Arcis outlines plans, awaits approval
Derek Neary
Northern News Services
Fort Simpson (Apr 20/01) - First Nations leaders in the Deh Cho will decide the fate of the proposed seismic project in Nahanni Butte.
Bill Beaton made that clear during a public meeting in Fort Simpson Tuesday afternoon.
Beaton, who represents Northern Projects Incorporated, a consultant advising the Nahanni Butte Dene band in the proposed $10 million summer seismic project with Calgary-based Arcis Corporation, said without support from other First Nations in the Deh Cho, the venture will grind to a halt.
"No oil company is going to spend money on this seismic shoot if there's no access to the land," he said, adding that Deh Cho leaders must react quickly. "If this decision isn't made in the next 30 days, the project is dead."
Chiefs Rita Cli, Dennis Deneron and David Moses were present at the meeting, in addition to Nahanni Butte chief Leon Konisenta. Close to 30 people were present in total.
In an effort to mollify neighbouring First Nations, Arcis has withdrawn phase two and phase three of its seismic projects because those projects straddled the traditional territory of surrounding First Nations.
"I think all we can say is that we probably made a mistake," Beaton said of the lack of consultation over phase two and phase three.
He noted that two other companies, Talisman and Explor Data, are also planning to shoot seismic projects in the area southwest of Nahanni Butte. Explor Data already has its permit from the Mackenzie Valley Land and Water Board, but neither of those companies has negotiated impact benefits agreements with the Nahanni Butte Dene band as Arcis Corp. did in the deal signed three weeks ago, according to Beaton.
"We've chosen a very open process," he said.
Nahanni Butte benefits
Indeed, many details of the agreement came to light during Tuesday's public meeting.
A cash contribution of up to 10 per cent of Arcis' capital costs will be placed in a community trust fund as part of the deal. The trust fund will be used for educational opportunities, training and business opportunities, Beaton said.
Further, Nahanni Butte will also be granted ownership interest in sales of seismic data once Arcis has recouped its costs.
Perry Kotkas, an Arcis representative, said his company plans to sell the data at a rate of $16,000 per kilometre to as many companies as are interested. He also noted that it will cost Arcis $50,000 per km to carry out the project, which covers 1,900 square kms, primarily west of the Liard river.
Finally, if and when gas and oil begin to flow, Nahanni Butte will demand a 1.5 per cent royalty directly from oil and gas companies, after those companies have recovered their initial investment.
"Nahanni Butte has zero liability," Beaton said.
As well, a 150 camp is to be installed near the Liard Highway. There will be 50-60 slashing jobs with preference given to Northerners, Kotkas said.
Nahanni Butte chief Leon Konisenta said he's confident he will get the support needed from his fellow leaders because the seismic project will employ people from all Deh Cho communities.
"The jobs are there for everybody," said Konisenta.
Environmental issues
The seismic project will be helicopter assisted and very labour intensive, according to project manager John Ropchan. No heavy equipment, such as CATS, would be used, he noted. The slashing crews would hand-cut 1.5 metre-wide seismic lines and there would be shallow drilling and dynamiting every 100 metres to collect data, Kotkas explained.
Arcis was seeking input from community members during the meeting on any possible environmental concerns. They are hoping to receive approval from the Mackenzie Valley Land and Water Board by early June, Ropchan said, adding that the project would wrap up by early September.
Arcis also held a public meeting in Fort Liard on Tuesday morning.
Only three community members turned out, but Kotkas noted that Beaver Enterprises is expected to play a supporting role in the seismic project, should it go ahead.
A private meeting with Deh Cho First Nations' grand chief Michael Nadli took place following the afternoon open house in Fort Simpson.
