By Bryan Eneas

Oil spill compensation differs between city and band

Nov 29, 2016 | 4:23 PM

With Husky Energy calling the clean-up of the Saskatchewan River complete, the compensation process for efforts during the crisis has begun.

Prince Albert city manager, Jim Toye said P.A. will be submitting bills directly to Husky for third party assessment and the work to the banks of the Little Red River directly to Husky Energy after it passes through their consultant’s hands.

Toye said Husky’s initial payment of $5 million came as a pre-payment to cover costs associated to the oil spill.

“They asked approximately how much they thought this was going to be worth,” Toye said. “We had discussions with Husky, and what we said is ‘it’s not right for us to have to take that money out of our pockets and then send you invoices.’”

This contrasts with the plan for James Smith Cree Nation according to its officials who say the band paid out of pocket and is now seeking reimbursement after the fact.

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Officials from James Smith Cree Nation say they have been left hanging with bills to pay from the Husky oil spill which floated into their community in August.

The city of Prince Albert received the amount upfront because “we recognized [the city] was in a critical situation due to the immediate need to re-establish drinking water for its citizens,” according to an email from Husky.

Husky Energy spokesperson Mel Duvall said the company paid the Cree Nation for its clean-up efforts which took place in late September.

Officials in the Cree Nation dispute this statement, citing at least two invoices with an outstanding balance of over $51,000.

In a letter from Husky dated November 9, 2016, the James Smith Cree Nation and other First Nation communities were directed to send requests for a third party assessment to the Saskatchewan First Nations Resources Centre of Excellence (SFNRCE).

Husky said they have provided funding to SFNRCE to compensate the organization for a third party assessment in an email to paNOW.

The letter to the James Smith Cree Nation also stated “as of September 1, 2016, Husky will no longer be providing financial compensation for meetings with Chief, Councils, or representatives.”

Toye confirmed in a phone call with paNOW the city of Prince Albert was compensated by Husky for meetings which occurred after regular office hours.

Meanwhile, the city of Melfort has started its remuneration process.

“Any expenses that were directly related to the oil spill, Husky has confirmed that they will reimburse us for those expenses,” Mayor Rick Lang said in a previous interview with paNOW.

Mayor Greg Dionne from the city of Prince Albert said he would continue to bill Husky Energy into 2017. 

Bryan.eneas@jpbg.ca

On Twitter: @BryanEneas