Dealing for benefits
deal should start early

NNSL (Dec 15/97) - When it comes to benefits deals between resource companies and local groups, the GNWT wants community expectations attached to the call for bid, Doug Matthews the GNWT's director for minerals, oil and gas said.

Currently, a resource company bids on a parcel of land then goes in and negotiates an agreement, he said.

Negotiating the benefits deal after the fact can lead to confrontation, he said.

Matthews applauded the recent Canadian 88 Energy Corp. agreements with the Tulita Dene and Metis in the Sahtu.

"In our view that was the exception, not the rule," he said.

Benefits agreements are federally required and cover subjects like jobs and training.

They are separate from access agreements which are negotiated between the company and the community.

The Canadian 88 Tulita access deal was historic because if the company produces, the community will get a share in the profits.

It was a bold move. Traditionally, oil companies do not hand over part of the profit to local groups.