DIDSBURY - Town council has authorized administration to finalize a multi-year agreement with TransGlobe Energy Corporation (TGEC) regarding the use of effluent impounded in the municipality's long-term wastewater storage lagoon.
TGEC is seeking a five-year agreement with the Town of Didsbury to access the treated effluent at the site, located just west of Highway 2A.
Under the proposed agreement, compensation to the municipality would be broken down into several categories.
For annual diversion totalling up to 10,000 cubic metres, the company will supply the town with gravel of suitable grade and services for access road maintenance and site maintenance of the NW 10-31-01-5 lagoon as requested by the town, totalling a value of $7,500, excluding taxes.
When annual diversions exceed 10,000 cubic metres, the company agrees to purchase access to the treated effluent from the town for the set amount of $0.75 per cubic metre for the volumes in excess of 10,000 cubic metres.
“This equates to a potential revenue of $48,750 in year one, and the potential for up to $56,250 for each additional year of the agreement,” said Ethan Gorner, the Town of Didsbury's chief administrative officer.
“It is important to note these revenues are the maximum potential and could be zero if TGEC does not have a project near which requires the water source.”
