Territories

Federal and Northwest Territories governments are trying to rescue Canada’s arctic natural gas pipeline project by making a deal on community services along the proposed Mackenzie Valley pipeline route, but whether the approach will do the job remains to be seen.

Federal and Northwest Territories governments are trying to rescue Canada’s arctic natural gas pipeline project by making a deal on community services along the proposed Mackenzie Valley pipeline route, but whether the approach will do the job remains to be seen.

Chevron Canada Resources said its North Langley K-30 well in the Mackenzie Delta region of the Northwest Territories in Canada has encountered commercial quantities of natural gas. The well was tested at a restricted flow rate of 18 MMcf/d from the Tertiary interval. It represents the first Tertiary discovery from the recently awarded 1999 and 2000 exploration lease sales.

A producer group and aboriginal leaders from Canada’s Northwest Territories failed to reach a deal last week giving the native peoples a one-third stake in the proposed Mackenzie Delta pipeline after some native leaders said they wanted more time. Optimism remained high that an agreement could be reached in the next few months, and both sides stressed that the deal isn’t dead, just postponed.

A producer group and aboriginal leaders from Canada’s Northwest Territories failed to reach a deal this week giving the native peoples a one-third stake in the proposed Mackenzie Delta pipeline after some native leaders said they wanted more time. Optimism remained high that an agreement could be reached in the next few months, and both sides stressed that the deal isn’t dead, just postponed.

With regulatory approvals expected soon to tie into a nearbypipeline, the N-01 well at Fort Liard in the Northwest Territoriesshould begin producing by the second quarter, according to one ofthe operators, Berkley Petroleum Corp. Berkley operates the wellwith partners Forest Oil Corp. and Paramount, with each holding a33.33% interest. Paramount operates the pipeline.

By the end of the month, Chevron Canada Resources Ltd. expectsonly two wells drilled in the Northwest Territories to be producingabout 120 MMcf/d of gas. That is welcome news to a market indesperate need of new supply sources, particularly in westernCanada.

By the end of the month, Chevron Canada Resources Ltd. expectsto be at capacity for its second of two wells drilled in theNorthwest Territories. First production and sales are flowing fromthe Fort Liard M-25 well at 35 MMcf/d, and Chevron expects to rampup production by next week to 50 MMcf/d.

National Energy Board (NEB) principals, fresh from summer tripsto Alaska, the Yukon and the Northwest Territories, are exploringways to deal with megaproject proposals for development andtransportation of northern resources.