Billings seeks to extend its lease with Oakville Energy

Township of Billings

KAGAWONG—Billings Township council has made its final decision to work toward an extension of 10 years to its current lease agreement with Oakville Energy Corporation (OEC) for the operations at the Kagawong Power Generating Station.

“As I indicated at our special (council) meeting January 11, I support the township extending the lease by 10 years with OEC, as they requested,” said Councillor Bryan Barker. “The mayor had carried out extensive research on the proposed agreement which we reviewed at our last meeting, and showed it is the best option for the township at this time.”

Councillor Barker proposed an adhoc committee could be considered by council. 

“Maybe having an adhoc committee is redundant, but I’m suggesting the committee could work in parallel to the township, and just provide input,” said Councillor Barker.

“I understand what you’re saying, but I have concerns about the defined elements. A lot of times committees are referred to and it takes months to get anything done because information has to go back and forth,” said Councillor Sharon Alkenbrack. “I don’t want to rush, but OEC has been waiting for us to make a final decision on whether we were going to agree to the extension of the lease  since last fall.”

“I support the desire to have the lease agreed updated demand and to provide language that is understandable,” said Mayor Anderson. “We can welcome any suggestions for improvement on the lease and we want the lease to be current and understandable and benefits the township and OEC.” 

“We don’t want to renegotiate and change the agreement but make it clear and understandable what is in the agreement,” said Councillor Barker. He said the Lake Kagawong Resources Committee can also look at and provide input on concerns or suggestions they may have with the agreement.

Council passed a motion to accept the request for a 10-year extension to the current lease with OEC for the operations at the Kagawong Power Generating Station and that council directs staff to send this lease to the township lawyer for review and update to make sure it is current, understandable and that it protects the township. All lawyer fees should be paid for by OEC.