Yukon first nations' pipeline prospects part of new deal
Examining opportunities for first nations to become partners in an Alaska Highway pipeline is a condition of a new agreement between the Kaska Nation and Foothills Pipe Lines Ltd.
Examining opportunities for first nations to become partners in an Alaska Highway pipeline is a condition of a new agreement between the Kaska Nation and Foothills Pipe Lines Ltd.
Kaska spokesman Dave Porter said last Friday the Kaska and Foothills have signed an agreement-in-principle (AIP). It sets out a number of commitments by the pipeline company, including a look into first nation ownership in the project.
The AIP is a springboard to finalizing a participation agreement for the Kaska should a pipeline project go ahead. However, Foothills' commitment to assist with the examination of aboriginal ownership is a commitment to all first nations, Porter said in an interview.
'We made sure, that given our partnership with other first nations in the Yukon, we thought the agreement must contain an opportunity for other first nations of the Yukon and B.C. to be included in an opportunity to pursue equity, should they desire to do so.'
The chair of the Kaska Dena Council said with the price tag of an Alaska Highway pipeline hovering around the $20-billion mark, it's likely aboriginal ownership will have to take some form of a consortium of first nations.
'When you look at the question of equity, we are going to have to bring in some real high-power experts in terms of making a decision,' he said, adding that Foothills has agreed to assist in that process.
Porter pointed out the equity provision with Foothills is likely a reflection of the its owner, TransCanada Pipeline, the company that paved the way for a portion of aboriginal ownership of a Mackenzie Valley pipeline.
He said exploring aboriginal ownership in the Alaska Highway pipeline will definitely involve the Yukon's Aboriginal Pipeline Group, consisting of first nations whose traditional territory lies along the proposed route.
The agreement-in-principle was signed last Wednesday. It covers a myriad of issues ranging from training opportunities, environmental concerns and the use of traditional Kaska knowledge in the planning of any project, Porter explained.
While it's expected the AIP will lead to the completion of a formal participation agreement within a year, he said, terms set out in the agreement are already being implemented.
The pact, for instance, calls upon the pipeline company to finance a position to liaison between the Kaska first nations and Foothills, Porter pointed out. Steven Jakesta has already been hired for he job.
Porter said Foothills' financial obligations over the next year, which are set out in the AIP, amount to between $200,000 and $250,000, with a commitment to provide ongoing funding in years ahead.
The agreement, however, does not commit the Kaska to supporting an Alaska Highway project, nor any particular proponent of a project, including Foothills, he pointed out.
'We've left that door open.'
Porter said the training and skill development aspect of the AIP will begin immediately with an assessment of what already exists in the Kaska communities, and what is required to ensure Kaska citizens can take advantage of entrepreneurial and employment opportunities if a pipeline is built.
'If the pipeline is going to be built in the next 10 years, you are going to have to get out there and not only get education, but experience.'
It's one thing to have a welding ticket but it's another to have the experience required in the construction of a pipeline, he said.
Porter said the rising energy demands in North America suggest that construction of the Alaska Highway pipeline is inevitable, though he believes there needs to be the provision industry is looking for in the pending U.S. energy bill.
From what he understands, however, talks are going on now to bring the bill closer to what industry is looking for.
The bill died on the floor last November when Congress rose before consensus could be reached. It's fully expected, however, that it will be dealt with during the current session.
As for the timing of a pipeline, Porter said, it's difficult to guess, given all the things that have to fall into place.
But later rather than sooner is a good thing, he said, hinting at the extensive range of issues that need to be addressed, like aboriginal ownership, environmental concerns and training.
Its also expected finalization of the participation agreement in the next year will also address issues of compensation and taxation, he said.
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