Thank you for the opportunity to speak to you this afternoon. Dennis Nelner, who was originally scheduled to be here, has taken on a new pipeline-related job with the NWT Territorial Government and it is no longer appropriate for him to speak for the APG - considering his current responsibilities.

These are exciting times for Aboriginal people in Northern Canada. We have more choices and more opportunities now than ever before. I am here this afternoon to tell you about a very large opportunity that we are pursuing through the Aboriginal Pipeline Group.

Despite the opportunity, we still have many serious challenges. One of those is to develop a sustainable northern Aboriginal economy in the 21st century. To do this, we need to build on our capacity to be self-reliant. We need to offer our young people a future where satisfying work is available. And we need to do all of this with respect for the land and our Dene way of life.

Before I tell you about our opportunity to be involved in the planning, construction and ownership of a Mackenzie Valley gas pipeline, I need to tell you a little about myself and why I am involved.

The last time we heard serious talk about a gas pipeline in the Mackenzie Valley, I was teenager. The Berger Inquiry was happening and, while I was not involved, I knew it was important. People were expressing their pride in being Dene and Metis - in being Aboriginal. We had found someone who was willing to listen to us and, collectively, we said "No"- "No pipeline"- at least not for now.

Once the report of the Berger Inquiry came out, it recommended no pipeline for at least ten years so that Aboriginal people could deal with land claims issues and social issues and be in a better position to gain sustainable benefits.

But I was 17 and I didn't see a future for myself in the North. So I talked to my Chief. I had a lot of respect for our Elders and I still do today. So, I said to him that I felt I had to leave because I didn't see a future for myself with what was available to us. It was clear to Chief Sonfrere that I was going. So he said to me, "Leave and do something for yourself. Work hard, learn as much as you can and when you are ready come home and help our people."

Well, you know, I had to laugh. I thought he was crazy. I was just a kid from the Hay River Reserve and I was 17. How was I going to do something that would have an impact?

Well, stranger things could happen. But, after 22 years I came back to the North after working in the oil and gas industry in Canada and overseas. I saw the opportunities and I knew I could make a difference and I came home.

Shortly after coming back, I got involved in meetings that would open the door to the involvement of Aboriginal northerners in the construction of a Mackenzie Valley natural gas pipeline. So, let me tell you how we got from that point to where we are at today.

This is one of the largest projects in Canada in which Aboriginals have negotiated the right to a significant ownership position. We are "at the table". We are in a position to seriously influence the entire pipeline project.

Some of you may know the details of the Mackenzie Delta opportunity inside out. But, for those that don't, let me give you a brief summary of the opportunity. Then we can talk about how the APG came into existence and what we plan to do.

There are approximately 6 trillion cubic feet of natural gas in the three "anchor" fields in the Mackenzie Delta. The Taglu field is owned by Imperial Oil and contains 3 Tcf. The Parsons Lake field is owned by Conoco Canada and ExxonMobil and contains 1.8 Tcf. And, the Niglintgak field is owned by Shell and contains 1 Tcf.

Additional reserves are being established by drilling. I am sure you have heard this week's announcement that Petro-Canada and Devon Energy made a significant discovery near Tuk (about 300 Bcf) which further enhances the viability of a Delta pipeline. These reserves, in the anchor fields, have been known since1973. South of the Delta drilling in the Colville Lake area can add additional reserves and further enhance the project. However, it seems clear that there are already sufficient reserves, at today's prices, to justify a stand-alone pipeline from the Mackenzie Delta to Alberta.

The planning for the pipeline is now in the "Project Definition" phase with Imperial Oil serving as the Project Operator. The project includes a buried natural gas pipeline from the Inuvik area, where the gas would be gathered, to Alberta. Four compression stations would be required in the Northwest Territories and a Liquids Recovery plant would also be installed at Norman Wells so that Natural gas liquids could be stripped off and transported south in the oil line that is already in place at Norman Wells.

The group of companies involved in the Mackenzie Gas Project expect to be in a position to file a formal application in the second half of next year. The studies and application phase will cost upwards of $250 million dollars and the current estimate of the construction cost of a pipeline that would transport approximately 1.2 billion cubic feet a day is $3 billion. The APG has the right to own up to one third of this project.

The first steps were taken late 1999 when Chief Harry Deneron of the Acho Dene Koe in Fort Liard tested out the idea of Aboriginal participation in the construction of a Mackenzie Valley pipeline. With the support of Aboriginal leaders across the Territories, a meeting was held in Fort Liard on January 25, 2000.

Thirty Aboriginal leaders and delegates from all regions of the Northwest Territories attended. From the very beginning the emphasis was on "business." Introducing the discussion Harry Deneron said, "We always see each other across the table on a political level. This time we are talking about business and the pipeline ... So, I thought if we come together by ourselves and talk about the pipeline, we could come as a united voice and say we are going to build a pipeline and we are going to own it."That was how it all started.

The regional leaders broke into small groups with their delegations to brainstorm the challenges and opportunities of working together to build a Mackenzie Valley pipeline. The end result was a Joint Statement that was signed by all of the leaders. That statement reads, "We the Aboriginal people of the Northwest Territories agree in principle to build a business partnership to maximize ownership and benefit of a Mackenzie Valley pipeline." Premier Stephen Kakfwi was present to hear the result of the meeting and, along with Deputy Premier Jim Antoine and Finance Minister Joe Handley, said they were there to "demonstrate our government's support" for what the group had decided.

Discussions about the next steps to taken followed and in June 2000 another meeting was held - this time in Fort Simpson. Over 200 people attended, including 39 Aboriginal leaders from all regions. Unlike the first meeting in Fort Liard, which was not open to the oil and gas industry, this time we invited oil and gas, pipeline and government representatives to observe the meeting.

The Aboriginal leaders committed to appoint a "Working Group" and named individuals that represented their regions. The Working Group was mandated form a business alliance and to develop a business plan that would achieve the Aboriginal leaders' vision. By August 2000 an Executive Committee lead by Nellie Cournoyea of the Inuvialuit Settlement Region had been named.

I was part of the team that was put in place to do that work. And today I remain part of the Executive Committee. From the beginning, we were focused on evaluating the pipeline options that we identified and on how to put the best business deal in place. Over the months we examined several options and eventually selected the proposal being advanced by the Mackenzie Delta Producers Group, consisting of Imperial, Conoco, ExxonMobil and Shell as the most credible. We negotiated long and hard. We didn't take the frist offer or the second. We hung in there and we didn't stop until we felt we got what was fair. Fair to us and fair to our new partners. It had to be a win-win all around.

By June 2001 we were ready to meet again with all of the leaders and a meeting was scheduled in Hay River. The Producers Group, led by Imperial, was invited as we felt we were ready to sign a Memorandum of Understanding (MOU).

We had assembled what we thought was the best deal and the guiding principles to make it a better deal and time went on. The deal was about both ownership and benefits. We needed sufficient ownership to give us the leverage in the owner group. We also wanted to make sure that we got both immediate and long-term benefits. The MOU we presented to the leaders dealt with both. It was very balanced. And we asked for the leaders to sign on along with the Producers Group. Signatories included the Inuvialuit, the Gwich'in, the Sahtu, the Dogrib Treaty 11, AkaitchoTreaty 8 and the North Slave Metis Alliance. In October the Acho Dene Koe First Nation in Fort Liard also signed on.

But, some of the leaders were not ready to sign without taking it back to their people. My own region, the Deh Cho, was one of those that wanted more time. The Deh Cho made it clear that while it supported development, it was involved in a Land Claims negotiation process and that took precedence. Over last summer further meetings took place with several Deh Cho communities and discussions were held at Assemblies in Kakisa and Wrigley.

By October 2001, the Producers Group was nearing the end of the feasibility studies that it had been conducting. It was time to make a decision. Were we in or were we out? We, of the APG, believed that the best way to control our own destiny and provide a sustainable future for our youth was to be involved directly. We urged the Producers Group to return to the table and formally sign a MOU with the Aboriginal Pipeline Group.

The signing of the MOU between the Mackenzie Delta Producers Group and the Aboriginal Pipeline Group took place in the N'dilo on October 15, 2001. The MOU provides the principles that will cover negotiation of benefits agreements including education, training, employment and business opportunities. It also provides for the Aboriginal Pipeline Group through the Mackenzie Valley Aboriginal Pipeline Corporation and a Limited Liability Partnership to own up to one-third of a natural gas pipeline. This ownership position will allow the APG to exercise considerable influence over the construction and operation of the pipeline.

In January 2002 the Producers Group announced that it had successfully completed its Feasibility Studies and would be proceeding with the Project Definition phase of the Mackenzie Gas Project. This phase includes the engineering, environmental and socio-economic studies that are needed for the hearing of an application for a certificate of "Public Convenience and Necessity" with the National Energy Board and with the other Regulatory Agencies. The APG is currently working towards the completion of a comprehensive Business Plan to provide for its participation in the Mackenzie Gas Project.

The community consultation process has begun and the APG is also working to maximize participation in the environmental and socio-economic studies required for the formal Applications. Many of these studies will make use of Traditional Knowledge (TK).

As soon as our Business Plan is completed we intend to make the fundamentals of our plan publicly available and review it with the communities and other stakeholders. We still have some ways to go. Discussions with both the Federal and Territorial government about various forms of support will follow the completion of our Business Plan. It would be premature to discuss these in any detail today.

We are very optimistic about the future. For once, Aboriginal people in northern Canada have a chance to participate in a major energy project starting right on the ground floor. We are not coming along after the fact. We are at the table and we intend to use that leverage to maximize Aboriginal ownership and benefits from the Mackenzie Gas Project. Thanks. Mahsi.

Doug Cardinal