Dave Sullivan
Northern News Services

Hay River Reserve (Mar 27/02) - The Deh Cho First Nation has proposed a bidding system for the right to explore for oil and gas on its traditional lands.

That would let the free market, not the federal government decide how much DCFN would receive, said chief negotiator Chris Reid.

"Let market forces come up with an appropriate royalty," Reid told DCFN leaders March 13.

The bidding proposal came up after the federal government countered DCFN's proposal for a 50 per cent temporary royalty with an offer to pay 12.25 per cent of the first $2 million and 2.45 per cent of everything above that on a territory-wide basis.

According to a rough government estimate, Deh Cho First Nation (DCFN) would receive proceeds worth between $1 to $3 million a year.

"We've said that won't be enough for the Deh Cho to open land for exploration," said Reid, DCFN's chief negotiator.

There is speculation that Deh Cho could be sitting on $40 billion worth of oil and gas reserves.

In return for sharing royalties, the federal side wants a blanket commitment that the Deh Cho will be wide open to oil and gas companies, Reid said. But he has countered that DCFN wants veto power over individual proposals, and a separate agreement that would remove Deh Cho from the territory-wide pot of royalties.

"That's where it's getting tough right now."

Talks have stalled

On another issue, picking Deh Cho land on which development would be banned, Reid said negotiations have stalled.

The land withdrawals would bar leasing and staking for resource development until a final agreement is reached.

"Canada has dug in their heels and in our view has not negotiated in good faith," Reid told Deh Cho chiefs and Elders.

For one kilometre on each side of the Mackenzie River, the bison sanctuary and a patch of land near Fort Simpson, federal negotiators "refuse to withdraw," Reid said.

There is agreement on land withdrawals from large tracts of land in the Trout Lake area and South Nahanni watershed, Reid reported.

On yet another sore point, the Deh Cho could be moving closer to a legal challenge of federal government plans to streamline a pipeline environmental review.

The streamlining plan "infringes on DCFN treaty rights and the Deh Cho process," said Grand Chief Michael Nadli.

He said a committee of chiefs will review three legal opinions received on the matter, and pass on recommendations to the April 8 spring leadership meeting in Jean Marie River.