The Yukon government appears to be abandoning its financial commitments and promise of co-operation to the Aboriginal Pipeline Coalition (APC), says Mike Smith, chair of the Alaska Highway Aboriginal Pipeline Coalition and chief of the Kwanlin Dun First Nation.

'Everything is basically stalemated,' Smith told the Star Thursday afternoon.

In a meeting on Oct. 3, the APC asked Premier Dennis Fentie to reaffirm previous statements regarding 'six-figure' funding that would be given to the APC to help with its work.

'We approached him on the balance of the $200,000-budget,' said Smith, 'and he said no and then spent the whole hour and a half saying no.'

The APC is meant to provide a self-determining first nation body that will access industry and government proposals on the pipeline, inform and consult with affected first nations and to build concrete positions that reflect first nation interests and concerns.

The funding Fentie committed to last April was meant to be used to maintain the APC's office space to have a central location to work out of.

Smith said it is the first nations along the Alaska Highway pipeline corridor that will be most affected by its construction and operation.

'How it's going to impact us is a lot different than how it's going to impact the Yukon,' he said.

The discussions with the government have shown very little respect or consideration of first nation concerns, despite any public statements made by the premier, he added.

'We don't like how (Fentie's) dealing with us on this,' said Smith. 'We've mostly given up on the YTG. We don't want to be coerced by them.'

Smith believes Fentie has connected the funding to the APC refusing to support the government's wish to establish a pipeline commission.

Fentie told reporters the commission would closely mirror the structure being used to examine the proposed Alaska-Canada rail link.

'We see a value in something like we've done with the railway study, by creating a common group where we, first nations, the coalition, can collectively work on making sure the Yukon is pipeline-ready,' he said.

'One facet of that work will be the Aboriginal Pipeline Coalition, but we are a public government so we must ensure that the broader public interest is also being dealt with and addressed.'

However, Smith said a commission would be tied too closely with Alaska.

Alaskan Gov. Frank Murkowski 'absolutely does not recognize any first nation concerns,' said Smith, adding a commission may cause the YTG to be far too influenced by the Alaskan attitudes.

NDP Energy, Mines and Resources critic Gary McRobb agreed a commission would likely minimize the role and negotiating power of first nations.

Smith said in the Oct. 3 meeting, the APC indicated it would not be able to agree with the YTG's proposition of the commission.

'As a result, (Fentie's) holding back the funding,' said Smith.

Smith said now Fentie appears to be taking an 'if you want to play hard ball' stance.

The premier sent a letter to executives at Imperial Oil, ConocoPhillips and BP Canada last June 2, indicating the APC supported the government's view with respect to the Yukon advantage of the Northern Pipeline Act.

Smith responded by sending his own letter to the premier and the executives stating that, 'Nothing could be further from the truth.

'In fact, as you know, the Aboriginal Pipeline Coalition has not even secured the funds required to undertake the analysis necessary to prepare a position on this.

'The Coalition finds the process you used to make and communicate your decision offensive and a breach of our mutual commitments to work co-operatively and in collaboration on pipeline issues,' the letter added.

During Thursday's question period in the legislature, McRobb asked Fentie why the government is trying to force the APC into the pipeline commission.

'Frankly, we aren't forcing the first nations to do anything,' said Fentie. 'We're merely offering the opportunity. It's up to the first nations as governments to make the decision, should they want to participate, or not.'

Fentie later told reporters the YTG has 'every intention' of continuing to support the APC, but would not provide a value to what that support would be.

'It's not a question of how much; we've committed to assuring that the Aboriginal Pipeline Coalition can continue its operations, can continue to have an office space to operate from,' he said. 'I'm sure we're going to commit a lot more. We'll invest a lot more.'

The focus right now should be on ensuring the territory is 'pipeline-ready,' said Fentie.

However, Smith said the YTG should consider its actions carefully, because the APC believes the same mistakes that caused deadlock on the Mackenzie Valley pipeline project are now being repeated.

'We urge you to consider this situation very carefully and commit to financially support the APC in a way consistent with our previous discussions,' stated a letter sent to Fentie from the APC on Oct. 4 following the stalemated meeting.

'This will go some distance in reassuring first nations that you are a reliable and constructive partner in economic planning in general and pipeline analysis and preparations in particular.'