NEBCE PETROLEUM INDUSTRY OVERVIEW
RECLAIMING OUR FUTURE
FIRST NATIONS AND THE ENERGY SECTOR
NISKU, ALBERTA
COMMUNITY SPOTLIGHT
RESEARCH PAPER
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CANADA’S FIRST NATIONS ENERGY PUBLICATION
THE PIPELINE GRIDLOCK CONFERENCE WINTER -2017
BRINGING TOGETHER INDIGENOUS LEADERS FROM ACROSS CANADA
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CONTENTS
CANADA’S FIRST NATIONS ENERGY PUBLICATION
WINTER - 2017 STEVE SADDLEBACK DIRECTOR & EDITOR IN CHIEF NATIONAL ENERGY BUSINESS CENTRE OF EXCELLENCE INDIAN RESOURCE COUNCIL
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A MESSAGE FROM IRC PRESIDENT/CEO STEPHAN BUFFALO A MESSAGE FROM NEBCE WELCOME TO 2017 NEBCE PETROLEUM INDUSTRY OVERVIEW NISKU, ALBERTA THE PIPELINE GRIDLOCK CONFERENCE SUMMARY
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JAY AHENEKEW FUNK DIRECTOR OF SALES & MARKETING V STRATEGIES INC. CONCEPT, DESIGN AND LAYOUT INDIAN RESOURCE COUNCIL OF CANADA 235, 9911 CHIILA BOULEVARD TSUU T’INA NATION, ALBERTA T2W 6H6 T: 403.281.8308
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F: 403.281.8351 W: www.irccanada.com www.elementsmagazine.ca COVER PHOTO ASSEMBLY OF FIRST NATIONS NATIONAL CHIEF PERRY BELLEGARDE AT THE PIPELINE GRIDLOCK CONFERENCE
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RECLAIMING OUR FUTURE COMMUNITY SPOTLIGHT FIRST NATIONS AND THE ENERGY SECTOR IN WESTERN CANADA DR. COATES RESEARCH PAPER
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Elements© is a quarterly publication distributed by the National Energy Business centre of Excellence (NEBCE) and IRC inc. Any use of content or duplication without written consent is not permitted
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A MESSAGE FROM STEPHEN BUFFALO Tansi and Happy New Year to all our political leaders, industry supporters of IRC and friends. We are happy to bring you another edition of Elements that showcases some of our activities that complement initiatives by First Nations to get more involved in all aspects of the energy sector. As a membership and advocacy association of more than 130 First Nations across the country, we proactively support any and all initiatives in the energy sector that purport to bring value to our members. The oil and gas industry is going through serious challenges due mainly to the slump in oil and prices as we know only too well. Our members are hurting even more since historically they have been dependent on small producers and lessees who are the first to go out of business when there is a serious downturn in the industry. Available data indicates that royalties and production on First Nations lands have declined by more than 50% in the past one year and continue to decline with many of the operators getting out of business. Like mainstream industry and other levels of Governments, it is important that First Nations adapt to this situation through diversification and involvement in all aspects of the energy value chain. I am talking about upstream, downstream, midstream and alternative energy. This is why we convened a pipeline “gridlock” conference in October 2016, not because we are champions of pipelines or not, but because we want First Nations to be an active participant and beneficiary of whatever decisions come down the pipe so to speak. To be sure, the more than 350 attendees at the conference spoke nearly with one voice by outlining important conditions for pipelines to be built successfully in this country and for them to receive the requisite “social license”. These conditions include state of the art technology that assures that pipelines are safe; assurances that environmental considerations are fully addressed; ensuring that Governments and proponents address their duty to consult and accommodate indigenous people, and finally that indigenous people receive significant benefits including equity and other revenues from these projects. In my view, our people will be more receptive to sit down with the other parties to discuss their projects if and when these conditions are addressed. I also believe that there is a good opportunity, championed by our PM, for us to come together to address pipelines for the benefit of ALL and not just some as happened in the past. This is what we wanted to achieve with the gridlock conference and I believe we made important strides in this direction. The IRC will continue to be a competent and reliable advocate of First Nations in the broader energy sector and we count on you for your on-going support. Thank you
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Stephen Buffalo, B. Mgmt. President/CEO, IRC
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www.mammothvr.com
Tansi, Welcome to an new exciting year! As we look back, 2016 was a busy year. Here are just a few things we were up to; Re-design and re-launch of Elements magazine, a new NEBCE website, a cross country outreach on IRC and NEBCE initiatives and the pipeline gridlock conference. 2017 is already shaping up to be an equally busy year with new tools, projects and events planned that you will want to keep an eye out for. To give you a sneak peek here’s some things we will be working on this year. NEBCE will be launching a National GIS procurement service database, a return of Chief to Chief meetings for those involved and interested in the energy industry and new training courses with pipeline 101 kicking off 2017. Follow us on twitter @NEBCE1 and on Facebook at the National Energy Business Centre of Excellence. Keep an eye on our website and join our mailing list to have our events and announcements delivered directly to you. We thank you for your support over the past years and look forward to partnering with you again in the upcoming year! All the best, Steve Saddleback Director, National Energy Business Centre of Excellence (NEBCE)
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NEW WEBSITE In our commitment to bring you the best suite of tools, we have recently unveiled the new National Energy Business Centre of Excellence website at www.nebce.com. We are working on some backend tools that will be rolled out in 2017 providing more functionality and user interaction for our members. We appreciate your input to make our tools better for you, please visit the website and provide feedback, ideas, and critiques on how we can improve the site for you.
WWW. NEBCE .COM PAGE 7
STUDENTS ATTENDING PETROLEUM INDUSTRY OVERVIEW This page: Attendees of the winter 2016 Petroleum Industry Overview take part in a tour of a Precision Drilling Rig in Nisku, Alberta during -30 degree weather. Real world experiences are one target of NEBCE’s PIO courses. Opposite: Students getting a hands on experience with the Precision Drilling Rig in Nisku, AB.
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Below Right: Students in the control room of a state of the art drilling rig.
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PETROLEUM INDUSTRY OVERVIEW NISKU, ALBERTA The National Energy Business Centre of Excellence (NEBCE) held the Petroleum Industry Overview in Nisku, Alberta in 2016. Participants of the program attended to learn more about Exploration, Land regulations, Regulatory environment, Drilling, Well evaluation and completions, Oil and Gas production, Workovers, Unconventional Oil and Gas, Pipelines, Processing, Marketing and more. The program included a site tour comprised of a drilling rig, gas facility and processing plant. External presentations were provided by Indigenous Affairs and Norther Development - Indian Oil and Gas Canada (IOGC) department. NEBCE works with each participant to ensure they receive the most out of their time investment in the course by providing streams into education, partner programs to continue business start-up ideas, and more.
NEBCE WORKS WITH EACH PARTICIPANT TO ENSURE THEY RECEIVE THE MOST OUT OF THEIR TIME INVESTMENT NEBCE is pleased to announce its new course titled Pipeline 101. This course will be held in Calgary on February 21-23, 2017. The course will have guest presenters from different regulating bodies including the National Energy Board, Alberta Energy Regulator, and more. Please contact the NEBCE office at 403-281-8308 if you or your community are interested in finding out more information on the program or are interested in attending a course offering near you. PAGE 9
PIPELINE GRIDLOCK CONFERENCE SUMMARY
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TARA WHITNEY
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The IRC hosted the Pipeline Gridlock conference on October 3 & 4, 2016 in Calgary, Alberta. The intention of the conference was to bring together Indigenous leaders from across Canada, representatives from industry and regulatory bodies as well as Federal, Provincial and Municipal organizations, to address the current state of the energy sector as well as the need for more participation from First Nation communities, neighboring
remarks from Grand Chief Charles Weaselhead, IRC CEO Stephen Buffalo as well as introductory comments from National Chief Perry Bellegarde, whom set the tone for both the audience and the speakers that participated in the two-day conference.
project development in the sector. The conference welcomed over 350 participants from across Canada whom all came together to address the diverse concerns that are being faced by First Nation communities as it relates to oil and gas activity, as well as industry’s challenges to stimulate the economy by bringing in new projects, while balancing environmental sustainability. During the two-day conference, the IRC facilitated key note speakers, presentations from industry representatives and panel discussions to deliver information regarding the down turn in oil and gas and how both industry and governing bodies are responding to the crisis. The conference was initiated with opening
from the economic participation in oil and gas opportunities, best practices and lessons learned, and the roles and responsibilities that Indigenous communities have to be stewards of the lands. Throughout the conference, emphasis was focused on the importance of participation from Indigenous communities. In a presentation delivered by Josee Touchette from the National Energy Board, information was shared regarding the steps that are being taken to develop a strategy on Indigenous inclusion through Indigenous knowledge, traditional knowledge and view of Indigenous groups.
Presentations were delivered by Indigenous leaders whom brought experiences and knowledge around the success stories of prosperity brought to their communities benefiting
Chief Littlechild presenting at the Pipeline Gridlock conference about UNDRIP and resource development.
350 PARTICIPANTS FROM ACROSS CANADA WHOM ALL CAME TOGETHER TO ADDRESS THE DIVERSE CONCERNS THAT ARE BEING FACED BY FIRST NATION COMMUNITIES PAGE 11
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INDUSTRY REPRESENTATIVES FROM ALL FACETS OF THE ENERGY SECTOR SHARED BEST PRACTICES PAGE 12
(Continued from pg11)... Industry representatives from all facets of the energy sector shared best practices, impacts that the down turn has plagued the industry’s ability to grow and the responsibility that industry plays in ensuring participation from Indigenous communities. Organizations such as the Aboriginal Pipeline Group and the First Nations LNG Alliance groups, fostered to support the roles of local Indigenous communities being impacted by development, delivered presentations to share information on their mandates. In addition, organizations such as the Canadian Association of Petroleum Producers, the Canadian Energy Pipeline Association and the Petroleum Services Association of Canada, which were created to ensure the stability and growth of the natural resource sector, also provided insight on the need to improve engagement processes as part of efforts to
create partnerships with Indigenous communities. The two-day conference closed with a presentation on the United Nations Declaration on the Rights of Indigenous Peoples, delivered by Dr. Wilton Littlechild. As part of next steps, IRC CEO Stephen Buffalo identified that although progress has been made on the relationship established with Indian Oil and Gas Canada, focus needs to take place on modernizing regulations and further developing consultation models, with the assistance of Indigenous leadership. The Indian Resource Council is working on a number of other initiatives that will promote growth opportunities and economic development for its members and partners. We invite all to attend the upcoming events as we announce these initiatives in the coming months. Please visit our website at www.irccanada.ca and sign up for our newsletter to keep up to date.
THE INDIAN RESOURCE COUNCIL IS WORKING ON A NUMBER OF OTHER INITIATIVES THAT WILL PROMOTE GROWTH OPPORTUNITIES AND ECONOMIC DEVELOPMENT FOR ITS MEMBERS AND PARTNERS
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Wiikwemkoong Department of Lands and Natural Resources Reclamation team Below: Reclamation team examining a century old wood structure surrounding an abandoned well on the Wiikwemkoong territory. Opposite: Welcome sign to Wiikwemkoong.
RECLAIMING OUR FUTURE Aanii signs stand on the border of the community of Wiikwemkoong Unceded Territory #26 welcoming visitors. The community is the largest Anishnaabek community located on the eastern peninsula on Manitoulin Island in Ontario. The picturesque views of the community spans across the Georgian Bay and Lake Huron. Staring over the water of the Georgian Bay stands Patrick Fox recalling the journey his community has taken over the last 100 years. As the Project Manager at Wiikwemkoong, Patrick is charged with reclaiming their lands from orphaned oil and gas wells.
and gas development evolved in their community from the late 1800s. “I do this work for my people”, Fox states. “Oil and gas development is over 100 years old in Wiikwemkoong. Our Elders can recount stories of how it all started. It was my department’s work with the Elders that has led us to locating oil and gas wells around the community”. Through leadership under Ogimaa Duke Peltier, Wiikwemkoong Unceded Territory were clear with the needs and direction the community was going to take. Ogimaa Peltier has advocated for his community at the national
“OIL AND GAS DEVELOPMENT IS OVER 100 YEARS OLD IN WIIKWEMKOONG.”
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Through the work of the Department of Lands and Natural Resources, Patrick and his team are tasked with cleaning up century old challenges. Each well brought new challenges and new opportunities to understand how oil PAGE 14
level bringing awareness to concerns for his community, for access to safe drinking water and ensuring the future generations in his community can use the land based on the abandonment and remediation work done. The
focus of Wiikwemkoong Department of Lands and Natural Resources has always been to empower and create opportunities for their people. As oil and gas development is over a hundred years old, generations within this community has understood that these wells were going to need to be cleaned up. Representatives from the federal and provincial governments utilized their expertise to assist Wiikwemkoong in this project. Elaine McIvor and Al McKinnon dedicated hours of work and expertise to ensure the community understood the work they were undertaking and support the work of Patrick Fox and his team. Cheryl Cardinal from the Indigenous Center of Energy has been working with the community since the beginning of the project providing expertise and support to work of the Wiikwemkoong Unceded Territory in abandoning and reclaiming the sites. The knowledge and connection of their people to the land ensured community members needed to work on the
project. Fox states, “It has been a bit of learning curve but we surround ourselves with the best. We would like to help other First Nations out who might be facing the same challenges. Our focus could be on training, resources, or sharing information. We could provide our services in other communities. We are looking to turn this experience into a positive where we can all benefit in the long run�. Jean Pitawanakwat is a shining example within the Department of Lands and Natural Resources as she transitioned from Environment Technician to Project Coordinator. Her knowledge and skills proved to be a great asset showing funders and partners that one can gain knowledge and expertise to bridge the gap of traditional knowledge with technical expertise. Over the years, Wiikwemkoong Unceded Territory has employed their people, utilized their entrepreneurs and strengthened partnerships with federal and provincial government officials, with oil and gas
and environment companies to tackle their leaking oil and gas wells. Pipes have been removed from the ground, land has been reclaimed and partnerships have been forged. This community is stronger as they have come together to talk about their history, their land, their water and their future. For more information on the community of Wiikwemkoong Unceded Territory, please visit their website at: www.wikwemikong.ca
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FIRST NATIONS AND THE ENERGY SECTOR IN WESTERN CANADA
FIRST NATIONS ENGAGEMENT IN THE ENERGY SECTOR IN WESTERN CANADA REPORT BY DR. KEN COATS
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Forty years ago, First in annual revenue; collaboration Nations people had only a agreements with resource companies minor role in the Western provide training and employment for Canada energy sector. Now, First Nations people and generate while news of Indigenous substantial income for participating protests against pipelines and oil sand communities. development feature prominently, far This transformation underscores the less attention is paid to the direct and sweeping impact of First Nations widespread Aboriginal engagement entrepreneurship - which has emerged in the oil and gas industry. In as a major force in Western Canada addition to having several thousand -- and the cumulative effect of major Indigenous employees in the sector, Indigenous victories before the First Nations operate numerous Supreme Court of Canada. Fighting service and supply companies and for recognition under Canadian law, own substantial productive capacity. First Nations secured recognition of Several community owned Aboriginal wide-ranging rights, including the economic development corporations 2004 decisions that established the produce hundreds of millions of dollars
FIRST NATIONS LEGAL RIGHTS AND THE NEEDS OF THE ENERGY SECTOR HAVE LEAPT TO THE FOREFRONT OF CANADIAN PUBLIC AFFAIRS “duty to consult and accommodate” Indigenous interests related to natural resource development. In less than a generation, First Nations have changed from interested but largely powerless observers of the western energy sector to active, influential and heavily engaged participants in one of the most important parts of the Canadian economy. Now, in 2017, the conjunction of First Nations legal rights and the needs of the energy sector have leapt to the forefront of Canadian
public affairs. The Government of Canada’s commitment to implement the United Nations Declaration on the Rights of Indigenous Peoples has drawn attention to the expectation that government and business will secure “free, prior and informed consent” from First Nations before proceeding with resource projects. Pipelines have now become the focal point for political conflict, with some First Nations opposing Energy East and Kinder-Morgan pipelines, western governments and energy firms eager to see them proceed, and the
Government of Canada looking for a political means of removing roadblocks to pipeline construction. If the active and direct engagement of First Nations in western resource development can be extended to pipeline approval, construction and operation, the country could break a crucial logjam, free up energy development and pipeline construction, improve government revenues and general economic activity, and expand the positive and constructive presence of First Nations in the Western Canadian economy.
FULL REPORT AVAILABLE AT WWW.IRCCANADA.CA PAGE 19