LLI GOLINE/NORMAN WELLS
Norman Wells town council voted in favour of signing a memorandum of understanding with Dalkia Canada to switch to a new heating source for the town.
"We voted as council to get a memorandum of understanding with Dalkia Canada, one of the two proponents, and we're working on that now," said Mayor Gregor Harold McGregor.
"I'm not sure how long it will take to actually sign a memorandum of understanding, but we want to get it done as quickly as we can so we can get moving forward."
The proverbial clock is ticking in Norman Wells. Imperial Oil, which supplies the town with natural gas, will cut off the supply by next summer.
"We've been cut down by about two-thirds by June 30 this year," said McGregor.
"By June 30, 2014, it will be cut off completely. The previous council and this council have been searching for a solution for a couple years now without much success."
Dalkia Canada and Atco Energy Solutions both responded to a request for proposals issued by the town this past winter.
A public meeting was held on April 17 at Dennis Drolet Community Hall with representatives from both companies, McGregor said.
He said about 70 community members attended, many of whom expressed worries about how much new systems might cost.
"Yes, there is a great deal of concern," he said. "People don't know what to do and they're looking for guidance and help."
McGregor said Dalkia will provide a cost estimate for the project once the memorandum of understanding is signed.
He also said, no matter what, the cost of heat in Norman Wells is going to increase for residents and businesses currently heating with natural gas.
"It's going to cost more to heat your home in Norman Wells if you're on natural gas now," he said.
"As natural gas is phased out and air propane or LNG (liquefied natural gas) or anything else takes over, it's going to cost more. What we're trying to determine now is how much more."
McGregor said council chose Dalkia Canada because the company's heating systems use more than one type of fuel and allows for changes in the future, such as switching to a biomass energy system.
"That made us feel more comfortable than going with air propane or liquefied natural gas forever, which was the other choice," McGregor.
The company will supply synthetic natural gas to the town for two years while it determines a more permanent solution, McGregor said.
"They are a worldwide company that do this sort of thing constantly and they're not committed to any one form of fuel.
"They are going to supply air propane into our natural gas system, another name for it is synthetic natural gas, for a period of two years while they decide what the best option for Norman Wells is."
Dalkia Canada will operate independently of the town, McGregor added.
"They will be a private utility," he said. "The town will not be involved in it as an owner or anything."
The Atco Energy Solutions system would have locked the town into using air propane, or liquefied natural gas, McGregor said.
The Atco proposal would have supplied synthetic natural gas for up to seven years - or up until liquefied natural gas could be shipped to Norman Wells.
McGregor said the infrastructure simply isn't in place to allow the shipment of liquefied natural gas right now.
"Apparently it's cheaper than propane. That hasn't been proven yet because there is no system set up to ship it to Norman Wells," he said. "We only have the winter road for a short while and then the barge."
McGregor said while details are still being worked out, timing is everything.
He said Imperial Oil has warned that natural gas supply could be cut off before the June 30, 2014 deadline.
"They have served notice there might be a danger they can't supply it until June 30, 2014," he said.
