SAHTU
Husky Energy has withdrawn its application to hydraulically fracture four test wells in the Sahtu region.

Exploratory drilling in the Sahtu had ground to a halt. Husky Energy withdrew its application Thursday for a five-year drilling program that would frack four horizontal wells. Last month, ConocoPhillips announced that it would not fund further drilling at its exploratory site, pictured above, for at least one year. - photo courtesy of Roger Odgaard

The company, which had applied to the Sahtu Land and Water Board for permits for a 2014-18 drilling program, issued a letter of withdrawal last Thursday.

"The company has deferred plans for drilling until 2016-17 and intends to submit a new application to support a revised program at the appropriate time," reads the letter, which has been posted to the public registry on the land and water board's website.

"Husky appreciates the time and effort individuals and organizations have dedicated to providing review and comments on the subject application."

No spokespersons at the company could be reached to give a reason for the decision by press time.

Industry, Tourism and Investment Minister David Ramsay, who is also the head of the NWT's new regulator for resource development where the National Energy Board is not in charge, said Husky indicated that its decision had nothing to do with the territory's regulatory system or any changes associated with devolution.

"It was a corporate decision. They will be back and that's the main thing. It's not a complete withdrawal from the territory," said Ramsay. "We'll have to see what happens with a further application down the road."

The decision was announced first to about 20 community members who attended a lunch-time meeting in Norman Wells Thursday.

"We kind of expected it," said Norman Wells Land Corporation president Cece McCauley, who attended the meeting. "I feel sorry for all those little guys who bought trucks (and other equipment)."

This boom-and-bust cycle is not uncommon during the exploratory stage of development, said Ramsay, but it is precisely this type of uncertainty for workers that should be avoided in the future.

"If development is done in a sustainable, measured way, I think we can minimize the boom-bust cycle," he said.

"If you have a resource, you have to develop it in a way that will benefit people the most over the longest period of time. That is our objective as a government – to see benefits accrue to people over a long period of time and that people have jobs and opportunities."

Husky's withdrawal was welcome news to some, including Sheila Karkagie, who has been actively fighting against the use of fracking in the Sahtu.

"It's a happy day but I'm sure it's not the end. I'm expecting them to have something up their sleeve – they're coming back," she told News/North.

Karkagie heard about the delay on future fracking while attending a workshop on the effects of fracking titled Defenders of the Land outside of Halifax, N.S.

Sitting in meetings were people were discussing dead zones where not even a dog can go into and be safe and $35-million cleanups left to the community to pay for was a fitting place to hear about the withdrawal, she said.

"Hearing these stories definitely gives me more incentive to fight for our land, our water, our air and our animals," she said.

"I know people with businesses and everything are going to be worried about the economy, but it's just such a big risk.

"Fracking just isn't the way. We stand to lose just way too much, so I think our focus should be on our highway where we can generate more jobs and we're not risking our land and our water just to benefit people for a short time."

Board delayed decision

Husky's withdrawal came on the heels the Sahtu Land and Water Boards delaying their final decision on the application until it could be provided with further information.

The above is now a moot point, said board chair Paul Dixon.

"We throw it in the garbage more or less," he said. "If they withdraw the application, that's it. The board does not make a decision on it."

However, the information gathered will inform future application processes, said Dixon.

This coming winter, Husky is still expected to do some work on the region on their access road, and both it and ConocoPhillips are expected to assist with environmental monitoring programs in the future, said Ramsay.

He also pointed out that Shell and Imperial Oil have holdings in the area and could file their own exploratory applications.

"The potential of the area is immense and I'm sure there will be further applications in the future," he said.