The corporation said Friday it has conditionally agreed to sign a "co-operation and land access agreement" for a northern route pipeline.

It will also join the Northern Route Gas Pipeline Corporation (NRGPC), headquartered in Inuvik.

Robert Kelley, president of the Fort Good Hope-based K'ahsho Got'ine Land Corporation, described the deal as providing "major financial and socio-economic benefits for our region.

"The project will be here for generations to come and we need to ensure that we -- the aboriginal landowners -- will be in control of our lands and environment."

James Firth, president of the NRGPC, said a northern route pipeline as proposed makes better economic sense and provides a better deal for aboriginal people.

NRGPC is a subsidiary ArctiGas Resources, of Calgary, the Canadian arm of Texas-based Arctic Resources Corporation (ARC).

ArctiGas proposes construction of a pipeline from Alaska, under the Beaufort Sea to the NWT and then south down the Mackenzie Valley to Alberta.

The competing Mackenzie Gas Project is being pushed by a producers' consortium comprised of Imperial Oil, ConocoPhillips, Shell and ExxonMobil.

The consortium has teamed with the Aboriginal Pipeline Group (APG), which represents First Nations from around the NWT.

The APG would own about one-third of the Mackenzie route pipeline and is currently holding discussions with potential financial backers.

That is rumoured to include Trans Canada Pipelines Limited.

ArctiGas president Harvie Andre described the land access agreement with the K'Ahsho Got'ine corporation as "a significant first step' for the northern route project.

The project would be built and operated by a consortium representing producers, carriers, explorers, and aboriginal groups.

Andre said the project would be 100 per cent debt-financed and described the ArctiGas approach as "the best deal" for aboriginal people.

"Under this scheme there are land access fees available to aboriginal landowners along the route, who would also retain the title to the pipeline. It would be 100 per cent aboriginal owned."

He termed the deal struck between the APG and Mackenzie delta producers as overly generous for the companies.

He also questioned the economic feasibility of building a pipeline for Canadian gas only.

"They have proven about half of the gas reserves they need for the lifetime of the pipeline. They have to find the rest of the gas."