Update on Deep Water Recovery (DWR) – July 30, 2025

As many of you know, Deep Water Recovery Ltd. (DWR) previously held a Crown Lease for the foreshore area in Union Bay to facilitate storage of vessels and transportation of ships to the uplands for shipbreaking. That lease has now been terminated, effective July 3, 2025, due to DWR’s failure to meet critical conditions, including:

🔹Providing a $3.2 million financial security deposit

🔹Complying with the Pollution Abatement Order (PAO) issued by the Ministry of Environment and Parks

Because of these breaches, DWR has been directed to cease all use and occupation of the Crown foreshore. The file has now been handed over to the Ministry of Forests’ Natural Resource Officer Service (NROS) for enforcement and public engagement going forward.

⚠️Important: The Pollution Abatement Order issued in March 2024, remains in effect. Even though the lease was cancelled, DWR is still legally required to carry out environmental remediation work on the uplands. That work continues and is being monitored by provincial authorities.

For clarity, DWR does not have legal waterfront access. WLRS has confirmed that the foreshore in front of the property was filled before DWR acquired it, meaning no riparian rights exist. Without the lease, DWR can no longer store or move vessels across the foreshore.

⚓Given the environmental and safety risks of ship-breaking, B.C. maintains strict regulations to protect the coast, community, and marine ecosystems.

We’ll continue to share updates as they become available from the responsible agencies. Therefore: 

📄Summary of the July 2025 Administrative Penalty

The Ministry of Environment and Parks has issued a $72,050 fine to DWR for non-compliance with the Pollution Abatement Order. Key findings include:

🔸Heavy Metal Pollution

DWR discharged water containing extremely high levels of copper, lead, and zinc—up to 2,700% above provincial water quality guidelines—into Baynes Sound, a sensitive marine area.

🔸Failure to Follow Environmental Plan

DWR did not implement its approved Effluent Sampling and Management Plan. This included failing to install treatment systems on time and leaving contaminated material exposed to rain.

🔸Breakdown of Fines

$51,000 for exceeding pollution limits

$21,050 for failing to follow environmental protection measures

Despite DWR’s appeals and arguments, the Ministry upheld its decision based on continued risk to the environment and repeated violations.

⚠️The PAO remains legally binding and enforceable, regardless of the lease cancellation or any ongoing appeals.

We’ll continue to share updates as they become available from the responsible agencies.