Now that the Sahtu and Gwich'in land claims have been settled, oil and gas exploration in the Mackenzie Valley is well underway. The last three years have resulted in the awarding of 14 exploration licences, with selected companies proposing to spend a minimum of $50 million over the term of their licences. Oil and gas exploration has also been occurring in the Liard region since 1994. Fourteen exploration licences have been awarded. This significant amount of investment sends a very important signal of the resource potential of the region and its increasing role in the economic development of the Mackenzie Valley.

Over the last year, communities in the Sahtu and numerous oil companies have been negotiating land access and benefits agreements, as required by land claim settlements. Tulita has recently announced successful agreements with Cascade Oil and Gas and Imperial Oil. These agreements will pave the way for exploratory drilling to begin next winter.

In the Fort Good Hope region, the Department of Resources, Wildlife and Economic Development is mediating between the community and Alberta Energy on access to Alberta Energy's exploration licence. It is anticipated that an agreement can be reached in time for next winter's exploration season.

Mr. Speaker, the oil and gas industry is, and will continue to be, a critical driver of economic development in the Liard and Sahtu regions. Through the provision of meaningful benefits and the development of valuable infrastructures, communities in these regions will have more opportunities to grow and prosper. In the gas industry, the current development of the Ikhil gas field to supply natural gas to Inuvik is a successful example of northerners benefiting from northern resources. Mr. Speaker, our government will continue to look at new ways in which northern resources can be used to enhance other economic opportunities in the north. Thank you, Mr. Speaker.