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Inuvik Gas and Town Sign New 10-Year Franchise Agreement

Customers Assured Ongoing Access to Safe, Reliable Distribution System

INUVIK, NWT – Inuvik Gas Ltd. (IGL) and the Town of Inuvik have agreed to a new 10-year Franchise Agreement that ensures the community will continue to have access to a safe, reliable gas distribution system for their energy needs.

“I want to thank the Mayor and Town Council for their co-operation and desire to find the best solution for the community”, said Brad Driscoll, General Manager, Inuvik Gas. “We have been part of this community for 15 years and we look forward to strengthening our relationship with customers and delivering on our energy commitment.”

The Town and Inuvik Gas explored several options over the last year before determining the best solution was a new Franchise Agreement to provide the community with access to natural gas and Synthetic Natural Gas at competitive rates.

“We look forward to working with Inuvik Gas and exploring other fuel options that can be used in the existing distribution system, such as Liquefied Natural Gas (LNG),” said Mayor Floyd Roland. “This franchise renewal assures residents of continued high-quality service from a company that has served them for a decade and a half.”

As the LNG supply chain continues to develop and mature, it is anticipated this will provide additional fuel options for the community.

Brad Driscoll
General Manager
Inuvik Gas
(867) 777-3422

Grant Hood
Senior Administrative Officer
Town of Inuvik
(867) 777-8600

Heat Trace System - Important Reminder for Customers

October 28, 2014

INUVIK, NT -- Inuvik Gas Ltd. would like to remind customers that the heat trace for each gas meter and above-ground gas riser must remain on. The heat trace and insulation is required to ensure the Synthetic Natural Gas system works safely during extreme cold weather. Please do not switch the heat trace off at any time.

In late 2012, Inuvik Gas equipped each customer’s meter and above-ground gas riser with electric heat trace and insulation to ensure the safe, reliable distribution of Synthetic Natural Gas during extreme cold weather. This is similar to wrapping the exposed areas in an electric blanket, or like the electric heat trace in your utilidette.

The supply of electricity to the heat trace must remain on to ensure system safety and reliability. The heat trace is controlled by a thermostat (GFI device) located in your home or business.

Inuvik Gas will be checking the heat trace at the gas meter periodically over the heating season to ensure the safe operation of the system. If you have any questions about the location of your heat trace or GFI device, please do not hesitate to contact Inuvik Gas:

Brad Driscoll
General Manager

Inuvik Gas Limited
(867) 777-3422
inuvikgas.com

Inuvik Gas and Town to Negotiate New Franchise Agreement

May 14, 2014

Customers continue to benefit from safe reliable distribution system after August

INUVIK, NWT – Inuvik Gas Ltd. (IGL) and the Town of Inuvik have agreed to negotiate terms of a new Franchise Agreement to ensure the community continues to have access to a safe, reliable gas distribution system. The current agreement is set to expire in August 2014.

“Over the past year we have worked with the Town to explore options and we’ve determined the best solution is for Inuvik Gas to continue to own and operate the system,” said Brad Driscoll, General Manager, Inuvik Gas. “We would like to express our appreciation to the Mayor and Town Council for their cooperation in finding the best solution going forward. We know a renewed Franchise Agreement with the Town of Inuvik will strengthen our relationship and demonstrate our commitment to the people of the community and the North.”

Throughout the discussions, IGL has maintained that there is long-term value in the distribution system, which can be adapted to accommodate other fuel options in the future. “There was a real spirit of co-operation throughout the process as we explored many alternatives for the people who live in this community,” said Mayor Floyd Roland. “We look forward to working with Inuvik Gas while we explore fuel options such as Liquefied Natural Gas (LNG).”

As the LNG supply chain continues to develop and mature, it is anticipated this will provide additional fuel options for the community resulting in increased security of supply. For more information, please contact:

Brad Driscoll
General Manager
Inuvik Gas
(867) 777-3422

Grant Hood
Senior Administrative Officer
Town of Inuvik
(867) 777-8600

Announcing Brad Driscoll as General Manager

Inuvik Gas is pleased to announce that Brad Driscoll has accepted the position of General Manager effective March 1, 2014.

Brad Driscoll

Brad has 30 years of experience in the industry, with a background in gas fitting, appliance service, and distribution systems. His supervisory and management experience will also benefit the staff and customers of Inuvik Gas. Brad and his wife Rosalie are looking forward to enjoying all the community of Inuvik has to offer.

Heat Trace System Important Reminders For Customers

In late 2012, Inuvik Gas Ltd. equipped each customer’s meter and above-ground gas riser with electric heat trace and insulation, to ensure the safe, reliable distribution of Synthetic Natural Gas during extreme cold weather. This is similar to wrapping the exposed areas in an electric blanket, or like the electric heat trace in your utilidette.

This winter heating season, customers are responsible for the electricity costs associated with the gas-related heat trace system. The temporary Heat Trace Rebate program has ended.

The heat trace and insulation is required to make sure the Synthetic Natural Gas system works safely during extreme cold weather. The supply of electricity to the heat trace must remain on to ensure system safety and reliability. The heat trace is controlled by a thermostat located at your home or business.

Inuvik Gas is fully committed to continuing to deliver safe and reliable gas service to its customers for the coming year. We will continue to operate the system with Synthetic Natural Gas as the main source of fuel over the 2013 – 2014 winter heating season.

Inuvik Gas will be checking the heat trace at the gas meter periodically over the heating season to ensure the safe operation of the system.

Notification Of Franchise Agreement

Inuvik Gas Ltd. and the Town of Inuvik have provided one year’s notice to each other that they will not renew the Franchise Agreement which ends August 2014. Inuvik Gas is fully committed to continuing to deliver safe and reliable gas service to its customers for the coming year.

Inuvik Gas is and will continue to work directly with the Town of Inuvik and the Government of the Northwest Territories over the next year to explore options that continue to use the existing distribution system that has delivered safe and reliable energy to heat customer’s homes and businesses.

For more than 14 years, Inuvik Gas has served the Town of Inuvik under its existing Franchise Agreement. Customers have saved more than $30 million over the term of the Franchise as a result of the lower cost of natural gas. Without local access to natural gas or a long-term fuel supply solution, Inuvik Gas is unable to enter into a new long-term Franchise Agreement.

“When Inuvik Gas was established, it was expected that the Mackenzie Valley Pipeline would be built within several years. Unfortunately, there is no infrastructure in place to ensure continued access to natural gas after the Ikhil wells are depleted,” said Kevin MacKay, General Manager, Inuvik Gas. “One well at Ikhil stopped producing in 2011 and the reserves from the other well are depleting. Despite this, we have maintained our commitment to the community throughout the term of the Franchise and will continue to do so for the coming year.”

Inuvik Gas supplemented the diminishing natural gas supply by investing in a Synthetic Natural Gas (SNG) system with the same clean-burning characteristics of natural gas.

Inuvik Gas has assured the Town that customers will continue to receive safe, reliable delivery of gas over the winter and to the end of the Franchise Agreement in August 2014.

Updates will be provided at a Town Hall meeting tentatively set by the Town of Inuvik for September.

Synthetic Natural Gas (SNG) Rate Finalized at $35.44/GJ Effective February 1, 2013

Inuvik Gas Ltd. confirms the Synthetic Natural Gas (SNG) rate is $35.44 per gigajoule (GJ), based on the landed cost of propane at the time the request for proposals (RFP) for propane supply was completed on February 1, 2013.

The rate, which was set following approval by the Public Utilities Board (PUB), has also been reviewed and endorsed by the Town of Inuvik and is effective February 1, 2013.

The SNG system was put in place to provide a safe and reliable source of energy for homes and businesses in Inuvik. Customers will start to see the new rate reflected in the next billing cycle.

The largest portion of the rate, or $27.17/GJ, is made up of the purchase of propane and the cost to deliver it to Inuvik, as determined through an open, competitive bid process. The costs incurred by Inuvik Gas, including delivery, operations, maintenance and keeping the Ikhil reserve functional and accessible, make up the remaining $8.27.

The Town of Inuvik is now running on SNG. Inuvik Gas worked closely with the local and chief gas inspectors during the switch.

If customers experience any issues with their gas appliances on SNG, they should call Inuvik Gas immediately at 777-4427. Inuvik Gas wants to hear from customers so they can address any concerns that may arise.

To ensure continued safe and reliable gas service during cold weather, it is essential that the supply of electricity to the heat trace on the gas riser is maintained. Customers are asked not to unplug the Ground Fault Interrupt (GFI) device that is plugged into their home or business. Customers are asked to check regularly to see if the light remains on. If customers will be away, we encourage you to have someone check this for you. If the light does not stay on, please contact Inuvik Gas immediately at 777-4427.

For more information, please contact: Kevin MacKay General Manager Inuvik Gas Limited (867) 777-3422 www.inuvikgas.com

Safety tip: Natural gas and SNG are both odorized. If you smell gas, call Inuvik Gas' Emergency Line at no charge 24 hours a day at 777-4427.

Synthetic Natural Gas System - Winter Preparation

In preparation for cold temperatures this winter, crews from Inuvik Gas will complete the installation of heat trace and insulation on meters and above-ground gas risers at customers' homes and businesses by early next week.

This work, similar to wrapping the meter and exposed pipe in an electric blanket, has been done to support safe and reliable service during extreme cold weather. Once the heat trace and insulation work has been completed, covers for the meters will be installed over the following few weeks.

To ensure continued safe and reliable gas service, it is essential that the supply of electricity to the heat trace remains on. Please do not unplug the Ground Fault Interrupt (GFI) device.

We want to sincerely thank our customers for welcoming us into their homes and businesses during this process. This project could not have been completed so quickly without their cooperation and understanding.

More information is available at www.inuvikgas.com or by calling Inuvik Gas' general number at 777- 3422.

Merry Christmas and Happy New Year.
Quviahugluhi Qitchirvingmi Nutaami Ukiumilu.
Drin tsal zhit shoh ohlii. Drin Choo Zhit Zhoh Ohlii.

Inuvik Gas Files Proposed Rate With Public Utilities Board

Inuvik Gas filed a proposed rate of approximately $37 per gigajoule with the Northwest Territories (NWT) Public Utilities Board (PUB) yesterday. The proposed rate, which includes the costs of the Synthetic Natural Gas (SNG) system, has been reviewed and endorsed by the Town of Inuvik. The SNG system will provide a safe and reliable source of energy for homes and businesses in Inuvik this winter.

Inuvik Gas plans to implement the new proposed rate effective January 1, 2013 conditional on PUB approval of the request and the finalization of commercial arrangements for propane supply. The proposed rate will appear on most customers' bills in January 2013.

“Inuvik Gas has worked very hard to respond to the situation faced by the Town of Inuvik due to the diminishing Ikhil gas reserves,” said Kevin MacKay, General Manager of Inuvik Gas Ltd. “This proposed rate reflects the costs of providing customers with access to both the SNG system and the Ikhil natural gas reserve.”

Added Mayor Floyd Roland, "The safety of our community, family, and neighbours is of paramount importance, and we are pleased that Inuvik will continue to have access to a reliable source of energy this winter. The proposed rate has been reviewed by the Town, and appears to be reasonable, as it is comparable to what is paid by consumers in other NWT communities."

The final cost for this winter season will be subject to the actual price of landed propane at the time the contract is signed with the supplier. The contracted price will reviewed by the Town of Inuvik.

The largest portion of the proposed $37 rate is made up of the propane and the cost to deliver it to Inuvik, which will be determined through a competitive open bid process. The cost of Inuvik Gas Ltd., including operations, delivery, maintenance, safety, and for keeping Ikhil functional and accessible, make up less than one-quarter of the expected final cost to the customer.

The new price averages the cost of both SNG and natural gas. The price will not change as Inuvik Gas switches between the two fuel sources this winter.

For more information, please contact:

Kevin MacKay
General Manager
Inuvik Gas Limited
(867) 777-3422
www.inuvikgas.com

Synthetic Natural Gas System - Winter Preparation

Inuvik Gas has successfully completed the testing and implementation of the Synthetic Natural Gas (SNG) system. More than 95 percent of in-home inspections have been completed. While we did encounter some appliances that require maintenance, Inuvik Gas has found no issues with appliances running on SNG in homes and businesses.

In preparation for cold temperatures this winter, we have completed our survey of all external gas piping and meters, and immediate action is required to support safe and reliable service during extreme cold weather.

Therefore, on Wednesday, November 14, crews from Inuvik Gas will begin working in Town section-by- section, starting with businesses, to install heat trace and insulation around the meters and the above- ground gas risers at every customer’s home and business. This work, similar to wrapping the meter and exposed pipe in an electric blanket, is required to ensure uninterrupted SNG service. In many cases, the outdoor piping will be modified and the regulator may need to be moved. This work will require access inside the building to relight the appliances.

The installation process will, in most cases, require crews to visit each home or business once for approximately four hours. This work will include an in-home assessment, installation of the external heat tracing and insulation, set-up of the electrical connection inside the home, and powering-up the system.

Please note that the participation of every customer is required in order for Inuvik Gas to continue to heat homes and businesses this winter and to not compromise the system for all customers.

Inuvik Gas will compensate customers for electricity costs associated with gas-related heat tracing this winter through a rebate to their gas bills.

We intend to complete this work within about five weeks while the Town is using natural gas from Ikhil.

Inuvik Gas will be calling customers to schedule an appointment. We also encourage customers to call and leave a message at 777-3406 to suggest a convenient appointment time, seven days a week between 9 a.m. and 8 p.m. Inuvik Gas will also be posting schedules, a map, and regular updates on our website, so please visit www.inuvikgas.com regularly.

Customer cooperation is greatly appreciated. If you have any questions please call Inuvik Gas' general number at 777-3422.

For More Information, please contact:

Kevin MacKay
General Manager
Inuvik Gas Limited
(867) 777-3422
www.inuvikgas.com

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