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APG President Optimistic About Mackenzie Gas Project


10 Nov 2005

CBC: Earlier this week the head of Exxon Mobile was sounding optimistic about the future of the Mackenzie gas pipeline. Today it’s the president of the Aboriginal Pipeline Group, which has a one third share in the project. Bob Reid spoke at a transportation conference in Yellowknife this morning about the outstanding issues that need to be resolved before his group and gas producers decide they’re ready for public hearings. One is access agreements with the four aboriginal organizations in the Mackenzie Valley.

BOB REID (PRESIDENT, ABORIGINAL PIPELINE GROUP): There are none in place as of today, but discussions are continuing, and they’ve really heated up over this last 10 days, and I’m very optimistic that within the next week or 10 days we will see some access and benefits agreements in place.

CBC: Reid says discussions continue with the federal government about royalties and taxation, but he didn’t say when he expected an agreement. The other piece to fall into place is long-term shipping contracts to move gas through the pipeline. It’s hoped those will be in place by early December. Even though the project has been on hold since late April Reid says producers continue to spend up to $10 million a month on negotiations and getting ready for hearings. A decision about hearings is expected sometime this month.

CBC North