Service NL has confirmed that oil has spilled into the Corner Brook Stream from the Mill's power plant.
About three litres of lubricating oil went into the stream on Monday. It spilled from the power generating station.
People walking on the Steam Trail which surrounds the stream noticed the oil in the pond along with a powerful odor.
It was a leak from generator brakes.
An the investigation is ongoing to determine what happened and Corner Brook Pulp and Paper will not restart and impacted equipment until it is safe to do so.