Environmental liability and the independent contractor

The provisions of the Environmental Protection and Enhancement Act (EPEA) regarding the relationship between a company and an independent contractor were reviewed. The EPEA was introduced in September 1993 and significantly altered the environmental laws in the province of Alberta. The provisions of the EPEA that apply to the petroleum industry are conservation and reclamation as well as provisions concerning release of substances, contaminated sites and penalties. Companies that pollute may be held liable for reclamation, even if the work was carried out by an independent contractor and despite the fact that the independent contractor is not an employee of the company. Under the current EPEA laws, companies may not be able to effectively shift responsibility for environmental liabilities to independent contractors even where the contractor was negligent. This paper presented suggestions regarding contractor agreements and due diligence to help minimize the risk of liability to companies. The paper also discussed the following two types of liabilities under the EPEA's harmful substances section: (1) the obligation to clean up an affected area, and (2) fines and penalties that may be imposed when an offence is committed