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Northwest Territories mounts argument for federal aid Bidding for C$230 million in infrastructure, training and business support before Mackenzie Delta window closes; says the government is the “missing” partner in a gas pipeline project Gary Park PNA Canadian Correspondent
The Northwest Territories government is stepping up pressure for C$230 million in federal aid now that producers and aboriginals have signed a deal backing a stand-alone Mackenzie Valley gas pipeline.
Northwest Territories Deputy Premier Jim Antoine told a Calgary conference on Mackenzie Delta oil and gas development on Oct. 17 that the project is “missing one important investment partner — the government of Canada.
“The Canadian government has yet to assist with major infrastructure improvements that are so desperately needed in the Northwest Territories to support resource development,” he said.
He said Indian and Northern Affairs Minister Robert Nault, in a recent letter, “acknowledged that the window for action is closing,” although Nault said earlier this month the government wants a market-driven decision on the pipeline without any federal backing.
Antoine said the government has so far contributed less than C$4 million of the C$230 million the Northwest Territories is seeking for infrastructure, training and business support, while the Northwest Territories government is ready to invest C$100 million.
He said a Mackenzie Valley pipeline is a tremendous opportunity for all of Canada to benefit from thousands of jobs and contracts, but “we are still waiting for the federal government to commit to moving Canadian Arctic gas to market.”
Antoine said the Oct. 15 memorandum of understanding between the Mackenzie Delta Producers’ Group and the Mackenzie Valley Aboriginal Pipeline Corp. is a major advance for the region.
Agreements would give access to revenues The successful conclusion of agreements on devolution and resource revenue sharing will give the territorial and aboriginal governments of the Northwest Territories full access to the substantial government revenues being generated through development of non-renewable resources, he said.
“This will give us greater control over how and when development takes place,” he said. “This is critical to our vision of self-sufficiency and our efforts to maximize benefits from a Mackenzie Valley gas pipeline.”
Antoine also said industry concerns over the complexity of regional regulatory approvals will be answered through a streamlined process.
He said various agencies will soon present a progress report to Nault, including a draft plan outlining a coordinated review for any type of major gas development.
Meantime, he said the level of activity in the Mackenzie Delta is the highest in 20 years, with no indications from companies that exploration planned for this winter will be scaled back in the aftermath of the Sept. 11 attacks in the United States.
Antoine estimated that spending on gas exploration and development will exceed C$750 million over the next four years, with Inuvialuit and Gwich’in organizations, residents and businesses being the main beneficiaries. Last year alone, the Inuvialuit collected C$75 million in bid bonuses from E&P companies.
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