It is curious to have something up for sale when we do not know what the price is. We are going into a fairly time-consuming item passing legislation. What happens now if the price is too high and the community says, "We do not really want this now"? I would think that before you are going to get rid of something and sell something or negotiate a price you should have an idea of what the asset costs are and what it is going to cost. The community of Norman Wells is going to be buying a pig in a poke. They do not really know what the cost is. As I said, the dollar amount varies. I am sure the legislation will pass and they will get down to the negotiating table where they can bargain on that, but is seems an odd way of going about it and I am curious as to why they have not set a dollar value at this point in time.

Thank you, Mr. Chairman. I am confused now as to who is determining the price of the assets, whether it is PUB or the territorial government. My understanding was that the PUB would determine a rate, but the rate should be based on what the company, corporation or town would be having to consider in payback. For example, if the community ends up paying $650,000, top price for it, they would have to recover their money. Consequently, the rate would be higher than 9 they would have to pay $1 for it. My question was not so much about the rate, that goes along with everything else, but it was the dollar figure of what it was going to cost the community of Norman Wells to buy the assets, the pipes, valves, meters and the franchise. I wondered it there was a book value on it before a price was established, per cubic metre or whatever they charge, because I think these things go hand in hand. How much would the municipality have to pay for these assets?

Thank you, Mr. Chairman. I guess I am not going to get an answer on the cost of the assets. We have pipes and whatever is there, the rates are based on what the borrowing cost of money would be and a fair return on the money that is established by this business.

I will move onto another question. The natural gas is a by-product of the oil reservoir in Norman Wells. The territorial government must have had some arrangements with the supplier, Esso, for the purchase of this gas, because this is the only place you can buy it.

Are there any guarantees as to the length of time this agreement will apply? Is there an agreement in place for how long the supplier, Esso, would have to provide gas to the territorial government, in this case, but the town in the next instance when they buy this? Is there a length of time in which this agreement is for?

Mr. Chairman, the agreement which the territorial government has with the supplier, Esso, is on a one year basis. This is what I understand to be true from the Minister's response. The town itself would take over this system with the remaining year, or they can go into additional years. I can understand the Minister's answer about the supply, which has probably been predicted for ten years or more. Although the supply might be there, a one year agreement is hardly long enough to guarantee return on an investment. I do not know too many businesses, in this field, that would want to get into a business on a year to year basis. You spend nearly $1 million on infrastructure and you only have a one year guarantee on supply. Can longer term agreements be entered into, for example ten years? Knowing that there is at least a ten year forecast of supply for natural gas, would the community have an opportunity to get into a longer term arrangement to buy gas?

Thank you, Mr. Chairman. I would be cautious it I were going into a business on a one year basis. I wondered if this would be to the community's benefit to enter into or have provisions for longer terms than one year. I realize that it is a small field in the grand scheme of things compared to Delta gas or offshore supplies, nonetheless it is still a source. I wondered if it would be to the community's benefit to be guaranteed the sole rights to the gas for a period of longer than one year. Something could happen to the value of the gas and I wondered if it would be in the community's best interests to secure a supply for a longer period of time than 12 months. Is this a concern of the GNWT on behalf of the consumers in that area?

Thank you, Mr. Chairman. I am glad to hear this. Esso could step up their consumption. There is a refinery there and they may wish to do other things, utilizing the supply. I wanted to make sure the town of Norman Wells was guaranteed, at least, for the predicted life of the field, a supply of gas so that they can get back their investment, be it $1 or $650,000, whichever the case may be. This concludes my general comments and questions. Thank you, Mr. Chairman.