Natural gas turned off
Norman Wells businesses and homeowners face increased costs as fuel supply runs out
Daron Letts
Northern News Services
Published Monday, November 24, 2014
LLI GOLINE/NORMAN WELLS
As of late last month, the natural gas valve has been shut off in Norman Wells, leaving 70 residences and more than 50 businesses to rely on recent conversions to oil, wood-pellets, or propane for heat.
"All conversions are complete," Mayor Harold McGregor told News/North on Nov. 5.
Faced with dwindling natural gas reserves, Imperial Oil informed the town in 2007 that all businesses and residences would have to switch to other fuel sources. The company extended its dead line a few times over the years, but the latest Oct. 31 deadline stuck.
The company committed to provide $1 million to assist residences and businesses with about two thirds of their out-of-pocket conversion expense, which McGregor estimates averaged between $12,000 and $20,000.
"It's the best we could have hoped for," he said.
Commercial grants were also available through the GNWT, he added.
The 70 residential property owners eligible for $8,000 in support from the Imperial Oil payment began picking up their cheques from the municipality on Nov. 20. The 51 commercial property owners began
collecting their cheques the following day.
"Everybody is up-beat," said McGregor, shortly after the first residential cheques were issued. "Everybody realized this had to be done."
Some businesses, including Northern store, declined their share to provide increased assistance to home owners.
Businesses such as Sam's Cafe, operated by Sam Tran, opted to shut down on Oct. 31 rather than make the capital investment of a new furnace.
"In Sam's case, it just wasn't practical to try and convert these old buildings to propane or diesel," said Brian Davidson, manager of the Sahtu Dene Inn next door. "It wasn't worth the expense."
The drop in exploration activity also played a role in the decision, he added.
The inn converted 30 rooms, including full kitchen units, to diesel last month at a cost of $96,000.
"It was a headache, but we did it all," said Davidson.
The community's remaining businesses face a challenge this winter, said Chris Buist, president of the Norman Wells Chamber of Commerce.
"We're going to have increased costs and operating costs are going to be increased," he said.
Costs to transportation companies such as Matco Transportation and Manitoulin Transport and aviation companies such as North Wright Airways face "huge" cost increases due to the large bay doors on garages and hangars that let heat escape whenever they open, he said.
Costs to business owners will at least double, he projected, depending on the energy efficiency of commercial buildings.
"My understanding is that the cost increases will push up the cost of living at every level, whether it be the service industry or other industries," he said. "It's going to affect the ability to attract and retain employees."
Imperial Oil demonstrated good corporate citizenship by supplying natural gas in the first place and by providing financial support to cushion the conversion, he added.
There are some on the outlying areas that have never been connected to the natural gas system that have used alternate systems for years.
- with files from Walter Strong
