John Curran
Northern News Services

Yellowknife (Nov 21/05) - Obstacles blocking the Mackenzie Valley gas pipeline seemed to shatter last week and the proposed megaproject surged closer to becoming a reality.

Sahtu communities were the first to consider access and benefits agreements with Imperial Oil for the construction of the $7 billion pipeline. Imperial is the lead corporation of four companies proposing the pipeline.

While the specific terms of the deals are confidential, Leroy Andre of the Deline Land and Financial Corp. - the first group to actually give its tentative OK - said the proposal was well received.

"It was approved in principle," he said. "There were a few conditions attached. The big thing right now is ownership of the pipeline."

The Sahtu region also wants to increase its share in the Aboriginal Pipeline Group to 38 per cent from the 34 per cent.

The Fort Norman Metis, Tulita and Ernie MacDonald land and financial corporations, as well as the K'asho Got'ine Community Council in Fort Good Hope, were reviewing their own agreements last week. According to media reports, four of the six Sahtu land corporations ratified the access agreement.

"We're hoping this is the beginning of the end and we'll soon have an access and benefits deal," said Todd McCauley, president of the Norman Wells Metis' Ernie MacDonald Land Corp.

While Imperial Oil insists it isn't ready to declare victory, company spokesperson Pius Rolheiser said there is a lot optimism this week.

"We're obviously pleased with what's developed," he said.

Tentative access and benefits agreements weren't the only good news for the pipeline operator. In a letter to Imperial vice-president Randy Broiles, deputy prime minister Anne McLellan pledged Ottawa's support.

She wrote the government is willing to look at, "assuming some of the project downside risks, providing it is able to increase its share in the potential financial rewards."

In the letter, McLellan rejected an Imperial request for $1.2 billion in subsidies for construction of the pipeline.

But McLellan said Ottawa would do what it takes to keep the process on track and promised $258 million to get the National Energy Board (NEB) review of the pipeline complete by mid-2006.

While this was the first time this money was mentioned publicly, Rolheiser said it had been committed "some time ago" in private.

"The broad-brush strokes are there. Our concerns have largely been addressed," he said, adding this doesn't make the pipeline a sure thing.

"The only green light will be if regulatory approval is received and the project partners decide they want to spend the money."

Rolheiser said Imperial expects to formally notify the NEB on Wednesday of its agreement to move ahead with the final hearings as soon as possible.

NWT Industry, Tourism and Investment Minister Brendan Bell called the developments more than encouraging.

"This is a great day for the NWT," he said. "Having takeaway capacity for Northern gas is important for all Canadians."

With positive developments pouring in, the biggest hurdle remaining before the pipeline may be in the Deh Cho, but even there common ground seems to have been found.

Liidlii Kue First Nation Chief Keyna Norwegian, chair of the Deh Gah Alliance representing Deh Cho communities in pipeline talks, confirmed the region's representatives met with the oil giant last Thursday.

"It looks pretty promising," she said. "Six months ago they were only proposing one lump sum payment. Now Imperial is considering our tax-based model."

Almost lost amid the flurry of pipeline talk were reports that former NWT premier Stephen Kakfwi is no longer the chief negotiator for Fort Good Hope.

"I created a lot of controversy. The Gwich'in and Inuvialuit were really nervous," he said. "I seem to upstage everyone."

Kakfwi said it was the elders of Fort Good Hope who initially asked him to work for the community - but after going six months paying his own travel expenses, a rift began to develop with some of the elected leaders in the community and he was pushed out.

Though the relationship has come apart, he said he knows he made a difference.

"All of the North is going to benefit because the Deh Cho and Fort Good Hope were willing to say to Imperial, 'That's not good enough,'" he said.

"What's on the table now wouldn't have been there otherwise."

Angered by the lack of support NWT First Nations received from their elected federal representative, Ethel Blondin-Andrew, Kakfwi lashed out. As a cabinet minister, she shares in the blame for the lack of vision in setting up self-governments for First Nations in the North, he said.

"Aboriginal governments are destined to be the only governments that have to live on hand outs," he said.

"It's sad and pathetic and that's the hill I was willing to die on."