Thorunn Howatt
Northern News Services

Calgary, Alta (Jan 21/02) - A rival group has announced intentions of its own just a little more than a week after Mackenzie Valley gas producers said they intend to begin regulatory processes.

Forrest Hoglund: Wants to see a pipeline built from Prudhoe Bay, Alaska to Chicago.

The Arctic Resources Corporation (ARC), a Texas group interested in shipping arctic gas southward, has submitted a proposal to the National Energy Board.

"We have filed a preliminary information package," said Harvie Andre, who represents ARC's Canadian arm, ArctiGas.

Andre explained that the package adds up to an application for approval of a pipeline corridor. ARC's proposed $15-billion route would start by picking up arctic gas at Alaska's Prudhoe Bay then move under the Beaufort Sea to the Mackenzie Delta.

After picking up Canadian gas, the pipe would follow the Mackenzie Valley southward on its way through Alberta to Chicago.

"Part of the process of finally getting the certificate of public necessity and convenience, which is what you need before you can build a pipeline, is to submit to the National Energy Board a preliminary information package," said Andre. That information includes details about the project.

Last fall Texan Forrest Hoglund pitched ARC's proposal at a special assembly in Wrigley for a 100 per cent aboriginally-owned pipeline. ARC wants the project to be financed by the sale of non-recourse revenue bonds.

But five of six regions in the territory have signed on to a different proposal with a group calling itself the Mackenzie Valley Producers Group and the Aboriginal Pipeline Corporation. That pipeline would run from the Mackenzie Delta southward following the Mackenzie Valley. The Deh Cho is holding off on signing with anyone.

The aboriginal pipeline group also haven't secured money for its one-third of the $3-billion project.

So while Arctigas has been plugging away, trying to sway the favour of aboriginal groups from the Mackenzie Valley proposal to its own, it has also been busy working at the methods and logistics of an international pipe.

The possibility of the two groups teaming up is a consideration, said Andre. ARC has spent millions of dollars working on its proposal.

What happens if the Aboriginal Pipeline Corporation secures financing, gets support from the Deh Cho and builds the Mackenzie Valley line?

"Some of the money is lost. There was more than $700 million spent on the Alaska Highway Pipeline that was approved 24 years ago," said Andre, referring to a project that was shelved during the '70s.