It sounds like a pretty hefty contract. I think we have more questions on it, maybe, if we can get more information on it to give us a better understanding on exactly how long this contract is for and exactly how long it has been in place.

This contract has been in place ever since the Mackenzie Gas Pipeline project started. It helped us get ready for NEB hearings. As well, there is additional work that will be required once we get through the regulatory review. This contract, as well, provides for advice in the whole oil and gas regulatory and pricing and all of those different functions with regards to non-renewable resources. Thank you, Mr. Chairman.

Again, Mr. Chairman, it is a pretty hefty contract for $417,000 per year, and yet, from what we can get, there is going to be no real decision probably until possibly December in regards to the public hearings that took place. In the meantime, we continue to pay, in that they are not working on any real file because basically everybody is in a waiting mode to see exactly what the decision of the review boards are going to be. Again, why couldn’t we just simply have them on a retainer versus having to pay them $417,000, or is that just a retainer?

This is a fee for service contract. If there is no activity, obviously the amounts will be reduced. But I think it is important to recognize that it is also being used in the Alberta jurisdictional court case with regards to governance on the pipelines, which could have significant impacts in the neighbourhood of billions of dollars with regards to tolling fees. It is important to use the best expertise that we can access in order to represent us and to also provide us with advice. Thank you, Mr. Chairman.

Mr. Chairman, is there a possibility that we can get a list of all of these types of fee for service contracts or who are on retainer contracts in regards to this department to provide these types of specialized services under oil and gas amendments?

We can provide that information to the Member. Thank you.

Thank you, Minister. We are moving on. We are on page 12-17. Mr. Yakeleya.

I have one question for the Mackenzie Valley Pipeline office in terms of the work that is going to, or should be happening, or close to be happening, in terms of the actual construction of the pipeline. I have some information in front of me in terms of the community profiles on the Mackenzie Gas Project. Is there anybody in the regions to start coordinating with the communities with the different various departments in terms of what is going to be needed, the impacts that are going to happen in the communities? There is some very good information as to infrastructure, services and needs. I know the aboriginal governments are also anticipating a final decision to go ahead with the construction and everything will be kicking into place, so it’s going to be quite busy in the next two to three years, maybe four, if the pipeline does get the green light to build the pipeline down the valley.

Do we have personnel? I know there is personnel in other areas. Do we have personnel in the region that are going to be helping the communities with the regulatory process and also the infrastructure that is going to be required in the communities in terms of this pipeline here?

Thank you, Mr. Yakeleya. Minister McLeod.

We do have expertise that is available to assist the communities. We have the Mackenzie Valley Pipeline office in Hay River. Each region along the pipeline route has pipeline officers that can work with the communities, and some of

the other departments such as MACA and so on have people as well. Thank you, Mr. Chairman.

Mr. Chairman, the Minister is indicating that there are other people, pipeline officers in the communities, these are people who have some experience and expertise in terms of dealing with the potential impacts. What I am getting at is just on the impacts on the different departments, do we have the resources right now in 2009-10? We get a green light to say, yes, the pipeline is going to be constructed on a certain start date. Do we have enough people or resources in our communities to give them quality jobs other than just pick and shovel; give them quality jobs in terms of making a livelihood in a short period of the months of the construction?

From my standpoint in my region, I don’t see that happening in the education and training department in terms of welders or other equipment that is going to be needed in the region. That is only one aspect of the impacts of the pipeline. I am not very comfortable right now with the resources we have in terms of are we ready for the pipeline in terms of the multiple impacts that are going to happen down the Mackenzie Valley especially for our region. Mr. Chairman, I guess I am looking for some reassurance there maybe from the department and the Minister.

Things right now are pretty quiet because we really don’t know what the federal government is going to say. We are hoping that they would give us a favourable response. People are hoping that they don’t give us a response at all. For us to be involved with the oil and gas, I think we need to have some type of assurance that once they come around to a final decision, if that decision is to go, we have the resources in place to say, pull the plug or let’s get going on training and everything else. I guess that is what I am asking in terms of the usefulness of this Mackenzie Valley Pipeline office. It has to put together some...

I believe it is MACA that put together some of this information on the infrastructure on the profile. That is some good work. I think we need to see this carry on to a level where we feel confident that, yes, we can pull out 20 welders to say, yes, you are going to go to work. I am asking for some assurance from the Minister. I am not too sure how much he can give me for the region that things are in place to go once we know that a decision has been made to construct this pipeline. Thank you, Mr. Chairman.

There are a number of initiatives that are underway; some of them are predicated on the pipeline going ahead. But, first of all, I will start with the socio-economic agreement that we signed with the Mackenzie Valley Pipeline proponents which provides for the negotiation of a

socio-economic agreement on training. That process is ongoing.

My colleague, the Minister of Education, Culture and Employment, has the mandate and responsibility for training. He has the aboriginal oil and gas training initiatives. He has the PITS program, which is Petroleum Institute of Technology Services, which provides for training of people for work in the oil and gas field. I think it will be an opportune time to start training people in anticipation of the pipeline going ahead. Of course, there is the federal socio-economic fund, which is $500 million identified by the federal government spread out over 10 years, that will start flowing as soon as there is an indication that the pipeline will be going forward. Thank you, Mr. Chairman.

Thank you. I certainly was aware of the other initiatives, as the Minister has said, about what is happening with the other funding that is available for…In case the pipeline goes ahead, there is certainly some work that needs to be developed and implemented. I guess I am looking in terms of the Mackenzie Valley Pipeline office in terms of giving some assurance in our region. Number one, has the office visited our region along with our expertise in Norman Wells and who is looking at all the Sahtu communities? We understand this is your concern in Tulita, Deline, Colville, Good Hope. This is what we are looking to address along with the aboriginal governments. Has that office gone to that level to actually come into the Sahtu communities to have a discussion on the pipeline and other areas that funding could be available should construction go ahead? That is what I am looking for. Thank you.

Thank you, Mr. Chairman. The Mackenzie Valley Pipeline office works with every region along the pipeline route and also provides support to the regional oil and gas officers. As well, in this budget for ITI we are proposing to fund the Aboriginal Pipeline Group in the amount of $300,000 as well as providing funding for aboriginal government capacity in the amount of $360,000, community support in the amount of $55,000 and to help secondary industry, $50,000. Thank you Mr. Chairman.

Thank you. My last question, Mr. Chair. The Minister has indicated the amounts going out to the various aboriginal groups. Again, I am going to ask, has the pipeline office, with the various funding going out to the groups, gone into Fort Good Hope, sat down with people in Tulita, Deline, Norman Wells and Colville Lake and said here are some of the things we want to be cognizant of, we want to be aware of? What are your concerns with the aboriginal groups, with the communities, with the bands in regards to if a pipeline goes ahead? There is expertise in the

region, as the Minister has indicated. Have we had a real good community meeting in terms of the construction of the pipeline, if it goes?

Thank you, Mr. Chairman. We rely quite a lot on our regional oil and gas officer to deal with the communities in the Sahtu. But subject to our budget being approved, we will be initiating a Community Engagement Initiative whereby we will have some of our officers from the Mackenzie Valley Pipeline office engaging all of the communities on the pipeline right-of-way. Thank you, Mr. Chairman.

Thank you, Mr. McLeod. I don’t have any others on the list here. We are on page 12-17, activity summary.

Folks, I’ll just read this through. Activity summary, minerals and petroleum resources, operations expenditure summary, for the record, $6.456 million. Agreed?

Thank you. Page 12-18, activity summary, minerals and petroleum resources, grants and contributions, contributions, $1.245 million.

Mr. Yakeleya.

Mr. Chair, can I ask the Minister in terms of I know I spoke earlier in the House here in terms of the projects going forward in the Northwest Territories and I spoke on the planned initiatives. The Minister has responded to me with some of the answers; however, I would ask in terms of the energy planning through the various committees, through the various decisions, what type of factors go into planning for energy use?