Burlingame suspended board business earlier this month after members of a water board panel passed a resolution that asked him to stand down until the question is resolved.
Some members of the board are concerned that Burlingame's status as a full-time employee of Indian Affairs and Northern Development might make board decisions open to legal challenge.
The internal board problems threaten to derail mineral exploration in the Northwest Territories, warns the president of a Vancouver-based mining company.
"This doesn't bode well for the NWT," said Tim Coupland, president of Alberta Star Development Inc., after water board chair Todd Burlingame suspended business last week.
Junior mining companies are "voting with their feet and dollars and are moving their projects to Nunavut," said Mike Vaydik, executive director of the Northwest Territories and Nunavut Chamber of Mines.
"It's difficult to quantify, but I've been told by a number of junior companies that they are finding it a lot easier to explore in Nunavut," Vaydik said. "There seems to be a more can-do attitude at the Nunavut water board. They seem to be interested in timely responses to requests for permits."
Problems at the NWT water board "are longstanding," Vaydik continued. "Based on our experience with Todd Burlingame at the Mackenzie Valley Environmental Impact Review Board, we are hopeful that he can make positive changes."
Alberta Star was one of 20 companies left hanging when members of a board panel voted to ask Burlingame to stand aside until lawyers decide whether he might be in conflict of interest.
Alberta Star has been active in the Northwest Territories since 1996 and has "an impeccable record environmentally," Coupland said.
"If we can't get a simple permit done, then we'll have to go to a jurisdiction that is mining-friendly. That's pretty much everywhere else in Canada, these days."
Alberta Star has committed to spending up to $5 million over the next two years exploring for uranium, copper and gold near MacInnis Lake, 275 km southeast of Yellowknife.
The company has already spent $175,000 to book aircraft for this year's exploration program and needs the permit by mid-May if it is to proceed, Coupland said. "We commit to our work season six months in advance. If we're not able to work, we'll have to seek some form of restitution," he said. "We expect to get it. If we don't, this will have serious repercussions for the mining industry in the Northwest Territories."