Imperial confirms regulator’s extension will ‘avoid winter shut-in’

The Canada Energy Regulator formally gave Imperial Oil permission this week to keep operating its Norman Wells facility beyond the original expiry date of a key permit.

Imperial needs an operations authorization from the CER to run the oil field centred on the town.

That authorization was due to expire on December 31. Imperial had said freshly launched environmental assessment proceedings were likely to stretch well beyond that date, while preventing the issuance of a new authorization until any assessment concluded.

The CER had said it would issue an “interim extension” to allow Imperial to keep running the facility even while an environmental assessment happens. On Tuesday, the regulator followed up with the official paperwork.

Imperial now won’t need a new authorization from the CER until an environmental assessment finishes or is cancelled. (The company has asked the Mackenzie Valley Review Board to reverse its launching of assessment proceedings, a request the review board is considering.)

In a statement to Cabin Radio, Imperial acknowledged the CER’s interim extension would allow it to “remain operating in compliance with all permits and avoids a winter shut-in of our operations and power production.”

A shut-in would have meant closing down all operations in Norman Wells. Imperial had said doing so in winter would risk worker safety.

However, Imperial said another deadline – to renew its Sahtu Land and Water Board water licence – is coming up in March. An environmental assessment would be likely to last beyond that date, too, so Imperial is seeking a similar extension for its water licence.

The company said it was “working to understand how an operating extension will be put in place for the current water licence.”

Imperial’s oil field is central to Norman Wells’ economy – and also to environmental concerns in the region, which formed one reason for Indigenous government the Sahtu Secretariat’s decision to ask for an environmental assessment of Imperial’s request to renew its CER and Sahtu Land and Water Board permits.

Right now, the company is also central to worries about fuel costs.

Imperial, the town’s only fuel supplier, is flying in gasoline and home heating fuel after the summer barge resupply season failed.

This week, residents continued to share messages online documenting costs that in some instances are reaching $8,000 a month or more for heating fuel.

A rally over fuel costs was staged in the town by the Northern Territories Federation of Labour on Thursday evening. The town has also begun a petition calling for more government support.