Hudson Bay keeps pressing for plywood mill cleanup solution

Nearly six years after concerns first emerged about the future of the former Hudson Bay plywood mill, municipal officials and community volunteers continue pressing the provincial government for a solution that would see the property cleaned up and redeveloped without placing the cost on local taxpayers.

The issue dates back to 2019, when Hudson Holdings took ownership of the facility. After the company entered bankruptcy proceedings in August 2020, the site was left abandoned with unresolved environmental liabilities and growing concerns about its future.

Today, the town’s Plywood Mill Committee includes Mayor Betty Lou Palko, CAO Amanda Purves and councillor Brent Dyck, as well as community members Tracy Hanson, Dean Hanson, Lyle Bouvier and Mel Cadrain. The group has spent years gathering information, meeting with government officials and advocating for a path forward.

Committee members maintain that because the environmental impacts resulted from private industrial operations, taxpayers should not be responsible for remediation costs.

Town officials learned that Hudson Holdings completed a Phase II Environmental Site Assessment and a Decommissioning and Reclamation Plan before entering bankruptcy. The company was also required to provide approximately $465,000 in financial assurance for future environmental cleanup but went bankrupt before those funds were posted.

The Town of Hudson Bay said that for years, committee members explored whether the Saskatchewan Impacted Sites Fund could help address the property. However, the Ministry of Environment now says the site does not qualify as an abandoned impacted site because responsible persons have been identified under The Environmental Management and Protection Act, 2010.

According to the ministry, responsibility for environmental impacts may extend beyond the bankrupt company to current or former owners, operators, corporations, directors and other parties that contributed to contamination at the site.

The ministry confirmed it has identified and communicated with responsible parties and is advancing the impacted sites process. However, it declined to identify those parties publicly, citing the ongoing nature of the file.

“The Ministry of Environment continues to work with identified responsible parties to address environmental impacts in accordance with Saskatchewan regulatory requirements,” the ministry said in a statement.

The ministry added that determining responsibility can be a complex process, particularly when ownership has changed over time and agreements regarding environmental liabilities exist between private parties.

While the ministry would not discuss specific actions being taken with responsible persons, it said its focus remains on ensuring those parties meet their obligations under provincial legislation.

The ministry also said that based on currently available information, the site does not pose an environmental risk to the surrounding community.

For the town, one of the largest concerns involves the possibility of acquiring the property through tax enforcement. While municipalities are generally exempt from historical environmental liability under provincial legislation, town officials say taking ownership would create other challenges.

Under Saskatchewan’s tax enforcement rules, a municipality that acquires the property would ultimately have to sell it through a public auction or public tender process.

Town administration says that scenario could leave the community with little control over who eventually acquires the property or how it is developed.

Administration also noted that interest in the site has increased in recent months, with several demolition companies, peat moss producers and industrial operators contacting the town to inquire about viewing the property and discussing potential opportunities. However, because the municipality does not own the site, officials said its ability to participate in those discussions remains limited.

Committee members also point to the time and cost invested in pursuing a solution. Since 2022, representatives have travelled to Regina three times to meet with three different environment ministers while advocating for provincial assistance.

Town administration says its preferred outcome would be for the province to work with the community to ensure the property is cleaned up and returned to productive use without environmental liabilities attached.

“Our goal has always been to see this site cleaned up and returned to productive use without placing that burden on the taxpayers of Hudson Bay,” committee members said.

Although no final resolution has been reached, both the town and the ministry say work on the file continues.

For residents, the abandoned plywood mill remains more than an aging industrial property. It is a symbol of lost jobs, unrealized economic opportunities and an ongoing effort to ensure responsibility for environmental cleanup falls on those responsible rather than local taxpayers.