Environmental Inspections In Canada: Recent Case Highlights The Potential Consequences Of Failing To Cooperate

Canadian companies operating in environmentally sensitive industries are subject to highly regulated regimes. Federal, provincial or local government officials may carry out routine inspections or respond to specific incidents using broad statutory powers.

Recently, regulators are relying on administrative monetary penalties to address findings of non-compliance. In more serious circumstances, pursuit of quasi-criminal liability has expanded to a wide range of corporate actors. Companies can protect against reputational harm and financial loss by implementing plans and policies, as well as training management and staff, to prepare for when regulators come knocking.

There is a critical distinction between an "inspection" and an "investigation" by a regulator. Environmental legislation often imposes a legal requirement to comply and cooperate with an inspection, and the failure to comply with an inspector'srequest can attract financial consequences. Conversely,