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Vol. 9, No. 41 Week of October 10, 2004
Providing coverage of Alaska and northern Canada's oil and gas industry

Anger building in NWT

Aboriginals take issue with Deh Cho lawsuits; may counter-sue to save Mackenzie line

Gary Park

Petroleum News Calgary Correspondent

A rift among aboriginal groups over the proposed Mackenzie Valley gas pipeline is turning into a chasm, with three of the four key communities threatening to sue the hold-out Deh Cho First Nations for impeding their economic development.

The Inuvialuit, Gwich’in and Sahtu communities in the Mackenzie Delta and Central Mackenzie Valley regions pledged Oct. 4 to unite in fighting for the C$5 billion project.

All three are strong backers of northern gas development and are full members of the Aboriginal Pipeline Group (APG), which could gain a one-third ownership stake in the pipeline.

If necessary, they will file a counter-suit against the Deh Cho, said Nellie Cournoyea, chief executive officer of the Inuvialuit Regional Corp. and a former premier of the Northwest Territories.

Deh Cho lobbying for support

Her anger was fueled by reports that the Deh Cho have been lobbying the three communities to support lawsuits filed in September in the Supreme Court of the Northwest Territories and the Federal Court of Canada to halt the current environmental review process.

Cournoyea said the Deh Cho do not appear to have a clear idea what they want, but are prepared to “choke” off hopes of economic development in the more northerly communities — a strategy she described as an “insult.”

The Deh Cho have demanded the right to appoint two of seven members on the joint environmental panel.

Leaders of the three communities expressed their feelings Oct. 1 in Inuvik at a meeting with Deh Cho Grand Chief Herb Norwegian.

“These three groups feel offended that no consideration was taken by the Deh Cho as to how (the Deh Cho lawsuits) are going to affect us,” Cournoyea said.

Threat seen to development opportunity

In late September, Fred Carmichael, chairman of the Aboriginal Pipeline Group, said the Deh Cho action could deny Northwest Territories residents the self-sufficiency they deserve.

He expressed frustration that Norwegian was prepared to remove that opportunity “without even talking to us or consulting with us.”

Carmichael accused Norwegian of being influenced by his “southern advisors,” to which the Deh Cho chief replied that he takes advice only if it advances his community’s objectives.

“You’re not going to push this group of people around and try to corner us in a teepee, not on our home land,” Norwegian said.

Norwegian has said a pipeline will not be allowed to cross Deh Cho territory, which covers the lower 40 percent of the route, until the Deh Cho have a settlement of their land claim and are equal partners in the pipeline decision-making process.

Meanwhile, the Canadian Environmental Assessment Agency and the Mackenzie Valley Environmental Impact Review Board, the agencies conducting the pipeline review, have extended a deadline for participant funding.

They initially offered up to C$380,000 in the expectation that the Mackenzie Gas Project consortium would file its main applications before the end of summer.

Filings could come in October

Although there have been indications that filings could be made in October, there has been no confirmation from Imperial Oil, the lead partner.

The two agencies say applications for funding will now be received up to 21 days after the environmental impact statement is submitted by the proponents.

Brian Maynard, vice president of public affairs with the Canadian Association of Petroleum Producers, took aim at all sides — the Deh Cho, Northwest Territories and Canadian governments, in a mid-September speech to a Yellowknife conference.

He said the Mackenzie project “is a once in a lifetime offer … let’s be reasonable and get on with it. No one is benefiting at all today.”

He said the Deh Cho don’t understand the issues, the federal government doesn’t know the North and the Northwest Territories doesn’t understand the industry.

Maynard said the Northwest Territories still face excessive environmental regulation at a time when the industry is much more advanced than it was 20 years ago in recognizing environmental issues.

He said politicians rather than regulators should take greater control of oil and gas development.

“What we want are reasonable standards intended to address legitimate concerns to protect the environment and people,” Maynard said.



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