(EDITOR's NOTE: The following letter has been reprinted without changes. It has been posted here for the information of our readers.)

Dehgah Alliance Society letter on fiscal assurances agreement

Oct. 4, 2005

The Honourable Andy Scott
Minister of Indian and Northern Affairs Canada

Premier Joe Handley
Government of the Northwest Territories

Randy Broiles
Executive Vice-President, Imperial Oil

Re: Fiscal Assurances Agreement for the Mackenzie Gas Project

For the proposed Mackenzie Gas Project (MGP), over 40% of the length of the pipeline crosses the Dehcho Region. The Dehcho communities along the proposed pipeline corridor have participated, in good faith, in negotiations with Imperial Oil, the Government of Canada (Canada) and the Government of the Northwest Territories (GNWT) on various matters related to the MGP.

In the draft access agreement submitted by the MGP to the Dehcho communities, Imperial Oil is expecting the Dehcho aboriginal governments to:

(1) Acknowledge the existence of a Fiscal Assurances Agreement (FAA) between the MGP, Canada and the GNWT;

(2) Recognize that the FAA is fundamental to the MGP’s decision to proceed with the project;

(3) Agree that we have been consulted;

(4) Concur with the terms of the agreement; and

(5) Agree not to do anything to impede the completion of the agreement.

Despite Imperial’s expectation that the Dehcho must agree to these conditions, we have yet to be consulted on or involved in any of the secretive fiscal agreement negotiations; negotiations that apparently include discussion of $2 billion in taxation and resource royalty concessions to the MGP.

If the MGP is to proceed any further, the Dehgah Alliance Society (DAS) and the Dehcho First Nations (DFN) must be parties to any fiscal negotiations that might affect the financial security of the Dehcho people.

Sincerely,
Chief Keyna Norwegian
President, Dehgah Alliance Society

Chief Keyna Norwegian