The association that regulates engineers in B.C. has cleared Active Earth Engineering of any wrongdoing in connection with a contaminated soil facility in a quarry near Shawnigan Lake.
The Association of Professional Engineers and Geoscientists said in a statement Wednesday that its investigation into conflict of interest allegations found “no reasonable or probable grounds” to believe that Active Earth’s engineers acted unprofessionally or violated the association’s code of ethics.
The association said it launched an investigation in 2015 after receiving multiple public complaints alleging that Active Earth’s engineers were in an undisclosed conflict of interest by taking an ownership interest in the project, while also providing technical services to the site’s owners and operators, Cobble Hill Holdings Ltd. and South Island Aggregates Ltd.
The association said it found that Active Earth told the Ministry of Environment about its potential ownership interest in the project early in the approval process.
“The Ministry of Environment delegate advised [Active Earth] that he was not concerned that it would be improper, from the Ministry of Environment’s perspective, for them to serve as ‘qualified professionals’ for the permitting process while at the same time having an ownership interest in the project,” the association said in a statement.
The association also concludes that, while Active Earth discussed a joint venture with the site’s owners, “no agreement was ever reached.”
The Ministry of Environment issued Cobble Hill Holdings a permit in 2013 to receive and store up to 100,000 tonnes of contaminated soil a year at its quarry uphill from Shawnigan Lake.
The permit was upheld by the Environmental Appeal Board in 2015, but faced multiple court challenges before the ministry finally cancelled the permit in February, saying the owner missed a deadline for providing financial security.
Victoria lawyer Richard Margetts, who represents Active Earth, issued a statement on behalf of the company, saying the association’s extensive review confirms that Active Earth always acted appropriately and responsibly in providing professional engineering services.
“The allegations of a conflict of interest were unfounded and based on a lack of understanding of the laws that govern a qualified professional in British Columbia,” the company said.
“The role of Active Earth as a qualified professional was mistakenly assumed to require an independent and arm’s-length participation in a project. In fact, this is not required by the legislation and a qualified professional often has a direct interest in a given project, as an owner or otherwise.
“It is the role of the internal government professionals to be independent and arm’s length when reviewing the work of a qualified professional.”
The company said it discussed its potential ownership in the project with the ministry’s delegate before the permit was issued.
“Active Earth at the time was seeking to convert the value of [its] professional services into an equity interest in the project,” the statement said. “The delegate confirmed legislation does not prohibit the qualified professional from also being an owner in the project, and that similar scenarios are quite common.”
The engineers’ association did not make anyone available for an interview, but said in its statement that investigators reviewed extensive evidence, including documents and interviews, in analyzing Active Earth’s role in the permitting process and its relationship with Cobble Hill Holdings Ltd. and South Island Aggregates Ltd.
“As the regulator for engineering and geoscience in B.C., [the association] takes its duty to uphold the ethical standards of the professions seriously,” Tony Chong, the association’s chief regulatory officer, said in a statement.
“Protecting public safety is our No. 1 priority. In this case, we are confident our robust investigation process worked in the public interest.”
