Lake Okanagan Resort owners handed $47K environmental penalty

After experiencing a catastrophic loss of their property due to wildfire, the owners of Lake Okanagan Resort have been handed a multi-thousand dollar environmental penalty.

On Tuesday, BC’s Environmental Appeal Board handed the owners of the resort, 1782 Holdings Ltd., a fine totalling $47,870.

The decision details five administrative penalties issued by the director under the Environmental Management Act for issues relating to wastewater discharge and other breaching conditions under its permits.

In April 2021, the Ministry issued an inspection report which outlined a number of non-compliances with the permit, including unauthorized bypasses of authorized work and a broken sewer pipe, which resulted in a spill of effluent to the ground in January 2021.

Under the permit, the resort owners (the appellant) can discharge wastewater to the ground, subject to certain terms and conditions, however, the effluent spill was found to have “potential adverse effects” to the sensitive riparian environment near Okanagan Lake.

“The foreshore adjacent to the disposal areas, which is the receiving environment for the discharged wastewater, is listed in the Ministry's ‘Okanagan Large Lakes Foreshore Protocol’ as a red zone area of concern, which indicates that this area has a high habitat value for shore spawning Kokanee,” the decision says.

The owners appealed the penalties on Feb. 28, 2023.

According to the decision, they were not disputing the director’s finding of non-compliance but were disputing the amount of the penalties.

“The appellant argues that the Penalties ought to be reduced because of its consistent efforts to remediate the contraventions which led to the Penalties and to prevent future contraventions,” the decision says.

According to the appellant’s submissions, the current ownership group purchased the company in 2014 and that many of the contraventions began before the current owners managed the resort.

The appellant also said they had taken steps to remediate the contraventions, including spending roughly $100,000 in 2016 to upgrade the wastewater facilities and to plan facility upgrades, but those plans were delayed by the COVID-19 pandemic.

Regardless, Diana Valiela, panel chair for the Environmental Appeal Board, said the penalties were “appropriate in these circumstances.”

Valiela said previous penalties issued to the appeal were not effective in deterring further contraventions and the penalties will serve as a deterrent to the appellant and other holders with similar permits.

“In making this decision, I considered all the relevant evidence and the submission of the parties, whether or not specifically stated in this decision. For the reasons set out above, I deny the appeal and confirm the total of the Penalties is $47,870,” Valiela concluded.

Lake Okanagan Resort was among the 189 properties damaged by the McDougall Creek wildfire that swept across West Kelowna in August 2023.