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Vol. 10, No. 50 Week of December 11, 2005
Providing coverage of Alaska and northern Canada's oil and gas industry

Deh Cho urged to get realistic

The hold-out Deh Cho First Nations got a clear message from Imperial Oil Chief Executive Officer Tim Hearn Dec. 6 that they should not expect a better deal than other aboriginal regions along the planned Mackenzie Valley gas pipeline route.

He said the Deh Cho has a “pretty good model for what is realistic and available” from the land access and benefits agreements reached with the Inuvialuit, Gwich’in and two Sahtu communities.

At a session for analysts and reporters, Hearn said the work accomplished so far should encourage the Deh Cho “to see what is possible.”

But the Deh Cho continue to cling to a demand for property taxes from the pipeline — a prospect that has been rejected by the Mackenzie consortium and Deputy Prime Minister Anne McLellan.

Hearn urged the Deh Cho to deal separately with the pipeline and their attempts to negotiate a self-government and land claim agreement with the Canadian government and not attempt to use the pipeline for political leverage.

However, he said discussions have not broken off with the Deh Cho.

He hopes the agreements in principle reached with the other aboriginal regions will result in ratified deals by year’s end.

Hearn also announced the latest uptick in the Mackenzie cost estimates, with the forecast now C$7.5 billion, an increase of C$500 million.

—Gary Park



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