US embassy cable - 05OTTAWA3505

UNCLAS OTTAWA 003505 
 
SIPDIS 
 
DEPT FOR WHA/CAN (HOLST, NELSON) AND INR (SALCEDO) 
 
USDOC FOR 4310/MAC/ONA 
 
DOE FOR INTERNATIONAL AFFAIRS: PUMPHREY, DEUTSCH 
 
INTERIOR FOR OFFICE OF THE SECRETARY: PEARCE 
 
E.O. 12958: N/A 
TAGS: ECON, ENRG, EINV, CA 
SUBJECT:  MACKENZIE PIPELINE PROJECT MOVES TOWARD HEARINGS 
 
 
SENSITIVE 
 
REF:  OTTAWA 3349 
 
1. (U) As anticipated (reftel), though with a week's delay, 
on November 23 Exxon-controlled Imperial Oil Resources 
informed Canada's National Energy Board (NEB) that the 
proponents of the Mackenzie Valley natural gas pipeline 
project are ready to proceed to public hearings. 
 
2. (U) The NEB will proceed with a Pre-Hearing Planning 
Conference during the weeks of 5 and 12 December, in order 
to provide information on the NEB hearing process, which is 
expected to take place early in 2006.  The conference will 
be held in four communities in the Northwest Territories 
(Inuvik, Yellowknife, Fort Good Hope and Fort Simpson). 
Details and related documents are available on the NEB's 
website at www.neb-one.gc.ca. 
 
3 (SBU) According to a contact at Natural Resources Canada, 
Imperial's go-ahead represents an important step forward for 
the Mackenzie project.  Not only does it change the dynamic 
of the debate over the project's merit and technical scope, 
but the decision also signals that the company is optimistic 
about reaching settlements with the First Nations groups 
along the pipeline route.  Imperial, according to post's 
contact, has signaled through its announcement that it has 
made good progress on land claims with three out of the four 
tribal groups on the route, the Gwich'in, Inavialuit, and 
Sahtu.  The fourth group, the Deh Cho, has taken a much 
tougher stand regarding land issues.  Deh Cho grand chief 
Herb Norwegian was quoted saying that project proponents 
must reach an agreement with his group prior to the NEB 
hearings in January. 
DICKSON