|
Heavy lifting over, wrestling begins Canada’s Arctic communities hungry for opportunities if NWT gains control over onshore resources, and extends pact to offshore Gary Park For Petroleum News
A beaming Canadian Prime Minister Stephen Harper declared that the “heavy lifting is done” as he and Northwest Territories Premier Bob McLeod joined forces to announce the NWT had taken a giant step towards taking greater control over its land, water and natural resources.
But Harper also made a telling observation. “It’s time for the people of the Northwest Territories to take control of its destiny.”
Already, the debate is in full swing over how that will be done and who can benefit.
Which assumes two things: That the final transfer of jurisdiction will occur as scheduled a year from now and that the two governments will ultimately be able to extend the pact from onshore resources to possibly the ultimate oil and natural gas prize in the offshore.
But this is no time to delay, especially for the people of Inuvik on the Mackenzie Delta and Tuktoyaktuk on the shore of the Arctic Ocean, who have spent decades watching hopes dangled and snatched away.
Inuvik, with 3,500 residents, and Tuktoyaktuk, with 900, are both heavily dependent on social support programs and resilient when it comes to living with unfulfilled promises.
Their rollercoaster ride has largely involved plans to develop the natural gas resources of the Mackenzie Delta and, to a lesser extent, the considerable oil finds in the Beaufort Sea.
Two signatures absent Also hanging over the “consensus” agreement is the absence of signatures from two of the NWT’s seven aboriginal governments, although McLeod is optimistic the Dehcho First Nation and the Akaitcho Territory Government will join the pact.
In addition, the agreement has yet to face the court of public opinion during an upcoming round of public consultations.
The history of northern development when it depends on unanimity suggests only one thing: Take nothing for granted.
Even so, the bidding for a slice of the economic pie is under way.
“First we need to be ready — really ready — to take advantage of the economic opportunities that will be available through offshore exploration, development and production,” Tuktoyaktuk Mayor Merven Gruben told an Arctic oil and gas symposium in Calgary in a speech delivered by consultant Doug Matthews.
“The opportunity is great but so is the ability of the Mackenzie Delta region to seize that opportunity,” he said, noting that his hamlet and the region is being developed as “the base for the Beaufort, a core supply and service base for offshore development for years to come.”
Gruben said the Canada North Development Agency, supported by the Inuvialuit Regional Corp., is working on a plan that would make Tuk Harbour an integral part of that exploration.
Add to that the federal money being provided for a C$200 million for a C$300 million, 85-mile, year-round highway between Inuvik and Tuktoyaktuk, ending the reliance on an ice road, barges and air transport when the road is completed in 2017.
Imperial-BP JV, Chevron The new buzz of excitement stems partly from plans by an Imperial Oil/ExxonMobil-BP joint venture, which expects to file an application in June to start an environmental impact assessment, followed by a separate application to the National Energy Board, setting the stage for a well in the Beaufort.
BP made a successful bid of C$1.18 billion for its parcel, while Imperial/Exxon acquired rights for C$585 million, before the companies formed a joint venture.
Bharat Dixit, the NEB’s technical leader for exploration and production, said at the Arctic symposium the regulator expects Chevron will also seek a drilling permit for its adjoining lease, which carries a work commitment of C$103 million.
Chevron has so far gathered 2,370 square miles of “high quality” 3-D seismic data on its Sirluag acreage, shooting at depths of 2,600 feet to 5,900 feet.
Kevin Williams, exploration manager for Chevron’s Canadian unit, gave an added prod to those communities eager to provide a back-up role.
He said logistics were a “big challenge” for Chevron’s seismic work “as there is no deepwater port in the north,” compounded by the costs of fueling vessels and keeping emergency medical and evacuation services on standby.
“There are not a lot of easy solutions,” Williams told the symposium.
He also said that although the regulators are “fairly reasonable people,” both operators and regulators are faced with an area that does not have a long track record or history.
“Really early engagement is critical — the earlier the better. This allows you to have a kind of dialogue and allows an education process to happen in both directions,” he said.
| 