Thorunn Howatt
Northern News Services

Yellowknife (Oct 23/02) - NWT aboriginal groups will have to negotiate with the federal government for cash to back their share of a proposed natural gas pipeline.

Today, the Department of Indian and Northern Affairs (DIAND) is expected to announce the name of a negotiator who will work a money deal between the government and Aboriginal Pipeline Group (APG) for a Mackenzie Valley pipeline. The federal negotiator, from Vancouver, B.C., will go up against APG representative Peter Lougheed.

The APG has asked the feds for million of dollars in loan guarantees. It wants to own one-third of a proposed Mackenzie Valley pipeline but has no money and said it can't get cash through traditional banking methods. DIAND has already backed the APG with nearly $1 million so far.

The federal government stands to make millions of dollars in natural gas royalties if the pipeline is built.

The APG insists no pipeline will be built until it can afford to be an owner.

The APG is made up of regional representatives from all the NWT aboriginal regions.