Okalik: NTCL may be liable for bad gas

Fixing the territory’s bad gasoline problem now and for the future is Premier Paul Okalik’s most urgent concern.

But don’t count on the government of Nunavut to immediately step in with a fist-full of compensation cheques for Nunavummiut whose snowmobiles or vehicles were crippled by bad fuel.

“At some point, someone will have to pay,” Okalik said. “I don’t want to raise false hopes by saying it will be done at a certain time.”

Okalik acknowledged that many expect the GN to start paying out compensation now, but he said Northern Transportation Company Ltd. supplied the inferior gasoline, so it could also be expected to help compensate those affected by bad gas supplies.

“NTCL is the supplier in this case, and owned by the Inuit of Nunavut, so maybe they want to look to themselves to provide that to Inuit,” Okalik said.

NTCL is owned by Norterra, a 50-50 partnership between the Inuit of Nunavut and the Inuvialuit of the western Arctic.

In 1995 and 1996, Nunavut Tunngavik Inc. fought a bitter battle with the government of the Northwest Territories to help NTCL win the $30-million eastern Arctic fuel resupply contract.

NTI alleged at the time that the GNWT, and even some GNWT officials, were in a conflict of interest because of improper ties with competing companies.

Meanwhile, Okalik says the Inuit-owned NTCL may have to carry the cost of compensating those beneficiaries whose snowmobiles have been damaged.

Okalik, who is a lawyer, is lukewarm about NTI’s collection of damage claims from hunters — especially when NTI’s beneficiaries may be liable in the end for paying those costs.

“It’s nice to take claims when you don’t have to come up with the money. But I wonder if they would have that view if they knew NTCL may be liable in this case,” Okalik said.

Okalik hopes to settle the issue of who pays compensation outside of court.

“It wouldn’t help anybody much by going directly to court, because it would take years for it to be resolved,” Okalik said.

Other pressing issues before the GN include finding a way to upgrade the bad gas — perhaps through an additive to the remaining 10-million-plus litres in the Baffin and Kivalliq regions — and making sure everyone going out on the land stays safe and secure.

But, if the gas can’t be upgraded, Okalik said the GN wouldn’t issue an advisory telling people not to use the gas in their snowmobiles, ATVs and boats.

“It is unfortunate, but people depend on it for a living and to provide food for their families. You can’t deny them that opportunity,” Okalik said.

The GN has advised everyone to stay in touch with local wildlife officers and travel with a radio.

At the same time, the GN is also taking measures to stop any repeat of this year’s gas crisis.

The specifications of the new 2003 gas supply tender are much more rigorous.

The GN is also planning to split off its petroleum products division, and create a Crown corporation out of it.

This move, explained Okalik, would allow the gas supply issue to be addressed outside of government.

Okalik said he shares the public’s frustration over the bad gas.

“Any time you deal with gas, it’s always controversial — whether it’s the price, the contractor, the quality. I don’t know what else can go wrong with gas,” Okalik said.

“It’s a never-ending story.”