Sahtu leaders divided on Imperial Oil's emergency 3-year water licence renewal

A committee of Fort Good Hope leaders says it doesn't trust Imperial Oil's operations in Norman Wells, N.W.T., and it's opposing the company's application for a three-year water licence renewal. 

The K'ahsho Got'ine Committee — representing the Fort Good Hope Dene, the Fort Good Hope Métis, the Fort Good Hope Renewable Resources Council and the Yamoga Land Corporation — presented at a public hearing Wednesday on Imperial Oil's application.

Fort Good Hope sits directly downstream from Imperial's operation in Norman Wells and the committee shared concerns about the health of the Mackenzie River, including things like reduced fish populations, the risk of oil seeping into the environment, animal and fish deformities and low water levels. 

Collin Pierrot, chief of the Fort Good Hope Dene band and part of the committee, said they're fighting for the health of their people. 

"We're fighting for clean drinking water … to protect the land, to make sure that we have healthy fish in the Mackenzie River, to make sure that animals are coming to the river drinking the water," Pierrot said.

Imperial Oil's current water licence expires on May 3, after Canada's northern affairs minister approved a 60-day extension earlier this month. Imperial says without the three-year renewal, the company is at risk of a sudden shut down, putting its infrastructure, the environment and the region's economy at risk.

Other leaders in the Sahtu are speaking up in support of the company's licence renewal, saying it's imperative for the livelihood of residents.

Norman Wells Mayor Frank Pope was quoted in the company's own presentation on Wednesday, saying "the loss of Imperial, without the time to plan for our future, would severely impact our future as a viable community."

In his own presentation, Pope said the company's contribution to his town's tax base — it makes up about 69 per cent of it — helps fund water, sewer and recreation services. He also said Imperial contributes to the town's population, which means more support for local businesses and bigger transfer funds from the federal and territorial governments, because they're based on population. 

Sahtu MLA Danny McNeely also supports Imperial's licence extension. In previous letters of support, McNeely has said Imperial's operations in Norman Wells is vital for the local and regional economy.      

On Thursday, McNeely told CBC News his support for Imperial is so that the company can properly scale down their operations, without causing the harm to the environment and infrastructure that the company says would come from a sudden closure.

"The Norman Wells oil field operation needs to go ahead so they can do a shut-in," McNeely said. 

Risks outweigh benefits, Fort Good Hope leaders say

The K'ahsho Got'ine Committee argues Imperial Oil does not need a three-year licence to properly complete that shut-in.

In a Jan. 28 letter to the Sahtu Land and Water Board, it says the company should be granted a shorter-term licence extension, just for the period required to mitigate risks. It didn't say what that shorter timeline should be.  

The committee says it recognizes Imperial's contributions to employment and revenue in the region, but it says that the impacts of an emergency shut-in have been exaggerated. 

"Imperial has also stated that it plans to start closure and reclamation for the Norman Wells Operations within the next five to 10 years. As a result, a significant shift in the local and regional economy is inevitable and any positive economic benefit of current operations is short-term," the committee said.

"We argue that the short-term economic benefit of the Norman Wells operations does not outweigh the adverse impacts of the Norman Wells operations on the environment and K'ahsho Got'ine rights."

In a Feb. 5 response, Imperial said a shorter time-frame to close down operations would not be in the best interest of residents of the region. It also acknowledged the committee's points on the environmental impact of its operations, but said it's not aware of any connection between changes to land and water in the region and its operations.

In its presentation at the hearing this week, Imperial said the water licence extension would continue to bind them to environmental monitoring of the Mackenzie River, fish health, groundwater and surface water run-off. 

The K'ahsho Got'ine Committee has until Feb. 26 to submit its closing arguments to the Sahtu Land and Water Board, then Imperial Oil will submit its closing arguments by March 4. The board then has until March 14 to make its recommendations to the federal minister of northern affairs. 

The minister will have up to 90 days to make a final decision on whether the three-year licence is granted.