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November 03, 2004 --- Vol. 10, No. 99November 2004

Pelican Hill’s first Cook Inlet well dry; set to drill four more

The British Columbia government and three aboriginal First Nations have negotiated the first break in a three-month blockade of oil and natural gas sites in the province's northeast.

Three of seven Treaty 8 First Nations have signed a five-year memorandum of understanding that sets out the rules for new oil and gas developments and a fee structure for services provided by native communities.

"The overall purpose of the agreement is to provide certainty and build positive long-term relationships amongst governments and industry," said Energy Minister Richard Neufeld.

A spokesman for Neufeld said the government is now pursuing similar deals with the other First Nations.

In particular, the industry is anxious about the Ladyfern area, where Petro-Canada and Canadian Natural Resources Ltd. have been stalled in their efforts to develop what is rated as the hottest gas play in North America.

A spokesman for Petro-Canada said the company is "encouraged" by the breakthrough so far and is hoping headway can be made in the Ladyfern area.

For now, he said, Petro-Canada has suspended construction indefinitely on a feeder pipeline to tie in three new gas wells, noting that the "window is becoming smaller and smaller" to complete the project this winter.

October North Slope production up 8.6 percent from September

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