Fort Simpson (Feb 06/04) - Fort Simpson companies stand to lose millions of dollars in contracts if an agreement isn't reached soon on preliminary work for the Mackenzie Valley pipeline.

"We're not assigning blame, but the clock is ticking," said Andrew Gaule, president of the Fort Simpson Chamber of Commerce.

Negotiations surrounding geological surveying and soil testing between the Pipeline Working Group, an association of aboriginal groups in the Deh Cho, and Imperial Oil broke down in early December. The sides have yet to return to the bargaining table as of Tuesday.

Twelve of the 14 preliminary contracts for the work -- most of which is much easier to do during the winter -- went to companies in the Deh Cho. The total value of the contracts is in the neighbourhood of $10 million, he said.

"It could be a much smaller project and we would have to go through the tendering process again. The same opportunities simply might not exist next year," he said. Local companies also stand to lose valuable experience if the project doesn't go through, said Gaule.

"The winter work is a useful sampler for the work that will come with the construction of the pipeline," he said. "It will be good for business owners and workers."

Most importantly, said Gaule, negotiators shouldn't be turning their backs on one of the few industrial opportunities in the Deh Cho.

"The economy here is like a black hole," he said. "You see all kinds of development in Yellowknife and in the MacKenzie Delta, but there is nothing going on here. This is the largest opportunity in a long time."

Both sides must return to the bargaining table as soon as possible in order to salvage the project, he said, "this really can't wait any longer."

But at least one Fort Simpson businessman who received a preliminary contract doesn't mind waiting until aboriginal groups receive a "fair" offer from Imperial Oil.

"I'm not going to undermine my people," said Randy Sibbeston, whose company was tabbed as one of the principal land surveyors.

"I wouldn't hesitate to give up this contract to see people treated fairly," he said. "There are still lots issues that need to be addressed and I, for one, can wait."