Mike W. Bryant
Northern News Services

Yellowknife (Aug 24/01) - Twenty pounds of King Crab legs and a sense of goodwill were not enough to bridge the gulf between Alaska and NWT politicians over gas pipeline routes.

Mike Alaskan State Senator John Torgerson, left, and Resources, Wildlife and Economic Development Minister Joe Handley were all smiles at a reception for a delegation of Alaskan politicians. Both remain at odds over where to build a Northern gas pipeline. - W. Bryant/NNSL photo

A dozen Alaska state senators and House representatives met with Finance and Resources, Wildlife and Economic Development Minister Joe Handley Tuesday to try and iron out differences over pipeline routes.

Alaska's government passed legislation last April outlawing producers in the state from sending gas south along any route other than the Alaska Highway.

The NWT government has lobbied in favour of an undersea pipeline that would take gas from Prudhoe Bay, Alaska and connect it with the proposed Mackenzie Valley pipeline.

Both sides are anxious to see gas and oil pass through their jurisdictions, which would generate billions of dollars in revenue once a pipeline is built.

"Their preference is the Alaskan pipeline, because it's to their advantage," said Handley at a reception held at the Legislative Assembly Building to welcome the Alaskan delegation.

"That's a point we agree to disagree on, but the world doesn't begin and end with pipelines. Our priority is to get the Mackenzie Valley pipeline built. The over-the-top route would be just an added benefit."

One leading argument championed by Handley is that the Mackenzie Valley route would likely be significantly cheaper to build -- an estimated $7 billion compared with $11 billion for the Alaskan route.

Handley had also stated earlier that if Alaska carries through with its plan, it may be in violation of the North American Free Trade Agreement, a point supported by Intergovernmental Affairs Minister Stephane Dion in his meeting with Premier Stephen Kakfwi on Monday.

Alaska State Senator John Torgerson had hoped the NWT government would join a panel, which would include the Yukon, to discuss oil and gas issues.

So far, the NWT has rejected the invitation.

Alaska wants gas, jobs

"Where's our jobs, what's in it for our people?" said Torgerson, when asked why his government was opposed to an over-the-top route.

"We have several industries interested in building plants. Anchorage is a very large centre and we need gas."

A possible scenario, providing the move by the Alaskan government is not defeated through the Free Trade Agreement, would be two pipelines being built.

Premier Kakfwi has told the federal government to expect a proposal for a Mackenzie pipeline before the year is out, but producers' group spokesperson Hart Searle said their plans are still on hold.

"We have not yet made the decision," said Searle. "We hope to, we want to, but we haven't made that decision."