SOMBA K'E/YELLOWKNIFE - The Mackenzie Valley Land and Water Board has granted an emergency exemption to the Northwest Territories Power Corporation (NTPC) to begin construction to replace the failing Bluefish dam, avoiding a date in territorial court.

In a letter sent to the corporation from the board, dated Oct. 7, the board stated it was "persuaded that there are limited options available for (the corporation) to respond to the unexpected and accelerated deterioration of the dam over the last year" and evidence provided by the corporation and EBA Engineering Consultants Ltd. indicated "that the dam is currently in a critical condition."

Leakage from the dam's walls has increased almost 400 per cent in the past two years, and accelerated decay of the dam's timber spillway and crib will continue to rapidly deteriorate and cause major problems.

Mike Bradshaw, director of corporate communications for NTPC, said they are pleased the board came around and approved the go-ahead.

"We're grateful they were receptive to current information and that really helps," he said.

"We still need to comply with all the environmental requirements but now we know we can go ahead with the construction in the spring."

The consultants' report said the failure of the dam, built in the 1940s to provide power to the Con Mine gold mine, was imminent but there was no way to determine how much life it has left. The board said it determined emergency conditions existed because any repairs to the existing dam might not be successful and "could lead to further decline of the stability of the dam."

Earlier this month, NTPC threatened legal action against the board for denying it emergency exemption because the board viewed the replacement as a new dam and believed it should go through the same process.

The environmental assessment and extensive studies that would go along with it for NTPC to go ahead would have set back the replacement of the dam, located 20 km north of Yellowknife, at least a year if not more.

A delay would have stopped the corporation from putting in a winter road to the site to bring in necessary equipment to begin work on the $17-million project.

"This enables us to move forward with the pre-qualification and tender process this fall and we'll build the ice road and get the equipment and materials to site, including a camp for workers," Bradshaw said.

The corporation expects the dam to be operational by 2011.