Progress is being reported on multiple fronts to get the Mackenzie Gas Project back on track.
In the most upbeat assessment of recent times, the top executive with lead partner Imperial Oil said there has been 100 percent commitment from federal officials to resolve problems relating to the regulatory process and the demands of aboriginal communities in the Northwest Territories.
Imperial senior vice-president Michael Yeager said June 15 that the Canadian government has swung into action since pre-construction work was stopped in April, with all of the unresolved issues now getting attention “day and night.”
He said a focused effort over the summer will determine whether environmental and regulatory hearings can start this fall.
“We need to get some fundamentals of our project …not weird things, just basic terms and conditions so that we can do the work,” Yeager told reporters in Calgary.
The talks over the last six weeks have led to a better “understanding of responsibility,” he said.
Hints of a breakthrough
Meanwhile, there have been hints of possible breakthroughs between the federal government and the Deh Cho, whose land covers 40 percent of the pipeline route and in resource-revenue sharing with the Northwest Territories government.
Sources in the Northwest Territories say Deh Cho Grand Chief Herb Norwegian is heading to Ottawa to put the final touches on an agreement that would end lawsuits filed by the Deh Cho against the government.
The Deh Cho, Gwich’in, Inuvialuit and Sahtu communities have argued they should be able to impose taxes on the pipeline to cover the costs of social programs impacted by the project — a demand the Mackenzie partners have said would cost “hundreds of millions of dollars” and is properly a federal responsibility.
The Deh Cho and Sahtu still insist they want annual payments from the pipeline partners, separate of any government spending.
Yeager reiterated that the Mackenzie consortium has no role in paying for social programs, but the Mackenzie consortium has still to negotiate land access and benefits agreements with the First Nations and other land owners.
The NWT government has estimated its needs C$100 million a year in federal money to cover pipeline-related housing, education and health needs until it concludes a deal with the Canadian government which it hopes will boost its share of resource revenues from 4 percent to 40 percent.
NWT Resources Minister Brendan Bell said those talks are also moving ahead. Premier Joe Handley is expected to meet with federal officials in the next few weeks.
