The Canadian Centre for Policy Alternatives (CPPA), a think tank, said Progress Energy had built 16 unauthorised dams in the Montney basin in northeast British Columbia.
Progress energy, however, is disputing this, according to reports in the Canadian media.
Water use is a major environmental issue in northeast British Columbia, as a huge amount of water is needed in fracking.
Fracking involves injecting a high-pressure mix of water, chemicals, gases and sand into the ground to fracture rock to release trapped natural gas.
A Petronas-led consortium – Pacific Northwest – is involved in a multi-billion dollar liquefied natural gas (LNG) project in British Columbia. The project aims to export LNG to Asia.
It has been facing criticism from environmentalists and even scientists since day one.
According to The Tyee, the CCPA report stated that Progress Energy had built at least 16 unauthorised dams in the Montney basin and that these structures were among “dozens” of unauthorised dams built by industry in the region.
The Vancouver Sun reported the CCPA as stating that it was told by the British Columbia Environmental Assessment Office that an investigation was underway on two earth dams built by Progress Energy because they were higher than the allowed 15 metres.
The CCPA said Progress Energy had applied retroactively for 13 water licences on Dec. 23, 2016 for 13 dams, also built without approval, from the British Columbia Oil and Gas Commission.
According to The Tyee, Progress Energy issued a statement saying the dams complied with British Columbia Oil and Gas Commission requirements when built.
“Progress Energy had the required short-term use authorisations in place when the dams were constructed,” it quoted David Sterna, director of external affairs and communications, as saying.
The Tyee said the company was working with regulators to ensure all its dams complied with the 2016 Water Sustainability Act.
The statement said Progress Energy would apply for an exemption for the dams under the Environmental Assessment Act. The provision allows for projects to be exempted from review.
The Vancouver Sun report said the British Columbia environment ministry declined to comment on the Environmental Assessment Office’s investigations into the two dams exceeding 15 metres height.