Alberta regulator launches investigation in Trilogy oil line leak

Tue Oct 25, 2016 2:48pm EDT
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CALGARY, Alberta (Reuters) - The Alberta Energy Regulator issued a formal notice of investigation to Trilogy Energy Corp on Tuesday after a company pipeline spilled around 1,600 barrels of mixed oil and water in central Alberta.

Calgary-based Trilogy reported the oil emulsion leak on Oct. 7, and said it was discovered within its Kaybob Montney development about 15 km (nine miles) northeast of the town of Fox Creek.

In a statement, the regulatory agency said its investigation will confirm the volume of the spill and consider potential enforcement actions against Trilogy.

The regulator had already issued an environmental protection order forcing the company to suspend operations and contain the leak.

Trilogy shares were down 5.9 percent by midafternoon on the Toronto Stock Exchange at C$7.53.

(Reporting by Nia Williams; Editing by Jonathan Oatis)