11-4-02: INUVIALUIT REGIONAL CORPORATION.  IRC's September/October Newsletter came today providing a concise review of IRC's history with the Mackenzie Valley Pipeline Project.  "The Aboriginal Pipeline Group (APG) was formed as a result of a meeting of aboriginal leaders in Fort Liard in January 2000 with the mandate to '...build a business partnership to maximize ownership and benefits of a Mackenzie Valley pipeline.'  On October 15, 2001, an agreement (MOU) was signed with the Mackenzie Delta Producers Group whereby APG could own up to one-third of a pipeline transporting natural gas from the Delta and the Valley to the Alberta pipeline grid.  On January 7, 2002, the Mackenzie Delta Producers Group and APG proceeded with the Mackenzie Delta Producers Group and APG proceeded with the Project Definition Phase for the development of a Macke4nzie Gas Project.  This Phase is expected to cost $200 to $250 million.

"APG needs to bring its share of funding to this Phase which is expected to be $70 million over the next 3 to 4 years.  An extensive Business Plan has been completed to serve as the basis for a funding proposal to sponsors, primarily the federal and territorial governments.  Peter Lougheed has been retained to assist in this initiative.

"The Executive Committee consists of Nellie Cournoyea (Chair, NGP Photo-above), Fred Carmichael (Gwich'in, NGP Photo-above), Gordon Yakeleya and Frank T'seleie (Sahtu), and Doug Cardinal (Deh Cho, NGP Photo-right)...."

1-25: Financial Post by Carol Howes, CALGARY - As a 24-year-old Sahtu leader, Stephen Kakfwi (Photo-left) once remarked that if ever a natural gas pipeline was built through his ancestral lands it would be "on our own terms."  Twenty-five years later, Mr. Kakfwi, now Premier of the Northwest Territories, has an even grander vision: Not only to have a pipeline constructed along the Mackenzie Valley from the Beaufort Sea to Alberta, but to have some of the largest energy companies in the world with operations in Alaska link up and use the system to tap into Arctic gas....Whether Mr. Kakfwi can seize those opportunities depends on many factors, not the least of which is resolving a dizzying array of conflicting interests among energy producers, politicians, aboriginals and environmental groups that in recent months have all staked out their positions over one of the largest single pipelines to be built in North America.  "Two and half years ago you couldn't get anybody to talk about the North. Then all of a sudden the window broke," said Wayne Sartore (Photo-late '01 in Anchorage), vice-president of northern pipeline development for Enbridge Inc., a Calgary-based company that owns an oil pipeline in Norman Wells, N.W.T.  ... The majority of Canadian natural gas producers have rallied to get a piece of the action. Many of the major U.S. players see the Arctic as the next frontier. Every pipeline company in Western Canada has drawn up route proposals, put their lobbyists to work and hired environmental consultants. Federal, provincial and state governments in Canada and the United States are plotting strategy.  "This whole thing is a political machine," said William Lacey, a pipeline analyst with FirstEnergy Capital Corp. "There's a lot of people to try and keep happy."  To date, there are four pipeline proposals on the table:

- In the Mackenzie Delta, four gas producers led by Imperial Oil Ltd. said this month they will proceed with plans to build a pipeline to move gas from Inuvik ....  Groups representing about 75% of aboriginals in the Northwest Territories have signed an agreement ....

- Foothills Pipe Lines Ltd., owned jointly by Calgary-based TransCanada PipeLines Ltd. and Vancouver-based Westcoast Energy Inc., has dusted off its proposal first examined in the 1970s and known as the Alaska Natural Gas Transportation System. It is a southern route ....  Earlier this month, Foothills and its partners submitted its proposal to gas producers in Alaska....

- Last week, a group including Harvie Andre (Photo) a former federal Cabinet minister and Texan investment bankers, said it would proceed with its proposal for a US$7.8-billion pipeline that would combine and transport up to 5.2 billion cubic feet of gas a day from both Alaska and the Mackenzie Delta along one route ....

- Gas producers in Alaska are in the final stages of a $100-million feasibility study to examine construction of their own southern Alaska Highway route, or a northern over-the-top route, and are expected to announce a decision within the next few months. Their preliminary estimates call for a US$17-billion Alaska Highway pipeline or a US$15-billion over-the-top route. To date, neither route appears to be economic. They have also put forward a number of conditions to be met by Alaska in order to proceed, such as enabling legislation to hasten the regulatory process.

Enbridge, while it has not put forward any formal proposals, has also been working behind the scenes ....  "I think confusion lies in who is doing what. But at the end of the day everybody understands what they're trying to do," said Mr. Lacey.  The stakes involved in a northern pipeline are huge. Alaska's North Slope holds an estimated 35 trillion cubic feet of known reserves, while the Mackenzie Delta holds about nine trillion cubic feet. The exploration potential is even larger, with an estimated 65 trillion cubic feet waiting to be discovered in Alaska and a similar volume ....  According to submissions to the U.S. Senate committee on energy and natural resources last fall, the cumulative economic impact in Alaska in developing its reserves is estimated at 160,000 jobs, with a boost of US$300-million to the U.S. gross domestic product.  ...  While Alaska legislators oppose a subsea pipeline, Mr. Kakfwi said he believes the momentum is shifting. The over-the-top option is shorter and in the long run would provide a better return to Alaska's government, he said. "At some point or another those will become rather compelling considerations."  Regardless of which route and which proposal is chosen -- and the ultimate decision lies with oil and gas producers -- a northern pipeline faces one of the most extensive and complex regulatory exercises ever to unfold in Canada and the United States even before a final decision is made to construct. ...  There is also potential for lengthy litigation. While Foothills and its partners are authorized to build the pipeline in Alaska, their decades-old authority is likely to be challenged in court by other pipeline companies. An over-the-top route faces staunch opposition from ....  "Clearly, [producers] would like to [go over the top] for one simple reason: It's shorter. But other factors come in to play," said Bob King, a spokesman for Tony Knowles, Governor of Alaska. "Ultimately, the economic feasibility is going to drive whatever choice is made. It has to meet the test of the marketplace, which will decide."  While some of the enthusiasm for a northern pipeline has slipped because of the decline in natural gas prices -- down 70% from last year's levels -- most industry observers agree it is not a matter of "if" a northern gas pipeline is built, but "when."  ... By 2015, demand for natural gas is projected to soar to 31.3 trillion cubic feet a year in North America from the current 24 trillion cubic feet as production .... The mammoth gas reserves of the Canadian and U.S. Arctic constitute the only major proven new supply of natural gas for North America.  "Obviously, with the economy turning a little bit sour, is it going to slow it down?" asked Mr. Sartore. "Yes. Is it going to slow it down significantly? I just think it's a matter of a year or two in delay. It's going to come and certainly in all of our lives -- and, hopefully, all of our careers."

1-11:  WHITEHORSE STAR, by Chuck Tobin: Ground-floor involvement by aboriginal people in the proposed development of a Mackenzie Valley pipeline is a success story in waiting, says an aboriginal leader.  Nellie Cournoyea (Photo) chair of the Mackenzie Valley Aboriginal Pipeline Corp., told the Star earlier this week the opportunities for valley residents will be plentiful and long-lasting.  She said it’s not just about building the $3-billion trunk line between Inuvik and northern Alberta. Rather, it’s about providing communities along the way with the option of delivering natural gas as a source of energy to their residents, she argues.  ... “It is very significant,” Cournoyea said of the partnership between the aboriginal pipeline corporation and the Mackenzie Valley Producers Group. The group is comprised of Imperial Oil Resources, Conoco Canada, Shell Canada Ltd. and ExxonMobil Canada.  Cournoyea said there has never been a partnership like this between an aboriginal organization and industry on such a major endeavour.  “We want to see people trained, and long-term jobs.”  The aboriginal corporation and delta producers announced on Monday their intent to spend between $200 million and $250 million over the next year to prepare the Mackenzie pipeline proposal for a regulatory application.  Cournoyea said feasibility work to date has shown the stand-alone, $3-billion proposal as economically viable, based on the known natural gas reserves in the delta of six trillion cubic feet, and there’s an expectation of finding more reserves.  Hart Searle, an Imperial Oil employee and spokesman for the delta producers, said the parties involved will have a much clearer picture of the pipeline’s economic viability once the regulatory application work is complete.  But like Cournoyea, Searle insisted nothing to date has suggested a trunk line running south from Inuvik isn’t feasible.  Cournoyea said the partnership would like to work through the regulatory process in three to four years, though some believe five years are more realistic.  ...  Meanwhile, the three major producers of Alaska natural gas are crunching the results of a $100-million U.S. analysis of a north-south pipeline to carry North Slope reserves to southern Canada and the U.S. The Alaska group is looking at two routes: down the Alaska Highway or across the Beaufort Sea to the Mackenzie Delta and down the Mackenzie Valley.  It’s believed the Alaska producers are on target to make an announcement sometime before the end of March regarding the viability of a transcontinental pipeline, and the preferred route if it’s shown to be viable.  Cournoyea said there was never any consideration given to the possibility of piping Alaska’s reserves down the Mackenzie Valley in the feasibility study into a stand-alone Mackenzie Valley pipeline.  The Mackenzie Valley proposal is based entirely on reserves in the delta, she said.     *      National Post Business Magazine, by Mark Anderson-THIS IS THE MOST IN-DEPTH STORY WE'VE SEEN YET ON THE MACKENZIE VALLEY PIPELINE PROJECT, NOT TO BE MISSED!  (Thanks to the Canadian Institute's Carl Stavros, for this tip.)     *     VANCOUVER, BRITISH COLUMBIA--Westcoast Energy Inc. announced that the Supreme Court of British Columbia has approved the plan of arrangement by which Westcoast Energy will be acquired by Duke Energy Corporation.  Westcoast is a participant in the Alaska Highway Gas Pipeline Project.     *     Fort Simpson, N.W.T. - Deh Cho chiefs say ... they don't support research being done by the producer's consultants.     *     Yellowknife, N.W.T. - Community leaders in Fort Providence say a new study shows the time is right to build a bridge across the Mackenzie River.

1-10:  Northern News Services , by Richard Gleeson, Yellowknife - The most lasting benefit of a Mackenzie Valley pipeline -- if one is built -- may have nothing to do with oil or gas.  Many Northern leaders see the pipeline as a golden opportunity to seize a long-sought prize, a Mackenzie Valley Highway.  "This is an opportune time to do it," said Economic Development Minister Jim Antoine (Photo...obtain recent speech here.). "The mobilization costs would be lower, the equipment would be there. It's worth looking at." ... Both Antoine and Transportation Minister Joe Handley cautioned that a pipeline is far from a done deal but said the project brings the territories closer to a road than ever before. "This is a tremendous opportunity," said Handley. He said a road up the valley would reduce the cost of living in communities in the valley, form a northern loop with the Dempster Highway that would boost tourism, and spur non-renewable exploration in the Valley. ... "We're not in the road-building business," said Imperial Oil spokesperson Hart Searle. "That's not typically what we do. I have not heard any discussion about a road." ... Cece Hodgson-McCauley.... Norman Wells resident and founding chief of the Inuvik Dene band has been lobbying Ottawa for a Mackenzie Valley highway for years. "If (the oil and gas companies) want to pitch in, okay, but we're not waiting for them," Hodgson-McCauley said. "We've already waited too long."     *     CBC, Yellowknife, N.W.T. - The N.W.T. government is expecting good things to happen from an application to build a pipeline through the territory.... Jim Antoine, the new minister responsible for the pipeline, expects a positive spin-off for the territory. "We are particularly pleased that the aboriginal people in the Northwest Territories are going to be a partner in this and are working to have a significant share of the ownership of the proposed pipeline," he says. "So definitely this is going to be a boost to the economy particularly along the Mackenzie Valley route and specifically in the Mackenzie Delta."       *     Northern News Services, by Thorunn Howatt, Yellowknife - Whether a Mackenzie Valley natural gas pipeline is ever built remains to be seen, but Northerners moved one step closer Monday.... "To us it's a green light that we needed to turn on," said Mackenzie Valley Aboriginal Pipeline Corporation chair, Nellie Cournoyea. The announcement will help settle jitters for those banking on a $3 billion pipeline proposed to get Canadian natural gas out of the ground and off to market. ... Pipeline construction will have a $338 million impact on the Northwest Territories economy according to a Government of the Northwest Territories study. The spin-offs from further exploration total $235 million territorially while the impact on the national economy tops $1.4 billion. "We are putting together a business plan. We have already talked to several federal agencies," she said adding that her group's share of the project definition stage and related hearings will add up to about $60 million. Cournoyea is confident the federal government will see the pipeline as a national employment issue. "Our business plan would show the positive benefits of supporting the aboriginal people in ownership rather than in just a few token jobs here and there." The much-anticipated application announcement came on the heels of completion of a two-year feasibility study meant to gauge aboriginal and Northerners' support. In 1977, producers' dreams of a Mackenzie pipeline were halted after the Berger Inquiry pointed to aboriginal opposition. Some investors were financially devastated when the proposal fell through.  "We are sufficiently encouraged that longer term demand for natural gas will remain strong both in Canada and the United States," said Imperial Oil Limited's public affairs spokesperson, Hart Searle. "We know that the prices are volatile. That just reinforced the need to base our outlooks on the longer term fundamental market forces." The next three years will include technical and environmental work supporting application as well as agreement of benefit and access plans.

1-9: No stakeholder group knows northern development issues from a more personal perspective than Canadian Aboriginal and Alaska Native citizens in affected areas.  The North Slope village of Kaktovik tells Northern Gas Pipelines it is in the final stages of producing a state-of-the-art movie defining the ANWR issue from the perspective of people who live in the area.  Readers interested in obtaining a copy may write us here.  As a public service, we'll pass your request on to Village leaders so that they can be in direct contact with you.  We think you will enjoy this personal interaction...and the film.  (Photo, old umiat)  For more First Peoples information, here is our reference page.    *     FOLLOWING IS ONE OF THE MOST COMPLETE CURRENT STATUS ARTICLES APPEARING ANYWHERE IN NORTH AMERICA: Whitehorse Star, by Chuck Tobin-A decision to advance a stand-alone Mackenzie Valley pipeline project does not close the door on a future partnership with the Alaskan producers of natural gas, says a spokesman for the Mackenzie Delta producers.  Hart Searle emphasized in an interview Monday the decision to advance the Mackenzie project is based entirely on the economic feasibility analysis of the six trillion cubic feet of natural gas reserves in the delta.  “Not at any time did we contemplate Alaska gas,” Searle said from his Calgary office.  He noted, however, the decision to advance a $3-billion stand-alone Mackenzie project does not automatically cancel out any possibility of there ever being any future discussions with the Alaska producers.  ... The Alaskan producers of North Slope gas are currently crunching the results of a $100 million US research effort carried out over the last year.  The producers are looking at the feasibility of two routes to pipe their product to the lower 48 states. One option is to build a natural gas pipeline from Prudhoe Bay to Fairbanks, and then follow the Alaska Highway corridor south to central Alberta.  The second option – the over-the-top route – is to lay an offshore pipeline across the Beaufort Sea from Prudhoe Bay to the Mackenzie Delta, then go south down the Mackenzie Valley to northern Alberta.  Searle said if the Alaska producers indicated an interest in working together with the Mackenzie Valley project, the Mackenzie Delta producers would certainly be open to discussions. “But that is not our base case,” he said. ...  Greg Komaromi, the Yukon’s director of oil and gas, said yesterday’s announcement by the MacKenzie Valley consortium killed any chance of the Alaska producers going over-the-top with their pipeline.  ...  Press secretary Bob King of Alaska Gov. Tony Knowles’ office suggested in an interview Monday the decision by the Mackenzie group to pursue its own project is based on a recognition that the over-the-top route was a non-starter anyway you looked at it – environmentally, and technically.  “I think it is good news for the Alaska Highway route, in the sense that we have always envisioned these two projects going hand-in-hand,” King said. “There is certainly enough demand in the U.S. and Canada for both projects.”  ...  Curtis Thayer, spokesman for the Alaska producers, said this morning the three companies – ExxonMobile, BP and Phillips – are still expected to make an announcement on their findings before the end of March.  Monday’s announcement by the Mackenzie Delta group has had absolutely no bearing on the proposals by the Alaska producers, he said....     *     Oil & Gas Journal-The Mackenzie Delta Producers Group and the Mackenzie Valley Aboriginal Pipeline Corp. (MVAPC) have begun the project definition phase for the proposed Mackenzie Delta pipeline.     *     Yellowknife, N.W.T. - A natural gas pipeline down the Mackenzie Valley is a step closer to reality.      *     See our reports (1 - 7) of significant developments in Canada.  Also, see our report on Canada's new gas pipeline Cooperation Plan, below.

1-8: NATIONAL POST by Carol Howes and Claudia Cattaneo-CALGARY -A consortium of oil and gas producers in the Mackenzie Delta has moved ahead of a competing group in Alaska in the race to bring Arctic gas to North American consumers.   (Comment-Northern Gas Pipelines believes the two producer groups are not in competition with each other.  Delta gas will be needed for oil sands development in Canada.  The more remote North Slope reserves will be required by Lower 48 demand at such time as gas prices are projected to support a project.   There are, however, a northern and southern route competing for the transmission of the Alaska reserves.  -dh)     *     CBC-YELLOWKNIFE - Gas producers and their aboriginal partners in northern Canada have decided to move ahead with plans to build a natural gas pipeline down the Mackenzie River Valley by filing a formal application.       *      YELLOWKNIFE -- The chairs of the boards and agencies responsible for assessing and regulating energy developments in the Northwest Territories released their draft Cooperation Plan today for public comment. The Cooperation Plan outlines, in principle, how the parties would coordinate their response to any proposal to build a major natural gas pipeline through the Northwest Territories.  The public will have until March 8, 2002 to provide comments on this plan.  The draft Cooperation Plan has been presented by the Chairs of the Boards and Agencies to the Minister of Indian Affairs and Northern Development, the Honourable Robert Nault.  The parties involved in developing the draft Cooperation Plan are: the National Energy Board, the Canadian Environmental Assessment Agency, the Department of Indian Affairs and Northern Development, the Mackenzie Valley Environmental Impact Review Board, the Mackenzie Valley Land and Water Board, the NWT Water Board, the Government of the Northwest Territories, the Environmental Impact Screening Committee and the Environmental Impact Review Board for the Inuvialuit Settlement Region, the Inuvialuit Settlement Region Land Administration, the Inuvialuit Game Council, the Sahtu Land and Water Board, and the Gwich'in Land and Water Board.  Copies of the draft Cooperation Plan are available at the office locations and websites listed in Annex A.  Comments on the Draft Cooperation Plan (Adobe Acrobat pdf format - 327k) may be submitted to:

Cooperation Plan comments
Project Manager
Box 938, 200 Scotia Centre
YELLOWKNIFE, NT.
X1A 2N7
Fax (867) 766-7074
email:  cooperation@mveirb.nt.ca

Contacts:

1-7:  CANADIAN MOMENTUM CONTINUES!  Calgary, AB., January 7, 2002 -The Mackenzie Delta Producers Group and the Mackenzie Valley Aboriginal Pipeline Corporation (MVAPC) have announced their intent to begin preparing regulatory applications needed to develop onshore natural gas resources in the Mackenzie Delta, including a Mackenzie Valley Pipeline. Since initiating a feasibility study into Mackenzie Delta gas development in early 2000, the Producers Group -- Imperial Oil Resources, Conoco Canada, Shell Canada Limited and ExxonMobil Canada -- has consulted with more than 100 parties, including Northern communities, governments and oil and gas companies. During the project definition phase, the public will continue to be consulted to ensure their input is represented and considered. In October 2001, the Producers Group and the MVAPC, representing the Aboriginal peoples of the Northwest Territories, signed a memorandum of understanding to guide future work on economic and timely development of a Mackenzie Valley Pipeline. The memorandum was signed in the Aboriginal community of N'Dilo, near Yellowknife, N.W.T. The pipeline would be anchored by nearly six trillion cubic feet of natural gas at the Taglu, Parsons Lake and Niglintgak gas fields, and would be accessible to other existing and future natural gas discoveries in the Mackenzie Delta and Mackenzie Valley regions. Today's announcement signals the producers' intent to move from the feasibility study phase to the project definition phase. This phase includes technical, environmental, consultation and commercial work required to prepare, file and support regulatory applications for field, gas-gathering and pipeline facilities. Work will also begin to develop benefit plans, access agreements and other arrangements in support of the applications.  "Announcing our intent to proceed with the project definition phase demonstrates the confidence of the Producers Group and the MVAPC that development of Mackenzie Delta gas, including a Mackenzie Valley Pipeline, is potentially commercial and can be beneficial to the people of the North and to all resource developers," said K.C. Williams, senior vice-president, Imperial Oil, on behalf of the Producers Group. "The historic memorandum of understanding signed in October has the support of Aboriginal leaders who represent about three-quarters of the Aboriginal people of the Northwest Territories. We remain committed to continuing the dialogue with all Aboriginal leaders and communities, independent of whether they have ratified the memorandum of understanding. While we are optimistic, the ultimate decision to build the pipeline can only be made after obtaining regulatory approval, and will be a function of many factors, including natural gas markets, construction costs, and regulatory and fiscal certainty."  Nellie Cournoyea, chair of the MVAPC, said, "The decision by the MVAPC and the Producers Group to proceed with the preparation of regulatory applications is a significant step toward a Mackenzie Valley Pipeline. The business partnership negotiated with the producers allows all Aboriginal people of the North to participate in and benefit from this opportunity, including parties who have not yet indicated their support."  "We are very pleased with the progress made over the past year," added Henry Sykes, president of Conoco Canada. "Moving to the project definition phase is a significant milestone in the development of this opportunity. This is pioneering work and we're creating new ways of doing business including better ways of partnering with northern communities. We can now start preparing the regulatory applications needed for the development of the Parsons Lake gas discovery, which we operate on behalf of ourselves and ExxonMobil Canada."  Ray Woods, senior operating officer, Resources, Shell Canada Limited, said: "We are one step closer today to developing Mackenzie Delta natural gas resources, including Shell's Niglintgak discovery. We would like to recognize the efforts of the MVAPC in helping to build the broad-based support that was key to taking the decision to proceed with the project definition phase."  Expenditures required to complete the project definition phase, which includes the preparation and regulatory review of the applications, are estimated at about $200 million to $250 million (Cdn.). Timing is dependent on a number of factors, including the regulatory review process. As part of regulatory application preparation, an environmental impact assessment including plans for environmental protection and subsequent monitoring will be prepared.  As the holder of the natural gas rights at Taglu, the largest of the three discovered Mackenzie Delta gas fields, Imperial is the designated operator of the gas gathering and pipeline systems.  Project overview   Map of proposed Mackenzie gas project

2001 Reports:

11/9:   Northern News Services, Dave Sullivan, Fort Providence - The Deh Cho may allow a pipeline through traditional territory for half of the royalties that go to the government of Canada.   The 50-50 split would be a temporary measure until self-government talks, which would include turning over Crown land and mineral rights, are worked out, chief negotiator Chris Reid told delegates Nov. 6 at a leadership assembly.  The figure is in a proposal for the federal government called an interim resource development agreement. ... The federal government's counter proposal is a one per cent royalty on all gas going through Mackenzie Valley, to be pooled and split among all First Nations, Reid said. ... The Deh Cho calculate they will derive $2 billion in revenue from a 50-50 royalty split, based on $100 billion worth of gas that could pass through the region during the lifetime of a Mackenzie Valley pipeline.   With 40 per cent of the pipeline going through the Deh Cho area, the First Nations would realize 20 per cent of total royalties. At royalty rates ranging from one to five per cent of gas value, and rising to 30 per cent of net profit after the pipeline is paid for, federal pipeline revenue could be about $25 billion over 20 years. The Deh Cho's share would be $4 billion of that, with half going back into federal coffers.

11/8: CBC, Fort Providence, N.W.T. - Two more Deh Cho communities in the Northwest Territories are signaling they're ready to make a decision about aboriginal ownership of a proposed Mackenzie Valley pipeline. The debate was re-ignited at a meeting in Fort Providence Wednesday.   The pipeline discussion was supposed to take just 15 minutes during the Deh Cho First Nations leadership meeting yesterday. Grand Chief Mike Nadli is trying to keep the pipeline issue from dominating every meeting of the Deh Cho First Nations.  ...  Nadli says the region took a clear stand on the issue in August at a special assembly in Wrigley. Delegates decided then not to support any pipeline unless industry and government meet a stiff set of conditions which put Deh Cho land claims and resource management first.   But not every community agrees. Last month, Fort Liard signed the one third ownership deal negotiated by the aboriginal pipeline group with the Mackenzie Delta gas producers.   Chief Rita Cli says Liidlii Kue First Nation may be next. ... Chief Pat Martel told delegates he wants to improve life for young and unemployed people on the Hay River reserve.   ...  Nadli is proposing to meet with the chiefs behind closed doors ....

11-5: Northern News Services, by Nathan VanderKlippe, Inuvik - Leaders from the Aboriginal Pipeline Group flew to Ottawa this past weekend to petition the federal government for financing.  "We're planning to speak with all the ministers, or as many people as we can, to get a feeling of what they're willing to do with us," said APG president Nellie Cournoyea (Photo).  The APG needs to secure funds for its one-third stake in the pipeline, which will cost an estimated $1 billion.  ... Included in the APG delegation were Gwich'in Tribal Council president Fred Carmichael, Calgary businessman Doug Cardinal and K'asho Got'ine Chief Frank T'seleie.  A previously-scheduled trip to Ottawa was called off because no agreement was reached between the APG and the oil producers' association. With the Oct. 15 signing of a memorandum of understanding, the APG felt it was fitting to go now.  The delegation met with Minister of Indian and Northern Affairs Robert Nault (Photo) last Thursday, Nov. 1. ...  Cournoyea emphasized that this was a preliminary meeting, and chances of immediate success were very slim. ... But even as the APG works to secure its funding, the producers association has yet to formally commit to the pipeline.   Although the MOU has been signed, the producers group must file a notice of intent with authorities before applications can be made for regulatory approval, said producers group spokesman Hart Searle. ... "We need to do negotiation of the necessary commercial agreements, which embody some principles about how the parties are going to work together and set out the principles under which the work in the next phase would be conducted and address governance issues," he said. ...  Searle said if the decision is made to go ahead, it would be announced late this year or early next year.

11-3/4:  Northern News Services, Yellowknife-Anadarko Canada Corporation is planning to conduct a 2D seismic program in the Delta this winter.   Rob Jefferies, manager of frontier operations, spoke at a community consultation meeting recently at Ingamo Hall on his firm's proposed 2D Immerk seismic program, which will go before the environmental screening process in early December. ... Delta Trace Ltd. has been awarded the contract to conduct the seismic program on behalf of Anadarko. Operations supervisor Brett Cameron explained a fixed camp will be used, with a crew of about 65 people.      *     Northern News Services by Malcolm Gorrill, Inuvik (Nov 02/01) - AEC West Ltd. is planning a Kamik 2D program in the Delta this winter.   The proposal is to go through environmental screening in early December. David Baer, senior geophysicist with AEC, spoke recently on the program at a community consultation meeting at Ingamo Hall. ... Veri-Illuq will conduct the seismic program for AEC. 

11-1: Northern News Services, by Richard Gleeson, Yellowknife - Under the watchful gaze of a standing-room only gallery of supporters of the premier, MLAs (Members of the Legislative Assembly) on Monday reaffirmed their confidence in Stephen Kakfwi.  Thirteen MLAs, including the premier himself, voted in support of Kakfwi's leadership. ... Kakfwi said he was overwhelmed by the responses he received after calling for a show of public support for his leadership last Thursday. After the vote he said the show of support in the assembly was as moving.   The Sahtu MLA said it was the first time he had received demonstrations of support from members such as Charles Dent, Michael Miltenberger and David Krutko.   "I value that very much," the premier said.  ... the caucus, which includes all MLAs, cancelled another planned secret ballot confidence vote scheduled for (yesterday). (Underline for emphasis.  -dh)  "Members felt there would be no further gain or benefit in going through the secret ballot confidence process, given that the numbers were as strong as they were for Mr. Kakfwi," said caucus chair Bill Braden.   

10-19: See FirstEnergy's outstanding analysis of the Mackenzie Valley Pipeline status, maps, gas ownership of participants, aboriginal interests and responsibilities and potential use of much of the production to support bitumen production (Please download the 10-19-01 analysis here; also you may refer to our 6-01 draft of the project MOU, left column under 'Quick Reference').        *     Northern News Services, by Derek Neary, Fort Simpson (Oct 19/01) - Chief Rita Cli said Friday that band members in Fort Simpson want her to sign the Aboriginal Pipeline Group's memorandum of understanding.  Close to 270 members of the Liidlii Kue First Nation signed in favour of the MOU in a poll taken last week. That's a significant majority, as there are fewer than 400 names on the LKFN's voters list, according to Cli. ...  "You have to look at the global picture," Cli said. "We missed the boat once (with the Norman Wells pipeline), do we want to miss it a second time? One-third ownership is better than nothing ... to me it's an investment for the future generation."  Band member Dennis Nelner, who conducted the poll along with Keyna Norwegian, Ron Hardisty and Betty Hardisty, agreed that waiting too long is risky.  "History has an ugly way of repeating itself," he said referring to the Norman Wells pipeline. "What people want is employment, training, the opportunities, and benefits ... people want those things and you can't get that without development.  "It's not me talking. It's not Chris Reid or the grand chief talking, it's the community .... If (the LKFN) wants a mandate for signing the MOU, there's your biggest mandate right there."  ...  Fort Liard endorsed the Aboriginal Pipeline Group's memorandum of understanding (MOU) two weeks ago. Now Fort Simpson is about to do the same. However, Deh Cho First Nations Grand Chief Michael Nadli said he is confident Deh Cho communities won't sign the pipeline agreement one by one.  ... He said he has not wavered from the resolution passed at the Wrigley special assembly last month. That resolution states that the Deh Cho will negotiate the terms of a pipeline directly with the federal government. On the other hand, if a majority of 10 Deh Cho communities do sign the MOU, then, Nadli said, he would be forced to reconsider his position. However, support for a Mackenzie Valley pipeline isn't limited to the APG's proposal, he said. "There's a lot of companies coming up the ranks," he said. "So there's going to be many choices ... it would be very premature (to sign the MOU)."       

10-18:  MACKENZIE VALLEY PIPELINE PROGRESS....  CBC, Yellowknife, N.W.T. - People in the Deh Cho are being told it's not too late to join a proposal making the N.W.T.'s aboriginal people one-third partners in an northern pipeline. That was the message to the Deh Cho from the aboriginal pipeline group and the Mackenzie Delta gas producers on Monday....  The pipeline-ownership deal has been endorsed by leaders who represent about 75 per cent of the territories' aboriginal population, according to K.C. Williams. Williams is the head of Imperial Oil Resources, the largest of the four gas producers with reserves in the Mackenzie Delta.  "We are committed to working with all people of the north whether or not they've committed to the business partnership outlined in the M.O.U.," he says.   Nellie Cournoyea, the head of the Aboriginal Pipeline Group, says she has explained the benefits to the region, and the rest is up to the Deh Cho.  "I have confidence that once they've worked out the relationship they can live with they'll be there and we'll be waiting for them," she says.   Deh Cho leaders have tried to put off the pipeline issue. In the summer they decided self-government and land control talks had to be settled first.  However, the issue keeps coming back, as Fort Liard signed the agreement, and Fort Simpson has announced it plans to.     *     Northern News Services, by Jorge Barrera, Yellowknife - Celebrations were dampened Tuesday as three people died in a plane crash while flying to Fort Liard from a pipeline agreement signing ceremony in Yellowknife.   Despite the tragedy, the message that Inuvialuit, Dene and Metis must embrace the pipeline if they want to prosper still rings strong after the elaborate ceremony Monday.  The ceremony cemented a relationship they hope will spawn a pipeline through the Mackenzie Valley.  "We can no longer make a living off the land," said Fred Carmichael, president of the Gwich'in Tribal Council, in a short speech during the ceremony held in the small Ndilo community gymnasium. "We have to ensure there is a future for our children," said Carmichael.  With Ndilo drummers opening the ceremony and elementary school children from Done Necha-Lia Gha Enitl'e Ko sitting in the front row, the Aboriginal Pipeline Group (APG) and four of North America's largest oil and gas companies signed an agreement to work together on the pipeline.   A good chunk of the territory's cabinet showed up for the ceremony, along with Premier Stephen Kakfwi from Ottawa via telephone.   The Mackenzie Valley pipeline would run gas from the Beaufort Delta, down the Mackenzie Valley to Alberta and southern markets.  Despite the pomp and circumstance, K.C. Williams, senior vice-president for Imperial Oil and spokesperson for the producer's group, played down the importance of the agreement.  "It is very important that this not be seen as a decision to build a pipeline," said Williams. "This agreement only outlines there are things we're willing to work together (on)."   But that wasn't the message repeatedly delivered during the ceremony from the various players and dignitaries.   "We believe a pipeline needs to be up and running as soon as possible," said Nellie Cournoyea, chair of the APG.   "(This) signals our capacity to work in the economy of the 21st century. Today our involvement is one step closer to ensuring the future of our children," said Carmichael.   "This is a historical occasion," said Joe Handley, finance minister for the territory. "This is the largest single project partly owned by aboriginals."  "The NWT has an incredible future and we are certain to make life better for ourselves," said Kakfwi.  Through the glowing words the Deh Cho region's continuing hold-out was not forgotten.  ... The Deh Cho's support base is slowly eroding with the recent defection of Fort Liard and a wavering Fort Simpson.   Both the APG and the oil and gas producers said they would leave room for the Deh Cho but wouldn't stop for them. ... Chris Reid, chief negotiator for the Deh Cho First Nations, said the recent agreement does not change anything for them. Reid said the leadership wants the pipeline to be included in their process and alternative partnerships are being explored. Arctic Resources Company is one option, said Reid.   The APG will now work with Imperial Oil, Conoco Canada Ltd., Shell Canada Ltd., and Exxon Mobile Canada to legalize the agreement.   Williams said the next step will cost around $200 million.  The APG will hold a one-third stake in the $3-billion project, Imperial and the three other producers the rest.  The APG is looking to Ottawa for help in funding their $1 billion share.  Recent reports quoted Department Indian Affairs and Northern Development Minister Robert Nault as saying money would not come from his department.     *     Northern News Services, by Jorge Barrera, Yellowknife (Oct 17/01) - The recent agreement signed Monday between an aboriginal pipeline group and four of the biggest oil and gas players on the continent triggered dissent from a corporation in the Sahtu.  On the day of the signing, Norman Wells-based Ernie McDonald Land Corporation fired off a blistering fax saying they did not support the agreement.  "(The corporation) does not support the agreement being signed," said the release.  The Aboriginal Pipeline Group signed an agreement to work with Exxon, Imperial Oil, Conoco and Shell in developing a pipeline.  "I don't think there's been much offered, it's just one-third ownership and they have to come up with a billion dollars and that has to paid back," said Larry Tourangeau, president of the corporation. ... "We want to raise the flag to say not everyone in the Sahtu is on board," said Tourangeau.  Tourangeau is peddling an alternative to the APG. He's promoting a 100 per cent aboriginal ownership deal with Arctic Resources Company (ARC).   Owned by Calgarian Harvie Andre and Texan Forrest Hoglund, they were the first at the 1990s Northern pipeline table with a proposal to take Canadian arctic gas to southern markets.   They propose to fund a pipeline through a method that would be completely debt financed.  The McDonald corporation pulled their name from the APG June 26.   The Fort Good Hope Metis Land Corporation has signed on to ARC. 

10-17: CBC, Yellowknife, N.W.T. - The Aboriginal Pipeline Group is now a partner in the proposed Mackenzie Valley pipeline. The Group signed a memorandum of understanding with Imperial Oil and the other gas producers in N'dilo Monday, giving the group a one-third interest in a pipeline when it's built.  The producers haven't decided to build, but they're going ahead with the next step in the project - getting an application ready for the regulatory process.  It's a step that's going to cost up to $200 million dollars over the next three to four years. Under the agreement, the Group is committed to finding up to $65 million to guide the project through the required engineering, legal and environmental work.  "We feel the government of Canada can give us some support in that area," says the Group's chair, Nellie Cournoyea (Photo).  "How it comes I don't know, maybe in the form of guarantees."  However, the Minister of Indian and Affairs says Ottawa has no plans to provide aboriginal people with loan guarantees so they can own part of the pipeline.  Cournoyea can't look to the producers either. The industry has said the pipeline group must come up with the money for the project on its own.   Cournoyea says she's confident she'll have the huge construction dollars in hand by the time a decision is made to build, three or four years from now.  (See 6-01 version, Mackenzie Valley Pipeline MOU Draft)

10-16:  Northern News Services, by Derek Neary, Fort Simpson - Michael Nadli is confident Deh Cho communities won't sign the pipeline agreement one-by-one.  Fort Liard endorsed the Aboriginal Pipeline Group's memorandum of understanding (MOU) two weeks ago. Now Fort Simpson is on the verge of adding its support. However, the grand chief of the Deh Cho First Nations said the APG's momentum will likely stop there, with the possible exception of the Hay River Reserve.  "There's still some leaders out there who have strong principles, so that's the encouraging thing at this point," Nadli said Friday.  He noted that he has not wavered from the resolution passed at the Wrigley special assembly last month. That resolution states that the Deh Cho will negotiate the terms of a pipeline directly with the federal government.  On the other hand, if a majority of 10 Deh Cho communities do sign the MOU, then, Nadli acknowledged, he would be forced to re-think his position. ... APG secretary Wilf Blonde said the APG has ... supplied information to Deh Cho communities regarding the MOU, he said.  "It's our job to explain what the MOU is all about," he said. ...  Blonde argued that the DCFN's mandate is to negotiate a land claims agreement and whether a pipeline is included within the parameters that land claim agreement is questionable "We'd really like to have the backing of the Deh Cho First Nations, but it's up to the individual chiefs whether they feel this is part of DCFN's mandate or not," he said. "We have six other regions who would like to have a pipeline. I feel the (Deh Cho) communities are going to recognize that they want to." 

10-9:  Northern News Services, by Thorunn Howatt, Fort Liard- Elder Stanley Bertrand was flown out of Fisherman's Lake when Acho Dene Koe band council members in Fort Liard decided it was time to sign an agreement dealing with pipeline ownership and land access. ... The memorandum of understanding, drafted last June, is an agreement between the regions involved with the Aboriginal Pipeline Group and the Mackenzie Delta Producers Group. The band council wanted Bertrand's signature on a resolution supporting the memorandum.  ... Chief Judy Kotchea said if the band is going to have a stake in the pipeline then it must move forward. "We want our people, especially our young people to have long-term benefits...."      *       CBC, Yellowknife, N.W.T. - The Grand Chief of the Deh Cho First Nations says he's not surprised the Acho Dene Koe have signed on to the Aboriginal Pipeline Group's Memorandum of Understanding.  ...  But Mike Nadli says he wishes the band had kept him informed of its plans.  ... Chief Negotiator for the Deh Cho, Chris Reid, says the move will not have any impact on their plans to negotiate the terms and conditions for a pipeline through their self-government and land management negotiations. He says he's also not surprised at the Fort Liard decision. Reid says the community's honorary chief, Harry Deneron, still has a lot of influence in Fort Liard.    *     Platts-A spokesman for Imperial, the lead partner in the producers' consortium, said in a statement the producers welcome the Acho Dene Koe participation and hope other dissident communities will follow suit.

9-28-01:  Northern News Services by Derek Neary, Fort Simpson - Acho Dene Koe sub-chief Jim Duntra is worried about jobs lost to delays in a proposed seismic project near Fort Liard.   Canadian Forest Oil's application for a land-use permit was referred to environmental assessment, a lengthy and comprehensive process carried out by the Mackenzie Valley Environmental Review Board.  The Liidli Kue First Nation (LKFN) had expressed concerns over cumulative effects -- the overall impact of all development projects on the ecosystem -- and possible impacts on moose habitat as its primary concerns over the seismic activity. Although the LKFN was not the only organization to cite that concern, Acho Dene Koe Chief Judy Kotchea sent a strongly-worded letter to the LKFN expressing her disappointment in its objections.  Kotchea was not available for comment. Sub-chief Jim Duntra, who is also president of Beaver Enterprises, an oil and gas service sector company owned by the band, said there are people in his community who are counting on the seismic project for an income. ... Ken Mitchell, senior geophysical specialist with Canadian Forest Oil, said the proposed seismic program would create 80 to 100 seasonal jobs. Generally, 40 to 55 per cent of related jobs are filled by Northerners, he said. The environmental assessment has put things behind schedule and may result in a lost winter season, he said. ... LKFN Chief Rita Cli said her band routinely writes letters of concern over every proposed development upstream....     *     Financial Post by Carol Howes and Claudia Cattaneo, CALGARY - Oil and gas producers hoping to build a pipeline down the Mackenzie River valley said yesterday the poor economics threatening a rival project in Alaska would not deter their efforts to develop reserves and see their project completed.  (See 9-28-01 Marushack remarks below for latest status. -dh)  Hart Searle, spokesman for Imperial Oil Ltd., which is leading a feasibility study for owners of natural gas reserves in Canada's Arctic, said his group has been aware the Alaska competitors were coming to the conclusion that their project might not be viable, but would decide whether to develop Canada's basin based on its own merits. ... "Our feasibility study doesn't include gas from Alaska," Mr. Searle said. "We are studying the feasibility of developing onshore Mackenzie Delta natural gas only. That has been our focus. We are continuing with that study."  ExxonMobil, British Petroleum and Phillips Petroleum have come to the preliminary conclusion that under current conditions, the development of Alaska natural gas is not economic at this time.  Those conclusions, while not final, found that costs would be too high, at US$15.1-billion if a pipeline runs north through the Arctic Ocean to the Mackenzie River Delta, or US$17.2-billion if the pipeline is routed along the Alaska Highway through the Yukon to the continental United States.  The Alaska producers stressed yesterday they are continuing to study the project and looking at ways to cut costs. But they are nevertheless looking for concessions, such as the opportunity to pick between two routes, one of which is favoured by the Alaska government and another -- the "over-the-top route" that would see gas pumped under the Beaufort Sea then into a Mackenzie Valley line -- that is cheaper. A final decision on whether they will move ahead will be made at the end of the year.  Northwest Territories government leaders said the early findings on the Alaska project, and the political fallout likely to result, bodes well for the Canadian project.  "We know the Alaskan politicians are posturing and offering tax concessions and other things," said Stephen Kakfwi, premier of the Northwest Territories. "Governments are starting to intrude in the free market."  "It puts the (Canadian) project in a good light, but it's not a slam dunk," added Wilf Blonde, a negotiator for the Aboriginal Pipeline Group, a backer of the Mackenzie project.  Mr. Searle said the priority of the Canadian project has been to bring native groups on side. The Mackenzie producer group is not looking for government concessions.  "Certainly economics are important, and we have not come to conclusions as to where we are on economics, but I can say that the way we have been looking at this is that the economics on a potential development of this type are not so much dependent on today's [commodity] price, but on what prices will be in the longer term, ten to 20 years from now."  The Canadian project would be smaller in scale, at a cost of about $3-billion for the pipeline, not including the the cost of field facilities.  It would transport about 800 million to one billion cubic feet of gas a day, compared to up to four billion cubic feet a day for the Alaska plan.  While the Canadian project appeared to be losing ground this summer because of native demands, Mr. Kakfwi said a lot of progress has been made since and the project will go ahead regardless.  "We don't need every aboriginal group in the territory to sign on for the pipeline to go. The aboriginal groups see it and should see it strictly as a business deal. Those that want to own a piece of the pipe should sign on."  Robbie Schilhab, Alaska gas development manager for Exxon Mobil, based in Houston, said costs of the Alaska project would have to be substantially lower than current levels for the project to be viable, but the project is not dead.  "Under current conditions, current preliminary numbers, we do not see an economic project at this point in time," he said.  "We do see places we want to focus on to lower the cost ... and try to reduce the risk in some other areas," he said, such as speeding up the resolution of any disputes and permitting processes.  Laurie Stretch, a spokesperson for Petro-Canada, said neither pipeline option is certain.  The firm, together with Anderson Exploration Ltd., is leading an exploration rush in Canada's Arctic to find new reserves.  "Our focus is the Mackenzie Delta and we remain confident in its long-term future, but specific timing is difficult to predict," she said.  Martin Molyneaux, director of institutional research at FirstEnergy Capital Corp., said even if development of the Alaska basin doesn't move ahead, it will not impact current energy markets because the project was long term.  "I don't think it changes anybody's view one way or another. We're talking about a gas supply that's eight years away at best," he said.....     *      Yellowknife, N.W.T., CBC - Chief Rita Cli says she doesn't agree with part of a resolution passed at a special assembly on a Mackenzie Valley pipeline held in Wrigley last month.  The resolution effectively puts the pipeline on hold until the Deh Cho Process is complete. It sets a number of conditions for the federal government and gas producers to meet before the Deh Cho First Nations will give approval to a pipeline.   Cli says she has problem with the condition that says the Deh Cho First Nations won't support pipeline construction unless hunters and trappers along the pipeline corridor are in favour of it.  "I had a problem as a leader that the harvesters can stop development on all the lands," she says. "So when I brought this thing back and highlighted that, they were in agreement with it, so it was decided that from this council, we will all review this resolution and reword it if we have to."

9/4/01:  WRIGLEY, N.W.T., CBC - Natural gas producers are reacting with caution after Deh Cho leaders failed to endorse the Mackenzie Valley pipeline, while government leaders urged the industry not to change its plans. Joe Handley (photo-left), the territorial finance minister, says investors shouldn't lose their nerve.       *       NOTE THIS NEW ADDITION TO THE 'UPCOMING EVENTS' SCHEDULE IN THE RIGHT COLUMN: 9/12/01, Andrew Lundquist-Executive Director, National Energy Policy Development Group-Alliance Annual Meeting, Sheraton Anchorage Hotel, 907.563.2226     *      Fort St. John, B.C., CBC - The new head of B.C.'s energy regulator is keeping an eye on a native blockade north of Fort St. John.  Derek Doyle says he's encouraging dialogue between the Halfway River First Nation and Petro-Canada, but the commission won't get involved unless asked.  Natives have blocked a Petro-Canada oil field, saying a pipeline project through their territory threatens traditional hunting camps.