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Pipeline share said not enough

Dogrib, Yellowknives agree with Deh Cho First Nations

Jorge Barrera
Northern News Services

Fort Providence (Jun 04/01) - The Yellowknives Dene and Dogrib have thrown their support behind a Deh Cho First Nations demand for a better deal in any Mackenzie Valley pipeline.

Though the proposed pipeline, to bring Beaufort Sea gas to southern markets, would not cross either group's land, both are members of the Aboriginal Pipeline Group, which is trying to negotiate ownership criteria with an industry consortium.

Deh Cho First Nations Grand Chief Michael Nadli said at a Dene Nation meeting last week in Fort Providence that his region's support depends on "maximum ownership in the pipeline."

On Wednesday Yellowknive Dene and Dogrib members agreed.

Wilf Blonde, spokesperson for the group and chief financial officer for the Inuvialuit Regional Corporation, said separately that the 33 per cent limited ownership stake being offered by the consortium is unprecedented when compared with similar deals.

"No other aboriginal group has come up with the (same) degree of ownership in a project like this," said Blonde.

We negotiated very hard with producers."

But the numbers don't convince Nadli.

"Is that the best we can do or can we do more down the road?" he asked.

Without the support of the Deh Cho, Yellowknives Dene and Dogrib, the 33 per cent offer may not have enough support.

"It will not be signed unless approval is received," said Blonde.

The group is currently working toward signing a "memorandum of understanding" with the consortium. It had hoped to sign next week in Hay River during a three-day conference.

The signing would bring the group, which represents all aboriginal groups in the territory, one step closer to solidifying a joint venture with Shell, ExxonMobil, Imperial Oil and Conoco to develop the pipeline.

Nadli was also concerned his nation's support of the pipeline could affect land-claim negotiations.

Doug Cardinal, representative for the Deh Cho First Nations on the group, said support would have no impact on negotiations.

"It's just to lay down a trunk of pipe through the Deh Cho region," he said.

Under the joint venture, the group would foot 33 per cent of costs at each development stage of the pipeline.

The pipeline project still needs to beat out a rival project down the Alaska Highway, although some observers speculate that both routes will eventually see pipelines.

Recent political shifts in the United States and the purchase of Gulf Canada by U.S.-based Conoco have bolstered the Mackenzie Valley project's chances.