Ultramar v. PNB, 2006 NBQB 40 (CanLII)

This case was heard in the New Brunswick Court of Queen's Bench (Trial Division).

From November 1978 to September 1995, Shell Canada ("Shell") supplied petroleum to a gas bar in Hanwell, New Brunswick. After September 1995, the petroleum was supplied by another company, Ultramar Ltd. ("Ultramar"). In June 1995, it became clear that the site of the gas bar was contaminated with hydrocarbons, and testing indicated that the contamination had occurred before September 1995.

When Ultramar took over petroleum supply to the site, it commissioned an environmental assessment that disclosed the presence of hydrocarbon contamination in the soil and groundwater. It did not report those findings to the Department of the Environment and Local Government, and it continued to supply petroleum to the site. In November 2003, Shell entered into a voluntary remediation agreement with the Minister of the Environment, and in December 2003 the Minister ordered Ultramar to make preparations to participate in the remediation. After Ultramar appealed that Ministerial Order, the Order was withdrawn; however, in April 2004 the Minister issued a second Ministerial Order, which required Ultramar to submit an Environmental Site Assessment and Remedial Action Plan for the site. When Ultramar appealed the second Ministerial Order, the appeal was denied. Ultramar therefore appealed to the New Brunswick Court of Queen's Bench.

After finding that the appropriate standard of review was the patently unreasonable standard, the Court held that the Minister’s decision was not patently unreasonable. Although the evidence demonstrated that contamination occurred on the site before Ultramar began supplying petroleum to the gas bar, there was also evidence that the contamination had increased since Ultramar began its activities on the site. The Court held that it was therefore not patently unreasonable for the Minister to conclude that Ultramar had contributed to the total contamination of the site, and that it should contribute to the remediation activities too. Ultramar's appeal was therefore dismissed.

To read another decision related to this case, go to Shell Canada v. PNB, 2008 NBQB 313 (CanLII).

View the Decision on CanLII: www.canlii.org/en/nb/nbqb/doc/2006/2006nbqb40/2006nbqb40.html

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