Jason Unrau
Northern News Services

Inuvik (Aug 19/05) - Pipeline proponents and negotiators for aboriginal governments on the proposed Mackenzie Gas Project right-of-way left access and benefits meetings in Inuvik last week with mixed feelings.

Chief negotiator of (pipeline) access and benefits for the Gwich'in Tribal Council Richard Nerysoo has concerns that Gwich'in contractors might miss out on pipeline construction.

The talks were a three-part affair. First, aboriginal groups discussed how the promised $500 million in federal dollars would be divided to best address the socio-economic impacts of the pipeline.

Next, all the negotiators met with Imperial Oil, which presented its standardized access and benefits package.

This was followed by individual meetings between Imperial and the aboriginal groups -- the Inuvialuit, the Gwich'in, two Sahtu groups and the Deh Cho.

According to Keyna Norwegian, who represents the Deh Cho's pipeline corridor communities, the benefits package was turned down by the aboriginal governments.

"Everybody said no to it, they're not signing it," she said.

Social funding

In July, Ottawa announced the $500 million in socio-economic impact funding that will be divided among the regions on the pipeline right-of-way and distributed over 10 years.

However, that funding is contingent on the project proceeding.

Three months earlier, Imperial had cancelled engineering work on the project, citing too many demands from regulatory bodies and groups along the corridor. This prompted the federal government to come up with the cash to help offset the potential socio-economic impact of the pipeline on the communities. It has been estimated that the federal government stands to take in about $12 billion over the course of the pipeline's projected 30-year operation.

"It's really, to me, not enough funding to deal with all the social problems and issues we have," said Norwegian. "Sure it's the federal government's responsibility, but at the same time Imperial is bringing this (pipeline) upon us, so they should be able to supplement us on what's lacking there."

Local perspectives

Inuvialuit Regional Corporation CEO Nellie Cournoyea expressed a slightly different sentiment about the access and benefits negotiations.

"(The meeting) got off to a clear understanding of what Imperial feels it can do regarding access and benefits," she said, adding that while the federal dollars won't fill all the gaps in dealing with social issues, there's only so much that can be expected of Imperial.

"It's important to know what's on the table and what's not on the table. Obviously the pipeline can't solve all the woes in the region so we have to ask what is reasonable.

"As for the Inuvialuit, we are fully ready to begin negotiations."

Gwich'in want their share

Looking at the detailed map of construction plans for the project, presented by Imperial during the meetings, Richard Nerysoo, chief access and benefits negotiator for the Gwich'in Tribal Council, expressed concerns.

According to Nerysoo, the starting points and direction of pipeline construction - broken into 10 spreads - could put Gwich'in contractors at a disadvantage.

"If you start a contract in the Inuvialuit or Sahtu settlement regions then it's difficult to make changes to those contracts," he said, referring to two spreads that begin on the Inuvialuit and Sahtu lands and converge in middle of the Gwich'in Settlement Region. "That could mean Gwich'in companies may not be considered."

Earlier in the year, the Gwich'in Development Corporation announced a partnership with six southern construction firms - which became known as the Mackenzie Aboriginal Corporation - to better position itself to bid for a portion of the pipeline's construction.

Imperial Oil spokesman Hart Searle reiterated the company's commitment to ensuring aboriginal companies get preferential treatment when it comes to awarding pipeline contracts.

As for the issue of spreads and their impact on the competition between aboriginal contractors, Searle was tight-lipped.

"This issue and others are part of confidential negotiations," he said. "Of course they will be the subject of further discussions, however I have to decline getting into the details publicly at this time."

Negotiations are expected to continue with the aboriginal claimant groups hoping to meet at the beginning of September in Calgary to shore up their collective and individual stances. After that they are expected to meet again with Imperial and the other proponents, including Shell, ConocoPhillips, Trans Canada Pipelines and the Aboriginal Pipeline Group.