The Mackenzie Delta Producers Group -- Imperial Oil Resources, Conoco Canada Limited, Shell Canada Limited and ExxonMobil Canada -- have today signed a memorandum of understanding with the Aboriginal Peoples of the Northwest Territories, as represented by the Mackenzie Valley Aboriginal Pipeline Corporation (MVAPC), that provides a framework for the parties to move forward on economic and timely development of a Mackenzie Valley pipeline.

The memorandum outlines principles that the parties agree are appropriate to guide future work. These principles address such matters as education, training, employment and business opportunities; pipeline ownership; route selection (right of way); land access; support through the regulatory process; environmental assessments; and abandonment.
"The producers group values its relationship with the aboriginal communities, and this memorandum establishes the framework for moving forward. It lays the groundwork for a business relationship beneficial to the peoples of the North and to resource developers," said K.C. Williams, senior vice-president, Imperial Oil, on behalf of the producer group. "We are breaking new ground, and have come a long way in a short period of time in understanding one another. We look forward to working with the MVAPC and Northern communities on the arrangements outlined in this memorandum of understanding."

The memorandum of understanding was developed jointly with the Aboriginal Pipeline Group, representing the Aboriginal Peoples of the Northwest Territories. The memorandum was tabled at a meeting of Northern aboriginal leaders at Hay River, N.W.T. in June 2001. At that meeting, representatives from five of the six aboriginal regions in the Northwest Territories signed the memorandum, while leaders from the Deh Cho region indicated they wanted further time to study and review it with their individual communities. Since then, the producers group has participated with the Aboriginal Pipeline Group at Deh Cho assemblies at Kakisa and Wrigley, N.W.T. and met with a number of Deh Cho communities to help further their understanding of the memorandum. Similar reviews were conducted, where requested, in other regions. Williams said the producer group is committed to continuing the dialogue.
"The memorandum has substantial support from the aboriginal people of the Northwest Territories, including most recently the Deh Cho community of Fort Liard. The leaders who have indicated support represent about three-quarters of the aboriginal people of the Northwest Territories," said Williams. "We also recognize that not all leaders have yet decided to sign, and we are sensitive to and respect their concerns."

Based on progress to date on the feasibility study, the producers group is selectively advancing activities such as furthering conceptual engineering and the gathering of baseline biophysical data. Before proceeding to the regulatory and project definition phase, the Producer Group will conclude other aspects of the feasibility study, such as the negotiation of the necessary commercial agreements. These initiatives should position work to begin on the development of regulatory applications later this year.

As the largest resource-holder in the Mackenzie Delta region, Imperial is acting as spokesperson for the producer group.