Talks to manage offshore Arctic drilling may signal end of ban: NWT premier

The federal government is opening talks withnortherners on managing offshore energy exploration in the Canadian Arctic, a move some hope signals a coming relaxation of the current ban on potential development.

"I would hope that's the case," said Northwest Territories Premier BobMcLeod.

"We'll see as we negotiate. I certainly am feeling very optimistic."

Northern Affairs Minister Dominic LeBlanc and Natural Resources MinisterAmarjeetSohiannounced Thursday that Ottawa will negotiate a Beaufort Sea oil and gas co-management and revenue-sharing agreement with the governments of the Northwest Territories andYukon, as well as theInuvialuitRegional Corporation (IRC).

In 2016, Prime Minister Justin Trudeau announced an indefinite moratorium on all offshore energy exploration in Canada's Arctic,subject to a review every five years. He made the announcement in conjunction with then-U.S. president Barack Obama, who brought insimilar measures.

• U.S., Canada ban offshore drilling in Arctic waters
• Trudeau defends Arctic drilling ban, talks economic development at Yellowknife town hall

Since then,President Donald Trump has announced plans to openthe American Arctic to drilling.

In a statement issued Thursday, theIRCwelcomed the federal government's announcement, after the 2016 ban "caused frustration and uncertainty" for northerners, the statement said.

"The Beaufort Sea comprises a significant portion of theInuvialuitSettlement Region under theInuvialuitFinal Agreement,"IRCchair and CEO Duane Smith said in the statement.

"Clarifying the rights, the appropriate distribution of benefits and management of resources in our offshore area will be the essential first step to fulfilling MinisterLeBlancandSohi'scommitment."

'Our partners were very clear'

Leblanc, who recently toured the northern capitals, emphasized the importance of resources to the territorial economies.

"Our partners were very clear," he said in a release.

"They want to be involved in the management of Arctic offshoreoil and gas resources, and they want to see economic prosperity andjobs that will benefit Indigenous peoples and all northerners in the future without affecting the health of their environment."

Sohisaid in a release that the government has been working with both the territories and the energy industry.

"We heard loud and clear that the protection of the Arctic environment and the sustainable, inclusive development of the region for the benefit of northern residents and all Canadians are critical to growing Canada's economy."

• N.W.T. should develop own gas resources, says territory, Inuvialuit corporation

McLeodsaid much will depend on the five-year review, due in 2021.

"Unless we deal with the five-year review things don't change that much. We're hoping that after five years, they'll get rid of (the moratorium)."

He said his government will work toward an agreement similar to one reached by the Maritime provinces for their offshore.

"TheGNWThas been waiting for today's announcement for some time and I appreciate that MinisterLeBlanchas been able to maketangible progress," he said in a release.

63 existing exploration and discovery licenses

LeBlanc andSohialso promised to involve northerners in aresearch program that takes into account marine and climate changescience.

After a flurry of interest in the early2010s, interest in the Beaufort offshore died down. Imperial Oil, which still holds large exploration leases in those waters, cancelled its drilling program in 2015.

As part of Thursday's announcement, the government also said it would preserve existing offshore exploration rights for energycompanies and refund remaining deposits related to thoselicences.

There are 63 exploration and discoverylicencesin the Beaufort Sea. The financial consequences of that promise weren't immediatelyclear.

With files from CBC News