Derek Neary
Northern News Services

Fort Simpson (Feb 01/02) - The Deh Cho First Nations want oil and gas companies to pay them up front for the rights to conduct exploratory drilling on Deh Cho lands.

It's a concept DCFN chief negotiator Chris Reid pitched to federal negotiators in Fort Simpson last week.

"What we've told them is that's going to be the key to opening up oil and gas development in the Deh Cho, which they say they want," Reid said Monday.

DCFN Grand Chief Michael Nadli concurred.

"If we do it right we could even be looking at some exploration activity by next year," Nadli said.

Federal negotiators said they're willing to consider the concept, but only as part of an agreement in principle, not in an interim resources development agreement (IRDA), which is disappointing to the DCFN, Reid said.

The two sides hope to complete an IRDA by March 31.

The cash bonus system has been at work in Alberta over the past decade, raising revenues for the province and federal government.

Reid said the DCFN are willing to share the cash bonus with the federal government, but will not allow the money to go into a territory-wide resource revenue sharing agreement.

"That's creating new money. It doesn't take any existing money away from Ottawa," Reid said of a cash bonus system. "The oil companies, we think, are paying too little."

The next negotiating session is scheduled for the week of Feb. 18 in Ottawa.

On another negotiations front, Reid said the lands working group has devised a draft model that identifies lands which would be off limits to development.

There are still a few areas that require more work, such as the disputed Horn Plateau, but the lands withdrawal process should be completed within the year, according to Reid. Once federal negotiators have given approval to the final model, a consultation process with communities and stakeholders will take place, he added.

There would be no sales or leases on withdrawn lands. However, existing third-party interests, such as mining or oil and gas operations, would be protected. Nothing within municipal boundaries would be affected by land withdrawals either.

"It just applies to federal Crown lands," Reid said.