Oldman? Ottawa says "NO" to closing dam

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Ottawa will allow the Oldman River dam to proceed even though a federal environmental review recommended shutting down the $350-million mega-project.

"We are rejecting the option of decommissioning the dam," federal Transport Minister Jean Corbeil said in a media statement after the release of the review committee anti-dam report.

"We are confident, based on the evidence presented to the panel, that the environmental impacts can be mitigated effectively."

In a near unanimous decision, the six-member panel recommended closing the massive southern Alberta irrigation project as its preferred option. It said the economic benefits of the project did not outweigh environmental damage to area fish habitats and forests.

It also criticized the federal and provincial governments for not respecting the rights of the nearby Peigan community. The Peigan stand to lose traditional land as well as hunting and fishing areas if the dam goes ahead.

But while recommending the dam's closure, the panel also opens doors that could allow the nearly complete dam to begin operation on schedule this summer. Acknowledging the federal-provincial war that would likely break out if Ottawa blocked the project, the panel said it could proceed if certain steps are taken.

"This...less-preferred recommendation is offered because the (province) has shown some efforts at mitigation and because acceptance of the first recommendation might lead to insurmountable conflicts," the report said.

The preconditions for dam operation set down by the panel include:

* Pay compensation to the Peigan for loss of traditional and historic lands and resources;

* The creation of the environmental management committee;

* Create an independent environmental management committee made up of government and community members to oversee the process of limiting damage caused

by the dam;

* Reach an agreement with the Peigan on how the dam will be operated.

According to Alberta Environmental official Jake Thiessen, the provincial government has already spent more than $13 million on environmental mitigation projects. These have included the creation of new habitats for affected fish and wildlife as well as the creation of a cabinet task force to deal with Peigan concerns, he said.

But Peigan chief Leonard Bastien said there has been no movement towards reaching a compensation agreement between the province and the band.

"There have been no meetings so far," he said. "There have been suggestions for meetings on environmental impacts...The province is steadfast in their position that they own everything."

Meanwhile, both sides on the Oldman controversy have reacted strongly to the federal decision.

"We're being prudent," Bastien said. "Right now there is lip service on paper.

The federal government has to follow up."

Lorna Born With A Tooth, a spokesman for the Peigan Lonefighters Society, which tried to divert water from the dam in 1990, said the group will continue to be a "thorn in the side."

"We've taken up the right to stop the dam. We're not going to stop now," she said.

Provincial government leaders showed no changes in their efforts to press ahead with the project.

Environment Minister Ralph Klein said the government will go over the report "point by point" to show the province is living up to the recommendations.