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Pipeline progress update gives residents their say
Alaska project could be 'death blow': Aboriginal Pipeline Group

Katie May
Northern News Services
Published Friday, October 15, 2010

NORTHWEST TERRITORIES
Proponents of the Mackenzie Valley Gas Pipeline faced the project's uncertain future and a few skeptics as they toured the Delta region, advocating optimism in spite of continued delays.

NNSL photo/graphic

"We've been stuck in quicksand by the regulatory process," said Aboriginal Pipeline Group spokesman O.D. Hansen. - NNSL file photo

Representatives of the Aboriginal Pipeline Group (APG) and the Mackenzie Gas Project visited Fort McPherson, Tsiigehtchic, Inuvik, Tuktoyaktuk and Aklavik last week, telling residents they'll have to wait another eight years before the pipeline is completed – if construction begins at all. The National Energy Board's decision on the project is now expected by the end of December. If the board approves it, proponents – including Imperial Oil and aboriginal groups throughout NWT except the Deh Cho – will reassess the costs and decide by 2013 whether it still makes financial sense to construct the pipeline.

APG's loan with TransCanada towards the project now exceeds $145 million, a cost that TransCanada will bear fully if the pipeline doesn't happen. But if they do decide to move forward, APG will still have to borrow $2.6 billion and settle thousands of permits before construction starts.

"We've been stuck in quicksand by the regulatory process," said APG spokesman O.D. Hansen during the public consultation in Inuvik Oct. 5. "It took so long that the Mackenzie Gas Project had to cut back on their (staff). There's a lot of uncertainty."

About 15 people attended Inuvik's session, similar to turnouts in Fort McPherson and Tsiigehtchic earlier in the week. Few Tuk residents showed up on Oct. 6 because of a simultaneous hamlet council meeting.

"What we wanted to do by coming out to the communities is to let you know we're still here, we're still pushing ahead," Hansen said.

The APG gave its presentation to about 10 interested residents in Fort McPherson Oct. 4.

Hamlet SAO Toby Neuendorf said most in attendance were disappointed with continued delays, especially since the NEB's decision was initially set to be announced last month, but he said people remained positive about the future of the pipeline.

"It went well," Neuendorf said. "Basically the message was, the pipeline project's definitely not dead."

But Shirley Kisoun wasn't the only Inuvik resident to question the likelihood of the pipeline becoming a reality given the lengthy regulatory process.

"We haven't heard about the pipeline in so long," she said, explaining she felt a community consultation was "long overdue."

"We've been waiting a long time to get some communication and it seems like every time they present something, the time frame seems longer and longer."

Other residents were curious to know how the U.S. government's commitment to the Alaska pipeline would affect the Mackenzie Gas Project. Although Hansen said even with both pipelines fully operational the world wouldn't have enough natural gas to meet the demand, he acknowledged the Mackenzie Valley pipeline needs to happen before Alaska's.

"There's a huge impact if Alaska goes first. It would probably be the death blow to the Mackenzie Gas Project," he said.

Though he spoke candidly about the APG's fears of even more delays even if the project is approved because of the possibility fiscal talks with the federal government might stall or the country might face a federal election, Hansen maintained the organization is far from throwing in the towel.

"We're still optimistic it'll happen," he said.

Though she was less optimistic, Kisoun said she felt it was important for Delta residents to get involved in pipeline talks at every opportunity.

"Hearing first-hand from people is better than getting it from a report," she said. "I just hope that all the parties pay attention to all the concerns that are being expressed in the communities."

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