Aboriginal pipeline groups says the Mackenzie Valley route is still the best choice to get natural gas to the south
Derek Neary
Northern News Services
Fort Simpson (Mar 23/01) - First Nations and the environment are two factors that will determine where a natural gas pipeline is built.
That fact cannot be overlooked say members of the NWT's Aboriginal Pipeline Group (APG).
 Harry Deneron |
"I've participated in some meetings in Whitehorse and they (the producers and government) haven't really talked to the aboriginal groups over there at all," Deneron said. "Everybody knows that you just don't start building a pipeline without talking to anybody at all, or you're in trouble."
The NWT's Aboriginal Pipeline Group, on the other hand, is taking a proactive approach, said Deneron.
"In the valley, nobody is saying, 'No,' they're saying, 'How can we do it?'" he noted.
The environment is another critical point.
The Yukon may have the necessary land-use permits in hand, but they were issued 25 years ago for a pipeline design that is obsolete, said APG representative Doug Cardinal.
"Environmentalists are saying they're not going to accept a 25 year (old) environmental study," he said.
"I know they say we're not pipeline ready, but I disagree with that."
Can stand alone
Construction of a Mackenzie Valley pipeline is not contingent on Alaskan reserves being tied in, said APG member Dennis Nelner.
Nelner said the estimated six trillion cubic feet of reserves in the Mackenzie Delta supports a stand-alone pipeline.
"We're going full-steam ahead on a stand-alone project," he said. "If the Alaskans want to come in, fine."
Members of the APG's executive committee and working group met in Calgary earlier this month with pipeline companies and the North American Producers Group which represents Alaska's Prudhoe Bay interests.
The producers group is conducting a $75 million US study of both proposed pipeline routes to decide which best suits its needs.
The Mackenzie Valley route is projected to be cheaper to construct than the competing Alaska Highway route, or Foothills route.
Cardinal said American producers and the Yukon government are pushing the Alaska Highway route.
"Twenty-five years ago it was an alternative route because of the Berger Inquiry,'" he said. "Today, it's still the second best route ... the political people are doing a great job of trying to persuade a decision before the actual studies are done."
Deneron is convinced of the great potential in the Mackenzie Valley. "I very strongly believe that if this pipeline becomes a reality, that you'll see a massive number of explorers come to the valley, if they're allowed," he said.
Political decisions
Deh Cho chiefs and elders are tentatively scheduled to discuss pressing pipeline issues in Fort Liard in late April.
Deneron suggested that the pipeline can be built in conjunction with a self-government agreement.
"I believe we can do both," he said.
Draft maps of the proposed pipeline route will be available to the communities nearest the route and their concerns or suggestions will be welcome, Nelner noted.
While producer groups are concerned with efficiency, aboriginal peoples are interested in training, job creation and business opportunities, Nelner said.
The complicated regulatory regime -- one of the NWT's weak points -- must remain thorough, but streamlined so that reviews by each NWT claimant group and regulatory body don't bog down the process, he said.
The percentage of ownership demanded by First Nations also has to be examined.
First Nations must be creative in securing the equity -- pegged at $300 million -- to be a partner in the pipeline. Tax concessions and royalty relief would help, Nelner suggested, noting that the full $300 million wouldn't be required up front, but could be spread over five to seven years when the pipeline is built.
