YELLOWKNIFE - Mackenzie Gas Project proponents are guaranteeing jobs for NWT residents after signing a socio-economic agreement with the territorial government last week.

Under the deal, the proponents - Imperial Oil, ConocoPhillips Canada, Shell Canada, Exxon Mobil and the Aboriginal Pipeline Group - commit to provide new employment, training and business opportunities in the NWT if the proposed Mackenzie Valley pipeline becomes a reality.

Bob Johnson, left, and Tom Lafferty, of Aboriginal Engineering, examine soil with geo-technical trainees in Fort Simpson. Training and job guarantees for Northerners interested in oil and gas careers form the backbone of the socio-economic agreement signed by proponents of the Mackenzie Valley pipeline and the Government of the NWT. - NNSL file photo

After little progress during the past year, the agreement is a step forward in making the project a reality, said Bob Reid, president of the Aboriginal Pipeline Group.

"This helps to gain some of the momentum in the project," he said.

Highlights of the 67-page deal include:

- $21 million for training jointly funded by the proponents and the GNWT;

- efforts to spend 15 per cent of capital expenditures on Northern labour, materials, supplies and services during construction, estimated to be $930 million per year;

- business opportunities for the duration of pipeline operation, estimated to be worth $145 million per year;

- establishment of a monitoring advisory board that includes aboriginal governments;

- restated commitment to employ at least 806 NWT residents per year;

- the proponents commit to paying travel costs of NWT resident workers;

- and, a zero tolerance approach to drug and alcohol use at construction sites.

The agreement is a sign that the project has momentum and is a significant achievement for the NWT, said Industry Minister Brendan Bell.

The $21 million in train ing funds is critical in order to get residents ready for the coming opportunities, he said.

"To be fair, it's on us (the government) to make sure people are prepared," he said.

The agreement is one tick on the checklist of things that need to be completed before the pipeline begins, said Ken Mitchell, director of business development for Hallmark Tubulars.

The company is part of a joint-venture called Mackenzie Integrated Tubular Solutions (MITS) that could create 20 jobs in Inuvik by supplying steel pipe products for oil and gas operations once construction is assured, he said. "It's 100 per cent contingent on the pipeline going through," Mitchell said.

Along with the Inuvialuit Development Corporation and Northern Transportation Company Ltd., the business will continue to train a number of workers from Inuvik in Edmonton until everything is finalized, he said.

The deal is a key development for the pipeline, but there are other critical steps involved for the project to proceed, said Pius Rolheiser, spokesperson for Imperial Oil.

Factors such as the cost of labour, materials and transportation will all play a part in whether it goes ahead, he said.

Access and benefits agreements still need to be formalized as well, he said, adding an updated cost and scheduling estimate is expected by the end of March.

Alternatives North was one group quick to condemn the socio-economic agreement saying it is, "...a best efforts deal with no penalties for non-compliance."

Calls to the group's offices were not returned prior to press time.