Questions

The Taltson Project is still in its planning stages, so all information presented below is subject to change. Your question not here? Submit it to us, and we’ll try our best to answer it.

1. How will Taltson affect caribou along the construction route?
2. Have the current transmission lines had any effect on the caribou?
3. Will the proposed transmission line go through Thay Dene Nene National Park?
4. How will the environment be affected along the transmission line?
5. How long will it take to construct the transmission line?
6. How much employment will be created as a result of the expansion?
7. How were affected Aboriginal groups consulted?
8. Have impact benefit agreements (IBAs) been signed?
9. Will Aboriginal groups be compensated for prior flooding on Nonacho Lake?
10. What is going to happen to the water levels on Trudel Creek?
11. Isn’t this a risky investment for the GNWT?
12. Who really owns this project? Is this a GNWT project?
13. Why is the GNWT/NTPC investing territorial money in a project that benefits the diamond mines? Or that benefits only one area of the north?
14. Where is the funding for this project coming from?
15. How will the Akaitcho Energy Corporation and the Métis Energy Company Ltd. return profits from this venture to their beneficiaries?
16. Have the diamond mines committed to buy the power from the Taltson expansion? Will there be a market for the power?

Environment

1. How will Taltson affect caribou along the construction route?

This issue, like many others, is being studied and will be further explored through information gathered in traditional knowledge and environmental studies before the expansion is approved. These studies will help to assess areas of critical importance to caribou and other animals to ensure that there is little or no impact to wildlife in these areas. Even though we are into our third year of environmental work, we are only at the beginning of the approval process and there is still a great deal of information to be gathered and assessed.

2. Have the current transmission lines had any effect on the caribou?

Currently there are 500 plus kilometers of transmission lines in the NWT, in existence for over 40 years, and no issues with caribou have arisen.

3. Will the proposed transmission line go through Thay Dene Nene National Park?

The planned route for the transmission line is through the Thay Dene Nene National Park. Impact on the park will be minimal as key stakeholders will be consulted and their input considered while Dezé works to determine the best route for the transmission line and where best to cross the Lockhart River.

4. How will the environment be affected along the transmission line?

Environmental impact will be minimal, as stakeholders’ input will be taken into consideration while Dezé works to determine the best route for the transmission line. A number of additional factors will help minimize impact. For example, engineers will attempt to run the transmission line from outcrop to outcrop, avoiding more sensitive ground areas. GIS mapping will help determine the best route. Towers will be installed by helicopter, limiting impact on the land. The maximum allowable brush height of three metres will mean very little vegetation will need to be removed. Finally, the area under the transmission line will not be assessable to motorized vehicles, because it will not be cleared of brush. A fundamental principle guiding Dezé Energy Corporation is respect for the protection of the environment, for traditional sites, and for the activities of Aboriginal peoples.

The Taltson hydro expansion and transmission line will eliminate the need for 100 million litres of diesel fuel at the mines each year. This is good for the environment in two ways:

• Using clean hydro power will reduce greenhouse gas emissions from diesel generated power, and transporting the fuel - this will reduce total NWT emissions by 300,000 tonnes annually;
• and Supply of hydro power will reduce the threat of a potentially devastating fuel spill.

Construction and Jobs

5. How long will it take to construct the transmission line?

Once approved, and once a decision has been made to go forward with the expansion, construction is expected to take two to three construction seasons.

6. How much employment will be created as a result of the expansion?

Some short-term construction jobs will be created as a result of the expansion. However, this is not where Taltson will have its biggest economic impact. Taltson has the potential to extend the life of the existing diamond mines and to make new development more economically viable and environmentally responsible. This has the potential to result in increased and longer-term employment for Northerners at the diamond mines. In addition to direct employment, direct ownership of Dezé Energy by Aboriginal Partners will generate a long-term source of revenue for these partners, along with financial benefits for their people and their suppliers.

Aboriginal Consultation and Compensation

7. How were affected Aboriginal groups consulted?

Dezé Energy’s submission to the Mackenzie Valley Land and Water Board in May 2007, and subsequent referral to the Mackenzie Valley Environmental Impact Review Board, is the continuation of a process of evaluation and consultation over the past three years. There will be ongoing consultation through the approval process.

8. Have impact benefit agreements (IBAs) been signed?

No, IBAs have not yet been signed.

9. Will Aboriginal groups be compensated for prior flooding on Nonacho Lake?

In October of 1999 the Federal Government was named in a lawsuit in regard to flooding in the Nonacho Lake area in the 1960s. The Government of the Northwest Territories was also named as part of this lawsuit. Dezé Energy Corporation had no involvement in this issue and thus cannot make any comment. Dezé Energy has clearly stated that protecting the environment is of paramount importance and will ensure that consultation is done with all stakeholders in the Taltson Expansion Project.

10. What is going to happen to the water levels on Trudel Creek?

The levels on Trudel Creek will be restored closer to their original levels, and there will be additional flow controls in place to keep the water levels consistent throughout the year. This will help ensure there is less flooding during natural high water years and will help to prevent erosion.

Financial and Ownership

11. Isn’t this a risky investment for the GNWT?

Power Purchase Agreements (PPAs) will be negotiated with the diamond mines before the project is confirmed. The level of risk to the GNWT will be determined by the duration and strength of these Power Purchase Agreements. The Taltson expansion project will also provide a number of direct benefits to the GNWT through increased tax revenue from sustained diamond mining and will ease the way for more economically viable development.

12. Who really owns this project? Is this a GNWT project?

The Taltson expansion is a commercial business venture of Dezé Energy Corporation, a corporation jointly owned by the Akaitcho Energy Corporation, the Métis Energy Company Ltd., and the NWT Energy Corporation (03) Ltd. The NWT Energy Corporation (03) Ltd. is owned by the NWT Hydro Corporation, of which the GNWT is the shareholder.

13. Why is the GNWT/NTPC investing territorial money in a project that benefits the diamond mines? Or that benefits only one area of the north?

The Taltson expansion has benefits for the NWT as a whole:

• It has the potential to result in increased and longer-term employment for Northerners at the diamond mines;
• An extended life for the diamond mines means increased tax revenue for governments;
• The Taltson expansion is consistent with GNWT strategy of self-sufficient communities by providing a sustainable source of revenue (through Aboriginal ownership of Dezé Energy);
• The most important economic benefit to communities comes from the long-term, sustainable revenues that will flow to Dezé Energy for generations; and
• The Taltson expansion project will provide significant environmental benefits to the NWT by displacing approximately 100 million litres of diesel fuel per year, which would provide for a significant reduction in greenhouse gas emissions in the NWT, reduce the risk of transport truck accidents and spills of diesel fuel, and reduce traffic and the impact to the environment by substantially reducing the number of transport trucks hauling diesel fuel.

14. Where is the funding for this project coming from?

Several funding alternatives are being explored, including private sector financing.

15. How will the Akaitcho Energy Corporation and the Métis Energy Company Ltd. return profits from this venture to their beneficiaries?

This is a question to ask of those corporations.

Other Questions

16. Have the diamond mines committed to buy the power from the Taltson expansion? Will there be a market for the power?

No agreements have been entered into yet. Having committed power customers for the power generated by the Taltson expansion will be one of the factors influencing Dezé Energy’s ultimate decision whether or not to proceed with the project.