Debates of May 11, 2007 (day 5)

Thank you, Mr. Speaker. Mr. Speaker, I want to continue with my question to the Premier in terms of Imperial Oil dropping the bomb in Norman Wells by cutting the fuel supply off to the town of Norman Wells. I want to ask the Premier if he would inform me, inform the House, inform the good people of Norman Wells in terms of what specific things this government is going to do to help residents of Norman Wells to look at possibly a conversion of the household products to keep their homes heated and operational once Imperial turns the tap off April 1, 2008. Thank you.

Thank you, Mr. Yakeleya. The honourable Premier, Mr. Handley.

Return To Question 62-15(6): Future Of Norman Wells Gas Field

Thank you, Mr. Speaker. Let me say again, in terms of power, the Power Corporation has an agreement with Imperial to supply energy for power until 2010. When it comes to homes, then Imperial will no longer provide gas to the domestic users after April 2008. The town has advised us that they have hired a consultant who will be taking a look at the options. Our departments are looking at this situation. As soon as we have information together, we have committed to meeting with the town and, at that point, we will determine which operation is the best to put forward. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Supplementary, Mr. Yakeleya.

Supplementary To Question 62-15(6): Future Of Norman Wells Gas Field

Thank you, Mr. Speaker. I think the town of Norman Wells and the residents of Norman Wells appreciate the Premier’s comments in terms of how this government is going to help with the natural gas supply. Mr. Speaker, the town of Norman Wells made comments to myself and Members of this House that when we had a meeting with them in terms of NCPC, the power rates would go up by using the NCPC supply. They want to maintain a certain level of affordable rates and again I am asking the Premier in terms of helping the people in Norman Wells make a conversion of their hot water tanks, electricity, fuel, is it something similar? Is Cabinet discussing something similar where the town of Inuvik had this situation and the Government of the Northwest Territories helped out the residents of Inuvik? Thank you.

Thank you, Mr. Yakeleya. Mr. Handley.

Further Return To Question 62-15(6): Future Of Norman Wells Gas Field

Thank you, Mr. Speaker. As well as the concerns by the residents in Norman Wells, we also have some issues that we have to deal with ourselves as a government and that has to do with the school, the health centre, the airport. We have a lot of government facilities there, so we are working on that side.

With regard to the Power Corporation, we should be fine until 2010. We have a diesel generator there, but after 2010 if we had to produce our own power, then it may be necessary to add another generator in there. Of course, with community-based rates, that would have to be borne by the users, Mr. Speaker. That’s looking forward to post-2010. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Supplementary, Mr. Yakeleya.

Supplementary To Question 62-15(6): Future Of Norman Wells Gas Field

Thank you, Mr. Speaker. Thank you, Mr. Speaker. Mr. Speaker, the use of diesel means that then once a decision has been made by the town of Norman Wells, the power rates would go up and we would convert over 200 homes into diesel that are on natural gas now. Should the pipeline go through and Imperial says we are opening shop again, we have natural gas and you have to convert back if they want to go back to natural gas. That’s what the town is asking. Is there some assistance if they choose not to go into the diesel because of the power rates? Do they have some assurance that the Government of the Northwest Territories will help them like they did with the town of Inuvik in converting their household furnaces and heaters into propane if they wanted to go with propane? Would the government help the town of Norman Wells? Thank you.

Thank you, Mr. Yakeleya. Mr. Handley.

Further Return To Question 62-15(6): Future Of Norman Wells Gas Field

Thank you, Mr. Speaker. There are a number of options to look at. One of them would be to switch over and begin to produce power and so on with diesel. Another one would be to just simply switch to propane and if we believe gas is coming through the pipeline anyway and it’s going to be a matter of five or six years, then it’s much less expensive to switch the units over to propane and use propane for a few years and if natural gas is available, go back to natural gas rather than go to the expensive route of diesel. Mr. Speaker, a consultant has been hired. Our people are looking at it. We will see what the options are. Then we will meet with the town and with them, decide what is the most appropriate and what level of support might be necessary. Thank you.

Thank you, Mr. Handley. Final supplementary, Mr. Yakeleya.

Supplementary To Question 62-15(6): Future Of Norman Wells Gas Field

Thank you, Mr. Speaker. Mr. Speaker, I think the residents of Norman Wells would sure appreciate hearing from this government that some support may be considered. Mr. Speaker, the question I would ask to Mr. Premier regarding Imperial dropping the bomb on the town of Norman Wells in terms of this decision, we had a deal with Imperial Oil and I say we, the Norman Wells preliminary agreement that was settled. What type of assurance do we have when we sign on with Imperial for future development such as the pipeline? What type of assurance will we have that this won’t be done and our children won’t be dealing with this type of issue the next 20, 30 or 40 years? Thank you.

Thank you, Mr. Yakeleya. Mr. Handley.

Further To Question 62-15(6): Future Of Norman Wells Gas Field

Thank you, Mr. Speaker. I think if people think back, they shouldn’t be 100 percent surprised by this decision because when they hooked up, they knew it was going to happen someday. Mr. Speaker, we are looking, as we negotiate on the pipeline, the feasibility of connecting communities to gas from that pipeline. Mr. Speaker, even that will run out some day. I will go back to my favourite fuel and that is hydro fuel. I think we have to, in the long term, look at hydro generated power that is there as long as the rivers flow, and that is going to be our long-term source, Mr. Speaker. But that is long term. Immediately, we will work with the town and come up with what makes most sense. Thank you, Mr. Speaker.