Mackenzie Valley Aboriginal Pipeline LP a proud partner in
The Mackenzie Gas Project
IPAC 2011 National Conference August 28 - 31, 2011 Victoria, BC
• Original Proposal to develop the Mackenzie Delta
basin dates back to the early 1970’s
• Public Hearings held under Justice Berger • Aboriginal Groups opposed construction of the
pipeline
• No Land Claims in place
• In 1977, Justice Berger recommended a 10-year
moratorium on development:
• The Aboriginal communities were not ready, and would not
be able to capitalize on the long-term financial benefits
• During the mid 80’s, IPL (now Enbridge) constructed
the Norman Wells Oil Pipeline to Alberta • Offered 10% Carried Interest: Declined
• No long-term ownership benefits to Aboriginal
Communities
• During the 80’s and 90’s, three of the four Aboriginal
Groups along the ROW settled their land claims
• These settlements resulted in investments in successful
aboriginal corporations and joint ventures
• Economic Development became a priority
• In January 2000, the Aboriginal Leaders of
the NWT met in Fort Liard
• If another pipeline is built in the Valley,
Aboriginal people want to be a part of it
• Agreement was reached on a vision:
“To maximize Aboriginal ownership and benefits from a Mackenzie Gas Pipeline”
• APG is the result of that vision • APG began discussions with the Delta
Producers in July 2000 - over four years before the current regulatory application was filed
• These discussions successfully led to: • An MOU with Producers: June 2001 • A Funding & Participation Agreement:
June 2003
• APG is a business investment, negotiated by
Aboriginal people for Aboriginal people • Our mandate is to maximize the long-term
financial return to the Aboriginal Groups of the NWT through ownership in the pipeline • Today, we have secured a one-third ownership
interest in the Mackenzie Valley Pipeline
Our Shareholders are… •
The Gwich’in Tribal Council
•
The Inuvialuit Regional Corporation
•
The Sahtu Pipeline Trust
Mackenzie Valley Pipeline
Ownership Through the Pre-Development Phase: APG – 33.33 % Imperial Oil – 34.4% ConocoPhillips Canada – 15.7% Shell Canada – 11.4% Exxon Mobil Canada – 5.2%
As a Full Partner, APG • Has a seat on the Board of the MGP • Participates in all project committees • Has a direct voice in the development of
this major project
• Once the pipeline is completed, APG will
pay meaningful long-term dividends to its stakeholders… …for as long as gas flows through the pipeline
This Pipeline enjoys strong support from its Aboriginal Shareholders
Planning a thorough
regulatory process • Land Claim Settlements resulted in transfer of EIA
responsibilities to a number of local regimes. • Potential problem for a linear project • Fourteen agencies with EIA and regulatory mandates requiring a public hearing began meeting in Nov 2000 • Objective was to create a coordinated EIA and regulatory process for linear projects • Avoid duplication between agencies • Provide clarity and certainty for the public and potential proponents • Result was the Cooperation Plan, published June 2002 • Two years prior to filing of the Application for the Mackenzie Gas Project
A regulatory process
not to be repeated
• Regulatory Application filed October 2004 – Two parallel reviews: NEB & JRP • Public hearings commenced January 2006 – Hearings took place in 27 communities • NEB Hearings completed December 2006 – NEB proceeding adjourned waiting for JRP Report • JRP Hearings continued until November 2007 – JRP Report finally issued in December 2009 • NEB Approval - Dec 2010; CPCN March 2011 – Over 6 years from application to approval – More than triple the time anticipated by
Cooperation Plan
what Wrong? went • The JRP was a great opportunity for a
northern panel to show they were up to the challenge of undertaking a “made-in-the-north” review for a major project. • In my opinion, three fundamental errors were made: • The panel was established as an independent
panel - administratively accountable to no-one • The panel was paid by the day with no budgetary constraints • Previous experience in a complex regulatory process should have been a requirement for panel members
project schedule (Best Scenario)
Q1 2010 – Regulatory Process concluded Q4 2011 - Fiscal Framework concluded • Financeable for APG • Economic for Producers
Q1 2012 - Decision to Restart (re-staffing, engineering, field programs, local permits) 2014 - Owners Decision to Construct 2019 - First Gas
The North
is ready
• Local service industries prepared but waiting • equipment sitting silent, new hotels and restaurants empty
• Regional workforce trained but idle • Aboriginal people involved in 4 years of skills and employment
programs – waiting for pipeline completion
• Project provides huge economic stimulus for the future
of the Mackenzie Valley
$500M Social Economic Impact Fund $1B in set-aside work for corridor groups Over 7000 jobs in NWT during construction ~150 permanent full-time positions with the main pipeline and anchor fields • Annual APG dividends in excess of $20 million • • • •
The MGP will generate economic independence and selfsufficiency, displacing present dependence on Government programs
good for the north
And For All of Canada
• GDP benefits of over $100B to Canada • Tax revenue of over $10B to Federal, Provincial and
Territorial governments
• Attaches a new Canadian gas supply basin to the
North American Pipeline grid
• Supports and strengthens Canada’s priority for
Arctic Sovereignty
• Supports Canada’s course in reduction of greenhouse gas
emissions
• An all-Canadian project, that will deliver the clean
energy we need in an environmentally responsible manner, creating jobs and economic opportunities for all of Canada
APG’s
Board of
Directors
Fred Carmichael Board Chair Gwich in Charlie Furlong Board Member Gwich’in
Nellie Cournoyea Board Member Inuvialuit
Duane Smith Board Member Inuvialuit
John Tutcho Board Member Sahtu
John Louison Board Member Sahtu