| OIL & GAS
Federal government provides $25M to Dene Tha’ over Mackenzie gas project concerns Yukon premier will renegotiate resource deal with Feds if NWT gets more Federal government provides $25M to Dene Tha’ over Mackenzie gas project concerns By Bob Weber A northern Alberta Aboriginal band is celebrating what it calls a complete victory after reaching a $25-million deal with Ottawa that gives it a voice in reviewing a proposed Mackenzie Valley natural gas pipeline and fast-tracks its land claim. “The agreement gives the Dene Tha’ everything it has asked for,” band lawyer Robert Freedman said July 23rd from Victoria. The agreement also removes a potential regulatory roadblock to building the $16-billion megaproject, which is designed to bring northern gas to southern markets. There are about 2,500 Dene Tha’ spread over seven reserves in northwestern Alberta, northeastern British Columbia and the southern end of the Northwest Territories. The proposed pipeline would cross their traditional lands in both Alberta and the N.W.T. The band argued in Federal Court last year that the band was left out in both the design of the regulatory hearings and the project’s benefits negotiations. Last November, Justice Michael Phelan agreed that Ottawa had breached its duty to consult Aboriginal bands on matters concerning their traditional lands. He ruled that the review panel studying the project couldn’t consider any aspect of the project affecting Dene Tha’ land and prevented it from reporting to the National Energy Board until a way was found to take the band’s views into account. The agreement includes commitments to push along talks on such issues as the band’s role on the review panel, land-use planning, caribou conservation and the cumulative impacts of development. Setting out separate consultations for the Dene Tha’ was the best way to include them in pipeline planning at this point, he said. “At this point, because of how far along the project was, nobody wanted to start from scratch, which would basically kill the pipeline.” The pipeline’s joint review panel expects to conclude its hearings in November. The project, spearheaded by Imperial Oil (TSX:IMO), has been hampered by massive cost overruns, regulatory delays and opposition from Native and environmental groups. Other partners in the project are Shell Canada (TSX:SHC), ConocoPhillips (NYSE:COP), Exxon Mobil Corp. (NYSE:XOM) and the native-owned Aboriginal Pipeline Group. This agreement also sets out a time frame for consideration of Dene Tha’ land claims in the N.W.T. Ottawa has promised to complete a full review of the claim within eight months. “We couldn’t even get the feds to pick up the phone before,” Freedman said. The agreement includes a $25-million payment to be used for addressing socio-economic and cultural impacts of building and operating the pipeline. It’s also intended to help the band take advantage of economic opportunities offered by the megaproject. For its part, the band has agreed to drop all legal actions against the federal government. It has also agreed not to “interfere with, delay or frustrate the construction, operation or maintenance of the Mackenzie Gas Project.” However, Indian Affairs will continue with its appeal of Phelan’s original decision. A spokeswoman for the department said the appeal is being continued to get clarification and detail on how far the Crown’s duty to consult with Aboriginal bands goes. In a release, Dene Tha’ Chief James Ahnassay called the agreement a sign that all parties are finally willing to work together. “This settlement agreement is a signal that, going forward, governments and industry will work with us to ensure our treaty and Aboriginal rights, and our rights as First Peoples of this great land, are respected.'' Yukon premier will renegotiate resource deal with Feds if NWT gets more By Matthew Grant Yukon Premier Dennis Fentie says he will immediately renegotiate the resource revenue sharing formula with Ottawa if the Northwest Territories gets a better deal than the Yukon received. “I’ve made it very clear that should the N.W.T. achieve a better resource sharing agreement with Canada, Yukon will begin the process to achieve the same,” Fentie said. “Should they get a better deal, I think we are obligated on behalf of our citizens to achieve the same thing.” Bob McLeod, secretary to the cabinet of the Northwest Territories, said this week his territory’s government has been negotiating a resource revenue formula with Ottawa for several years. “There are six outstanding issues,” he said. McLeod said four of the issues centre on financial matters, one deals with human resources and the final has to do with the definition of offshore resources. He said an agreement-in-principle was drafted at the end of March and sent to Aboriginal governments in the territory. It was then sent to Indian and Northern Affairs Minister Jim Prentice and territorial officials are now waiting for a response. Tim Shoniker, director of fiscal relations for the Yukon government’s Department of Finance, said this territory has two resource revenue sharing agreements with Ottawa. He said the oil and gas sharing agreement, which came into force on April 1, 1993, gives the Yukon 100 per cent of all money earned up to $3 million. After the first $3 million of oil and gas money, there are increments which see Ottawa get a larger and larger percentage up to $90 million. After that, “it’s not defined,” Shoniker said. For other resources, including minerals, land, and forestry, he noted, a deal came into effect in April 2003. That deal sees the Yukon get 100 per cent of all revenues up to $3 million, and nothing after that. “Any dollar over $3 million, we get nothing. They reduce our transfer arrangement by 100 per cent (of the amount earned in revenue over $3 million).” With oil and gas revenue, Shoniker said, the territory has seen some years go over $3 million since 1993. Oilsands Quest makes planned permit relinquishment and comments on removal of road block in Saskatchewan Oilsands Quest Inc. (Amex: BQI) has completed its final relinquishment of exploration permits in northwest Saskatchewan, as planned since the original granting of the permits. The company also advises that access to its facilities has returned to normal following the recent removal of a road blockade on the road to its project site. The permit relinquishment, originally scheduled for May 3, 2006, is the second and final relinquishment required by the Province of Saskatchewan as a condition of granting the original exploration permits. Oilsands Quest had received an extension until July 9, 2007 for the relinquishment of 40 per cent of its 846,680 gross acres. The company's Saskatchewan oil sands permits (100 per cent owned) now total 508,026 acres, the largest contiguous land position in the oil sands. A map showing the revised permit area is posted on the company's web site (www.oilsandsquest.com). “Over the last 19 months, we have conducted a comprehensive assessment of our original permit lands in Saskatchewan,” said Christopher H. Hopkins, President and Chief Executive Officer of Oilsands Quest. “We are confident that the lands we have retained will yield substantial bitumen resources. Now, we can concentrate fully on the exploitation of the resource potential we are identifying." At the present time, Oilsands Quest's field activities include baseline environmental studies and ongoing site maintenance work. This work was not affected by the road blockade on Highway 955 by the Clearwater River Dene Nation. "During the blockade, our employees from the local area were not allowed through the blockade and had to be airlifted in. They, and we, had been increasingly concerned that they were unable to get to their jobs," said Mr. Hopkins. "We appreciate the efforts of the Clearwater River Dene Nation and the Province of Saskatchewan to address the issues surrounding the blockade and are pleased that it has been removed." The blockade was established on June 21 by the Clearwater River Dene Nation to draw attention to its claims about lack of consultation; it was removed Friday, July 6th. “We will continue to consult with all First Nations” people, Métis and other residents of our neighboring communities, as we have done since 2004, before we began exploration activities in Saskatchewan,” said Mr. Hopkins. |
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