Terry Halifax
Northern News Services

Inuvik (Mar 29/02) - Two Gwich'in leaders have recently pledged their support for a 100 per cent aboriginal-owned pipeline, in opposition to the previously agreed-upon one-third ownership.

Chief James Firth of the Inuvik native band said that to maximize benefits to the Gwich'in, pipeline ownership is the best option.

"We want a pipeline, but not at any cost," Firth said. "Our land claim cost us $8 million and we'd like some return on that investment."

"After reviewing and considering pipeline options and proposals, I have concluded that the Northern Gas Pipeline Project that is being developed by ArctiGas Resource Corp., and its affiliate Arctic Resource Company, provides the Gwich'in with the best opportunity for ownership, benefits and business opportunity," Firth said.

Chief Charlie Furlong of the Aklavik Indian band pledged his support to Firth and echoed his concerns in a statement at the Calgary Arctic Gas Symposium recently. "I cannot support any project that does not provide a comfort level to the Gwich'in," Furlong said.

The ArctiGas/ARC pipeline proposes 100 per cent aboriginal ownership for pipe that will be built from Inuvik to Alberta and later to the North Slope reserves in Alaska by way of an underwater pipeline through the Beaufort Sea. The project is expected to cost $7.8 billion.

Fred Carmichael, grand chief of the Gwich'in Tribal Council, says the over-the-top plan was reviewed by the council and they decided the plan was not feasible.

"It's a pipe dream," Carmichael said. "We looked at 100 per cent ownership, but it's just not affordable. There's no way that we could own a $10-million pipeline without putting one nickel in."

Along with 100 per cent ownership comes 100 per cent risk on the investment, environmental liability, and, ultimately, removal of the line.

Economically, he says the plan won't work, but there are also ethical considerations. He says the Gwich'in people were opposed to any oil development in the areas of the Porcupine Caribou herd, and sought the support of Alaskan First Nations to prevent oil and gas extraction.

They received that support and now the Alaskans are worried that an underwater pipeline will impact their whale harvest.

"For us now to go ahead and support a pipeline that goes into the Arctic Ocean, through the calving grounds for the whales, makes us look like hypocrites," Carmichael said. "As a leader to the Gwich'in people, I cannot and will not support a pipeline through the waters of the whaling routes, unless the Alaskan people say it's OK."

Carmichael said the Gwich'in Tribal Council voted unanimously to "stay the course" in support of the one-third ownership proposed by the producers and the Mackenzie Valley Aboriginal Pipeline Corporation.

Minister of Energy and Hydro Secretariats Joe Handley says the ArctiGas/ARC proposal lacks support of the producers and without gas contracts, the plan will never get approval or financing.

"From our government's view, we just don't see how it could work," Handley said. "The biggest problem is that the gas producers have rejected that proposal."

He cautions that the pipeline could go ahead with the producers owning 100 per cent of the line. "If it came down to it, the gas producers would build their own pipeline without aboriginal participation."

Managing director of ArctiGas Resources Corp. Bruce Hall says it's still too early to secure gas contracts for the proposed pipeline and says within two years they will be seeking contracts.

Hall says the pipeline will be buried in the ocean floor and would not have any effect on the whales.

ArctiGas has filed a project proposal with the National Energy Board (NEB) and is in the process of working on environmental and engineering surveys, but fears the work may be in vain because of new American legislation.

The U.S. Senate just passed a bill that outlaws an over-the-top pipeline. Hall says if the Alaska pipeline goes through, there will be no market for Canadian gas.

Nellie Cournoyea, chair of the Inuvialuit Regional Corporation says the one-third ownership is the only feasible option.

"One third is possible to do; it's still not going to be easy, but it's possible," she said. "Bigger projects ... that's for someone with bigger pockets to deal with."

"We are trying to do something within our scope and ability and we're trying to stay small enough so that we can be involved with them," Cournoyea said.

The producer group is currently putting together a business plan and has filed a letter of intent with the NEB.