The study, which the city has yet to be billed for, is expected to cost between $800 and $1,400, confirmed Wayne Bryant, of Bryant Environmental Consultants Ltd., which conducted the assessment.

The study was undertaken because "Neil Myres is investing in Tuaro Dairy (Corp. Ltd.) and before he went into it, he wanted to know if there were environmental concerns," said Mayor Dave Lovell.

Lovell said the city is paying for the study "because the city is the owner of the land the dairy is on."

And although no environmental hazards were documented in the study, the continuing storage and handling of cow manure did raise some questions.

"In assessing the probable threat of a contaminant on the property, the most likely source would come from the manure holding pond. There is concern that manure has the potential to leach into Fiddlers Lake, which can cause high coliform and nutrient concentrations, that can consequently pollute the lake," the study notes.

However, it appears that construction of a dike has contained the raw manure presently, according to the study.

Neil Myres was out of town and could not be reached for comment. Joe Kronstal, Tuaro's major shareholder, was also unavailable for comment.

A "phase 2" environmental site assessment would be required to determine whether migration of manure related contaminants to adjoining properties is occurring.

"Presently, the manure appears to be contained within the periphery of the manure holding pond, with the exception of seepage into two low-lying areas," the study says.

The manure holding pond is located on the south side of the barn.

A neighbor raised the possibility that manure could leach into Fiddlers Lake, which he uses for drinking, washing and bathing.

The site is about nine kilometres from Yellowknife's city centre on Highway 3. The dairy leases the lot -- which lies between the dairy and a small lake -- to gain access to the lake for cleaning water and supplying cattle with drinking water.