Inuvik signs new 10-year agreement with Inuvik Gas

The town of Inuvik, N.W.T.,has signed a new franchise agreement with Inuvik Gas to distribute fuel.

The old agreement expired last year andInuvik Gas had said it wasn't going the renew the agreement. But the company reversed its decision, saying there is value in the town's distribution system.

The new agreement will last 10 years.It also allows either the town or Inuvik Gas to pull out within the first two years.

Mayor Floyd Roland says the town and the company will continue looking at energy alternatives now and after the agreement ends.

"Is there a winner or loser? I think right now with parties at the table investigating and looking at the future,I think it's a better scenario having us all at the table looking at what that next step might be," saidRoland.

Roland says that next step might be trucking in liquified natural gas instead of propane.

If the agreement is cancelled, Inuvik Gas is still obligated to supply gas to the town until 2018.

Roland says that's enough time to find a new supplier.

The town also has the option of taking over the distribution system.