A Nov. 1 target went by without a start on deliveries to thenortheastern United States by the new Maritimes & NortheastPipeline (M&NP), but it says there is no real delay and thetiming has nothing to do with a last-minute tangle with Indiansbefore the National Energy Board.

M&NP communications chief Krista Jenkins said theC$1.8-billion (US$1.2-billion) project had not been derailed by thenative rights case – at least “not at this point.” The NEB allowedM&NP to proceed with a last step known as purging and packing,where a new line is cleaned out and filled with gas in preparationfor deliveries. The board also stressed it had not yet given finalapproval for gas sales to begin. The purge-and-pack stage wasapproved after Canada’s Federal Court of Appeal directed the NEB torehear a portion of its M&NP approval in order to ensurecompliance with an item called Condition 22, which required theproject to develop a program of impact studies and environmentalmonitoring with Nova Scotia’s Mi’kmaq natives. The rehearing waslaunched immediately in the form of an exchange of written briefsrather than a lengthy oral proceeding.

“Our pipe is ready to go into service,” Jenkins said. Shereported deliveries are still scheduled to begin later this month,with M&NP’s timing planned to match the start of production bythe allied Sable Offshore Energy Project. M&NP praised the NEBfor proceeding in a fashion that still allows for a decision intime to satisfy heating-season expectations among the pipeline’susers. The NEB’s case file reveals that the Nova Scotia nativeswant C$147.7 million (US$98 million) as their price for cooperatingwith M&NP. Exhibits entered into the record show the Indianssued after M&NP refused to make payments based on land claimsthat have yet to be granted by the courts or accepted as legitimateby the federal and Nova Scotia governments.

The Assembly of Mi’kmaq Chiefs sought C$10 million (US$6.7million) for each of 13 communities it represents, as compensationfor pipeline activity in areas claimed as traditional nativeterritory. The demands also included C$16 million (US$10.7milllion) as compensation for contracts awarded to non-native firmsplus a long list of subsidies: C$500,000 (US$333,000) for thechiefs assembly for fees and costs of negotiations with M&NP;C$265,000 (US$177,000) for a TEK (traditional ecological knowledge)study of the pipeline’s path; and C$1.2 million (US$800,000) insupport for six native wildlife, cultural, resource, businessdevelopment and organizational agencies.

The Mi’kmaq pulled no punches in warning that Atlantic gasdevelopment could be held hostage if the wider political demandswere not granted. A transcript of an address by representatives ofthe chiefs during a mid-1998 meeting with federal and Nova Scotiaofficials lays out the message: “If we fail to reach an agreementon the aboriginal title issue, the chiefs will have no choice butto challenge various aspects of the Sable gas project.”

The M&NP case touches a sore spot in Canada and has rapidlyescalated beyond a wrangle over technicalities into aninternational affair with 42 interveners ranging from gas users inAtlantic Canada and the northeastern United States to industryassociations and labor unions.Alliance Pipeline Ltd. – nowbuilding its C$4.5-billion (US$3-billion) new B.C.-Chicago route -has jumped into the fray, along with rival TransCanada PipeLinesLtd.

Alliance says “the question . . . is one that is of importanceto other pipeline companies,” including itself. TransCanadadeclares itself “interested in the underlying principle the boardwill be considering.” Some explanations for this interest have beenfired off to the NEB by native communities along TransCanada’sroute across northern Ontario. In Thunder Bay, Nishnawbe-AskiNation says it is “concerned . . . because our people’s treaty andtraditional lands are traversed,” and Ontario natives want a say on”the issue of the effect on pipeline startup and operation of thefailure of the pipeline operator to comply with a certificatecondition.” In Calstock, Constance Lake First Nation indicates itcould embroil TransCanada in a feud similar to the wrangle in NovaScotia. The group reports negotiations have been discontinued withTransCanada on how to fulfill a native-relations condition in itsNEB approval for a C$402.9-million (US$270 million) capacityexpansion completed Nov. 1.

The appeal court, while saying its ruling made the NEB’sapproval of M&NP invalid, stressed the legal decision coveredonly a “narrow issue” of procedure. The final decision on M&NPis still up to the NEB after it complies with legal requirementsfor consulting the natives, the court said.

Gordon Jaremko, Calgary

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