Enbridge says it's in talks again with First Nations about the bands taking a 10-per-cent equity stake in the $5.5-billion Northern Gateway oil pipeline.
The Calgary-based company first said it was working on an Aboriginal ownership model for the 1,170-kilometre pipeline, which passes just north of Prince George, nearly two years ago.
Since then, some First Nations in northern B.C. have signed an equity-stake agreement for a proposed $1.1-billion natural gas pipeline through northern B.C., but there is less-than-universal First Nations' support for Enbridge's project.
Some Northern Interior First Nations and most Coastal First Nations are opposed to the pipeline because of the environmental risks of a spill.
Carrier Sekani Tribal Council chief David Luggi - who is opposed to the Enbridge project but a supporter of the natural gas pipeline - said a key issue to any equity proposal depends on how First Nations can finance the project.
He noted that the B.C. government gave 15 First Nations access to $35 million that is to be used - through a First Nations business partnership - to invest in the 463-kilometre natural gas pipeline from Summit Lake to Kitimat. The agreement gives the First Nations the potential to take a 30 per cent stake in the pipeline.
"I've heard before that Enbridge is talking about 10 per cent - that's pretty low," said Luggi.
He said if First Nations can't come up with the financing - which can be very difficult - then you end up with nothing despite the equity-stake offer.
Enbridge said Tuesday that its talks with First Nations began earlier this month, and are expected to run until mid-December.
The company hasn't pinpointed the maximum ownership percentage it would be willing to offer, but 10 per cent is "probably a reasonable level of participation," Enbridge president and CEO Pat Daniel told reporters in Calgary.
There are about 50 First Nations along the pipeline route that will originate near Edmonton, and terminate in Kitimat.
A group tasked in 2008 with coming up with an aboriginal equity-stake model, and entering talks with First Nations, was replaced earlier this year.
The controversial proposed pipeline project would include two parallel pipelines, one carrying Alberta oil sands crude to Kitimat, and another carrying condensate back to Edmonton. Condensates are used to dilute heavy oilsands crude so it can flow more freely in pipelines.
Opposition to Northern Gateway has been vehement, with many northern and coastal B.C. communities worried a spill may damage the ecosystems on which they rely.
While many First Nations have come out strongly against the project, Daniel said others have expressed support.
So far, Enbridge has entered into 30 formal protocol agreements with groups along the corridor, which pave the way for dialogue between the company and the groups. There are roughly 20 more groups that have not signed an agreement.
In July, an Enbridge pipeline in southern Michigan spilled millions of litres of crude into the Kalamazoo river. Less than two months later, another line leaked in the Chicago area. Critics of Northern Gateway have used those high-profile incidents to underline their point that the project poses a danger to the B.C. environment.
With files from Canadian Press.
