Co-op Refinery accused of negligence in 2011 explosion

A Canadian scaffolding company has accused Consumers’ Co-operative Refineries Limited of negligence in the explosion and fire that happened in 2011. 

In a lawsuit’s amended statement of claim filed in 2016, scaffolding company Skyway Canada Limited said it lost $2,771,823.34 in equipment in the explosion, along with $181,529.08 in business losses, for a total loss of $2,953,352.42.

In a report from the City of Regina’s fire inspectors, it was found the explosion was caused by corrosion in pipes. 

The lawsuit said the incident and losses Skyway sustained were caused by negligence and breach of duty by the refinery.

It’s claimed the refinery was negligent in failing to maintain the pipes in a safe condition, and that it was an implied term of the agreement between Skyway and the refinery that the premises would be reasonably safe.

In its statement of defense, the refinery said the agreement with Skyway said, either expressly or implicitly, that there would be no specific duty of care outside the contract, that Skyway would be responsible for loss or use of its property whether there was negligence or not and that Skyway would insure against loss or damage to its equipment.

The refinery said in the statement that Skyway had given it proof that there was insurance on the equipment.

The refinery also denied it was careless in any way, that it failed to maintain the pipes in a safe manner, that it failed to properly monitor the corrosion of pipes, that any of its standards, policies, program or inspection plans with respect to piping were deficient or that any of its inspections or analysis with respect to piping were conducted in a negligent manner.

None of these claims have been proven in court.

In 2013, after the cause of the explosion was found, the refinery was charged with five counts under Occupational Health and Safety regulations.

That the refinery failed:

• to implement a regular general corrosion monitoring program with respect to the pipe with ruptured
• to ensure all equipment in that area was maintained enough to be safe
• to adequately monitor and maintain the pipe and thereby maintaining the health, safety and welfare of workers
• to ensure all work was properly supervised
• to ensure the health, safety and welfare of workers at its plant

In 2015, the refinery pleaded guilty to failing to ensure work was properly supervised and the other four charges were withdrawn. The refinery paid a fine of $280,000.