Plans for a temporary harbour on the Yukon's north coast for Gulf Canada Resources Inc. were cancelled due to an extended government review process. This process was prolonged primarily because of the political controversy sparked by the proposal. Land-use applications in the north that force DIAND to deal with controversy can similarly be expected to prompt lengthy reviews, as the delays Gulf faced were generally the product of the political environment of the area and not of the technical difficulties facing the proposed project. Development contingency plans should be maintained as generating accurate assessments of approval status or forecasts of delays is extremely difficult.
Gulf Canada Resources Inc., after over a year of consultation with the Department of Indian Affairs and Northern Development (DlAND), submitted an application in March of 1983 for use of an abandoned DEW Line station at Stokes Point as a temporary marine base. While the initial response provided by DIAND was positive, opposition to the project eventually forced the government to prolong the review well past construction deadlines. The proposal was effectively denied November 7, 1983 after close to two years of consideration.
Gulf has developed a new drilling system for the Beaufort Sea; the major components being two large drilling units and four Class IV icebreaking vessels. All have deep drafts and require deep-water facilities (+10 m). Existing harbours with depths equivalent to Esso's or Dome's at Tuktoyaktuk are too shallow, while Dome's "deep-water" base at McKinley Bay would have required extensive dredging to accommodate Gulf vessels. Even so, the facilities would have been cramped and ill-disposed for expansion.
As information was gathered on initial plans to expand McKinley Bay, it became very clear that Gulf needed a new deep-water base. A project team was put together to determine the prime location for a new deep-water harbour using as key selection criteria cost, environmental considerations and operating flexibility. The sites that were considered stretched across the Beaufort rim, but as shown in Figure 1, were concentrated in the deep-water area along the Yukons' north slope. The site selected was located at the abandoned DEW Line station at Stokes Point.
Before construction could begin, a land-use permit was required from DIAND. It was recognized that the review of the application permit could put DIAND in a difficult position because the decision would have to reflect the governments' position on a number of conflicting, high-priority, inter-related issues. The key issues that Gulf expected to be involved were:
Exploration Agreement – Gulf and the federal government had just recently signed two exploration agreements covering work commitments of $650 million over and above commitments for capital expenditures of $674 million. The company considered that implicit in the agreements was the understanding that approvals would be provided to develop infrastructures required to meet the work commitments.
Yukon Unemployment – It was recognized that a marine base on the north slope would provide much-needed jobs for the Yukon which was hard hit by the shutdowns in the mining industry.