Sahtu regulator set to grant Imperial emergency licence

The Sahtu Land and Water Board appears set to fast-track a renewed water licence for Imperial Oil’s Norman Wells facility “to prevent a potential emergency.”

Imperial had been in the process of renewing its existing licence, which expires in March, when the Sahtu Secretariat referred its facility to environmental assessment last September – pausing the licence renewal.

The oil giant argued that if its licence were allowed to expire, it would be forced to carry out a tricky and potentially dangerous winter shutdown of its Norman Wells operations. That would risk the safety of staff, the company said, and shut off revenues worth millions of dollars to the local community.

In a Monday letter, the Sahtu Land and Water Board said it had been convinced that “an expedited process” was in the public interest.

The renewed licence is expected to have a three-year term, which the regulator has said should be enough time to cover the environmental assessment.

While important for the short-term continued operation of the Norman Wells facility, renewal of the water licence is a smaller regulatory proceeding than the environmental assessment, which is likely to take many months and offer more comprehensive scrutiny of Imperial’s operations.

The Sahtu Secretariat had supported the issuance of an emergency water licence while the assessment takes place.

“While environmental assessment remains necessary,” the secretariat’s lawyers wrote to the land and water board, the secretariat recognized “the potential impacts” if the facility had to be hastily shut down in winter.

The Norman Wells oil field is expected to have five to 10 years’ remaining life.

Two other environmental assessments involving the oil field are either expected or active.

One, inspecting a proposal to fix pipelines under the Mackenzie River, has begun. The other, assessing the proposed closure plan for the site, is anticipated to start in the next few months.