Canada has announced an agreement with the Deh Cho First Nations (DFN) aboriginal group that could allow construction of the $7 billion (Can.) Mackenzie Valley gas pipeline.
“With this agreement, Canada’s discussions with [DFN] on land, resources, and governance are back on track and will proceed with renewed vigor-and in turn generate greater certainty in the Mackenzie Valley,” said Andy Scott, Canada’s Minister of Indian and Northern Affairs.
“We are committed to ensuring effective and meaningful participation of the Deh Cho in both the environmental assessment and regulatory review of the Mackenzie Gas Project,” Scott said.
Representing DFN, Grand Chief Norwegian said, “This is a fair agreement which addresses some of our most urgent concerns about the pipeline project. The agreement will end the litigation begun by the Deh Cho last year against Canada, but it does not mean that the DFN support the pipeline.”
He also underscored DFN reservations about the agreement: “We still have some very difficult negotiations ahead with the oil companies that want access to our lands.”
Cooperation needed
Imperial Oil Ltd. and its partners say they have long recognized that “planning, building, and operating the proposed Mackenzie Gas Project will take cooperation among many different companies, communities, settlement regions, regulatory agencies, and governments.”
The Mackenzie Gas Project proposes to build a 1,220-km pipeline along the Mackenzie Valley, linking northern natural gas production with southern markets.
The producers involved in the Mackenzie Gas Project have interests in three natural gas fields in the Mackenzie Delta: Taglu, Parsons Lake, and Niglintgak.
Together, they can supply about 800 MMcfd of gas. Other companies exploring for natural gas in the North are also interested in using the pipeline.
In total, as much as 1.2 bcfd of gas could be available initially to move through the Mackenzie Valley Pipeline-assuming agreement with DFN.
Definition of ‘land’
To DFN, the word “land” means everything natural in DFN territory: water, air, trees, plants, berries, animals, birds, fish, and insects; what is on and-significantly enough-what is below the surface of the land.
It is not clear when this definition of land actually came into effect. But what is clear is that the project cannot progress without the agreement of DFN.
Last year, DFN launched two lawsuits to block the pipeline, arguing it was given insufficient representation on the review panels. As a result, Imperial and its partners halted all nonregulatory work on the pipeline.
Discussions are under way to finalize a work plan to resume DFN process negotiations.
Meanwhile, the settlement agreement provides DFN tools to participate in the environmental assessment and regulatory review processes of the Mackenzie project. ✦