Inuvik (June 20/03) - Thirty years after it was first proposed, the Mackenzie Valley natural gas pipeline got a green light Wednesday as a key financing deal was announced at the Inuvik petroleum show.

"We have now signed a deal that puts necessary funding in place to go forward with this project," Fred Carmichael, chair of the Aboriginal Pipeline Group, told the crowd, which erupted in applause.

TransCanada Pipelines will lend $80 million to the APG for the project definition phase of the $5 billion natural gas line.

The loan will be repaid from the APG's share of pipeline revenue.

The arrangement is an open-ended one that allows the APG to find other financing or increase its ownership in the line.

The deal gives TransCanada ownership of five per cent of the producer's share in the line, with first option to buy more going to APG and TransCanada.

Construction of the line will be financed by the producers, based on their share of the project.

Imperial Oil has 51.6684 per cent, ExxonMobil Canada 7.82896 per cent, ConocoPhillips Canada 23.48691 per cent, and Shell Canada 17.01573 per cent.

Carmichael was relieved and elated in announcing the deal.

"I feel great. It's been a long, hard road, but the people have been well-rewarded," he said.

"Ownership in the pipeline was our mandate or there would be no pipeline," he said.

"We argued that way until today and it had to be a good deal -- not just any deal."

Carmichael said the original memorandum of understanding was not as good a deal for the APG as the one they have signed.

Carmichael was also happy to be able to secure the deal without government loans or guarantees.

"I'm a firm believer, and always have been, that if a project is worth doing, that you should be able to find commercial funders," he said.

Nellie Cournoyea CEO of the Inuvialuit Regional Corporation helped lead the charge for the APG when the group was first formed.

"It's a milestone, but it's one step in many that we have to take," Cournoyea said. She was happy to see the deal done in time to allow for impact assessments.

"We have some lead time now to prepare for that now," she said. "It's a relief to me to be able to address these other issues for the people."

NWT Premier Stephen Kakfwi worked against the pipeline with the Indian Brotherhood 30 years ago, but times have changed.

"It's living history; it's magic," Kakfwi said.

"We started a story in the seventies and this is one of the main chapters coming to a conclusion." He called the deal "an amazing statement" for aboriginal people, but sees much work ahead.

"The world does not belong to lazy people," Kakwfi said.

"The world belongs to people who can see 20 to 30 years down the road and can keep things in perspective."

Ricky Hurst, head of DIAND's pipeline readiness office, said the regulatory process will now begin. The Project Information Package will be filed in one week.