NORTHWEST TERRITORIES

With the federal government giving the go-ahead on the the Mackenzie Gas Project earlier this month, those close to the project are looking forward to starting discussions with the government over securing federal funding.

With an election potentially on its way, talks between proponents of the Mackenzie Gas Project and the federal government will likely have to wait until a new government is selected. - NNSL file photo

However, with no mention of the pipeline in the recently-announced federal budget and an election potentially right around the corner, it doesn't look like the talks will be happening any time soon.

In December, the NEB approved the long-delayed pipeline on the condition that Imperial Oil and its partners decide by the end of 2013 whether to build the 1,200 km gas line.

Pius Rolheiser, spokesperson for Imperial Oil, said some initial discussions have happened with the federal government due the resignation of Jim Prentice as Environment minister and John Baird taking over the portfolio and the project, but nothing substantial.

"We've had some preliminary engagement between the project and the federal government," Rolheiser said. "At this point there isn't a schedule for setting up follow-up discussions. I'd characterize it as very preliminary re-engagement."

Rolheiser said an election could have an impact on re-starting talks, but he's not overly worried, considering the consistency of the previous three governments' message on the pipeline.

"They've always given us indications that they share our view that the project could proceed to benefit all the stakeholders involved," he said. "They've been consistent in the value that ... they share our view."

Rolheiser told News/North earlier this month that the proponents are waiting on some assurance of a workable federal fiscal framework before proceeding with the three years of work required to make a decision to construct said

Nellie Cournoyea, president and CEO of the Inuvialuit Regional Corporation, said the corporation was working toward restarting meetings with the federal government on the future of the pipeline, adding the time between the cabinet approval and the budget was just too short.

"With a pipeline it just didn't have time to get (into the budget)," she said Thursday. "They just got through and we were to have meetings on it and it's scrambled in the election so we hadn't set up the meetings yet."

Cournoyea said "we're sort of in that 'got caught' moment," meaning they didn't have time to get meetings started between the approval and the budget coming down – and with a potential election on the way, meetings will not be happening any time soon.

"Our office was trying to set up the meetings and now there is going to be an election so they can't do anything," she said, adding the federal government only wanted to entertain discussions after cabinet approval. "It got caught up in the maze of politics."

Bob Reid, president of the Aboriginal Pipeline Group – which stands to acquire a one-third equity stake in the pipeline – told News/North earlier this month urgency surrounds getting money from the feds.

"It's absolutely contingent on arriving at a fiscal arrangement with the federal government," said Reid.

The GNWT has been a vocal proponent of federal financial support for the pipeline, a call being echoed by the Aboriginal Pipeline Group.

"This is truly a nation-building project, and other nation-building projects have received some form of federal support, such as the St. Lawrence Seaway, Hibernia and in fact the original TransCanada pipeline," said Reid.

"The US government has stepped up with $18 billion worth of loan guarantees for the Alaska (pipeline) project. There is a role for the federal government to play to keep the playing field level between Mackenzie and Alaska."

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