Canada’s Yukon Territory aims to start a new Klondike rush -this time for natural gas, and oil too if there is any, in Canada’svast northwestern corner next to Alaska.

The government in Whitehorse has issued an open invitation toproducers to go prospecting in all but virgin terrain.

Yukon Economic Development Minister Trevor Harding, describingthe action as “an exciting step” and “historic day” for theCanadian north, called on the industry to stake drilling claims ontwo frontier regions. Titled Peel Plateau and Eagle Plain, thetargets include a total area approaching 11,500 square milesbetween the 65th and 68th latitude parallels just to the northeastof the scene of the fabled Klondike gold rush.

Harding gave producers until June 15 to “nominate” parcels theywould like to bid for in an auction to follow (territorialauthorities urge all to check the action atwww.economicdevelopment.gov.yk.ca). A minimum bid of $1 million hasbeen established. But instead of cash, the Yukon government willseek payment-in-kind in the form of work commitments. In aninterview, Harding and Yukon Oil and Gas Resources Branch directorBrian Love indicated the new rush will be much easier on theparticipants than the celebrated endurance test in the Klondikenearly a century ago. This time around, there is all-weather accessat least to stepping-off points into the prospecting frontiers, viathe Dempster Highway between Whitehorse and Inuvik, chief town onthe gas-rich Mackenzie Delta in the Northwest Territories. Theinvitation is the first time such prospects have been thrown openanywhere in the Yukon in about 20 years. The action follows 1998agreements transferring jurisdiction over natural resources toterritorial authorities from the federal government in Ottawa, andbetween leaders in Whitehorse and previously resisting nativecommunities.

The arrangements have included setting asideenvironmentally-protected areas in collaboration with the CanadianAssociation of Petroleum Producers, as well as with native andconservationist interests.

Although only 71 wells have ever been drilled in the186,610-square-mile Yukon Territory, the results have longtantalized geologists and the more adventurous side of theindustry. There are educated guesses that the region harbors oil.But, like the Northwest Territories, the Yukon is believed to bemore gas-prone. Speculative projections – generated by a variety ofcompanies, consultants, the Geological Survey of Canada and theNational Energy Board – have rated the recoverable gas reservessuggested by exploration so far at up to 16.8 Tcf.

The Yukon officials acknowledged the exploration areas are morethan 600 miles from the most northerly arms of the Canadian gaspipeline grid in northwestern Alberta and northeastern BritishColumbia. But the territorial government said it hopes to seeindustry movement into the Yukon within the next three to fiveyears. Harding said there have been “quite a few” nibbles.”

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