Regulatory and monetary hurdles remain, but the Canadian government has completed a C$25 million (US$23.9 million) agreement with the Dene Tha’ First Nation in Alberta to resolve one of the disputes that has entangled the Mackenzie Gas Project (MGP) from moving forward.

Last November the Federal Court of Canada ruled that the Canadian government failed to consult properly with the Dene Tha’ on a 100-kilometer (60-mile) stretch of the proposed C$7.5 billion (US$6.7 billion) MGP (see Daily GPI, Nov. 14, 2006). Before the federal ruling, the Dene Tha’ had been excluded from two separate sets of hearings, one by the National Energy Board and the other by the Joint Review Panel, which dealt with environmental, cultural and socioeconomic impacts, on the grounds that the tribe’s claim to the land was not recognized.

The court ordered the Joint Review Panel to consult with the community until the project is completed.

“With this agreement we have demonstrated that Canada is committed to meaningfully consult with aboriginal groups and, where appropriate, to accommodate their concerns with respect to how the Mackenzie Gas Project may affect their communities,” said Jim Prentice, Canada’s minister of Indian affairs. “In turn, we have generated greater certainty around the project — ensuring that if it is approved, it may proceed unimpeded.”

The agreement, said Dene Tha’ Chief James Ahnassay, signals Canada’s willingness to listen to the aboriginal concerns. About 2,500 Dene Tha’ live in the northwest corner of Alberta where the pipeline would end and connect with Alberta’s existing natural gas grid.

“The potential impact on our communities of big energy sector projects has been a concern for us in the past, and remains a concern with the Mackenzie gas project,” Ahnassay said. “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.”

According to Canadian officials, the agreement will end any legal action by the Dene Tha’ regarding the MGP. The agreement also will allow the stakeholders to take advantage of the expected economic opportunities form the project.

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