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Deh Cho scorn Mackenzie project deadline Aboriginal Pipeline Group, government both pushing hold-out First Nations; Norwegian says commitment may be as late as December Gary Park For Petroleum News
The Deh Cho First Nations remain unmoved by a July 31 deadline to join other aboriginal communities in the Mackenzie Gas Project or by an ultimatum from federal Indian and Northern Affairs Minister Jim Prentice.
The hold-out region has spurned the date to join northern Native groups in the Aboriginal Pipeline Group, which is positioned to secure a 30 percent equity stake in the Mackenzie Valley pipeline.
Deh Cho Grand Chief Herb Norwegian, faced with a threat of losing the partnership opportunity altogether, told APG head Fred Carmichael in a letter that “there is no rush for (the Deh Cho) to join the APG at this time.”
He told The Canadian Press the Deh Cho might not be ready to make a commitment until December, partly because Mackenzie lead partner Imperial Oil is revising the project budget, which would in turn affect how much the APG has to raise.
He also picked up on Imperial’s frequent references to the marginal economics of the project in questioning the viability of a venture currently budgeted to cost C$7.5 billion.
Norwegian insisted that joining the APG would undermine the Deh Cho’s ability to negotiate a land-claim deal with the Canadian government, insisting that the two elements are connected.
APG Executive Director Bib Reid said the July 31 deadline is not a bluff, noting that the APG must “get the fundamentals of a loan in place” even while the budget is under review.
Deh Cho approve land-use plan However, the annual assembling of the Deh Cho in late June approved a regional land-use plan that would protect more than half of the Deh Cho region from resource development. The organization, consisting of 11 communities in the Northwest Territories, views the plan as a tool to extract more from the federal government in the land-claims bargaining.
By putting a plan in place, the Deh Cho have made it impossible for Ottawa to “extinguish our land rights,” Norwegian said.
But he also brushed off the federal land-claim offer of C$104 million over 15 years for 4,500 people occupying an area covering 10,000 square miles. He said the proposal is “not in the ballpark” and is a “non-starter,” arguing it was tabled only to show the oil companies and investors backing the Mackenzie project that Ottawa was making progress in the Deh Cho talks.
What Norwegian considers an opening bid has been described by Prentice as a last chance before his government proceeds with the Mackenzie pipeline. He has said no one group will be allowed to stall a project that is vital for Canada’s energy needs and to stimulate economic development in the north.
The Deh Cho could revive their threats of taking court action, although most legal experts in land claims matters believe the government is on solid ground.
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