Thorunn Howatt
Northern News Services

Yellowknife (Oct 01/01) - Leaders from the NWT's Sahtu region signed a deal with Texan Forrest Hoglund's Arctic Resources Company last week.

Texan Forrest Hoglund met with members from the Sahtu hoping to sign them onto the Arctic Resource Company's pipeline proposal. - Thorunn Howatt/NNSL photo

Hoglund wants Mackenzie Valley aboriginal groups to commit to a proposal to build a pipeline that would carry Arctic gas south.

"I would say it was a good meeting," said Hoglund. He refused to say what was in the agreement but confirmed that a memorandum of understanding was signed.

Larry Tourangeau represented the Ernie MacDonald Land Corporation out of Norman Wells, and Hoglund said members from Tulita, Deline and Fort Good Hope were also present.

Arctic Resource Company (ARC) is marketing the idea of a fully debt-financed pipeline that would carry gas from Alaska's Prudhoe Bay undersea to the Mackenzie Delta where it would pick up gas and continue south.

The plan is to pay for the pipeline project through the sale of bonds.

Hoglund said aboriginal land owners would hold title to the line and ARC would be paid as a program manager.

ARC recently promised regions access to $50,000 each to be used for investigation and legal fees associated with pipelines.

Although there are no producers committing to sending gas down the proposed line, "our proposal is going to be so attractive to the producers they will join us," said Hoglund.