Fort Good Hope groups want shorter Imperial emergency licence

The K’ahsho Got’ine Committee says Imperial Oil should be given an emergency water licence that lasts long enough to safely shut down its Norman Wells operations, and no longer.

The Sahtu Land and Water Board is in the process of issuing a new licence that would avoid Imperial’s existing licence completely lapsing in March.

Any oil, gas or mining operation needs a water licence among other permits to operate in the NWT.

A longer-term licence renewal process was under way for Imperial last year when it was frozen by the beginning of an environmental assessment requested by the Sahtu Secretariat.

The land and water board is considering the granting of a three-year emergency water licence that would allow Imperial to keep operating its Norman Wells site while the environmental assessment is carried out.

Late last month, Fort Good Hope’s K’ahsho Got’ine Committee said that was too long – and Imperial’s new licence should involve just enough time to safely shut down its Norman Wells operations.

The committee represents the Fort Good Hope Métis Nation Land Corporation, Fort Good Hope Dene Community Council, Fort Good Hope Renewable Resources Council, K’ahsho Got’ine Foundation and Yamoga Lands Corporation.

“K’ahsho Got’ine do not trust the Norman Wells Operations and this lack of trust impacts the exercise of K’ahsho Got’ine Rights,” the committee told the land and water board in a letter, outlining concerns about the effect of Imperial’s facility on animals and the environment.

“The proposed three-year term of the emergency licence will allow the Norman Wells operations to continue to impair our K’ahsho Got’ine rights without meaningful accommodation.”

The committee argued that the risks presented by the site were demonstrated in July 2022, “when unprecedented dredging of the Mackenzie Riverbed uncovered Flowline 490 and caused a spill into the Mackenzie River.”

A much shorter licence term would still be long enough for Imperial to plan a shut-in for the summer of 2025, the committee suggested, avoiding safety concerns avoiding with closing down the site in winter.

Rather than allowing Imperial to continue operating through the environmental assessment, the committee said “continued operations pose a significant threat to our K’ahsho Got’ine rights and way of life.”

While other communities, like Norman Wells, have highlighted the economic impact of Imperial’s oil field – which is worth millions of dollars in tax revenue to the town – the Fort Good Hope groups said they saw no such benefit.

“Imperial has not partnered with K’ahsho Got’ine businesses and has not entered into any financial agreement to support the long-term needs of our community,” the committee wrote.

“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 concluded: “The proposed three-year term is not balanced with the risks of continued operations and is not proportional to the time required to mitigate the risks of a shut-in of production.”

‘Perception’ of negative impact

In a response last week, Imperial said most governments, businesses and residents in the Sahtu supported the idea of a three-year licence.

“Imperial recognizes a perception in the community that the NWO” – the Norman Wells operations – “has a significant negative impact on the health of the Mackenzie River, its ecosystem and human health,” the company wrote.

“Imperial is, however, not aware of any established connection between the NWO and the observed changes brought forward by KGC.”

The company said NWT government analysis suggested a shut-in at the site – in other words, a closure designed to be temporary so that operations could later restart if required – would cause “significant hardship” in the region.

Imperial also took issue with the committee’s statement that Fort Good Hope had not benefited from its Norman Wells oil field.

“In the past 10 years, Imperial has provided over $1.6 million to Fort Good Hope through direct support in addition to employment and training opportunities,” the company wrote.

Imperial added that a cash donation had been made for wildfire training and equipment in Fort Good Hope, while employees had volunteered at an evacuation centre, housed evacuees and donated supplies during the community’s 2024 wildfire evacuation.

“Imperial continues to hold open offers to KGC for funding agreements to negotiate longer-term benefits and capacity funding agreements and remains willing to meet for further discussions,” the letter stated.

“Interested KGC businesses or individuals are welcome to contact our Indigenous business development team who can help them in finding commercial opportunities with Imperial.”

A public hearing on the matter of the emergency licence is scheduled to be held later this month, though it may be cancelled if it is deemed unnecessary. The parties were expected to meet at a pre-hearing conference on Monday.