Fort Liard (May 03/04) - Political and economic uncertainty in the Deh Cho have delayed an oil and gas company's gathering system project in the Fort Liard area.

Anadarko Canada Ltd. which has invested $150 million in the Fort Liard area to date, had been proposing to begin laying pipeline for a gathering system next winter. The project would link two to three of the company's natural gas wells to a pipeline running south to Fort Nelson, B.C..

However, it will now be shelved until winter 2005/06 at the earliest.

The Acho Dene Koe First Nation was counting on Anadarko's gathering system project for contracts and jobs next winter, Chief Floyd Bertrand acknowledged.

"Certainly it will affect our companies," he said. "It certainly is going to impact the community in terms of employment and our equipment not working."

Anadarko was expecting that a rights issuance -- the opening up of more lands for exploration and development -- would be in place by now, according to Nadine Barber, director of communications for Anadarko.

"We're a little disappointed that there's been no visible movement (on a rights issuance)," Barber said. "That provides a lot of risk now and a lot of uncertainty ... it sends a really negative message to industry about investment."

The Deh Cho First Nations and the federal government have made little progress on an Interim Resource Development Agreement over the past two years. That agreement would set terms for an oil and gas exploration cycle in the Deh Cho region.

Advancement on those negotiations in the near future would, however, allow Anadarko to re-evaluate its decision, Barber said.

Other factors in the project delay include having Fort Liard, Trout Lake and Nahanni Butte work out a co-operative approach to boundaries and development, she added.

Anadarko will also take time to analyze technical results from the past drilling season, which Barber referred to as very encouraging.

Overall, oil and gas activity has slowed down substantially in the Fort Liard area since exploration licences expired last year.

Bertrand said he has been travelling to the Yukon and B.C. in an attempt to secure work for the Acho Dene Koe in those areas.

If the DCFN and the federal government cannot make headway on a rights issuance, Bertrand, who sits on the IRDA negotiations committee, said Fort Liard may open up more lands on its own, as it did in 1993.

"We're looking at it," he said. "It's been in discussion since November within the (band) council."