In September 2004, the Dehcho First Nations (DFN) launched litigation challenging the federal environmental assessment and regulatory review processes for the Mackenzie Gas Project (MGP). Dehcho Process negotiations on land, resources and governance were placed in adjournment at this time. Shortly after the litigation was launched, Minister of Indian Affairs and Northern Development, Andy Scott approved out of court discussions with the Dehcho First Nations on behalf of the federal government.

Terms in the agreement include: a financial component, the process for consultation, interim land withdrawals, the discontinuance of existing litigation and releases from the issues raised in the litigation which are directly related to the Mackenzie Gas Project and commitment to facilitate more constructive dialogue between the Dehcho First Nations and industry.

Dehcho Process negotiations are expected to resume shortly once a jointly agreed upon workplan has been finalized between the parties.

What's in the Settlement Agreement:

• As part of this agreement, the Dehcho First Nations have agreed to discontinue Federal Court Application T-1686-04 and NWT Supreme Court action No. S-0001-CV-2004000291 filed against the Government of Canada in the fall of 2004.
  
  
• The agreement provides a total of $31.5 million, consisting of $15 million for an economic capital fund, $10.5 million for funding Dehcho participation in the Dehcho Process and $6 million for participation in the environmental and regulatory review process for the Mackenzie Gas Project.

The distribution of those resources are broken down as follows:

• Increased Capacity for Dehcho Process Negotiations: $10.5M guaranteed funding over three years. This will provide the Dehcho with the necessary capacity to complete Dehcho Process negotiations in a expedited manner.
  
• Dehcho Land Use Plan : $817, 352 guaranteed funding for 2005-06 fiscal year to complete the Deh Cho Land Use Plan.
• Economic Opportunities: $15M guaranteed funding over three years. The Dehcho will receive an economic capital fund, which other groups have received through settled land claims. This funding will be taken into consideration in Dehcho Process Final Agreement.
  
• Participation in the Review Processes for the Mackenzie Gas Project: $2M a year for up to three years to participate in the environmental assessment and regulatory review of the Mackenzie Gas Project.

Other elements of the Settlement Agreement address:

• land withdrawals in the Wrigley area (pipeline study corridor) under the Interim Measures Agreement. See
  http://www.ainc-inac.gc.ca/pr/agr/dci_e.html
  
• the establishment of a Dehcho Resource Management Authority in a Final Agreement and its relationship to the Mackenzie Valley Resource Management Act.
  
• affirmation of the Interim Resource Development Agreement (April 17, 2003) See
  http://www.ainc-inac.gc.ca/nr/prs/j-a2003/02287abk_e.html
  
• Dehcho First Nations or any Dehcho First Nation cannot take legal action that will unreasonably delay or stop the Mackenzie Gas Project (MGP) from being established
  
• Canada's consultation with the DFN with respect to the MGP
  
• Canada's assistance in supporting a positive relationship between the DFN and industry
  

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