In a continued effort to halt a company’s shipbreaking operations in the region, the Comox Valley Regional District has amended its civil claim with the Supreme Court of B.C. against Deep Water Recovery Ltd. and Union Bay Industries Ltd.
Deep Water Recovery (DWR) has been breaking down or dismantling end-of-life ships in Union Bay since 2020. But the company’s lack of compliance to environmental regulations has put DWR under a spotlight.
It’s garnered complaints from concerned citizens and has received over two dozen non-compliance notices from the Ministry of Environment under the Environmental Management Act.
The CVRD’s latest amendment filed on March 25, 2026 builds on its initial claim filed in 2022 stating as the company’s operation at the property are not allowed according to the district’s Industrial Marine (IM) Zoning requirements for land use.
The district filed in court after receiving several complaints on the Deep Water Recovery’s ship recycling operations at 5084 Island Highway in Union Bay.
On Thursday, Alana Mullaly, CVRD’s general manager of planning and development services made the public aware of the amended filing saying “the environmental health of the Baynes Sound is important to the district and our community.”
However, few details were provided as it is an active matter before the court.
“Since the case is ongoing, the CVRD is limited in what information can be shared publicly and cannot comment on the specific details of the proceedings,” the CVRD said in a release.
Province cites lack of compliance and enviromental stewardship, cancels Crown lease
In the summer of 2025, the province cancelled the company’s Crown lease saying its operations were polluting Baynes Sound. It said company lacked the regulatory compliance, operational responsibility, or environmental stewardship required to justify entrusting the use of Crown land to manage and dismantle end-of-life vessels.
Leading up to the cancelled lease, the province says the company failed to comply with the a Pollution Abatement Order (PAO) issued by the Ministry of Environment in 2024 and later amended in May 2025.
This order comes after a series of onsite environmental inspections by ministry staff initiated back in 2022.
During that time, reports showed a lack of proper drainage and treatment systems resulting in various effluent draining directly to the marine environment.
In August 2022, staff reported “wood debris; steel scrap; unusable rusted material; septic system discharge; recreational vehicle effluent and surface water effluent. It was also confirmed at this time that there were no treatment systems connected to the Sumps, which are designed to discharge directly to the marine environment when full.”
There were also later tests that showed exceeding levels of copper, lead, zinc and cadmium under the BC Water Quality Guidelines Aquatic Life – Marine.
After issuing the cancelled lease notice, Deep Water Recovery Ltd. was given 60 days to vacate the site and no longer access its upland operation. That 60 days expired in September 2025.
The cancelled Crown lease relates to the foreshore or water, not the land. Its land operations are under the jurisdiction of the Comox Valley Regional District.
Deep Water Recovery’s operations have garnered attention from all levels of government as well as environmental groups and concerned citizens.
The district says it “will provide factual updates as permitted.”
–With files from Dean Stoltz and Kendal Hanson
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