The first of several payments by Husky Energy to the City of Prince Albert has now been made, following the oil spill almost four weeks ago.
The initial payment is $5 million.
In a press release, Mayor Greg Dionne said the payment represents a symbol of good faith by the oil company.
“Husky Energy had promised from the onset that they would take full responsibility for the oil spill and pay all associated costs, and this payment is a good indicator that they are delivering on that promise,” he said.
Losses incurred by the city include a loss in water revenue, the temporary closing of many city facilities and paying additional staffing costs during the crisis.
In addition to these costs, Dionne said he will also be asking Husky Energy to pay a community cost.
“What that is, is what our residents have lost, it’s a good will payment, it’s like an apology,” he said.
Dionne could not provide a figure at this time for the “good will” payment, but suggested the money could come in the form of a lump sum payment as a donation towards one of the city’s facilities.
So far the city has invoiced Husky Energy for roughly $2.5 million and is expecting over $2 million per month to maintain the operation of its two temporary water pipelines until the North Saskatchewan River is cleared by water authorities for potable water consumption.
There has been no timeline offered yet for the re-opening of the water intake to the North Saskatchewan River.
Initial test samples from the North Saskatchewan River have shown the water is safe to drink.