Alberta Energy Regulator fines Calgary company for building pipelines without a licence

Pumpjacks pump crude oil near Halkirk, Alta. on June 20, 2007. THE CANADIAN PRESS/Larry MacDougal

The provincial government's regulator for the oil and gas industry has fined a Calgary company it says built pipelines without acquiring proper licences first.

The Alberta Energy Regulator (AER) ordered AlphaBow Energy Ltd. to pay $25,000 after it built two pipeline segments in November 2021 near Hardisty, Alta.

The body says it only became aware that the pipeline had been built when AlphaBow approached it for a pipeline pressure test on Nov. 17, 2021.

"While AlphaBow had applied for pipeline licences, the AER had not approved the applications prior to construction," the agency wrote in a statement.

"As a result, the AER ordered the company to stop work, issued two notices of noncompliance, and launched an investigation."

The AER says the fine is based on the "seriousness of the contravention" and its effect on public safety, the environment and Alberta's resource production.

Officials say all oil and gas companies need to apply for licences before constructing energy-related infrastructure.

"This process enables the AER to assess the risks and effects associated with the activity, which is fundamental to ensuring the safe and responsible development of energy resources within Alberta."

Details on the enforcement decision can be found online.