G Seven Generations Ltd.

G Seven Generations Ltd.

June 28, 2011 13:00 ET

G Seven Generations Ltd.: New Railway Promises Market Access, Avoids B.C. Super Tanker Conflict

NIAGARA FALLS, ONTARIO--(Marketwire - June 28, 2011) - G Seven Generations Ltd. (G7G) is proposing a new railway to carry oil from the Alberta oil sands to the existing marine oil terminal at Valdez, Alaska. The company revealed its proposal today at the International Indigenous Summit on Energy and Mining in Niagara Falls, Ontario.

"Studies have already demonstrated that a rail link to Alaska is a viable alternative to the oil pipelines currently being planned through British Columbia," said G7G director Matt Vickers. "This approach is timely because it promises significant economic benefits while avoiding many of the environmental risks associated with current pipeline proposals."

"Diversifying markets for Canadian oil is an important challenge, but we need to achieve this goal in the most environmentally and socially responsible way possible," continues Vickers.

A key advantage of G7G's rail link proposal is its use of the existing marine oil terminal in Valdez, which is facing a declining supply of oil from Alaska's North Slope.

One option of the proposed 2,000+ kilometre-long railway would run northwest from Fort McMurray, Alberta to join the Alyeska Pipeline (part of the Trans-Alaska Pipeline System, which carries oil to the Valdez oil terminal) at Delta Junction, Alaska. The project's first phase is estimated to cost $12 billion or more.

"British Columbians' opposition to oil tanker traffic on B.C.'s north coast is very strong and should not fall on deaf ears," states G7G. "Valdez has seen oil tanker traffic since the 1970s and this proposal would simply mean replacing the declining supply of Alaska crude with a new supply of Alberta crude. We believe this approach has a greater chance of obtaining social license from local communities than other competing scenarios."

The Alberta-Alaska rail link has already received Leadership support from First Nations in the Yukon and BC, and Leadership Tribal support from the Alaska Tribes along the proposed railway route.

"The greatest strength of the Alberta-Alaska railway concept is the support it has received from First Nations along the route," said Vickers, who holds traditional names from the Heiltsuk and Tsimshian Nations. "We began with outreach to First Nations leadership and are now moving forward with consulting the membership of the various Nations."

Over the coming months, G7G will be working to complete the project's feasibility study, business plan, and First Nations consultation. Its directors are currently seeking support for the project from national and international aboriginal organizations.

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