Who is responsible? MLA concerned N.W.T. taxpayers will get stuck with mine cleanup bills

There are worries the territorial government's new role as regulator of resource development projects might put N.W.T. taxpayers in jeopardy of having to pay for mine cleanups.

• FROM OCT|5 abandoned mine sites near Yellowknife undergo environmental assessments
• FROM 2014 |N.W.T. mines owe 'hundreds of millions' in securities

The owner of the old Prairie Creek Mine is currently awaiting an environmental approval for an all-weather road to the mine located in the eastern part of Nahanni National Park Reserve which is in the advancedstages of development.

Canadian Zinc is the last in a succession of companies that have, over the last 50 years, tried to bring the mine into production.

'Hopefully there's sufficient... security' money

The territorial government says there's just over $2 million in security posted to protect taxpayers from having to clean up the site when necessary. The most recent cost estimate of that cleanup, done in 2013, is $9 million.

"What are the implications of our government making a decision on that environmental assessment?" asked Frame Lake MLA Kevin O'Reilly in the legislature Tuesday. "Every time our fingerprints come out on these sites it's going to become more challenging to convince the federal government to take responsibility."

At O'Reilly's suggestion, the territorial Minister of Lands, Louis Sebert, agreed to seek a legal opinion on how the government's involvement as regulator may affect its liability for any cleanup.

"We all recognize that there can be downsides to development, but hopefully there's sufficient regulatory system and security in place to allay those concerns," said Sebert.

It's unclear which government would be responsible for cleaning up the site if Canadian Zinc ever fails to do so.

The territorial government took over responsibility for resource development from the federal government three years ago.

Both governments maintain that all liability for mine cleanup rests with mine owners. But that's not always the way it works.

• 'Nobody's taking responsibility': Board says gov'ts must address Yellowknife's arsenic problem

The most glaring example of taxpayer-funded cleanups in the N.W.T. is Giant Mine;taxpayers were left on the hook for that billion-dollar cleanup after the mine owner went bankrupt.

Last year, after Canadian Tungsten went into receivership, the federal taxpayers were left on the hook for millions of dollars of environmental liabilities at the Can Tung mine, while the territorial government bought mineral rights for $4.5 million.