the leak. The provincial energy minister confirmed yesterday that an investigation into the matter has been launched, which will include checks of leak-detection measures.

Want the latest insurance industry news first? Sign up for our completely free newsletter service now.

Extraction of the spill is expected to begin Wednesday.

McKnight said in a press conference that Tundra Energy Marketing Inc. is leading the cleanup efforts. The energy company owns a pipeline adjacent to the spill.

“There are a number of pipes in the area,” McKnight told reporters. “Until we excavate it, we won’t know with 100% certainty which pipe.”

“We have got to make sure that Tundra has done everything that they can to get our land back to the way it was. That can take years,” Chief Big Eagle said Friday. “They have assured me that they follow up and they don’t leave ... until we are satisfied.”
 

Related stories:
Environmental coverage vital in keeping a clean business reputation: Expert
Why the Vancouver oil spill should be a wake-up call for every business sector

Keep up with the latest news and events

Join our mailing list, it’s free!