Derek Neary
Northern News Services

Fort Simpson ( Jun 02/00) - Make Fort Simpson the regional hub of oil and gas activity.

That was the message delivered to some of the pipeline industry's heavy hitters at an informal meeting with the Fort Simpson pipeline group last Thursday.

Former Fort Simpson Chamber of Commerce president Andrew Gaule told executives from Westcoast Energy and TransCanada Transmission that Fort Simpson would benefit most from being the industry's operational and administrative centre, offering pipeline servicing and housing government regulatory positions.

"So we can make Fort Simpson a one-stop shop for the oil and gas industry ... (and) we want that done in an environmentally-friendly manner," said Gaule.

The pipeline officials suggested that political uncertainty is the greatest hindrance to pipeline development. Liidlii Kue First Nation Chief Rita Cli dispelled any notion of uncertainty.

"We've always said we're not against development, we just want to be in control of it ... and get some benefit for future generations," she said.

Duncan Canvin, president of the Fort Simpson Chamber of Commerce, said the community is economically depressed right now, and would gain substantially if a gas plant were to be located here. Spin-off businesses would then prosper and the exodus of labourers to Fort Liard might then cease, he noted.

Brian McNulty, vice-president of Northern development and community and regulatory affairs for TransCanada Transmissions, told the Fort Simpson contingent that the pipeline companies want to make sure the pipeline is "done right this time."

This is in reference to Mayor Norm Prevost's contention that the last pipeline built in the area involved practically no local human resources.

McNulty said it's too early to be making any promises about jobs.

Fort Simpson resident Kevin MacLellan pressed the executives on the issue of establishing a gas plant in Fort Simpson.

Stephen Bart, director of Northern development for Westcoast Energy, said only when gas in the Mackenzie region is found to be sweet or sour will help to determine if a processing plant is needed. If it is, Norman Wells already has one, he noted.

He suggested the focus should remain on secondary industry and supporting further exploration. With year-round road access (other than break-up and freeze-up) Fort Simpson has a logistical advantage in a bid to become a regional hub, he conceded.

"It would be a shame to see your regional centre go to Yellowknife," MacLellan said.

"Is that your greatest fear?" asked Jake Epp, TransCanada's senior vice-president of external affairs.

"My fear is that it wouldn't be in Simpson," MacLellan responded.

The pipeline executives were also questioned about the pros and cons of other potential pipeline routes, such as the Foothills route through Alaska and the Yukon.

"There's nothing crystal clear at this juncture about what's the right route," Bart replied, but he also made mention of the stringent regulatory regime in the NWT. It would take seven to 10 years to construct a pipeline in the NWT, according to Bart. Acquiring the necessary permits would take two to three years alone.

Epp later said he believes pipelines through Alaska and Yukon as well as the Mackenzie Valley will be viable in the future because the demand for natural gas is growing at a strong rate.

Asked if the companies were in favour of aboriginal pipeline ownership, Epp replied, "It's absolutely essential."

McNulty interjected, "It's a question of discussion as to what that percentage would be."