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November 2001

Vol. 6, No. 16 Week of November 11, 2001

One step forward, one back in British Columbia’s native blockades

Five-year agreement with three of seven First Nations hailed as a breakthrough to building “positive, long-term relationships,” but accompanied by new highway closure

Gary Park

PNA Canadian Correspondent

Hopes of peace between First Nations and companies operating in the prolific natural gas fields of northeastern British Columbia were dealt an almost immediate setback, with word of a new highway blockade in the region.

On Nov. 1, the government's Oil and Gas Commission signed what it calls an enhanced memorandum of understanding with three of seven First Nations in the Treaty 8 area is designed to smooth relations after three months of conflict.

But, within 48 hours, the Halfway River First Nation — which did not sign the MOU — shut down a highway and said it would not allow oil and gas company vehicles through unless they had aboriginal permission.

Aboriginal leaders of the blockades have said they are frustrated by the slow pace of land claims negotiations and the destruction of their hunting grounds and cultural traditions. They have also demanded a greater share of the oil and gas industry's wealth.

Agreement framework for communications

The five-year Oil and Gas Commission First Nations agreement establishes a framework for improved communications, timely decision-making and increased economic benefits for native communities.

But Oil and Gas Commission spokeswoman Colleen Sweet emphasized that the focus is on “collaboration and working together.”

If any aboriginal community or group “decides to react in a different manner ... that's not part of the agreement,” she said.

British Columbia Energy Minister Richard Neufeld said the province is “entering into a new partnership with Treaty 8 First Nations” that should provide “certainty and build positive long-term relationships amongst governments and industry.”

Liza Wolf, chief of the Prophet River First Nation, welcomed the MOU, noting “we dealt with some tough issues during negotiations. Now it's time to get down to business.”

Four more agreements needed

The Oil and Gas Commission said it is turning its attention to negotiating similar agreements with the four remaining native communities, including the Halfway River and Doig River First Nations which have stalled progress over the last three months on a number of projects. Anadarko Petroleum Corp., Westcoast Energy Inc., Canadian Natural Resources Ltd. and Petro-Canada have been denied access to natural gas processing plants, new pipelines and recently-completed wells, slowing progress in one of North America's hotter plays.

A spokesman for Petro-Canada said the company was “encouraged” by the MOU and would continue seeking a settlement in addition to the ongoing Oil and Gas Commission negotiations.

But he said the “window is becoming smaller and smaller” for Petro-Canada to complete a feeder pipeline this winter and tie in three new wells. In the meantime, the company has “agreed to suspend construction indefinitely.”

Murphy Oil Corp., in partnership with Apache Corp., has not been affected by the blockades, said it is pushing ahead with development plans and has just reached an agreement setting a limit of 700 million cubic feet per day in the Ladyfern field, which is the major find so far.

Current production is about 450 million cubic feet per day, but Canadian Natural Resources has forecast that could reach 1.35 billion cubic feet per day next year if the aboriginal issues could be resolved.






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