Yellowknife (Dec 01/03) - A letter circulating in Norman Wells is raising concerns over the awarding of an Imperial Oil bulk fuel services contract to a local joint venture company.

The letter claims that awarding the contract to SRP, a joint-venture company comprised of Sahtu Contractors, Red Dog Mountain and Pentastar will put other companies in the area at a disadvantage.

Sahtu Contractors is based in Fort Good Hope, Red Dog Mountain is based in Tulita and Pentastar is based in Alberta.

The five-year contract awarded by Imperial Oil was previously managed by Island Valley Oil, which declined comment.

While the letter questions Imperial Oil's commitment to supporting Northern business, Jack Sampson, operations supervisor in Norman Wells, said his company has worked to hire Northern companies owned by and employing Sahtu beneficiaries.

Imperial Oil has taken the matter seriously, flying in senior management to explain the situation to concerned individuals in the area.

Sampson said the contract was issued by Imperial Oil Ltd. Products and Chemicals.

Sampson provided Imperial with a list of potential contract bidders for the five-year bulk fuel services contract.

He does not believe the awarding of this bulk fuel contract will provide SRP with an unfair competitive advantage against other contractors.

"We don't get it (fuel) at cost either. There are pricing agreements established based on volume consumption. Air Canada and Canadian North would get a better deal because they buy large quantities," he said.

"I do not believe it offers an unfair advantage because the contracts typically do not allow that to occur. There are competition laws that prohibit you from doing that," Sampson said.

Sampson also noted, he put forward Ernie MacDonald Land Corporation (EMLC) as another potential candidate for the bulk fuel contract.

"My understanding was that EMLC chose not to pursue it," he said.

In a written response to News/North, EMLC president Todd McCauley said the corporation is making no specific comment at this time.

"The letter in question was not written on behalf of EMLC. We are aware of concerns brought forward by our membership and are scheduled to meet with Imperial Oil later this week to discuss these concerns," McCauley wrote.

"Obviously, this was a very emotional letter and I can sympathize with the writer but anonymous letters do not lend themselves to open communications and the Ernie McDonald Land Corporation does not operate in such a manner."