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Cautious optimism

Gas group could begin regulatory work in 2001

Doug Ashbury
Northern News Services

Yellowknife (Dec 18/00) - The Mackenzie Delta natural gas producer group looking to move resources to market will likely be ready to work on the regulatory application next year.

"Some work still needs to be completed and our (feasibility) study will continue into 2001," said K.C. Williams, Imperial Oil senior vice-president said in a release.

"Based on progress to date, we will be stepping beyond the feasibility study by advancing activities such as further conceptual engineering and the gathering of baseline biophysical data," added Williams.

To navigate the regulatory maze producers have put together a draft road map.

In February, Imperial Oil Resources, Gulf Canada Resources, Shell Canada and Mobil Canada began studying the feasibility of commercializing their six trillion cubic feet of Delta natural gas.

"We are pleased with the overall progress we've made on our feasibility study this year.

"Our relationship with the aboriginal pipeline group has been highly beneficial in the advancement of our study and we are further encouraged that we will be working more directly with the APG in 2001 to determine mutually acceptable arrangements under which a Mackenzie Valley pipeline could proceed," Williams adds.

Aboriginal residents of the NWT want to take an ownership stake in the proposed pipeline. The group was formed earlier this year after aboriginal leaders supported the pipeline.

Nellie Cournoyea, chair of the aboriginal pipeline group is confident work done by resource companies will ultimately lead to the building of the pipeline.

"The work of the producer group will lead, we believe, to the realization of this project, which is of significant importance to the industry, the North and the nation," she said.

Producer group spokesperson Hart Searle said the next significant milestone will be a decision on whether or not to proceed with developing the regulatory application.

"We can't give a date ... but we'd like to be in that position sooner than later."

Searle said collecting soil, water and other environmental data will probably begin in second quarter.

If the data is going to stand up to environmental and regulatory scrutiny, a "full cycle of seasons will be needed."

The collected would build on and update information gathered as far back as the 1970s, he added.