Malcolm Gorrill
Northern News Services

Inuvik (Aug 24/01) - News of a partnership between the Gwich'in Development Corporation and an oil and gas firm troubled some delegates Tuesday during the 18th annual general assembly of the Gwich'in Tribal Council.

Fred Carmichael, president of the Gwich'in Tribal Council, addresses the council's 18th annual general assembly, which was held in Inuvik earlier this week. - Malcolm Gorrill/NNSL photo

About 60 delegates, plus audience members, learned about a deal reached between GDC and Ensign Drilling Inc., a wholly owned subsidiary of Ensign Resource Service Group Inc. of Calgary.

The deal establishes Gwich'in Ensign Oilfield Services Inc. Its aim is to provide oil and natural gas drilling and other oilfield services in the Gwich'in Settlement Area.

GDC owns 51 per cent of GEOS, and the Ensign Group owns the other 49 per cent.

Tribal Council president Fred Carmichael said Gwich'in need to make deals like this one to build an economic base and become self sufficient.

"We can't go around with a tin cup to the government for the rest of our lives," Carmichael said.

But delegates and others in attendance said they fear the environmental impacts of development, especially on caribou. Carmichael responded by saying that petroleum development is taking place all around the region, and that the Gwich'in must move quickly so as not to fall behind, and to share in the benefits.

"It's better for us as Gwich'in people to have some control, and (being) a 51 per cent owner of the drilling company gives us control as to where they might drill."

Using the Arctic National Wildlife Refuge as an example, Carmichael said, "There's no way we'd allow them to drill, as a partner, in the Porcupine caribou calving grounds."

Tom Connors, chief executive officer for the GDC, said Ensign Drilling shares their concern about the environment. "We're all trying to be as responsible as we can be," Connors said.

Changes to GDC

Some people complained there was a lack of consultation with beneficiaries prior to the deal. Carmichael said this concern ties in with structural changes made over the past year to the development corporation.

He explained last year's assembly expressed a desire for the GDC to be freed of political ties and be set up as a business. A board of directors has been put in place for the agency, and Connors was recently hired as chief executive officer.

"Today we're back in the political arena, because that's what this forum is," Carmichael said.

He said a balance needs to be established, between allowing the GDC to go about its business and keeping beneficiaries informed of developments.

Carmichael said a strong development corporation must exist, and a strong economic base established.

He cited the example set by the Inuvialuit, and noted people have asked him why Inuvialuit beneficiaries receive dividends, while Gwich'in do not. "It'll always be nothing unless we do like they did."

The annual assembly was held at the Aurora College gym. Sessions began Monday and wrapped up Wednesday.

Meanwhile, exploration plans for the Inuvialuit region were unveiled last week. See story below and pages 4 and 8.