(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 property taxation for the MGP

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: Property Taxation for the Mackenzie Gas Project

The Dehgah Alliance Society has reviewed the September 22, 2005 letter from INAC Minister Andy Scott to GNWT Premier Joe Handley regarding property taxation and the Mackenzie Gas Project (MGP). The DAS would like to clearly state that we do not accept the views expressed by Minister Scott.

The application of a property tax on aboriginal traditional lands is an inherently governmental power for the Dehcho First Nations and does not rely on, or require the existence of, a self-government agreement with Canada.

The DAS will continue with our work to ensure that the Dehcho aboriginal community governments along the pipeline corridor are able to obtain a stable annual revenue stream by applying a fair and defendable level of property taxation on the MGP.

Our proposal requires the MGP to pay property taxes to the Dehcho aboriginal community governments that is equal to 1% of the project’s capital cost in the Dehcho Region, adjusted with depreciation and escalation factors, for the life of the project.

Our proposal asks for no special treatment for our communities and simply requires that the Dehcho aboriginal community governments be treated in the same way as aboriginal community governments in other parts of Canada.

Sincerely,

Chief Keyna Norwegian
President, Dehgah Alliance Society

Chief Keyna Norwegian