Yellowknife (Feb 09/04) - The fate of the Mackenzie Valley Pipeline may hang in the balance after a fresh demand from the Deh Cho First Nation.

Deh Cho leadership has notified the federal government of their desire for two seats on the seven-member panel which will preside over pipeline environmental hearings. If they don't get what they want, Deh Cho First Nation lawyer Chris Reid said the next step will be a court injunction, bringing pipeline development to a halt.

The demand for the two seats is contained in a draft proposal forwarded to Indian Affairs Minister Andrew Mitchell and Environment Minister David Anderson.

"We have received the document and are preparing a response in a timely manner," said Elise Dhaussy, spokeswoman for the Canadian Environmental Assessment Agency.

The threat of an injunction caught industry off guard.

"We are at a critical juncture," said Hart Searle, spokesman with the Mackenzie Valley Pipeline Producers Group. "Time is of the essence and every delay puts our schedule at risk."

The seven-member review panel is currently expected to be filled by four members appointed by Environment Minister Anderson. Three appointees will be designated by the Mackenzie Valley Environmental Impact Review Board (MVEIRB), to be approved by Indian Affairs Minister Mitchell.

Two of the board's appointees have already been reserved for Inuvialuit. That leaves two seats to be filled as Environment Minister Anderson sees fit and three seats to be filled by MVEIRB.

Federal officials told News/North the Inuvialuit have already been accorded two seats on the panel. Clauses in the Inuvialuit land claim allows for their own independent environmental process and the bulk of the pipeline work is expected to occur in the Mackenzie Delta -- traditional Inuvialuit territory.

The work proposed by the Mackenzie Valley Pipeline producers includes hooking up three Mackenzie Delta gas fields to the pipeline.

The joint review panel will also consider work on compressor stations and further exploration to the south as well as the cumulative environmental effects.

Reid argues the environmental assessment should revolve around the pipeline itself rather than the gas gathering system planned for the Mackenzie Delta.

Forty per cent of the pipeline runs through Deh Cho territory -- which should entitle the DCFN to at least two seats on the panel, said Reid.

The injunction is to be based upon a legal argument that the Deh Cho were not consulted according to terms of the Co-operation Plan, the structure through which the environmental process will progress, said Reid.

This lack of consultation violates the federal government's obligation to act in good faith with the Deh Cho, said Reid.

Premier Joe Handley said he had not seen the draft proposal and had not spoken to Deh Cho Grand Chief Herb Norwegian on the topic.

Handley did specify however, that the Deh Cho were invited to be part of the process when the Co-operation Plan was being drafted.

"If we slow this thing down, everyone in the North will lose. We will all lose, especially with the Alaska Pipeline proposal gaining momentum," said Handley.