Nathan VanderKlippe
Northern News Services

Inuvik (Nov 05/01) - Leaders from the Aboriginal Pipeline Group flew to Ottawa this past weekend to petition the federal government for financing.

"We're planning to speak with all the ministers, or as many people as we can, to get a feeling of what they're willing to do with us," said APG president Nellie Cournoyea.

The APG needs to secure funds for its one-third stake in the pipeline, which will cost an estimated $1 billion.

"We will use every avenue we can to get the financing that would make proper financial sense," she said. "This is the first proposal from aboriginal people on a project of this magnitude."

Included in the APG delegation were Gwich'in Tribal Council president Fred Carmichael, Calgary businessman Doug Cardinal and K'asho Got'ine Chief Frank T'seleie.

A previously-scheduled trip to Ottawa was called off because no agreement was reached between the APG and the oil producers' association. With the Oct. 15 signing of a memorandum of understanding, the APG felt it was fitting to go now.

The delegation met with Minister of Indian Affairs and North Development Robert Nault last Thursday, Nov. 1.

Nault previously said he has not entertained the idea of financing the pipeline, but Cournoyea said that is because he has never seen a full proposal.

Cournoyea said the delegation has various proposals for the government, but doesn't know what federal reaction will be, especially in lieu of recent world events.

Asked why the delegation is flying to Ottawa, she said, "You don't do $1 billion over the phone."

Cournoyea emphasized that this was a preliminary meeting, and chances of immediate success were very slim.

"I'm going there with a clear, open mind and I know we're just at the beginning of a long, hard road," she said.

But even as the APG works to secure its funding, the producers association has yet to formally commit to the pipeline.

Although the MOU has been signed, the producers group must file a notice of intent with authorities before applications can be made for regulatory approval, said producers group spokesman Hart Searle.

A number of business-related matters need to be addressed before that application can be made, said Searle.

"We need to do negotiation of the necessary commercial agreements, which embody some principles about how the parties are going to work together and set out the principles under which the work in the next phase would be conducted and address governance issues," he said.

Some conceptual engineering work has begun, and representatives from the four oil companies involved -- Shell, Exxon-Mobil, Conoco and Imperial Oil -- are meeting to hammer out details of the joint-user agreement.

"There has not been a formal decision made to go the next phase of work. That's being contemplated," said Searle.

Searle said if the decision is made to go ahead, it would be announced late this year or early next year.