Brodie Thomas
Northern News Services
Published Monday, June 23, 2008

INUVIK - As one of his final actions as president of the Gwich'in Tribal Council (GTC), Fred Carmichael helped conclude a memorandum of understanding (MOU) with MGM Energy.

The memorandum states the tribal council will start negotiating with the energy company to establish a joint operating agreement for geological and geophysical work on five parcels of land within the Gwich'in settlement area.

If MGM's initial exploration is promising, seismic exploration and drilling may begin in the area.

The memorandum was signed just days before the Gwich'in tribal council election for a new president. Tribal council Chief Operating Officer Tom Williams does not believe the election of Richard Nerysoo as president will change the spirit of the memorandum.

"Any decision would have to be reviewed by the (Gwich'in Tribal Council) board of directors and the new leadership," Williams said.

"We're doing briefings this week with Richard Nerysoo, the new president. I think he is in support of it."

It is hoped this will lead to jobs for Gwich'in beneficiaries. Most exploration contracts include clauses that require companies to hire a percentage of local workers and to do business with local companies whenever possible.

"I think really it's going to open Gwich'in private lands for exploration," Williams said.

"It'll be a first but the GTC sees this as an exciting move. There's always been exploration north and south of us but not much on Gwich'in private lands. It kind of opens up the door to further exploration."

A joint press release put out by MGM and the tribal council stated the Gwich'in would not give up or reduce any of their rights under the comprehensive land claims agreement.

The Gwich'in will be entitled to royalties on hydrocarbons produced from their land.