Who Owns Kearl?

Kearl was designed with a smaller footprint than older oil sands mines. The decision to skip on-site upgrading cut the project's energy intensity per barrel relative to integrated mining-and-upgrading operations, and Imperial cites on-site water recycling among its design features. Through Imperial, the project is covered by the Pathways Alliance commitment targeting net-zero oil sands operational emissions by 2050.

Those design claims sit against a documented environmental record. Tailings seepage at the site has exceeded provincial guidelines for sulphates, iron, dissolved metals, hydrocarbons, and arsenic, and the failure to disclose the releases for months produced regulatory charges and litigation. Imperial maintains the release has caused no damage to local wildlife, fish, or rivers, a position contested by downstream Indigenous communities and environmental groups. Neither Kearl nor Imperial Oil holds independent sustainability certifications such as B Corp status.

Tailings seepage and disclosure failure: In May 2022, Imperial detected discoloured water pooling near the boundary of the Kearl lease, containing tailings-contaminated wastewater exceeding guidelines for multiple contaminants. Neither Imperial nor the Alberta Energy Regulator informed local First Nations, environment officials, or downstream governments for approximately nine months. The public learned of the seepage in February 2023.

Berm overflow: On January 30, 2023, a berm at the northern edge of the Kearl mine overflowed, releasing 5.3 million litres of contaminated wastewater from a catchment pond. The release was reported to the AER on February 4, 2023. The Athabasca Chipewyan First Nation filed a lawsuit against the AER over the failure to provide timely notification, noting its members had harvested in the area for months unaware of possible contamination.

Regulatory penalties and charges: In August 2024, the AER imposed a CAD $50,000 administrative penalty, the maximum base amount under the regulation, for two contraventions of approval conditions. In January 2025, the regulator laid nine charges against Imperial Oil Resources Limited: six under the Environmental Protection and Enhancement Act and three under the Public Lands Act. The first court appearance occurred on February 26, 2025, in Fort McMurray. Environmental groups criticized the $50,000 fine as negligible against Imperial's earnings.

Ongoing status: A federal investigation into the releases remains underway. Imperial reports continued detection of tailings seepage, with shallow groundwater exceeding guidelines found up to 150 meters off-site and contaminated deeper groundwater detected about a kilometer past the lease boundary. An independent review commissioned by the AER found both the company and the regulator followed existing disclosure rules but concluded those rules were weak and undefined.