LLI GOLINE/NORMAN WELLS - Gas prices in Norman Wells have risen too high for some residents as they consider moving out of town to settle instead in an area with a lower cost of living.

At the beginning of the month, residents began paying for gas at an increase of 30 per cent since Dec. 2009 - to $18.10 per 1,000 metric cubic feet from $14 per 1,000 metric cubic feet.

Imperial Oil set the price hike to come into effect in January, but the town subsidized the cost through its natural gas fund until Feb. 1, because, as Mayor Dudley Johnson said, January is the coldest month.

Johnson and the Norman Wells town councillors met with Imperial Oil representative Jon Murray early this month to discuss the town's concerns about the high gas prices. Johnson pushed for the meeting with the company after he found out several long time residents, a town councillor among them, were thinking about leaving town because they could no longer afford to live there.

With the recent increase, an average family in Norman Wells is expected to spend $2,500 to heat their home this year, up from about $1,960 last year and $1,200 in 2008.

The price was set to increase every year from 2008-2012 in a prior agreement with Imperial Oil.

"Right now the town is looking at what options we have because our residents are very concerned about the high cost of gas and the high cost of living - it's not only gas that's going up, but the power (rates are) going up and all those expenses that other businesses incur because of increased costs, they're being passed on in the prices of things we buy in town, so it's a vicious circle," Johnson said.

He said it doesn't make sense that the town is sitting on top of fuel deposits and yet residents have to pay so much for it.

"We're starting to think it's a price gouge," Johnson said. "If Imperial can't supply us, this little town of 800 people, with gas, how are they going to supply it for the pipeline?"

He said Imperial Oil was there simply to explain to council why the company increased the rates.

"The prices are going up, and they're saying it's because their gas supply is getting lower and it's more expensive for them to supply the town and they also have to accelerate their maintenance upgrades," he said. "Council will be looking at what we can do, but we're not giving up the fight to get prices lowered for gas."

One option, Johnson suggested, is that the town could store and reuse the gas that gets flared off from the oil wells in town.

When asked which other options council is considering to get gas prices lowered, Johnson said: "I don't want to say right now because I'll be showing my end," hinting that talks with Imperial will continue.