Town of Placentia does deal with Husky

Ashley
Ashley Fitzpatrick
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By Ashley Fitzpatrick

and Elizabeth Macdonald

The Telegram

In another positive sign for Husky Energy’s proposed construction of an offshore oil platform at Argentia, TC Media has learned the Town of Placentia has voted to award a work permit to Husky, in return for about $2.25 million.

The deal runs from 2014-17 and includes: a signing bonus of $250,000; a construction permit fee of $250,000; grants in lieu of taxes of $500,000 each for 2014, 2015 and 2016; and a grant in lieu of taxes in 2017 of $250,000.

The deal was voted on and accepted at a town council meeting Monday night.

It is conditional on Husky establishing a benefits agreement with the province and moving ahead with the offshore oil development.

The information was confirmed by Placentia Mayor Bill Hogan Wednesday, who said it would amount to the town receiving 15 to 20 per cent of its total budget on top of existing income for four years.

“It certainly means that we will have some money to do things that, before this, was only on our wish list,” he said.

The outgoing mayor said he would not commit the funding to any projects, leaving that to the council voted in during the upcoming municipal election.

He did say he expects the funding might be leveraged for cost-shared infrastructure renewal projects with the provincial and federal governments.

A spokeswoman for Husky Energy said Tuesday the company has yet to make a decision on whether or not it will take on the project, or if it will take a different route for development involving subsea infrastructure.

“We continue to advance engineering and related work on options for full-field development of West White Rose, including the wellhead platform,” she stated.

As reported, work at Argentia for the wellhead platform was cleared from provincial environmental assessment earlier this week, with conditions.

 

telegram@thetelegram.com

Organizations: Husky Energy, Argentia

Geographic location: Placentia

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