The Rocky Gas Co-op has agreed to provide default security to Clearwater County as a condition of receiving a $2.7-million grant to complete the long-awaited Nordegg gasification project.
A letter presented to county council this week confirms that the Co-op will use the gas line infrastructure currently under construction — excluding the Regulating and Metering (RMO) station — as collateral for the grant.
County officials say the commitment satisfies their requirement for a safeguard to protect public funds should the project not be completed as planned.
“I’m certainly satisfied,” said Councillor Daryl Lougheed. “This really covers off our significant grant to this project, and is in alignment with our plans for Nordegg.”
The $8-million project will bring natural gas service to the hamlet of Nordegg via an 11.5-kilometre underground pipeline from the Stolberg facility. Construction is already underway and is expected to wrap up by June 2025.
At its April 22 meeting, council voted to provide the $2.7 million on the condition that a default security agreement be included.
In its correspondence, Rocky Gas Co-op emphasized that the grant funds are needed no later than June 30, 2025, to pay outstanding project costs. Once the infrastructure is built and construction terms are met, the Co-op is requesting the security be considered fulfilled and released.
Councillor Jordon Northcott expressed concern that the project was greenlit by Rocky Gas Co-Op without sufficient funding in place, suggesting it might be open season to other developers looking to finish projects.
CAO Rick Emmons responded by saying the county has a vested interest in seeing Nordegg developed, and as the hamlet’s largest developer, it’s in line with other county efforts in the region.
Concerns were also raised about the 2.7 million dollars coming from core infrastructure restricted surplus from, which is projected to have a balance of over $3.2 million in December 2025.
“This looks like a ‘today’ problem, and today, the core infrastructure restricted surplus has a balance that more than covers off this project,” says Erik Hansen, director of Public Works for Clearwater County.
Clearwater County’s total contribution to the project now stands at $4.1 million, over half the total cost. The province has yet to confirm its requested $3.2-million contribution.
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