Essay: The Mackenzie Valley Pipeline

In 1970, an Alaskan Pipeline company began the process of building a pipeline which would go from Prudhoe Bay, Alaska, to the Valdez Marine Terminal on Prince William Sound. It took 7 years to plan and construct the pipeline. Canadians suggested a similar pipeline in 1970 which would run along the Mackenzie River in Northwest Territories down to Alberta. Unlike the Alyeska project, the proposal posed a lot of problems. Perhaps the American pipeline did not consider all the impacts of the pipeline on society but in Canada it created major conflict. The aboriginal people living in the Mackenzie Valley had great concerns. This led the lawyer, Thomas Berger, to write an inquiry on the project after having visited every community along the Mackenzie Valley as well as other Canadian cities in search of opinions and concerns on the matter. The inquiry had a huge affect on the country leading the project to be pushed back 10 years, yet today construction has still not begun. The Mackenzie Pipeline created an enormous conflict because of the concerns touched on in the Berger Inquiry; the concerns were stronger than the motivation for the pipeline.
In 1970, the Canadian Federal government proposed to build a pipeline corridor in the Northwest Territories. The original pipeline plan was to make it the longest pipeline in the world. There were two proposed routes. The first route started in the Prudhoe fields of Alaska, ran across the Northern Canadian Yukon towards the Mackenzie Valley, along the Mackenzie River and then south to Alberta. This route was put in place by the Canadian Pipeline Ltd.. Over two dozen oil and gas producers from Canada and the United States (Exxon, Shell, TransCanada Pipelines) participated in the planning of the pipeline. The second route for the pipeline was much shorter but still a substantial project. It was proposed by the Foothills Pipe Lines Ltd., made up by Alberta Gas Trunk Line and West coast Transmission. It started in the Mackenzie Delta, just south of the Beaufort Sea and went south straight to Alberta. Once in Alberta, it would meet with other pipelines in Canada and send the gas all across North America. If followed through with, the pipeline would remain one of the greatest construction projects ever because of the challenge of building on permafrost. The original project proposed was strictly a gas corridor but logically an oil pipeline would be built beside it shortly afterwards. The people discussing the project knew that if these pipelines were to be built, there was a high probability that
more would follow shortly afterwards.
Map of Northwest Territories and Mackenzie Valley
After many years of negotiation, the plans for the pipeline became real. In 2002 the estimated price was 7.5 billion dollars. Since the initial estimation, the price has double and is now estimated at 16.2 billion dollars. The cost, although very high, was not the primary concern because it would help the economies of both countries. The project was proposed because of substantial amount of gas found under the Mackenzie Delta all the way up to the Beaufort Sea. In the Beaufort Sea alone, researchers found 60 cubic miles of oil and 72,000 cubic miles of natural gas. Prudhoe Bay was the largest oil field in all of North America, spanning 213,543 acres and containing 25 billion barrels of oil.
Many questions were asked regarding the interest of Americans in the Mackenzie Valley Pipeline. The first route proposed, going from Alaska to Alberta, would send American and Canadian gas to lower parts of the continent. Alaska already had a pipeline in the area creating questions on why they wanted a second corridor. The Alyeska Pipeline was built to send oil and gas to the western parts of the United States, however, the middle and east of the country were also in need of a supply. The United States wanted a corridor to send their oil and gas form the Naval Petroleum Reserve in Prudhoe Bay to the eastern parts of their country. The United States could send the majority of their oil and gas through the pipeline already constructed but if a new one were to be built on the direction of where their oil and gas was to be sent, it would be their primary choice of corridor. This is why the United States was interested in making an agreement and aiding Canada in building the enormous Pipeline. The growing need for gas in the east made the Americans push very hard to have the pipeline built. Furthermore, they wanted it to be made as soon as possible and pressured Canada with urgency needs. If the pipeline were to begin in Alaska, it would still run primarily through Canada. The Americans therefore, were not as concerned with the impact of the pipeline on the surrounding environment. It pressured Canada into making decisions in a short amount of time.
Aspects of the project which needed consideration were where the pipeline would go, how big it would be, and how long construction would last. The Yukon and Northwest Territories were the provinces on the coast of the Beaufort Sea. The artic climate creates permafrost in the ground. Permafrost is a thick subsurface layer of soil that remains frozen throughout the year, occurring most often in polar regions. The permafrost moves a lot making it complicated to build in and around the area. On top of this complication, the population in the Mackenzie Valley is primarily made up of First Nation communities of the Sahtu, Deh Cho, and Gwich’in groups. There is already some oil and gas production in the town of Norman Wells. It there is a clear difference in the atmosphere and appearance of the town compared to other communities along the river because of industrialization. The man-made islands in the middle of the river obstruct the view and change the landscape. The town itself has more common stores and a much higher population of business men than other communities. Natives of these communities belong to tribes that date back thousands of years. They have built their society around the area that they live in and the language they speak. The Slavey language is spoken throughout the Mackenzie Valley. Even today, a major part of the First Nations people’s diet is based off of fishing and hunting. They spend a lot of their time in nature because it provides them what they need to live as well a serving as a ceremonial location. The river itself serves as the main route to get from one community to another. The major highway ends in Wrigley, which is only slightly north of the 63 parallel. To get further north one has to take a boat up the river or fly. During the colder parts of the year there is a winter road, however, it does not go all the way up to the Beaufort Sea. The construction of a new pipeline would effect the Valley immensely, to such an extent that the effects would not be reversible. The Native People in the land opposed the construction of the pipeline because of the change that would occur in their territory. The land they lived on had remained the same, untouched and natural for thousands of years and the construction of the pipeline would dramatically change the appearance of their home. The Canadian government had many discussions over this pipeline. The challenge of choosing growth and improvement of the economy over preserving the treasured land made the final decision impossible.
In the early 1970’s, a man named Thomas Berger stepped up and visited over 35 northern communities to hear their opinions on the proposed pipeline. He published the information he gathered in the Mackenzie Valley Pipeline Inquiry, or the Berger Inquiry, by 1977. Thomas R. Berger was a Canadian Politician born in British Columbia. He had a strong career in democratic politics leading him be head of the party in 1962 but never gained title of Prime Minister. After his defeat, he focused on politics in his home province before being appointed to the Supreme Court of British Columbia. He spent a lot of time making sure the development on aboriginal people’s land benefitted the natives. He began his work the the pipeline by visiting almost every community in the Mackenzie Valley area. His goal was to hear the voice of the people in the territory being affected but never imagined his project would become so big. It took him three years to cover the whole valley. Not only did he go to the communities in the valley, he also went up to Northern Yukon to hear what they had to say. Through his many conversations, he separated findings into three main categories: environmental impact, economic impact and social impact.
The Mackenzie valley is made up of numerous Native Reserves making it an undisturbed area, separate from industrializations of the modern world. Because of this, it would be greatly affected by any construction in the valley. The soil in the valley is rich in clay, silt and permafrost. The soil is unique to the north because of the temperatures needed to maintain the terrain. Any sort of thermal change would greatly affect the soil. Specifically, near the north, the permafrost has already begun to recede, making it an even bigger problem if the temperatures were to rise. The ground in the valley is not only composed of these elements. There are rocky areas too such has Bear Rock near the town of Tulita, also known as Fort Norman, as well as the Upper Ramparts in front of Fort Good Hope. These two places are incredible landmarks and have spiritual significance for many of the people living near them. There has been discussion about making them National Landmarks, proving that they are in a rich natural and cultural area and deserve to be protected. Furthermore, the flora and fauna of the valley would be affected. The animals, such as birds, mammals and fish would be the most disturbed. Birds and mammals would not be directly effected by the construction and maintaining of the pipeline, however, over time the residents would notice a change in the animal’s lifestyles. Caribou are common in the Northern part of the valley. They are often hunted and remain a traditional food for gatherings. As industrialization happened in Norman Wells, the people noticed that the Caribou stayed further away from the river than normal. This change did not cause damage to the people living in the area but it did change the animal’s pattern. In a similar way, the number of Peregrine Falcons along the Mackenzie River went from up to 29 pairs to 22 pairs in 2000 after construction in Normal Wells. Since, they have been slowly rising, up to 64 this year. Many species will not be directly touched by pollution or invasion of space, but will continue to alter their lives because of industrialization. The fish in the region will be directly impacted. The fish in the Mackenzie River is more abundant and varied than in many other major rivers in the arctic. Fishing is a major source of nutrition and leisure in the valley. The toxins released during construction and work of the pipeline would completely change the environment that these fish live in. The amount of fish would decrease significantly and eating the fish would become less safe. It is very important to protect the water. It would be vital that the pipeline companies verified water safety. After the construction of oil wells in Normal Wells, the cancer rate in the town increased significantly, making it the town with the highest percentage of population with cancer in all of Canada. Studies showed that it was caused by the water that people were drinking from the river, even after filtration. It is indeed unquestionable that environmental concerns need to be discussed in detail and at great length for the effects are greater than what is obvious to the eye. If the project were to occur, it would remain as environmentally friendly as possible.
The Mackenzie Valley Pipeline would not only have environmental impact but economic as well. The northern part of Canada tends to be a less economically developed region. The population is smaller and the industries are smaller. The people earn money but the cost of living is very high due to the remoteness of the area. They do not live their lives with the focus on earning money and gaining power. The principal beneficiaries of the pipeline would be the southerners. This seems to be a contradictory statement because the pipeline would be in the north. In terms of job and salary opportunities, the pipeline would indeed create jobs. As the project is one of the biggest projects ever taken on, there would be a lot of office jobs and hands-on jobs available. Logically, a certain amount of jobs would be kept for the people in the North whose property the project would be taking place on. Although some jobs would be reserved, many would not. There would be a huge influx of southerners coming north for a job or a better paying job. Furthermore, the positions with the most power and highest salaries would be taken by southerners who are well educated and experienced. Because of the huge influx of Southerners, the majority of the profit would not be spent in the Northwest Territories but in southern part of Canada, where a lot of the workers would call home. It is true that the greater amount of people living in the north would positively affect local businesses because there would be a much higher demand. Stores would sell a lot more and would be able to raise prices because the average salary of the province would be higher. There is a huge probability that the businesses would not be able to grow fast enough to meet demands. There is little access to basic needs (groceries) or services. The high demand would create jobs in these fields but would cost a lot. Another area which would not be able to develop fast enough would be housing. There is not a big market in the communities and each community would need to find a solution to build new houses quickly. It is very expensive because of the lack of supplies. Two of the main industries in the Northwest territories, especially in the Mackenzie Valley, are fishing and hunting. These two jobs bring in food and are useful for many other things (caribou hide…). Furthermore, they are great for trading. Men set up fishing camps along the river which they live in strictly during the fishing season. When the fish is dried, they can sell half a dried fish for up to 60 dollars. In many areas, fish are collected by the hundreds per day. Having a pipeline would affect not only the fish in the river but the quality of life for all animals near the river. Although this market would remain in tact, it would be substantially less important and successful. The long term impacts would depend on the governments decisions relating to the pipeline. It is possible that the pipeline would expand. The government would have to exert control and limitation on how much expansion could be allowed. If if the extensions were in great quantities, then the province would not benefit of the pipeline. The construction costs would override the possible economic growth. However, when construction finished the pipeline and if it continued to function as was planned, eventually there would be financial reward. A decision on the pipeline would limit the residents on having real control over the rate and extent of economic growth of the region.
The impact that Natives value most is the social impact of the pipeline. There is an estimate that 6000 people would move to the Mackenzie Valley to build the pipeline. This group of people does not include the exploration workers, the completion of highways or increase in government activity.  The total would add up to over the original estimation. The 6000 people would primarily be white people, not First Nation peoples. Currently, exactly 50% of the population of the Northwest Territories is aboriginal. The huge influx of southerners would diminish that percentage and make the territory primarily white. The history of the territory shows that when white men come to the North they do not leave until they have gained control and received the profit they wanted. It is a huge worry in the north that southerners people would take over the aboriginal reserves and destroy tradition and customs. The cultural change would be huge in the Mackenzie Valley because businesses would be focused on oil and gas instead of community. Fred Rabiska from Fort Good Hope said “If the pipeline is built we will be very unhappy people. We will drift farther from each other as well as from out land”. Many of the natives have the same opinion. Although some of the economic impacts would be positive for them, they generally see the pipeline as a burden. The Chief of Fort Simpson said “I’m not worried about the money of the jobs that the pipeline is going to give because, as Indian people, we don’t think about the money. We think about the lives of the people here because, they way I see it, if this pipeline goes ahead it’s going to destroy a lot of people.” They aboriginals do not let go of the idea of community within communities. It is calculated and assumed that there would be an increase in crime and abuse of alcohol. The construction of the pipeline will hamper social improvements but will not bring them to a halt. The social impacts of the pipeline could lead to a better relationship between the native people and the government but for now the First Nations believe that the effects would primarily be negative.
The Berger Inquiry made two major recommendations. The first being a reconsideration of the environmental impacts on the coasts; and the second a 10-year extension of the decision making process to permit time for the Indigenous to settle land rights and benefits. The requests were accepted and 10 years later the pipeline was discussed. Now, over 40 years later, there has yet to be a final decision on the pipeline. The Inquiry captivated the attention of many Canadians and put them face to face with the reality that the Natives would face everyday if the pipeline were to go forward. It was an awakening and made the decision much harder. The last decision made stated that the latest starting date for construction was December 31st 2015, or else the project would be cancelled. Due to the economic crisis and astoundingly low oil prices in 2015, Imperial Oil, a major sponsor to the project, requested an extension of this date. The clause formerly set in place (the Sunset Clause), was extended after approval of Canada’s National Energy Board to December 31st 2022. The project has not yet commenced but discussion has not finished and will remain important for many years to come.