Fort Providence (Apr 21/03) - The door to the Deh Cho swung open last week. Grand Chief Michael Nadli rolled out the red carpet to petroleum exploration after signing two modern-day treaties.

"The Deh Cho is ready and open for business," said Nadli speaking to aboriginal and government leaders in Fort Providence.

Nadli, and Robert Nault, the federal minister of Indian and Northern affairs, penned a resource development agreement opening up Deh Cho land for oil and gas exploration within the next year. The pact also guarantees Deh Cho First Nations (DCFN) will get part of the cash collected from mining, oil and gas. And mining companies will have to negotiate impact benefits agreements for major mining projects.

A separate accord, a land withdrawal document was signed as well, shielding about half the Deh Cho land from development. The temporary deals are meant to bridge a gap until the time a final Deh Cho land claim is signed.

But not everyone is happy with the agreements. Most Deh Cho chiefs weren't at the signing. The problem boils down to money.

"There are concerns about the royalty benefits," said Nadli explaining the agreement doesn't give the Deh Cho sub-surface rights - that means it would own below the ground as well as above. The Deh Cho also wants a bigger slice of the pie. "We should be receiving more royalties."

Under the negotiated royalty scheme, DCFN will get 12.25 per cent from the first $2 million the federal government collects in resource royalties from the Mackenzie Valley each year and 2.45 per cent of any additional royalties. The Deh Cho will be able to access up to half of that - or a maximum of $1 million - each year.

Last year $21 million in federal royalties was collected by the feds from companies digging up Deh Cho riches. About $40 million will be earned this year.

The new deal means the Deh Cho will get about $1.176 million of the royalties - half annually and half after a final agreement is signed.

The opening of Deh Cho lands is also good news to proponents of a Mackenzie Valley pipeline. Nadli cautioned the agreement doesn't mean the Deh Cho approves a pipeline but he isn't nixing the idea either.

"We've been in regular talks with Imperial Oil," he said wearing a smile on his face.

Imperial Oil is part of a contingent that wants to build a pipeline carrying Arctic natural gas up the Mackenzie Valley, through the Deh Cho, to southern markets. The Deh Cho region was opposed to pipeline development until a land claim agreement was reached.

Two of the communities most conspicuously absent from the signing were Hay River's Katlodeeche First Nations and Fort Liard's Acho Dene Koe.

Katlodeeche is embroiled in a court case where some of its band administration wants to unionize. The federal policy is to not litigate and negotiate at the same time.

"I made the decision not to suspend the last community to leave the Deh Cho process because I want them to stay in," said Nault who was eager to keep the case out of the courts.

And on another front, Fort Liard wants a land claim separate from the rest of the Deh Cho. So far, that's not going to happen.

"There will not be, at least not at this stage, any change in our direction," said Nault explaining the federal government won't negotiate with individual communities. "My message to the Liard people and to their leadership is come and join us and work together. We can accommodate community interests within this process."

The interim signings were considered the end of part one of the Deh Cho land claim process. The final agreement is expected to be reached by 2006.