Yellowknife (Dec 22/04) - The federal government announced Tuesday it would contribute $9 million over five years to conserve large swaths of land in the Mackenzie Valley.

The Tuesday morning announcement comes three months after industry officials submitted a proposal for a multi-billion-dollar oil and natural gas pipeline that would skirt the Mackenzie River.

Western Arctic MP Ethel Blondin-Andrew announced $9 million in federal funding for conservation in the Mackenzie Valley.

The plan would allow communities along the pipeline route to set aside historically or environmentally-sensitive lands.

The contribution by the federal government is the largest to date.

"We too recognize the value of the land," said Ethel Blondin-Andrew, MP for the Western Arctic, during a press conference in Yellowknife.

"This is the government of Canada's commitment to preserving the beauty of the land."

Non-governmental organizations have pledged $5.4 million and Blondin-Andrew expected industry to make a donation in the near future.

The money will go towards the Protected Areas Strategy -- a project designed to set aside land along the Mackenzie Valley from development.

The strategy is a partnership between Ottawa, the territorial government and environmental groups.

"I'm at a loss for words," said Bill Carpenter, that the government has stepped forward in such a large way to protect so much of the Mackenzie Valley.

Carpenter is the conservation director for the NWT chapter of the World Wildlife Federation, an organization whose mandate is to protect wildlife areas.

Territorial Minister of Resources, Wildlife and Economic Development Brendan Bell said the NWT government is discussing plans to up its $1.8 million contribution.

"This is one of our priorities," said Bell, who told reporters the government needs to "narrow the gap" between the pace of industrial development and conservation.

Former premier Stephen Kakfwi, an architect of the protected areas strategy, said that while it is important to encourage development, industry officials need to understand "the land is not completely wide open. We want development, but there are conditions and they are not insurmountable," he said after Tuesday's announcement. "Oil and gas companies can't go everywhere."

The government will work closely with the communities along the proposed pipeline route to set aside areas of historical and environmental significance, Bell said.

Under the plan, development in those areas would be restricted for five years while officials conduct a detailed survey of mineral, oil and gas reserves.

After the initial five-year period, community officials could decide to redraw the boundaries of the protected area, Carpenter said.

Once the final borders are set, the land would fall under the jurisdiction of the federal and territorial parks systems and development would be permanently restricted.

There are three areas in the NWT that have already entered the initial research stage -- a massive tract of land that stretches from just below Wrigley to Fort Providence and two peninsulas that reach into Great Bear Lake near Deline.

Areas that are under consideration include the Slave River Delta, the East Arm of Great Slave Lake, the headwaters of the Nahanni River and a large swath of land around Wrigley.