Doug Ashbury
Northern News Services

Yellowknife (Mar 13/00) - In the wake of an announcement that major resource companies will consider developing their Mackenzie Delta natural gas resources, the Inuvialuit Regional Corporation's Nellie Cournoyea says the benefits should go beyond those linked directly to a pipeline.

"One has to decide, if you have an economic opportunity that allows you to do other things," Cournoyea, the chair and chief executive officer of the Inuvialuit Regional Corporation, said.

The corporation is responsible for administering the Inuvialuit Final Agreement on behalf of the Inuvialuit beneficiaries.

"In terms of our region, we have control and benefits imbedded in the Inuvialuit Final Agreement." Cournoyea adds it is extremely important that other aboriginal groups "have a real stake" in the pipeline, she said. That means some level of ownership, if possible, she adds.

Aboriginal groups began discussions about a Mackenzie Valley gas pipeline at a recent meeting initiated by Acho Dene Koe Chief Harry Deneron In Fort Liard. A follow-up meeting is tentatively scheduled for April 3 and 4 in Inuvik.

"We anticipated the producer group would get together to look at feasibility and costs," Cournoyea said.

On Feb. 28, Imperial Oil Resources, Gulf Canada Resources, Shell Canada and Mobile Canada said they had entered an agreement to study the feasibility of developing their Delta gas resources. The four companies have discoveries totalling about six trillion cubic feet of natural gas in the Delta.

She said while the corporation is pleased with the Feb. 28 news, a proposed pipeline is very much in the preliminary stages. But, according to Cournoyea, "the Inuvialuit know where they want to go."

Project could cost $5 billion

Imperial Oil, as the largest resource holder in the Delta, is acting as spokesperson for the producer group.

Hart Searle, with Imperial Oil public affairs, declined to estimate how long or how much it would cost to build a gas pipeline in the Mackenzie Valley. There is speculation though that such a project could cost $5 billion and take eight to 10 years to complete.

"We need more time to formulate our plans," he said. "One of our first steps is to schedule meetings with a number of parties. We hope to get those under way in the next four to six weeks."

The producer group plans to meet with aboriginal groups, territorial and federal governments, communities, other producers and pipeline companies.

The renewed interest in Delta gas -- the discoveries were made years ago -- is prompted by increased demand in the North American market for the resource. As a result of the Berger Inquiry (in 1975-76), a moratorium on development was recommended and economics continued to keep any plans on the shelf until recently.

"We anticipate the (feasibility) study will be complete by the end of the year. We're hopeful we'll come to a place where we can take the next step and do a full-blown plan," he said.

Delta discoveries include:

- Tajla, which contains three trillion cubic feet. It was discovered in 1971 by Imperial Oil. Imperial is 100 per cent owner and operator.

- Parson's Lake, which contains 1.8 trillion cubic feet of natural gas. The resource was discovered in 1972 by Gulf. Gulf, the operator, owns 75 per cent of the discovery while the remainder is held by Mobile Canada.

- Niglintgat, which contains one trillion cubic feet of natural gas. This discovery was made in 1973 by Shell, which is 100 per cent owner and operator.

The discoveries are all onshore, near Inuvik, in the Inuvialuit Settlement Region. And all are sweet gas as opposed to sour gas, which requires compound removal.

Asked about the magnitude of this combined resource, Searle said the best comparison is probably the Sable offshore gas project with estimated reserves (from six discovery fields) of three to three-and-one-half trillion cubic feet of natural gas.

As for the timing, Searle said the market is "sending some important signals. Demand forecasts are relatively robust."

The outlook for gas prices is robust as well. Pipeline and drilling technology over the past 20 years have led to reduced costs, he adds.

And last, but not least, there is a significant change in the position of aboriginal leaders.

"They are ready to consider development on their lands."