First nations team up to safeguard pipeline interests

Photo by Whitehorse Star

A coalition of two Yukon first nations without land claim agreements has formed to protect their interests in the potential development of the Alaska Highway gas pipeline.

The White River First Nation of Beaver Creek and the Liard First Nation of Watson Lake announced their new partnership this week.

Neither of the first nations is an active member of the Alaska Highway Aboriginal Pipeline Coalition, which represents seven other Yukon first nations with land claim and self-government agreements.

Liard Chief Liard McMillan and White River Chief David Johnny emphasized in this week’s news release that it’s important government and industry involve their first nations in pipeline planning, to ensure their environmental and socio-economic concerns are addressed.

The chiefs pointed out the proposed route of the natural gas pipeline passes directly through their “unsurrendered” traditional territories.

Major planning, which includes refining the cost of the estimated $30-billion project, is underway by two major competing pipeline groups.

Their intent is to be in a position by next summer to call for bids to buy shipping space on their pipeline, based on their business models which are to include a refined construction cost and schedule.

White River Chief David Johnny said in an interview this morning there is a great deal of work to do, and somebody needs to do something to ensure the participation of the White River and Liard first nations.

The clock, he emphasized, is ticking, though nobody’s invited White River to the table, nor has there been any indication of financial support from any parties.

Johnny said he doesn’t believe it’s necessary for all of White River’s interests to be sorted out by next summer’s open season, which is a binding bid process. On the other hand, the parties had better be at the table talking well before then, the chief said.

Both chiefs indicated they’re not interested in an expensive court battle to protect their interests.

But they also emphasized the two first nations have unsurrendered rights and title that must be recognized.

“We do prefer the negotiating room over the courtroom,” McMillan said this morning. “But if we can’t negotiate, we are left with option number two.”

McMillan said the Liard First Nation’s interest in participation goes well beyond simply negotiating jobs and contract opportunities.

“The things we are interested in negotiating are things that will develop own-source revenue for our community, including ownership.”

McMillan estimates it will take between $1 million and $1.4 million in funding to provide for his first nation’s participation in the process.

The Alaska Highway Aboriginal Pipeline Coalition is currently funded by a $200,000 annual contribution from the Yukon government. It also received funding from Ottawa last year and this year for specific projects.

TransCanada Pipelines Ltd. was chosen by the State of Alaska through a selection process in 2007 to advance the pipeline proposal under an agreement that commits state funding assistance.

In return for assistance, however, the agreement dictates that TransCanada be ready for open season by mid-2010. ExxonMobil, one of Alaska’s big three oil producers, recently announced it is partnering with TransCanada for the open season process.

BP and ConocoPhillips, the other two big producers, partnered last year under the name of Denali - the Alaska Gas Pipeline, to put together their own open season package, without financial assistance from Alaska.

Both competing interests are currently carrying out their work to reach open season.

McMillan said TransCanada has been in discussions with the first nation but the Denali group is suggesting it’s too early to get into substantive talks about a participation agreement for the first nation.

The Liard First Nation, however, has indicated to Denali that any field work the company plans to carry out leading up to the open season could potentially affect the Kaskas’ aboriginal rights and title, the chief pointed out.

McMillan said his first nation has not signed onto, nor does it recognize, the Northern Pipelines Act, which was passed by the federal government in the 1970s to provide a mechanism to negotiate and build the pipelines in the North.

Both chiefs said they felt their interests were better served working together as two first nations without treaties, rather than alongside the seven first nations that have land claim settlements and self-government agreements.

The two first nations, along with the Kaska of the Ross River Dena Council, have indicated to Ottawa they are not interested in negotiating a settlement under the Umbrella Final Agreement. The agreement was used as the blueprint to negotiate the 11 settlements to date.

Johnny noted, for instance, that issues affecting White River include the outstanding matter of overlapping land interests with the Kluane First Nation, which has settled.

Those types of matters, he said, are matters Ottawa needs to be aware of when it’s thinking about an Alaska Highway pipeline.