Limitation Periods And The Environmental Protection And Enhancement Act

The Alberta Court of Queen's Bench (the "Court") has added to the relatively sparse case law on whether an extension to a limitation period will be granted under section 218 of the Environmental Protection and Enhancement Act, RSA 2000, c. E-12 ("EPEA") in Paramount Resources Ltd v Grey Owl Engineering Ltd, 2022 ABQB 333. Through this decision, the Court clarified the application of section 218 of the EPEA and found that it cannot be used to extend limitation periods in situations where a party liable for remediation costs seeks contribution from another party.

Section 218 allows a judge to extend a limitation period where the allegation is that the release of a substance into the environment has caused an adverse impact. The purpose of section 218 of the EPEA is to balance policy considerations of the polluter pays principle and the difficulty plaintiffs may face in "discovering" environmental contamination, against prejudice to defendants in defending