Derek Neary
Northern News Services

Fort Simpson (Nov 23/01) - Will it be half or something much less?

The Deh Cho First Nations want 50 per cent of royalties from development in the region. The federal government is offering the same formula proposed through the failed Dene/Metis claim.

Because the Deh Cho comprise 25.5 per cent of the Mackenzie Valley's Dene/Metis population, that would translate into between $1 million-$3 million annually for the Deh Cho, based on 12.25 per cent of the first $2 million in royalties received by the federal government from the entire Mackenzie Valley and 2.45 per cent on anything thereafter.

"The federal government's never put money on the table prior to a final agreement before. It has always flowed after ... I'm definitely walking on egg shells from a federal perspective," federal negotiator Robin Aitken said Monday. "Given what we're trying to do in the interim, we see that as showing a lot of flexibility."

Chris Reid, chief negotiator for the Deh Cho First Nations (DCFN) said the Deh Cho perceives an existing land claims formula as unacceptable, even as an interim measure.

"It's not so much the amount of money that's the issue. It's the fact that, at this point, they haven't recognized any unique revenue sharing arrangement for Deh Cho oil and gas," Reid argued.

Whether it's unprecedented or not, he said 50 per cent of royalties is reasonable based on principle of disputed ownership between the First Nations and the federal government.

"I'm optimistic we'll come up with something," he said. "I think (the federal government) will be flexible about it."

The government's conundrum is that without an enticing carrot to dangle in the interim, the Deh Cho could simply decide to wait for more lucrative terms contained in a final agreement to open up lands to oil and gas.

Both sides targeted March 31 as a date by when they will have an Interim Resource Development Agreement (IRDA) signed.

Whatever the terms, royalties would be accrued to the Deh Cho but it wouldn't be spent by the region until a final agreement is signed, unless it's designated for economic development in the region, Aitken said.

Reid accused the Department of Indian Affairs and Northern Development (DIAND) of "pushing" the Deh Cho into the intergovernmental forum -- a means for the federal government, the territorial government and First Nations to negotiate the devolution of powers.

"For the Deh Cho there's a real risk that they're going to end up being part of a big, mushy overall formula that might be dominated by the GNWT," Reid said. "It's a total crap shoot as to where that's going to go."

Aitken said it's necessary for the Deh Cho to be involved in the intergovernmental forum because the federal government will be devolving Northern Affairs programs through one process only.

"We don't want to be doing that at five or six or seven different tables," he said.

However, he said that doesn't stop the Deh Cho from trying to convince the federal government that the Deh Cho Process is consistent with devolution discussions.