?  Background:

• Paramount seeks coverage under its pollution liability insurance policies following a release of pollutants from a low vapour pressure (LVP) pipeline at the Resthaven facility in Alberta.
• The Resthaven facility was jointly owned by Paramount and ConocoPhillips (BRC) Partnership (Conoco), with Conoco operating the facility.

?  Incident Details:

• On April 21, 2016, anomalies in the volume data suggested a leak in the LVP pipeline.
• Despite pressure tests indicating a significant loss of pressure, Conoco continued to operate the pipeline until June 9, 2016, when a hydrocarbon spill was visually detected.
• The leak resulted in extensive environmental damage, with the cleanup ordered by the Alberta Energy Regulator (AER).

?  Legal Issues:

• Paramount claimed that Conoco detected the leak within the 720-hour window required by the insurance policy for coverage.
• The insurers denied coverage, arguing the leak was not detected within the specified timeframe.
• Additional arguments included whether Paramount admitted in prior arbitration that the leak was detected on June 9, 2016, binding it to this position.

?  Court’s Analysis:

• Policy Interpretation: The court focused on the interpretation of "detected by any person" within the policy.
• Evidence of Detection: The court found that volume discrepancies and pressure losses should have led Conoco to shut down the pipeline earlier.
• Regulatory Compliance: Conoco's actions violated mandatory industry standards for leak detection and response under CSA Standard Z662.

?  Decision:

• The court ruled in favor of Paramount, determining that the leak was indeed detected within the 720-hour period based on the available data and regulatory expectations.
• Paramount was awarded coverage under the insurance policies for the settlement amount with Conoco and other related costs.
• Specific amount was not provided.