Fort Good Hope (Mar 03/03) - K'asho Got'ine district leaders have pulled away from a tentative land access agreement for a Northern route pipeline.

The agreement was announced just four weeks ago.

The K'asho Got'ine Land Corporation (KGLC) said then it had conditionally agreed to a deal with the Inuvik-based Northern Route Gas Pipeline Corporation (NRGPC).

The tentative pact drew national attention and was seen as a major breakthrough for the Northern route pipeline proposed by ArctiGas Resources, of Calgary.

KGLC president Robert Kelley described the project in January as offering "major financial and socio-economic benefits" for the region.

He said last week the condition to signing over land access was support from local leaders and beneficiaries. He doesn't yet have it.

"One of the main priorities I have is to get community approval of any mega-project like this."

The KGLC decision to back away followed three days of meetings with community leaders in Fort Good Hope Feb. 19-21.

In a prepared statement following the sessions, district leaders said they would "not sign access agreements" until outstanding issues are resolved.

Those issues include social impact, pipeline routing, and benefits.

"We have been presented with pipeline proposals from two companies," said the release.

"We will set both of those proposals aside until we have developed our own position on access and benefits."

The statement was prepared by Kelley, Chief Frank T'Seleie, and Wilfred McNeely Jr., of the FGH Metis Land Corporation.

The K'asho Got'ine announcement met with disbelief at ArctiGas.

Managing director Bruce Hall said in Calgary the company hasn't heard from K'asho Got'ine leaders other than through the press release.

"There is a very comprehensive land access agreement that was negotiated with these guys," said Hall.

"Not with us, but with the Northern Route Gas Pipeline Corporation. The whole situation up there is rather confusing."

NRGPC head James Firth said the agreement now hinges on approval by beneficiaries in the Fort Good Hope district.

"That is fair and we want to do this right. The community or elders may have some concerns that have to be addressed.

"I just hope they do due diligence on it and come up with a recommendation to sign it."

Kelley said if the tentative agreement was amended and "satisfactory to the people of the K'asho Got'ine district ... then we would think about signing."