Mr. Speaker, as the Premier mentioned in his Sessional Statement, the North American demand for energy currently favours the development of our abundant energy resources. However, any resource development must result in maximum benefits to the people of the Northwest Territories. This includes ensuring that residents have access to clean, affordable and efficient energy sources. As well, development of our natural resources must be done in a manner that respects our land and environment, and the unique ties we have to it. Our government has taken steps to ensure these principles are respected.
Mr. Speaker, over the past year we have been working to expand the benefits of natural gas development. Our efforts have successfully raised the national and international profile of the Northwest Territories and the need for a Mackenzie Valley pipeline. Indeed, both Prime Minister Chretien and President Bush have acknowledged the need to develop the gas reserves in the Northwest Territories. Now, as Canada sets its energy policy and works with the United States and Mexico on a continental energy framework, we want to see Canada make the timely development of Canadian gas reserves a condition for Canadian participation.
Mr. Speaker, we are confident that we will see an application for a Mackenzie Valley gas pipeline by year end. The major challenges identified by industry have been addressed. By the end of the summer, the Environmental Assessment and Regulatory Agencies Coordinating Group will release a draft framework for a single environmental assessment process for the review of a Mackenzie Valley stand-alone and Beaufort offshore pipeline proposals for public comment. Yesterday, the majority of aboriginal leaders were satisfied with the business plan prepared by the Aboriginal Pipeline Group and Mackenzie Delta Producers to provide aboriginal people with an equity share in a Mackenzie Valley pipeline. This is all good news for our economic future.
Through the Mackenzie Valley Gas Development Project, we are proceeding with implementing training initiatives to increase employment opportunities for residents, assessing options for communities to access natural gas as a clean and cost-effective alternative energy source and working with regional aboriginal groups to build their internal expertise and capacity to deal with oil and gas technical issues, environmental issues, business and human resource development.
We also want to see that the environment is protected. Accordingly, we plan to work with aboriginal governments, industry and the federal government to prepare a funding proposal for a joint method of gathering biophysical and socio-economic data in the Mackenzie Valley, similar to the approach taken by the West Kitikmeot Slave Study which conducted research on impacts from diamond mine development. To maximize socio-economic benefits, we are negotiating an industrial benefits protocol with the Mackenzie Valley Producers Group.
Mr. Speaker, we believe that resource development will lever the investment required to diversify our economy. That is certainly the intent behind our most recent energy initiative -- looking at the immense hydroelectric potential of the Northwest Territories in partnership with aboriginal governments. Our government will continue to make presentations to aboriginal and municipal leaders throughout the summer to inform residents about this clean and efficient energy source.
The major projects reviewed to date indicate that the Northwest Territories has 12,000 megawatts of run-of-river potential, which would be sufficient to satisfy territorial needs and export power to energy-hungry markets down south. The attraction of run-of-river hydro projects is that they use earth-filled dams to direct water to the powerhouse as it flows by. These projects do not lead to contamination of the water and do not have storage dams that create lakes.
The other major benefit of hydro plants relates to climate change, which people of the Northwest Territories are already experiencing. Generating power through hydro plants will reduce the need to generate electricity through the burning of fossil fuels, thereby reducing northern greenhouse gas emissions. This will enable the Northwest Territories to lead by example, as Canada works towards managing causes and impacts of climate change.
Mr. Speaker, I want to emphasize that hydro projects are just being considered. No projects will proceed without partnerships with aboriginal governments and without full consideration of environmental and socio-economic impacts.
Lastly, I would like to speak about alternative energy sources and energy conservation. The Arctic Energy Alliance continues its work to assist residents, businesses and government to identify ways to save energy and reduce energy costs. As well, the Department of Resources, Wildlife and Economic Development has committed $50,000 to a new renewable energy technology conversion assistance program to support application by any territorial resident or organization to convert conventional electrical and heat energy systems to solar, wind or other renewable source.
In closing, Mr. Speaker, I am confident that partnerships with aboriginal and federal governments, industry and other stakeholders in developing our energy reserves will result in clean, affordable and accessible energy for all NWT residents, employment and socio-economic benefits and a diversified economy. This will make a positive contribution to the energy needs of Canada and our southern neighbours. Thank you.
-- Applause