SOMBA K'E/YELLOWKNIFE - The proposed Taltson River hydroelectric expansion has been dealt a setback, but how big of a setback remains to be seen.

The federal government has judged an environmental review report on the proposed expansion of the Taltson River hydroelectric facility to be incomplete. - NNSL file photo

The federal government has declined to accept a report from a regulatory board which recommended approval of the project. The report was deemed to be incomplete and sent back for further consideration.

In August, the Mackenzie Valley Environmental Impact Review Board approved the $700-million project, which includes a 690-km transmission link to the NWT's diamond mines, and sent the report to the federal government for acceptance.

"The report fails to fully assess the potential impacts of a transmission line as a necessary part of the development, and therefore, the assessment of the development is incomplete," reads a Dec. 10 letter to the board from John Duncan, the minister of Indian and Northern Affairs Canada.

In his letter, Duncan noted two route alternatives for a transmission line on the east side of Great Slave Lake were presented by proponent Deze Energy Corporation during environmental hearings. One called for crossing the Lockhart River, which the board rejected, and the other for crossing the lake at Fort Reliance, which Deze Energy stated was not its proposed route in its final submission in May.

"As a result, the responsible ministers conclude that the project's transmission line route remains unknown," Duncan wrote, representing ministers responsible for a number of departments with jurisdiction over the project.

Duncan also rejected the board's recommendation to leave the decision on a transmission line to an advisory committee to be set up by Deze Energy.

"Unless expressly authorized to do so, a tribunal may not delegate its powers to another body and there are no provisions in the act to authorize the board to do so," he wrote, referring to the Mackenzie Valley Resource Management Act.

The responsible ministers agree more information is required on a Fort Reliance route from potentially affected aboriginal groups, particularly Lutsel K'e Dene First Nation.

A spokesperson for the proponent is unsure how the latest development will affect the proposed project.

"We'll have to wait and see what the review board has to say and how they intend to proceed before we make any comment about how that impacts us or what happens to the project from a regulatory perspective," said Andrew Stewart, manager of project planning with the NWT Energy Corporation, which owns Deze Energy along with Akaitcho First Nations and the Northwest Territory Metis Nation.

It also remains to be seen how much time will be added to the regulatory process, he said. "We're certainly interested in having this expedited fairly quickly, but it's a little bit beyond our control."

As for the routing issue, Stewart said the preferred corridor remains the East Arm region of Great Slave Lake.

"We're hopeful that will be clarified through this next process, and that we can come to some amicable conclusion on the routing within the preferred route corridor," he said, adding a business case cannot be made to build the transmission line outside the preferred corridor.

Sunny Munroe, acting communications manager with the Mackenzie Valley Environmental Impact Review Board, said the board will respond to Duncan by letter in early January.

Munroe said the additional review process that will take place will be outlined at that time.

The Taltson River hydroelectric site, 64 km north of Fort Smith, produces 18 megawatts of electricity. An expansion would add between 36 and 56 megawatts.

We welcome your opinions. Click here to e-mail a letter to the editor.