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Review board talks offshore drilling
A few pointed questions at Ingamo Hall information session

Shawn Giilck
Northern News Services
Thursday, April 23, 2015

INUVIK
There seemed to be little public interest in the prospect of offshore drilling during an information session at the Ingamo Hall Friendship Centre in Inuvik April 14.

NNSL photo/graphic

Duane Smith, the head of the Inuvik Community Corporation, was the most vocal critic of offshore drilling during a public information session held by the Environmental Impact Review Board April 14. - Shawn Giilck/NNSL photo

While about 25 people attended the meeting, the vast majority were government-related employees. Only a handful or so of the audience were members of the general public.

The meeting was held as part of the latest series of public forums by the Environmental Impact Review Board's work on offshore drilling in the Beaufort Sea north of Tuktoyaktuk several years from now. The board is visiting each of the communities in the Inuvialuit Settlement Region to discuss the issue.

The meetings are designed to gather community input to form eventual terms of reference for Imperial Oil's environmental impact statement.

Duane Smith, the chair of the Inuvik Community Corporation, was the main critic at the meeting.

As with a meeting on the GNWT's fracking regulations the week before, Smith asked a series of questions of the board members present.

He asked whether the current board members should be making binding decisions on the matter, since the terms of several of them will be up before 2020, when the first exploratory wells are tentatively scheduled to be drilled.

Smith questioned whether there will be any continuity in the knowledge and experience gained by the current board members in the complex situation, and what that might mean for future decisions.

"You might be replaced by the time the drilling is happening," he told the members. "You're all appointed by somebody. I hope that's taken into account."

As well, Smith noted that the presentation by the board indicated only one well is being discussed, although there are three companies interested in drilling in the Beaufort Sea. Two of them, BP and Imperial Oil, are now collaborating.

"Does that mean that they're only required to drill one hole, or does each company have to drill its own well?" he asked the board. "Under their exploration licences, they're each obligated to drill a well. I'm concerned about where BP is in all of this. Who's taking the lead in this project?"

Smith also asked how much of a security deposit will be required of the companies, since the amount was originally $40 million, but new federal regulations have reduced that to $20 million.

"Which of these two security deposits will be applied? Will it be grandfathered? These amounts are nothing (to the companies)."

Smith also questioned how the Environmental Impact Review Board process is going to be effective, since it isn't the only agency looking at regulating the potential drilling.

For instance, Smith pointed to the contradictory conditions between what the EIRB want for emergency planning, which doesn't make the drilling of a relief well mandatory, while the National Energy Board's plans are likely to include such a condition.

The EIRB will have its terms and conditions prepared prior to the NEB decision, Smith said.

Jon Pierce, the head of the EIRB, responded to Smith's questions.

"2020 is coming up pretty fast," he said.

The terms of the lease would require one well per company, he told Smith.

As for the membership on the board, Pierce said the proposed project was a "very sophisticated" undertaking that members had been working on learning the details of for 18 months. That learning process will continue.

"We recognize we need some continuity on the board, because it's hard to replace that," he said. "We've had four appointments in 2014, so we're making a case to (have some). Your comments are well understood."

As for the worst case scenario of needing a relief well, Pierce said the EIRB will be subject to the decision of the National Energy Board on the matter, although it won't wait for its input to be put into its own report.

"You're right, it would be very difficult for us otherwise," he told Smith.

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