The MacKenzie Gas Pipeline Project has been part of the lore of generations of Canadians, particularly in Northern Canada, since the 1970’s. It was then that the dream of building a huge natural gas pipeline from the delta of the MacKenzie River to southern Canada first took shape. At that time it was spurred on by energy shortage fears and a nationalistic desire to mount another great Canadian dream of the magnitude of the first transcontinental raiway. The Liberal Government of the day granted huge exploration subsidies to find and secure gas fields in the Beaufort Sea and surrounding areas, with great success. The government had been latecomers to the realization that the aboriginal owned lands of the MacKenzie Valley would have to be acquired before the line went through, but was soon convinced of this, largely thanks to the pathbreaking inquiry and report on the impact of the pipeline by Mr. Justice Thomas Berger. Berger traveled up and down the valley to community meetings, consulted with aboriginal leaders, listened to oil and gas company executives and studied the environmental, economic and social implications of the pipeline. In his report in 1977, he agreed that the pipeline could proceed under strict environmental controls and operational regulations, provided the consent of the aboriginal residents, who own much of the land, was obtained, just as it had been obtained before the railroad went through the prairies.

By the time he reported, energy markets had cooled and the industry lost immediate interest in the pipeline. However everyone knew it would be coming some day when the gas would inevitably be needed. As a result treaty negotiations continued between the federal government, the territorial government and the aboriginal groups to settle the land issue. At the same time the aboriginal groups began to see land ownership and governance as inseparable, and thus most demanded treaties that included recognized self government powers. Negotiations went on for a long time, but settlements were reached with the Inuvialiat on the north slope and the other aboriginal people down the MacKenzie to Yellowknife, some coming as late as the mid part of this decade. Today only the Deh Cho Dene in the south west corner of the NWT and a group of Metis in the Yellowknife area are without a Treaty. The rest now have unequivocal and uncontested ownership over thousands of hectares of northern land, self government powers, large capital funds and other things they sought in return for giving up ownership and control over vast amounts of the land.

Not so the Deh Cho. The Deh Cho Dene want a different kind of settlement. In the other settlements the First Nations agreed to drop their claims to large territories of land in return for clear ownership over a smaller territory, continuing wildlife harvesting rights, compensation, financial support and self government powers and other assets of value. The Deh Cho Dene have held out for co-ownership of all of the land with the Federal Government, co-management of resources, co-equal resources revenue sharing, and other provisions that would leave it with a high degree of continuing control over and interest in all of the lands and resources in their region. The Federal Government has outright refused, saying the Deh Cho must accept something similar to the rest. In response the Deh Cho have said that they will not give their go ahead to the pipeline. Not long ago that sounded like a real obstacle to the pipeline proceeding.

The industry led by Imperial Oil have promised aboriginal governments a substantial ownership interest in the pipeline provided the federal government will come up with the money. An Environmental Assessment, underway for the past five plus years, is due to report and give its approval in two or three weeks. Feverish survey and other preparatory work has been going at full tilt for some time and the communities along the river and in the delta region have been booming as things ramp up.

However, there now have been a couple of immense doses of cold water thrown on the project. Today much of the talk in the north is about a long and often bungled regulatory process, federal neglect and declining industry interest. The big industry players say that major federal financial support to offset some of the total costs estimated to be in the range of $15 – $20 billion dollars is needed. Opponents say that this is just standard industry rhetoric in search of government subsidies. But now it has come out that the federal cabinet see industry demands as serious obstacles, has reviewed the demands for money and other things and said no to proceeding on these terms.

Some think this means the project is just stalled. But it is more than that. The project just does not make sense in today’s terms. Gas prices have collapsed. New sources of shale gas in the south are hanging over an already well supplied market into the foreseeable future.

In fact, ten years of planning, $750 million of Imperial Oil Ltd. and parent Exxon Mobil Corp., Royal Dutch Shell PLC, ConocoPhillips Ltd. and the Aboriginal Pipeline Group (APG) money already spent, hundreds of millions spent by exploration firms, millions spent by Northern businesses and governments to provide services and infrastructure, and millions of hours of person time is now about to be washed away as sure as if it were flushed down the mighty MacKenzie into the Beaufort Sea.

The project is dead. The disappointment of northern and aboriginal groups is palpable. The waste, disruption of lives, communities and the environment, and the social disruption has been immense. For the big companies the termination of plans will be nothing more than a deductible blip on immense balance sheets bloated by recent high energy prices. Not so for many many others, particularly in the north.

This may all be a good thing in the end. But unless you live in the north, it is hard to understand the pain, bitterness, and disappointment. Those who oppose the pipeline might well have some sympathy for those in the north who awaited its arrival as a sure route to prosperity. Another dream has come and gone. It is a hard life north of 60*.