Gwich'in, MGM sign memorandum of understanding on oil, gas exploration

Last Updated: Friday, June 13, 2008 | 5:51 PM CT
CBC News

The Gwich'in tribal council in the Northwest Territories has signed a memorandum of understanding with a Calgary-based exploration company to search for oil and gas on 350 square kilometres of land east of Inuvik, N.W.T.

Officials with MGM Energy Corp. and the council announced the agreement on Friday. The Gwich'in will make five parcels of their land available to the company for geological and geophysical work, according to a news release.

"The plan is to do some … talking to the people that have been in the area and whether they've seen any seeps or gas bubbles or that sort of stuff," outgoing Gwich'in president Fred Carmichael told CBC News on Friday.

"From there, they'll go into seismic [exploration]. And if the seismic looks promising, it will go into drilling."

Before any work starts, Carmichael said MGM Energy will have to seek approval from the new executive of the Gwich'in tribal council, which will be elected on Monday.

The Gwich'in are not giving up or reducing any of their rights under the Gwich'in land claim, the release stated, adding that MGM Energy must work out any benefits, access agreements and royalties with the council if they find any oil or gas.