Glen Korstrom
Northern News Services

NNSL (Aug 02/99) - The GNWT signed two agreements July 28 to help develop the NWT's oil and natural gas reserves.

One of the memoranda of understanding is with the Alberta government and sets out plans for the two governments to work together in developing Western Canada's Sedimentary Basin.

The other agreement is with Canada's largest pipeline company, TransCanada Pipelines.

It commits both parties to work together and develop a co-ordinated strategy to transport and market natural gas.

"When you look at the discovery in the Deh Cho of natural gas, which is incredibly significant, it tells you how much more we could potentially find if we got into an extensive drilling program," said Minister of Resources, Wildlife and Economic Development Stephen Kakfwi.

"One or two cents here or there does add up to millions of dollars."

The agreement with TransCanada Pipelines is in advance of what both parties expect will be a future $100 million natural gas pipeline from Alberta to the Fort Liard area.

Though the agreement with TransCanada Pipeline does not commit either party to construct a new pipeline, both Kakfwi and TransCanada's senior vice- president of Northern development, Bob Reid, sounded optimistic one would be built.

Reid estimated if one is built it could create 500 seasonal jobs in the North.

"The real benefits are long term," he said.

"It encourages development in the region attaching these supplies to premium priced markets in North America."

He said once infrastructure moves north into the NWT it could continue north to the Mackenzie Delta to possibly tap reserves there.

The agreement with the Alberta government lays out an action plan for improved information sharing on geological research, royalties, market and supply analysis and land access.

It also guarantees non-discriminatory access and tolls for gas produced outside Alberta in Alberta-regulated pipelines.

"This agreement commits both governments to working together to realize the development of the Western Canada Sedimentary Basin," Kakfwi said.

The agreement remains in effect until 2003.

"Any way we could reduce the cost for Northern producers to ship products to market economically is necessary," Kakfwi said of the two agreements.