Gas industry downturn devastating Fort Nelson B.C.

The downturn in the gas sector is having devastating consequences in Fort Nelson, a town of about 4,000in B.C.'s far northeast corner.

Bev Vandersteen of the Fort Nelson Chamber of Commerce says over the last 18 months 200 people have lost jobs in the gas sector, while50 local business have been forced to shut down,with many others suffering major layoffs.

Shecalls the town's economic situation the worst she's seenin 30 years.

People leaving, families forced to split up

"We are seeing people, particularly in the retail sector, who are now drawing on their reserves and drawing on their retirement funds in order to keep their business alive," said Vandersteen. "Andwe're seeing families splitting up because people are leaving townto work but their houses aren't selling."

TheFort Nelson area is rich in natural gas reservesbut with the commodity price in the tank theindustry has all but shutdown in the area.

The latest hit came last month whenEndurance Energy Ltd. filed for bankruptcy, owing 236 million dollars to over 300 contractors, many of them local.

Waiting for LNG

Vandersteen says Fort Nelsonsurvived a major downturn in forestry last decade because the gas sector was there to fall back on. But with both sectors struggling the situation is dire now.

She believesdeveloping the area'stourist potential and diversifying the economy is part of the answer to the economic woes.She also hopes the forestry sector will pick up andsays the LNG development promised by Premier Christy Clarkcan't come fast enough.

"Natural gas really is the best option for clean energy and we're sittingon thebiggest reserves in Canada in the Horn River, the Liard and Cordova basins, she said."I have to say about my fellow northerners they're the most resilient, hard-working, innovativepeople I know. But we need announcements, we need the future to move forward."

With files from George Baker and Daybreak North