Fact File |
Inuvik 1 block: 904.6 sq. km |
Inuvik 2 block: 1,003.7 sq. km |
Work Program (same for both blocks) |
3 exploration wells in initial term (10 years) |
1 well in first renewal term (5 years) |
1 well in second renewal term (5 years) |
25 per cent working interest on any discovery |
Financing of the working interest |
Other Conditions: |
ILA surface access fees |
Combined bonus of $43.5 million |
Local gas use provisions |
Royalties (5, 10, 15 per cent) |
Benefits agreement |
Inuvialuit employment priority; Inuvialuit business priority |
Malcolm Gorrill
Northern News Services
Inuvik (Jun 23/00) - A plan to explore and develop natural gas in the Inuvik area received a green light Friday.
At a special meeting of the Inuvik Community Corporation (ICC), members unanimously ratified a concession agreement reached between the Inuvialuit Regional Corporation (IRC) and Chevron Canada Resources. It's expected the deal will be formally approved by the IRC the end of June.
ICC chairperson Donna Kisoun said it was an "exciting day" for beneficiaries.
She noted that during the meeting concerns were raised about potential negative environmental and social impacts.
"It made me think that maybe we're not going to get this ratification," Kisoun said.
She said the vote, attended by slightly more than the required 25 Inuvik beneficiaries necessary to achieve a quorum, displayed faith on behalf of members in ICC leaders.
Before the vote, John Reader, Northern gas team leader for Chevron, gave a presentation on his company's plans. After the meeting, Reader explained his main message was that Chevron is a good partner for communities like Inuvik to have.
"We have a practice of working with communities, governments, aboriginal peoples of various kinds around the world," Reader said.
"We need to be welcomed in the communities in which we work in order to be successful," he said. "We need to understand the community concerns and issues and how we can help achieve the goals of the community."
Reader said it is premature to say how many jobs might be created, but said Chevron expects there will be "decades" of opportunities..
"The North American gas market in particular is crying out for gas, and the time is now to actually start working on delivering that gas."