David Ryan
Northern News Services
Wednesday, January 24, 2007

YELLOWKNIFE - Mackenzie Gas Project proponents this week signed a socio-economic agreement with the Government of the NWT.

Under the new deal, the proponents - Imperial Oil, ConocoPhillips Canada, Shell Canada, Exxon Mobil and the Aboriginal Pipeline Group - commit to providing new employment, training and business opportunities for residents of the NWT if the proposed Mackenzie Gas Project becomes a reality.

Highlights from the deal, which was signed on Monday, include:

• a $21 million training fund;
• the establishment of a monitoring advisory board with aboriginal governments;
• the proponents commit to cover the cost of travel to and from work sites for any NWT resident;
• and the restated commitment to employ at least 806 NWT residents annually.

The socio-economic agreement is a significant achievement for the NWT, said Brendan Bell, minister of Industry, Tourism and Investment.

"The project has significant momentum," he said.

The $21 million for training programs is critical in order to train residents of the territories so they can take advantage of long-term oil and gas job opportunities. While the agreement is a step in the right direction, it is just one piece of the puzzle, he said.

Factors including the cost of labour, materials and transportation will all factor in to the proponents' decision to go ahead with the pipeline, he said.

Pius Rolheiser, spokesperson for Imperial Oil, which is the lead proponent on the Mackenzie Gas Project, also agrees much more work needs to be done before the pipeline comes to fruition.

"While this is a step forward, there are other critical steps involved for the project to proceed," he said.

Access and benefits agreements still need to be formalized and a new fiscal framework for the project is also expected, he said.

Imperial has warned the new, much higher cost estimates to build the pipeline will be released in the coming months, which could jeopardize the economics of the project.