A recent land-claim settlement offered to the Dehcho First Nations was roundly criticized Tuesday by delegates attending the Dehcho's annual assembly in the Northwest Territories community of Kakisa.

The offer, which Dehcho leaders called hurtful and insulting, includes 39,000 square kilometres of land and $104 million over 15 years.

The Dehcho First Nations represents 11 communities in the southwest region of the Northwest Territories. Many of the communities are along the proposed Mackenzie Valley gas pipeline route.

Dehcho Grand Chief Herb Norwegian said the federal government only made the offer to show the oil companies and investors behind the proposed pipeline that progress was being made with First Nations in the region.

"Somehow or another, this is supposed to give the appearance that this is what the Dehcho wanted, this will keep them happy, when really this is a non-starter," said Norwegian.

Delegates were particularly concerned about the proposal to divide the land into parcels, only some of which would be owned by the Dehcho. Since 1993, the Dehcho have insisted they must have an ownership share of all the land in the region.

Tim Lennie, a former Wrigley chief, said he resented Ottawa's approach.

"It's just like I'm sitting across from the Communist party," he told the federal government representatives. "You say what's going to happen, we do what we're told."

Criticism of the offer was not unanimous. Fort Liard Chief Harry Deneron spoke in support of the proposed settlement, urging Norwegian and the other leaders to seriously consider it.

"It really bothers me to see our negotiator say, 'Well, we're going to stand by our guns. What's another two years?' " said Deneron.

"If you think you can stop the pipeline, think again."

Kakisa is located about 235 kilometres southwest of Yellowknife.