Town, N.W.T. gov't side with Imperial Oil while Indigenous governments push for environmental assessment

Arguments over whether an environmental assessment of Imperial Oil's Norman Wells, N.W.T., oil field should go forward are in — but it will be another couple of weeks until the Mackenzie Valley Review Board reaches a final decision. 

On Friday, the Mackenzie Valley Review Board announced that it will rule on Imperial Oil's application to cancel the environmental assessment by Nov. 22.

In submissions on the issue, four Indigenous governments argued in favour of the Sahtu Secretariat's right to refer Imperial Oil to environmental assessment, while the Town of Norman Wells and the Northwest Territories government supported Imperial Oil's application to stop the assessment. 

The federal government also submitted a response in which it said it would not be giving an opinion.

The review board ordered an environmental assessment of Imperial Oil's entire Norman Wells operation in early October, after the Sahtu Secretariat referred the company's water licence and operational licence applications to the review board for assessment. 

Days after, Imperial Oil asked the Mackenzie Valley Review Board to cancel the environmental assessment. The company argued that the federal law which allows the Sahtu Secretariat to refer projects to environmental assessment doesn't apply in this case, and threatened to take the issue to court. 

In its response, the Sahtu Secretariat argued that substantial changes to the environmental conditions around the Mackenzie River basin such as record-low water levels could have real effects on the environmental impacts of the oil field that should be examined.

The Sahtu Secretariat also took issue with Imperial Oil's reliance on federal law to make its point, saying that the Sahtu land claim — which it said gives Sahtu broader powers to request environmental assessments — should take precedence. 

N.W.T. gov't wants board to rule assessment was 'premature'

Letters from K'asho Got'ine in Fort Good Hope, N.W.T., and the Délı̨nę government echo these points.

The Tłı̨chǫ government also wrote in support of the Sahtu Secretariat, arguing strongly that respecting treaty rights should be "paramount" for the review board.

The government of Northwest Territories disagreed.

In its letter, the N.W.T. government argued that the Sahtu Secretariat's authority to refer projects to environmental assessment is "subject to certain conditions" set out in the federal legislation, including a rule which exempts projects from before 1984 from environmental assessments unless there are major changes to the development.

The territorial government said that given this, the review board should rule that the environmental assessment was "premature" and wait to see if either the Canada Energy Regulator or the land and water board decide whether Imperial Oil's applications meet that threshold.

In its letter, the Town of Norman Wells stressed that the oil field was "integral to the town's present and near future." 

The town also argued that a ruling upholding the environmental assessment could create an "undefined regulatory process" for municipalities looking to renew water licenses and obtain permits for water treatment plants or dumps.

Regardless of how the review board rules, Imperial Oil's license to operate will not expire at the end of this year.

Last week, Canada Energy Regulator granted Imperial Oil an interim extension to its operating licence until as late as July 31, 2025.

In an email, Imperial Oil told CBC News that this will allow it to avoid a "winter shut-in" of the oil well and to continue to produce power for Norman Wells. The company also said it will be looking for a similar interim extension for its water licence, which is set to expire in early March.