[IPSM] CBC North: Pipeline talk leans to Mackenzie Valley project

[Macdonald Stainsby]

Pipeline talk leans to Mackenzie Valley project

Last updated Nov 10 2005 09:05 AM CST
CBC News
http://www.cbc.ca/north/story/pipeline-talk-10112005.html

The head of the company with the largest stake in the Mackenzie Valley
Pipeline project is sounding optimistic that the deal will proceed.

Rex Tillerson, president of ExxonMobil, the majority shareholder of
Imperial Oil, spoke in Calgary this week about the plans for the stalled
pipeline.

Imperial is expected to tell regulators later this month whether it's
ready for public hearings on the $7 billion project.

"My expectation is the Mackenzie pipeline will go forward. I think there's
been good progress made in dealing with a number of long-standing issues
regarding aboriginal claims and benefits and compensation that they
expect."

Tillerson praised the federal government for coming up with a $500 million
fund last summer to pay for the negative effects of pipeline construction.

Imperial Oil put the project on hold in April, saying aboriginal groups
were expecting too much for compensation.

Aboriginal negotiations ongoing

The president of the Aboriginal Pipeline Group says discussions are moving
along well with his group and government over outstanding issues that need
to be resolved before the partners in the project decide they're ready for
public hearings.

Bob Reid, whose group has a one-third share in the project, told a
transportation conference in Yellowknife Thursday that he's feeling
bullish about completing access agreements with the four aboriginal
organizations in the Mackenzie Valley.

"There are none in place as of today," he says. "But discussions are
continuing and they've really heated up over these last 10 days and I'm
very optimistic that within the next week or 10 days we will see some
access and benefits agreements in place."

Reid says discussions continue with the federal government about royalties
and taxation, but he didn't say when he expected an agreement.

Mackenzie Pipeline likely first, says minister

Meanwhile, the Northwest Territories' industry minister was in Whitehorse
Wednesday to meet with his Yukon counterpart to provide a united front on
pipeline plans for the North.

Brendan Bell says the MacKenzie Gas project is likely to trump the Alaska
Highway pipeline.

"It really is up to the producers in terms of which project they develop
first, but if you look at it, we're into the regulatory review, and the
Alaska project, although it's going to happen, doesn't have a project
definition yet," he says.

"So if you just look at the levels of the two project, McKenzie is further
advanced at this point and isn't as big or quite a challenge as the Alaska
project."

The Mackenzie Valley pipeline project is expected to bring thousands of
jobs and billions of dollars into the N.W.T. during construction and in
the following decades. But it will also open vast areas of the territory
to oil and gas development, prompting concern about environmental damage
and social disruption along the its route.



--
Macdonald Stainsby
http://independentmedia.ca/survivingcanada/
http://lists.econ.utah.edu/mailman/listinfo/rad-green
In the contradiction lies the hope.
--Brecht.