An alliance between oil companies and aboriginals? As unlikely as it seems, just such an arrangement has been made in the Northwest Territories, Canada. The project is an extension of the Mackenzie Valley pipeline that would carry natural gas from the Mackenzie Delta to southern markets, linking to pipelines in Alberta.
The main players in the endeavor: the financers TransCanda, Imperial Oil, Ltd, ConocoPhillips Canada, Shell Canada Ltd., Exxon Mobil Canada Ltd., and the Aboriginal Pipeline Group (APG). In exchange for permission to use aboriginal land, the companies will provide the APG with an $80 million loan and ownership to one-third of the pipeline.
The APG is an amassing of First Nations representatives whose land would be affected by the project. Their alliance is designed to ensure that their interests will be represented and their land claims respected. 1970’s attempts to build such a pipeline were contested by aboriginals, who, according to APG chair and director Fred Carmichael “didn’t have land claims in order at the time.”
As recently as 2002, the Gwi’chin tribe hesitated with their decision regarding the pipeline, but with time they too have signed on. The decision has been shepherded by Gwi’chin Chief Carmichael, who coincidentally holds the chair and director positions at the APG. Critics complain that Carmichael’s involvement on both fronts constitutes a “conflict of interest,” but his triumph in recent elections indicates that a majority of Gwi’chin support his actions.
The mainstream media is rife with optimistic reports about the project. “People will be trained and provided with jobs, better healthcare…” said Carmichael in an interview on July 2nd. Furthermore, Carmichael believes that the pipeline could “eventually lead to self-sufficiency for our people.”
The project is rapidly clearing administrative hurdles, and is expected to be in operation by 2006. Proponents believe that it should yield enough gas to heat all the homes in Canada for six years.
However, from an environmental standpoint, the Mackenzie pipeline is somewhat questionable. Its benefactor, Imperial Oil, includes such members as Exxon-Mobil, a company notorious for wreaking environmental havoc. The project’s supporters speak of the jobs it will bring to the region, and of the revenue the Aboriginal Pipeline Group will amass through its one-third ownership, downplaying any possible environmental hazards.
When questioned about his feelings regarding Exxon-Mobil’s infamous environmental record, Carmichael is quick to refute: “I think they have a pretty good environmental record if you really look at it,” and “they cannot abuse land or [the] environment or it will reflect badly on their image.” Hopefully Carmichael’s augury will prove correct, and Exxon-Mobil will restrain from behaving the way they did in Aceh, Indonesia, or in the Amazon, where they are charged with human rights and environmental abuses.
Greenpeace warns that the Mackenzie Delta is endangered by permafrost degradation, a phenomenon caused by global warming, not surprisingly linked to oil exploitation. According to their studies The Mackenzie Valley pipeline is threatened due to increased temperatures. One Greenpeace study warns “pipelines built directly on permafrost may become unstable... Most notably, the Mackenzie Valley pipeline, carrying crude oil from Norman Wells to Yellowknife on Great Slave Lake, is at risk.” Exxon-Mobil’s operations in Norman Wells are cited as extremely precarious. Landslides or instability of the ground may cause leakage or destruction of the line.
Carmichael, however, is adamant that the necessary measures will be taken to protect all interests. “People realize that there is a serious problem and that we need to protect the earth. Everyone is very concerned about it but we need to live and we need to have some development, while remaining conscious of protecting the environment.”
Special thanks to Fred Carmichael for the interview.
