Terry Halifax
Northern News Services

Dawson City (June 14/02) - Leaders of western provinces, territories and states met in Dawson City, Yukon last week to discuss common issues related to health, education, environment and also a Northern pipeline route.

Yukon Premier Pat Duncan said she was honoured to host the meeting and said the meetings were very productive. In regards to pipeline discussions, Duncan said a number of key points were recognized by the leaders.

The most important being the necessity for two pipelines to feed the gas-hungry grid.

"Canadians and Americans should not be choosing between Northern development projects -- both pipelines are required," Duncan said. "Nova Scotians were not asked to choose between Hibernia and Sable Island."

Alaska Republican Governor Tony Knowles was also at the conference. Knowles, and Alaska Republican United States Senator Frank Murkowski have lobbied for support of the Alaska Gas Pipeline Act of 2002.

The law stipulates a tax credit that will guarantee rebates to producers should natural gas rates fall below $5 CDN per gigajoule. NWT Premier Stephen Kakfwi and other Canadian politicians have criticized the credit, calling the credit a subsidy.

"It is absolutely not a subsidy," Duncan said. "This is a repayable tax credit."

The producers would have to repay any credits received should gas prices jump to $7.50 per gigajoule.

Knowles says the credit is no different than other resource development incentives used throughout the world. He points to Alberta's oil sands and Newfoundland's Hibernia projects, which have received millions in government subsidies.

"Government incentives for the oil industry are a common part of the landscape, even in Canada," Knowles said in a statement.

He says the Alaska credit is different, however, in that the credit is "specific, conditional and subject to payback."

"This tax credit will merely assist the development of an Alaska natural gas pipeline by reducing huge swings in the natural gas market," Knowles said.

Alberta-Alaska alliance

Prior to the premier's conference, Governor Knowles met with Alberta's Premier Ralph Klein on June 4, to sign a memorandum of understanding (MOU) on common interests.

The MOU covers transportation, aboriginal issues, trade and investment, northern issues, health, tourism, staff exchanges and energy.

"It wasn't about a pipeline at all," Turtle said. "Energy is mentioned as one of nine subject areas where the two parties will agree to cooperate in a formal way."

Under energy, the MOU details continental energy market issues, development, production, transportation and commercial access to Arctic natural gas, natural gas liquids and oil; pipelines and technology.

In a prepared statement, Klein said the MOU paves the way for shared opportunities between the two energy-rich neighbours.

"With Alaska's Northern climate, entrepreneurial spirit, natural resources and vast energy reserves, there are ample opportunities for us to work together -- as we've done in the past -- and learn from each other," Klein said.

He said the government will let the market decide which pipeline will go first.

Following the conference Kakfwi told Northern News Services the Alaska-Alberta MOU is an attempt to embarrass him and the proposed gas subsidy flies in the face of Klein's entrepreneurial approach to governance.