Enbridge sales pitch to aboriginals on pipeline route a hard sell
Enbridge Inc.’s pitch to aboriginal communities along its proposed Northern Gateway pipeline route is that they could earn almost $1 billion from the project through everything from construction jobs to long-term revenue sharing.
The company has already offered first nations communities a 10-per-cent ownership stake in the $5.5-billion project, but just this week unveiled a more detailed list of potential benefits that it is presenting to communities in a bid to counter the wall of opposition from British Columbia aboriginal groups.
Enbridge’s goal is to put its deal before all aboriginal groups that want to hear about it along the line’s proposed 1,100-kilometre route by the end of the month, though John Carruthers, president of the Enbridge Northern Gateway project, said no one is pressuring any of them to make a commitment at this point.
“We think it’s very important that they are long-term partners with us,” Carruthers added in an interview, “so we do see it as a tremendous opportunity.”
The opportunity, however is proving to be a non-starter for some of the project’s strongest opponents.
“We’re just looking at the whole package as a buyoff and a little bit of desperation to get first nations on side,” Terry Teegee, vice-chief of the Carrier Sekani Tribal Council, said. “That’s the way I see it, and we’re not interested in it.”
What Enbridge is offering starts with that equity ownership, which Enbridge has agreed to finance through the project itself offering loans to participating first nations, which would be repaid from the pipeline’s revenue.
And at the end, Enbridge estimates that the 10-per-cent stake would earn communities a net $280 million over the first 30 years of the pipeline’s life.
Enbridge has also promised to contribute one-per-cent of the project’s pre-tax profits to a community trust fund, which is expected to generate $100 million over 30 years, and which aboriginal communities would have access to.
On the coast, Enbridge estimates aboriginal communities could earn up to $200 million from ownership of marine-services businesses related to the project from tugboat and spotting boat operations to first response and environmental monitoring.
During construction, Enbridge’s goal is for aboriginals to account for 15 per cent of the 62,700 person-years of employment that will go into building the pipeline, and anticipates the jobs and procurement opportunities for aboriginal businesses to total $400 million.
“[Communities] will need to have a good understanding [of the package] and make their own assessment,” Carruthers added. “Certainly with the communities we’ve met with, I think the reception has been positive.”
So far, Carruthers said the company has presented the package to about two-thirds of the first nations communities along the route and has signed aid agreements with respect to developing procurement and employment opportunities with groups in both B.C. and Alberta, though he wouldn’t name any particular ones.
“We’re not looking to publicize individual community positions,” he added.
Teegee, however, is clear that the Carrier Sekani Tribal Council, which represents eight first nations communities in the region spanning from Prince George to just outside Burns Lake, wants no part of it.
Teegee added that the Carrier Sekani are not alone. He said Alberta Cree First Nations, which have been impacted by existing oilsands development, oppose the further development needed to supply an Enbridge pipeline.
Teegee also noted that B.C.’s coastal first nations have fiercely opposed the project because of the risks of an oil spill in B.C. waters.
depenner@vancouversun.com