Safety Company’s Negligence Costs It $1.6 Million
A long-suspended sour gas well blew, sending a plume of poisonous hydrogen sulphide gas into the air. It took the owner of the well 29 days and $24 million to get the well under control. The owner sued the safety company it had hired to control the well and clean up the damage, arguing that its costs were higher than necessary because of negligence and breach of contract. The court agreed. The company had presented itself as the premier well control company in Alberta and charged a premium price for its services, which it then failed to deliver. Its conduct caused a two day delay in controlling the well. Thus, the court ordered it to pay the owner about $1.6 million in damages [Petrobank Energy and Resources Ltd. v. Safety Boss Ltd.,  ABQB 161 (CanLII), March 6, 2012].