Fort Simpson (Dec 12/03) - A Liidlii Kue First Nations councillor is dismayed that the most lucrative deal for preliminary pipeline work is going to Hay River.

The Deh Cho communities along the proposed Mackenzie Valley pipeline route are heavily represented in the $10-million worth of contracts.

They and their joint-venture partners submitted six of seven successful proposals, with one contract remaining to be determined. If the winter field work proceeds, they will act as geo-technical consultants, drilling contractors and land surveyors.

The community-affiliated businesses will also supply camps and catering, telecommunication services and emergency medical services.

However, the single largest-paying contract, that of general contractor, went to two companies from Hay River. News that the hub community companies beat out those from the Deh Cho has upset band councillor Dennis Nelner.

"They (Imperial Oil) just seemed to go with the lowest bid," Nelner said. "How do we have any guarantees that they're going to be putting our people, equipment and services to work?"

He acknowledges that Kaa Dule United Corporation -- a business entity formed by the LKFN, Fort Simpson Metis Local 52, the Sambaa K'e First Nation in Trout Lake and the Nahanni Butte Dene Band -- submitted inflated prices but not exorbitantly so, only enough to cover capacity building.

"And here they (the Hay River companies) are ready to walk in on our traditional area. It's very disconcerting," said Nelner.

But not necessarily troubling enough that the Deh Cho communities will now oppose the winter work.

"We don't want to jump the gun on that. We'll see what we can get through the negotiation process first," Nelner said, adding that meetings with Imperial Oil are scheduled for this week.

Trying to be fair

Hart Searle, spokesperson for Imperial Oil, said his company is doing its utmost to hire local businesses within the context of Imperial's bidding process. Cost is only one component, he said.

"We always look to be as open, fair and thorough in our process as we possibly can be," he said.

He added that Imperial is continuing to negotiate with the Deh Cho pipeline working group.

"We were encouraged by their response to the request for proposals for the (winter field work) program," said Searle.

Imperial Oil has submitted its land-use permit and water licence applications to the Mackenzie Valley Land and Water Board. The permits must be issued by mid-January in order for the field work to go ahead, according to Searle.

Within the Deh Cho, the project will entail studying sand and gravel deposits, creek crossings and frost heave samplings. Preferred locations for facilities such as compressor stations will also be checked for suitability.