Yellowknife (Aug 04/03) - Natural Resources Minister Herb Dhaliwal came to Yellowknife Monday with $7 million for geological studies along the Mackenzie Valley, but no commitment on sharing resource revenue.

Canada's Natural Resources Minister Herb Dhaliwal was in Yellowknife to announce a $7 million funding program for geological studies in the North. - Merle Robillard/NNSL photo

Along with the $7-million investment for aeronautical surveys, one job in Yellowknife will be created as a result of the announcement.

At the C.S. Lord Northern Geoscience Centre, Natural Research Canada will add a position for a researcher in energy-related geoscience. The scientist will help develop and interpret information about rock formations in the Mackenzie Valley and its basin.

The studies would allow more junior exploration companies to become involved in the development of the Mackenzie Valley, said David Scott, manager of the Northern Resources Development Program, Earth Sciences sector.

The study will involve new aeromagnetics and existing seismic and geophysical studies, said Scott.

Some of the information will be new and some old, but it will be the first time all the geophysical information will be brought together in a comprehensive picture of the potential for hydrocarbons within the Mackenzie Valley area.

Dhaliwal said there are projects in association with the Mackenzie Valley Pipeline Project that are moving toward "devolution" -- transferring authority from federal to local hands.

Dhaliwal also said there are initiatives underway that will establish how royalties might come back to the territories, but he did not say whether the talks would be concluded before the resources are developed.

"There are a number of ways to benefit from the discussions over gas exploration. As we build the infrastructure there will be huge investments ... we want to make sure Northerners can benefit," said Dhaliwal.