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The federal government is actively considering gifting the Trans Mountain pipeline to First Nations groups, Postmedia has heard from multiple sources.

“The possibility of giving the pipeline to First Nations (or at least a share of Trans Mountain) has come up at cabinet level,” a senior Liberal government source told Postmedia on Tuesday.

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How the deal would unfold is that a part or all of the pipeline would be placed in a trust that would then use the proceeds to fund First Nations projects.

The source added that the deal will be fraught with problems because of how some communities have embraced the project and others actively opposed it.

“So what do you do, ignore the agreements with those who live along the line while rewarding the bands that aren’t on the route and who have been the most active in stopping the pipeline?” the source added.

On Tuesday, Infrastructure Minister Amarjeet Sohi announced the government was not appealing the Federal Court of Appeals ruling that nixed the pipeline and that they would instead re-launch consultations with 117 First Nations in British Columbia.