Dawn Ostrem
Northern News Services

Yellowknife (Apr 14/00) - Royal Oak Mines was fined $1.4 million in NWT Supreme Court Thursday for not abiding by Environmental and Fisheries Act regulations over the past three years.

The fine serves as a precedent-setting measure since the company is now bankrupt and the fine will not likely be paid.

"It encourages others to abide by the law rather than ignoring it in the same way," said Crown counsel Alan Regel after court was adjourned.

"It's a significant case, and what we do have is what kind of penalty is appropriate according to the court.

"It's very serious. We are dealing with tailings with a number of harmful components to them."

Floyd Adlem, director of operations for the Department of Indian Affairs and Northern Development said DIAND isn't considering further legal action yet but, "these are always options."

"I think (the sentencing) sets a precedent and these things are always taken seriously," he said. "But we haven't put our mind to (further action) at all."

The company, which owned Colomac mine located 200 air-kilometres north of Yellowknife, was charged with disposing of toxins into the environment and possibly into Duck Lake and refusing to give water board inspectors information on the tailing pipes and the cleanup.

The tailings, which are laced with cyanide and arsenic, leaked twice in October 1997 when a tailings pipe burst, spilling hundreds of cubic litres of tailings into the ecosystem - on a road, through a ditch and into a patch of spruce trees.

During the sentencing procedure, Regel brought Ronald Breadmore to the stand to act as a sentencing witness. Breadmore said he suffered side effects from the toxins after investigating the site for the water board. He said he had contact with the tailings in 1999 when he went to conduct a survey.

"I completed the survey and experienced a strange burning in my throat and a strange taste in my mouth," Breadmore told the court saying he also later suffered from nausea, headaches and dizziness. After going to the hospital "there was blood samples taken but it was 24 hours after contact so they were not conclusive."

Regel explained the maximum sentence for not abiding by Section 79.2 of the Fisheries Act would be $300,000 per day over the course of two years.

"I realize that would be excessive," he told Justice Edward Wachowich. "However, the court does have room to impose a sentence that is appropriate." Regel listed a number of aggregating factors. There was evidence of excessive pollution, the company didn't abide by water licence requirements and, while it's priority should have been cleaning the site, they were focused on moving equipment and supplies to another site in northern B.C., according to Regel.

"The attitude is horrendous," he said, "Especially considering this was a mine laden with spills and leaks."

Royal Oak was tried ex partie - without a defence counsel - since the company is now bankrupt. The possibility of the fine being paid by former company directors is unlikely, as is the possibility of company directors serving time in prison, unless further charges are laid.