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NORTHWEST TERRITORIES
The territorial government has denied Norman Wells funding to cover the costs of its emergency power use, saying the town has too much money in the bank to qualify.

Yakeleya said putting emergency measures in place to ensure Norman Wells wouldn't go cold and dark cost it $700,000. - NNSL file photo

"The territorial government looked at it, said (Norman Wells) had a healthy, healthy surplus and, 'By golly, they should be able to pay for that themselves,'" said Sahtu MLA Norman Yakeleya.

The town was forced to declare a state of emergency and install an emergency propane power system after the Rainbow Pipeline, which connects to the Enbridge pipeline out of Norman Wells, leaked on April 29.

Yakeleya said putting those emergency measures in place to ensure the town wouldn't go cold and dark cost it $700,000.

He said the denial of funding shows how the policy regarding applications for extraordinary funding, which the town filed after declaring a state of emergency, can be bent, and sets a dangerous precedent.

"They're being penalized for good fiscal management. The government is finding an easy way out. They found a loophole to rationalize the decision to make the town pay for their responsible, disciplined financial management," he said.

As a result, Yakeleya said, programs and services in Norman Wells could face cutbacks.

"I don't know if the government has really thought about this. There's people there for God's sake. They're like you and I, and they call Norman Wells home. They want programs. They want playgrounds. They want services," he said.

In the Aug. 9 council meeting in Norman Wells, councillor Ed Sheppard asked if there was a way to appeal the government's rejection of its extraordinary funding request. Staff was directed to research the possibilities, although a second application has yet to be filed.

In 2009 the town had a surplus of nearly $110,000, in 2010 it had a deficit of more than $300,000 and in 2011 it has a projected balanced budget.

In the legislative assembly Aug. 19, Premier Floyd Roland said that under the policy, Norman Wells didn't qualify.

"It did not fit our programming. We have since worked with the community to try to come up with another solution," he said.

On Aug. 16, Energy Resources Conservation Board of Alberta gave conditional approval for Plains Midstream Canada, the company that operates the Rainbow Pipeline, to reopen it.

Prior to resuming operation, the company has to meet a lengthy list of conditions, including conducting weekly aerial surveillance of the pipeline and holding consultations with various community stakeholders. A start-up date has yet to be announced.

Yakeleya said the funding rejection from the GNWT would make Sahtu communities think twice about the way they operate.

"It means a change in priorities. It means a change in how we do business. It means we can't always rely on the government for a bailout, even if you declare a state of emergency," he said.

Mayor Dudley Johnson declined to comment on the rejected extraordinary funding request or how the town of Norman Wells would fit the unexpected expense into its budget.

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