Fort Simpson (Aug 01/03) - The benefactor of bidding for exploration by oil and gas companies should be the Deh Cho First Nations.

Chris Reid, chief negotiator for the Deh Cho First Nations (DCFN), made that argument at a negotiations session with the federal government in Fort Simpson last week. The "cash bonus" system, a lump sum payment made by the highest bidder for a parcel of land, already exists in Alberta. It could also help fill the coffers for a Deh Cho public government, according to Reid.

"It's just letting free market forces decide whether there's room to generate new public revenue. Canada has their royalty, they're happy with that evidently," he said, adding that federal royalties wouldn't be affected and those royalties would still be shared with the Deh Cho.

Federal negotiator Robin Aitken said the proposal is problematic. The Interim Resource Development Agreement already set out formula for the temporary division of Mackenzie Valley royalties between the DCFN and the federal government, he noted. He said addressing a new development after the fact is not acceptable.

"There's no point spending years upon years on this kind of thing if it just isn't there. It's troubling," Aitken said.

The Deh Cho's terms lend themselves better to land selection, he said. He added that it is possible a cash bonus system could be tied to an agreement in principle (AIP) or final agreement, however. "They (the DCFN) are going to put (their position) down in writing and we'll see where it will go," Aitken said. "But (the result) won't be a revised IRDA in six months from the federal government's point of view."

Deh Cho Grand Chief Herb Norwegian is scheduled to meet with Robert Nault, minister of Indian Affairs and Northern Development in Yellowknife on Aug. 18.

Impact pacts sought

The DCFN is also demanding that oil and gas companies negotiate impact benefits agreements with communities affected by industrial activity.

Examples of impacts could include infringements on hunters' and trappers' lifestyles or social problems resulting from an influx of money.

"If we have a 'Yes' to this, then we're ready to go. If they (the federal government) say 'No,' my sense is that the Deh Cho communities are not prepared to open up any new lands unless those terms are met," Reid warned.

Less than nine months remain of the 12 month limitation period for the two parties to agree to terms on an oil and gas issuance cycle. The clock started ticking with the signing of the Interim Resource Development Agreement in April.