Oil company avoided fines after failing to shut down thousands of aging pipelines in British Columbia
Canadian Natural Resources Ltd. missed its targets for deactivating over 4,300 inactive pipelines in B.C. under a special regulatory deal and was not penalized despite years of noncompliance.
Matt Simmons and Zak Vescera report for The Narwhal.
In short:
- Canadian Natural Resources Ltd. (CNRL) received an exemption from normal environmental rules in 2020 to gradually deactivate thousands of inactive pipelines, but failed to meet targets for three consecutive years.
- Despite the violations, the BC Energy Regulator did not fine the company, instead issuing a new order and granting a second exemption in 2024, under which CNRL is now reportedly exceeding deactivation targets.
- Legal experts and opposition leaders criticized the regulator for being too lenient and warned that its credibility is at risk as it takes on broader oversight responsibilities, including renewable energy.
Key quote:
“It begs the question, what teeth does the regulator have?”
— Jeremy Valeriote, interim leader of the BC Green Party
Why this matters:
Inactive oil and gas pipelines pose long-term environmental risks. As they decay, they can leak residual fluids or methane, a potent greenhouse gas, into surrounding soil, water, and air. Deactivation — removing fluids and sealing lines — is a legal safeguard to minimize that danger. Yet enforcement is often weak, especially in regions ramping up fossil fuel exports like British Columbia. Critics argue that when regulators give repeated exemptions and avoid penalties, companies have little incentive to prioritize environmental safety. With CNRL holding more than 20,000 inactive wells in Alberta alone, its track record raises broader questions about accountability and the cumulative impacts of aging fossil fuel infrastructure.
Read more: Thousands of potential oil and gas violations in B.C. went unpenalized, internal records show
