Derek Neary
Northern News Services

Fort Simpson (Mar 06/00) - The promise of prosperity from economic development attracted about 30 people to a public information session on the oil and gas industry in Fort Simpson.

However, the frustration of not seeing the potential boom come to fruition due to politics was also quite evident.

"Why are we here? We already know about what's going on in Fort Liard," said Laverna Martel, of South Nahanni Airways.

Facilitator Chuck Parker, co-ordinator of the Mackenzie Valley Planning Project for the GNWT, replied the forum was intended to share information so informed decisions could be made about the industry.

Ivan Simons, of HR Thomson Consultants Ltd., said small businesses in Fort Simpson are already aware of how the oil and gas industry could bring a financial boost to the rest of the region. What the small businesses lack, he suggested, is political clout.

"We're going to sit here forever until the land opens up for exploration of any kind," Simons said.

Martel noted that the people in a decision-making capacity -- the leaders of the First Nations -- were not present at the meeting.

Parker acknowledged that it's a difficult situation, but said it's something that must be worked out within the region.

"Our job is not to influence people in any particular way," he said. "We're not trying to get you to make decisions or force decisions on you."

At the same time, Doug Burch, an oil and gas industry consultant who accompanied Parker, alluded to the fact that oil and gas companies in Calgary are "champing at the bit" at the prospects of exploring more of the Mackenzie Valley region.

To date, the gas found in the Fort Liard area has surpassed the total estimate for the entire Deh Cho region based on a geological study conducted four years ago, he noted.

Although companies are not permitted to drill for gas or oil on Crown lands without First Nations' consent, there are companies eager to begin speculative seismic work, which is allowable, he said.

Parker presented data relating to the oil and gas industries which indicated that prices for natural gas are climbing, and the prices and demand for oil are expected to increase as well. He said there is 11 trillion cubic feet (tcf) of known natural gas reserves in the NWT. It's projected that number could be 65-80 tcf after more exploration.

He noted that there are also massive known reserves in Prudhoe Bay, Alaska, as well as in the Beaufort Delta. Work bids for parcels of land in the Delta recently fetched a total of $183.2 million even though the gas is currently stranded.

According to Parker, it's estimated that gas will reach market in seven to 10 years via one of a number of pipeline options. The proposed Mackenzie Valley pipeline, recently endorsed by the NWT's aboriginal leaders as long as they have some ownership, would bring the greatest benefit to the NWT, he said.

It's estimated the pipeline would cost $2 billion to $3 billion to build and create up to 4,000 jobs over two- to two-and-a-half construction seasons. It would also present the option of tying-in other smaller finds in the NWT, he noted, such as that in Colville Lake.

Don Antoine, employment and training coordinator for the Acho Dene Koe (ADK) in Fort Liard, spoke of the ways the ADK have taken advantage of gas activity near their community. ADK Holdings had revenues of $25 million last year, paying out $7.5 million in wages to its 500-700 employees. That's expected to increase to $10 million in wages this year, he said.

The ADK has created a number of companies and joint ventures in the oil and gas service sector, such as Beaver Enterprises, the Liard Valley Fuel Centre, Deh Cho Air and Deh Cho Helicopters. They are also working towards a percentage of ownership of some of the gas pipelines, he said.

Antoine acknowledged that it's a very demanding industry with significant fluctuations in employment.

"It's not all gung ho out there at times," he said. "But we've learned a lot in a very short time ... we reacted very progressively towards industry."