Yellowknife (Feb 03/06) - A war of words erupted in the legislative assembly Wednesday, after a Yellowknife MLA accused the Premier of kowtowing to oil companies over the Mackenzie Gas Project.

At issue was a "letter of comfort" Premier Joe Handley and Finance Minister Floyd Roland sent to oil companies in November, assuring them that royalty rates and fees for the $7 billion Mackenzie Gas Project would not increase should a devolution deal be reached with Ottawa.

Great Slave MLA Bill Braden suggested Handley promised too much, and criticized him for the short notice given to regular MLAs.

"There is a major policy position at stake here," said Braden.

"Why did the Premier and cabinet not consult with MLAS until hours before the letter was released?"

Handley shrugged off Braden's attack, saying he couldn't help it if the MLA couldn't keep up to speed with his government.

"I don't follow Mr. Braden's logic, if there is one," said Handley.

"We're responsible. We're fair. We're good government. We're not some banana republic."

The Premier insisted the letter is not legally binding, but just a note of assurances that the territorial government will be fair when Ottawa hands over taxation powers upon devolution.

He said he was growing tired of "people seeing bogeymen around every corner," in respect to the pipeline project.

For his part, Braden promised he would make a requisition for a "new pair of running shoes" so he can keep up in the future.