An indigenous group concludes an agreement for a stake in the Keystone XL pipeline

Indigenously owned Natural Law Energy Inc. has signed a deal that allows it to make an equity investment of up to $ 1 billion in the Keystone XL pipeline, in a move it hopes will also help persuade opponents to support the project.

The agreement with TC Energy Corp. grants Natural Law until September 2021, to obtain financing for the purchase in the pipeline. It is based on a memorandum of understanding signed two months ago. TC Energy TC Energy says it will use similar ownership models for additional indigenous communities along the Keystone XL corridor in Canada and the United States.

Natural Law Energy is an alliance of First Nations from lands spanning Alberta and Saskatchewan.

Tuesday’s deal includes the Nekaneet and Little Pine First Nations in Saskatchewan, and the Ermineskin Cree Nation, Montana First Nation, and Louis Bull Tribe in Alberta.

Ottawa says asking Joe Biden not to cancel Keystone is ‘high on the agenda’

The company’s chief executive, Travis Meguinis, told The Globe and Mail that the billion-dollar deal is one of the largest ever concluded between an energy company and the First Nations.

But the completion of the pipeline – which will ship 830,000 barrels of crude oil per day to Steele City, Neb., From Hardisty, Alta. – is far from guaranteed.

Keystone XL is still the subject of numerous legal disputes in the United States, and President-elect Joe Biden promised during the recent election campaign that he would snatch a key presidential permit for the project.

However, Mr. Meguinis believes the deal is a solid investment that will bring much-needed wealth to First Nation communities and will play a key role in helping secure support for the project, particularly south of the border.

This is because the group has “a lot in common” with Mr. Biden, Mr. Meguinis said, and will bring his experience and traditional knowledge of environmental protection to the table, both in improving regulatory compliance and helping to alleviate concerns. of those who fight the pipeline.

“We can be more responsible stewards of the territory and bring greater efficiency to the carbon transition [fuels] to renewable energy, “he said.

“It is not an overnight transition. All over the free world, everyone relies on fossil fuels. “

Natural Law has not established where it will raise up to $ 1 billion to secure its stake in the pipeline, but Meguinis said numerous private banks and finance companies have already contacted. He said all options will be evaluated by the company’s legal team.

Revenue from Natural Law’s stake in Keystone will be split equally among the five nations if and when crude oil begins flowing through the 1,947-kilometer pipeline.

That tactic is different from that of the Alberta government, which earlier this year announced a $ 1.5 billion share buy-in that it plans to sell once the line goes live. The province will also provide a loan guarantee of up to $ 6 billion. The investment is estimated to bring a net return to the provincial treasury of $ 30 billion through higher oil prices and royalties in two decades.

Alberta Premier Jason Kenney trumpeted the natural law deal Tuesday in a statement as a “historic agreement” and a model of how to build “strong and reliable partnerships between industry and indigenous groups” that bring jobs and wealth to their communities. .

“As stewards of land, air and water, First Nations project partners will help ensure that Keystone XL – and similar projects – continue to be built with environmental protection at the forefront of every decision.” , he has declared.

Your time is precious. Receive the Top Business Headlines newsletter conveniently in your inbox in the morning or evening. Sign up today.