Imperial Oil 'disappointed' after N.W.T. regulator goes ahead with environmental assessment

Imperial Oil says a regulator's decision to carry on with an environmental assessment of its entire operation in Norman Wells, N.W.T., is "disappointing." 

Sahtu Secretariat Incorporated (SSI) triggered the environmental assessment at the end of September, citing rights laid out in the Sahtu land claim. Imperial Oil argued against the assessment using federal legislation, and asked the Mackenzie Valley Review Board to scrap it. 

Earlier this week, the review board ruled in SSI's favour. 

"We continue to work to understand and clarify recent regulatory decisions and assess next steps," said Alex McBrien, a spokesperson for Imperial Oil, in an email to CBC News. 

Though the environmental assessment is for the entire operation, it actually started with two different authorizations that Imperial Oil needs to operate: a water licence renewal from the Sahtu Land and Water Board (SLWB) and an operations licence from the Canada Energy Regulator (CER). 

The CER has since granted the company an interim authorization to operate until the environmental process is over, but its water licence — set to expire in early March — is still hanging in limbo. 

"Without a water licence extension, Imperial will be required to shut-in its operations during winter and cease power production for the Norman Wells community," said McBrien. "Given the water licence extension uncertainty, Imperial is preparing to move equipment and materials required for shutdown on the winter road in early 2025."

In a letter to the land and water board earlier this month, the company asked for an interim water licence and said that a winter shut in poses "heightened risks" to the safety of workers and the environment. It would also have consequences for the region, the company said, because it would disrupt businesses and employment. 

The Sahtu Land and Water Board said last week it would contact the company about next steps after the review board issued its decision about the environmental assessment.

Indigenous leaders call it a 'huge win'

Indigenous leaders in the Sahtu region, meanwhile, are pleased with the review board's decision and said that it shows the strength of their rights under the Sahtu Agreement. 

Charles McNeely, the chairperson for SSI, said the land claim settled in the '90s has become a "backbone" for his community. It's something they "can really depend on," he said. 

"This sets the stage … for [Imperial Oil] to come to us now, they can't just come to our land and [do] whatever they want," he said. "You come see us if you want to do work in our backyard."

Colin Pierrot, the chief in the Sahtu community of Fort Good Hope, described it as a "huge win." 

Imperial Oil drills for oil under the Mackenzie River in Norman Wells. Pierrot's community is downstream of Norman Wells, and it has concerns about the quality of the drinking water it is pulling from the Mackenzie River. McNeely said that's one of the main reasons it's triggered the environmental assessment in the first place. 

Lawyer says ruling sends a message

Larry Innes, an N.W.T. lawyer who often represents Indigenous communities, said the review board "came down strongly" in its decision to uphold the Sahtu's treaty rights. 

"It accords with what has been certainly the trend in courts since the mid-2000s, to try and give greater weight to treaties in accordance, not only with the words that they use, but with their intents and their purposes." 

He said it also sends a clear message to developers. 

"Indigenous governments now clearly hold a hammer to ensure that those developments can be referred to environmental assessments if they're concerned about the impacts within their treaty rights," he said. 

Innes said there are two things that can happen now: Imperial Oil might take the matter to court, or the review board will carry on with its environmental assessment. 

"I'm probably as curious as all of your listeners in knowing what Imperial Oil is going to do next," he told CBC News.