LLI GOLINE/NORMAN WELLS - If natural gas supplies dry up in Norman Wells it could put the town in serious financial crisis and may lead to court action against the pipeline owners for causing undue financial stress, said the town's mayor.

A propane aerator was loaded into a Hercules aircraft late last week in Calgary, en route to Norman Wells where the aerator will be reassembled and used to provide a propane-air mixture to keep the community heated. A pipeline break in Alberta has forced Imperial Oil to shut down production at their fields in the Sahtu community, which produces natural gas for the some 800 residents. - photo courtesy of ATCO Energy

The town declared a state of emergency on May 6 after the pipeline connecting the Imperial Oil fields in Norman Wells was shut down after an oil spill in Northern Alberta near Peace River, Alta.

The almost 800-km Rainbow line, owned by Plains Midstream Canada, is connected to the Enbridge-owned pipeline that runs south from Norman Wells to Alberta, was shut down almost two weeks ago after the Plains Midstream Canada line began leaking. The Enbridge line, which pumps oil and natural gas from the Imperial Oil fields in the Sahtu community was also shut down, forcing Norman Wells to declare a state of emergency last week and Mayor Dudley Johnson said said the town extended the state of emergency as of this past Friday.

The office of Premier Floyd Roland and officials with the Department of Public Works and Services and Municipal and Community Affairs are monitoring the situation closely.

Mike Burns, assistant deputy minister for the Department of Public Works and Services, said one of the two tanks Imperial Oil had inspected last Wednesday to store crude oil has been approved and will provide the town with at least five extra days of natural gas – and if the second tank is approved, it will provide at least another five days.

"The other tank they are continuing to do other work on it and they're optimistic the tank will be available," Burns said.

On May 5 Alberta Premier Ed Stelmach criticized Plains Midstream, saying the pipeline would not be allowed to reopen until the cleanup effort surpasses provincial standards, leaving Norman Wells and its residents wondering when the line might be open.

Sahtu MLA Norman Yakeleya spoke of the situation in Norman Wells during the first day back to the legislative assembly Wednesday afternoon, showing concern for the well-being of the some 800 residents in the community.

"I think that's the uncertainty for the residents," he said in an interview after the day's session. "How much is this going to cost me? They need help there. It's causing some financial burden for them, anguish, stress. They have to make some different plans now about how they're going to deal with their money. It's not good for our residents up there.

"Norman Wells is on life support."

Johnson said an inspector was flown in on Wednesday to look at a propane aerator the town plans to use to pump a mixture of propane and air through their natural gas system to provide the town.Burns said as of Friday the aerator in Norman Wells had been approved for use and is operational.

The cost of bringing in an aerator and using it for 21 days had cost the town almost $370,000 in the past for routine maintenance and Johnson is concerned the cost may increase. "We have to fly that thing in, that costs," he said. "We have to get it up, manned 24/7. We have enough propane to give us two weeks and then we have to start flying it in. That's going to cost money. The town itself doesn't have the budget for that. It's beyond what any small town can handle."

ATCO Energy is offering aid to the town to help alleviate some of the stress of having the gas supply cut off. The energy company is flying in the aerator and seven staff members to keep it operational during any possible outage. The equipment was flown in from Calgary and arrived in the town Friday morning at approximately 11 a.m. Burns said the equipment will be reassembled over the next few days and should be operating by early next week.

The federal government offers money to communities, provinces and territories in the wake of disaster relief, but Johnson is concerned it may be two years before they would see any of that money.

"When Fort Good Hope had their disaster it took almost two years to get the money back from the federal government," he said of the flood in 2005 that cost the community almost $1 million. "I hope they streamline that process. We have to spend and use all our resources and wait for the money to be paid back. It's going to put us in a financial crisis. This is going to be serious."

Johnson said if the town has to fork out the money to cover these costs, it may be years before the money comes from the federal

"It'll be longer than sooner, especially with the second break," Johnson said of the unknown timeframe of when the Rainbow line may reopen and with the line break on the Enbridge line near Wrigley late last week. "They're going to want that line inspected and the fact it's underground is troublesome. We're in a precarious situation.

"This other break, this Enbridge break, couldn't have happened at a worse time, just for the optics of it. Even if Rainbow opens, how long will it take to fix this one? We're looking at a month at least. We need to have things in place."

Johnson said the town is looking at all possibilities of dealing with the potential high cost of this emergency – including take the pipeline owners to court.

"We're looking at all options," he said. "Do we have the right to go after the company for the break to get compensated? We can't just handle the financial strain alone."

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