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Near Fort Simpson, the staging area for the building of the Mackenzie Valley natural gas line - Near Fort Simpson, the staging area for the building of the Mackenzie Valley natural gas line | GLOBE AND MAIL/JOHN LEHMANN

Near Fort Simpson, the staging area for the building of the Mackenzie Valley natural gas line

Near Fort Simpson, the staging area for the building of the Mackenzie Valley natural gas line - Near Fort Simpson, the staging area for the building of the Mackenzie Valley natural gas line | GLOBE AND MAIL/JOHN LEHMANN
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Timeline

The Mackenzie Valley saga

Globe and Mail Update

The saga of the Mackenzie Valley pipeline dates back to the late 1970s, when many aboriginal groups in the region opposed its construction and Justice Thomas Berger recommended it be put on hold.

  • The proposal of a pipeline corridor from the North was put forward by the federal government in the 1970 Pipeline Guidelines.
  • Canadian Arctic Gas Pipeline Ltd., composed of more than two dozen Canadian and American producers (including Exxon, Shell and TransCanada PipeLines), proposed a route from Alaska's Prudhoe fields, across the Northern Yukon to the Mackenzie and then south to Alberta.
  • Foothills Pipe Lines Ltd., formed by Alberta Gas Trunk Line (NOVA) and Westcoast Transmission, pitched a shorter route from the Mackenzie Delta to Alberta. The Alaska alternative would have been the longest pipeline in the world and the greatest construction project ever, in part because of the engineering challenge of building on permafrost.

Justice Thomas Berger, chairman of the Mackenzie Valley Pipeline Commission, in May, 1977.

June, 1977: After visiting 35 communities over three years, Justice Thomas Berger releases his report. His conclusion? Hold off construction for 10 years.

June, 1984: The Inuvialuit of the Northwest Territories—one of four aboriginal groups affected by the pipeline—settle their land claim with Ottawa. The Gwich'in sign in December, 1992, and the Sahtu Dene in September, 1993. The Deh Cho Dene have still not signed an agreement.

June, 2000: The Aboriginal Pipeline Group (APG) is born. Chairman Fred Carmichael, the Gwich'in leader, negotiates open-ended financing from TransCanada PipeLines Ltd. and orchestrates a one-third stake with Imperial Oil, Exxon, Shell and ConocoPhillips.

January, 2002: Design begins on the 1,220 km gas line. Price tag: Initial estimates peg the cost at $7.5-billion; it has now ballooned to $16.2-billion

December, 2003: The Northern Gas Project Secretariat is established to help people access information from pipeline hearings.

August, 2004: Ottawa creates a joint review panel to conduct a socioeconomic and environmental study to coincide with National Energy Board hearings. The NEB and the panel are expected to finish hearings by the end of the year.

Former Deh Cho Grand Chief Herb Norwegian talks with reporters in front of a map outlining the Mackenzie Valley pipeline project at a news conference in Ottawa in 2003.

September, 2004: Deh Cho First Nation objects to panel appointments and sues to stop hearings. Price tag: Eleven months later, the Deh Cho accept $15-million from feds to drop case.

October, 2004: Companies with proposals to help build the pipeline file applications. Imperial Oil anticipates 1,000 permits will be required. Actual number of permits: 6,911.

April, 2005: Proponents of the pipeline halt engineering work, citing unrealistic aboriginal demands. Imperial Oil's then-senior VP Michael Yeager threatens to call off project.

July, 2005: Liberal government offers aboriginal groups $500-million over 10 years, contingent on the project proceeding. Companies and government set up a $40-million aboriginal training fund.

May, 2007: Federal government declares there is no interest in a government ownership role, after published reports suggested Ottawa is considering taking equity in the project.

July, 2007: Ottawa settles a case with the Dene Tha First Nation of northwestern Alberta after the Federal Court rules that the government did not adequately consult the band about the pipeline's termination on their traditional land. Price tag: $25-million.

September, 2007: Northwest Territories Industry Minister Brendan Bell warns the $16.2-billion Mackenzie Valley pipeline may not get built without federal cash for key access infrastructure as well as loan guarantees for the project's aboriginal investors.

December, 2007: Executives from Imperial Oil Ltd. and TransCanada Corp., present a new financial plan to the federal government in hopes of kick-starting the pipeline.

Environment Minister Jim Prentice— THE CANADIAN PRESS/Sean Kilpatrick

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