VANCOUVER - The controversial Northern Gateway pipeline that would ship oilsands crude to the West Coast was won the support of one northern B.C. First Nation, though opposition from dozens of other groups in the area remains fierce.
Chief Elmer Derrick said Friday the hereditary chiefs of the Gitxsan (pronounced GIT'-san) have decided to partner with Enbridge Inc. (TSX:ENB) in the proposed $5.5-billion project.
The announcement comes a day after opponents said they had erected "an unbroken wall of opposition" to the pipeline, bringing signatories to the anti-Gateway Save The Fraser Declaration to 61.
"Over time we have established a relationship of trust with Enbridge. We have taken a detailed look at this project, and we believe it can be built and operated safely," Derrick told the media in a phone-in news conference.
"We also believe that this project is important to the economic future of our people and to the country."
The 33,000-square-kilometre Gitxsan territory sits north of Northern Gateway's proposed route, but the line would cross six streams that feed into a lake the First Nation relies on for fishing, Derrick said.
He said he hopes his move doesn't tarnish the group's relationship with other native bands that oppose Northern Gateway.
"We have always been frank with our opinions on different projects, and we respect the positions taken by the other First Nations, our neighbours," he said.
Northern Gateway would help increase Canadian oil exports shipped by tanker from B.C. ports to China and other Pacific Rim countries.
The pipeline has been opposed by several groups including several First Nations due to the potential risks of crude spills along the line or West Coast shipping lanes.
The group said it expects its agreement with Enbridge will provide at least $7 million of net profit to the Gitxsan.
A federal review panel is preparing to hold public hearings into the 1,200-kilometre pipeline.
Derrick said any commercial operations on Gitxsan land will "remain faithful to the laws of our people."
"Those who wish to do business in Gitxsan territory will be held to Gitxsan standards."
Janet Holder, executive vice-president of western access for Enbridge, welcomed the agreement with the B.C. native group.
"The most significant way in which aboriginal people can benefit from the Northern Gateway project is by owning a stake in it and sharing in the net income it produces."
Paul Stanway, an Enbridge spokesman, said the pipeline agreement with the Gitxsan chiefs helps "generate a significant new revenue stream that could help achieve the priorities of their people -- such as improved health care, education and housing."
If built, Northern Gateway would carry more than a half-million barrels of bitumen -- the heavy crude oil extracted from Alberta's oil sands -- each day to the B.C. coast.
The project is being supported by the Alberta energy industry and its provincial government as a way to reach world markets beyond the United States.
However, there has been strong opposition to many major pipeline projects -- including TransCanada Corp.'s (TSX:TRP) Keystone XL line that would carry Alberta bitumen to Texas for refining.
The U.S. State Department has effectively delayed the Keystone XL until early 2013 -- after the next presidential election -- by ordering TransCanada to come up with a new route through Nebraska to avoid an important source of water.
Enbridge already operates the major oil pipeline linking Alberta oil production to refinery markets in Canada and the United States.
In addition, the company is a major distributor of natural gas in Ontario, a gas liquids plant operator and a growing producer of green energy.
In Friday trading on the TSX, Enbridge shares fell 33 cents to $35.40.
