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Bids sought on four Mackenzie Delta parcels in Canada’s Northwest Territories Licenses issued for the Canadian government properties near the Beaufort Sea this year will run until September 2008 Tracy Wilson PNA Staff Writer
Bids are now being accepted for four parcels of government land totaling 725,133 acres in the Mackenzie Delta region of Canada’s Northwest Territories.
The first 179,010-acre parcel includes North Point on Richards Island and shallow offshore areas immediately to the west.
The second parcel encompasses 180,692 acres and is contiguous with the southern boundary of the first parcel. It includes lands bordering the Middle Channel, one of the principal tributaries of the Mackenzie Delta.
South of that land is another parcel of 178,608 acres and the fourth parcel up for bid includes 186,512 acres that lies in the southern Mackenzie Delta.
The bidding criterion is the dollar value of exploration in the first 5-year period of the 9-year term. The terms and conditions for the licenses include a single well drilling requirement in the first period of the license. Competitive generic royalty rates apply. Parcels are strategically placed The lands are close to major gas fields at Taglu and Niglintgak and several other gas and oil discoveries on the shores of the Mackenzie Delta.
According to the Canadian government’s Northern Oil and Gas Bulletin, the parcels are strategically placed for future offshore oil and gas development in the Beaufort Sea.
Total discovered resources of the Mackenzie Delta region are currently estimated by Canada’s National Energy Board at 1.01 billion barrels of oil and 9 trillion cubic feet of gas and the Geological Survey of Canada estimates the region’s undiscovered resources at 5.39 billion barrels of oil and 53.3 trillion cubic feet of gas.
Licenses issued in the initial round of bidding will run until September 2008, subject to fulfillment of drilling requirements.
Consultation necessary for access, environmental matters
Those who win the parcels will likely have to consult with Inuvialuit organizations and the communities of Aklavik and Inuvik on matters ranging from access across Inuvialuit lands to determining environmental concerns and implementation of northern benefits requirements.
Bids must be received by Sept. 9.
For more information, contact the Northern Oil and Gas Directorate in Ottawa at 819 997-0878 or visit http://www.inac.gc.ca/oil/ on the Internet
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