Elements Magazine - Spring 2019

GLOBAL PETROLEUM SHOW

2018 HIGHLIGHTS

INDIVIDUAL SPOTLIGHT

COURTNALL APSASSIN

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IOGC 2017/2018 UPDATE

EXECUTIVE SUMMARY REPORT

CANADA’S FIRST NATIONS ENERGY PUBLICATION

INDIGENOUS ENERGY SUMMIT HIGHLIGHTS CONFERENCE SUMMARY

SPRING - 2019

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A MESSAGE FROM STEPHEN BUFFALO, PRESIDENT/CEO IRC

Tansi and greetings again to all our First Nations leaders, industry supporters of IRC and friends. We are happy to bring you another edition of Elements that showcases our activities relating to training and capacity development, providing oil and gas expertise to First Nations and effective liasoning with industry and governments that ensures a good working relationship that benefits all parties equally. 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 - upstream, downstream midstream and alternative energy - that bring value to our members.

The IRC has been vocal and spoken out strongly against Government policies and legislation including Bills C-48 (the Tanker ban legislation) and C-69 (Impact Assessment Act) which, in our view, harm our energy industry by placing unnecessary barriers and bottlenecks to the transportation and marketing or our oil and natural gas resources. Many of our First Nations oil and gas producers are dependent on this resource to provide additional sources of much needed revenues and so when the Canadian energy industry hurts from these regressive policies, the ripples are felt even more so in our communities. We have made presentations to the House of Commons and Senate committees on these matters several times. I am glad that the Senate Committees have listened to these concerns and hopefully the Government of Canada will also listen to us when they make their final decision.

We recently hosted an Indigenous Energy Summit (IEC) which is featured elsewhere in this magazine. The purpose of the Summit was to bring Indigenous, industry and Government leaders together to discuss issues related to pipeline projects including TMX and how Indigenous ownership could be realized. We had a sold out crowd of over 300 attendees including Indigenous proponents of pipeline equity ownership and industry leaders from major companies including Kinder Morgan, CNRL, Suncor and others who unanimously endorsed the idea of Indigenous ownership of TMX. As an advocacy organization, the IRC was pleased with this endorsement and will continue to support indigenous proponents and proposals that benefit Indigenous people across the country. To this end, we are excited about Premier Jason Kenney’s proposed Indigenous Equity/Crown Corporations Fund which we believe will be an important catalyst to help Indigenous proponents realize their dreams of pipeline ownership. The IRC will convene a follow up summit with key leaders shortly to help advance these ideas and proposals further.

There is an important window of opportunity that is available to us and we must seize this moment now or watch it dissipate as has happened in the past. The energy industry is critical to Canada’s growth and FNs want to be part of this growth. 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

ELEMENTS

Stephen Buffalo, B. Mgmt. President/CEO, IRC

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UPDATE FROM JTC1 ON REGULATIONS AND 2019/2020 ACTIVITIES

ELEMENTS

Indian Oil and Gas Canada (IOGC), a special operating agency of Crown- Indigenous Relations and Northern Affairs Canada (CIRNAC), has the authority to manage oil and gas development on First Nation Reserve Lands that have. This Act and its regulations only apply to Reserve lands that have been previously designated by individual First Nations and does not apply to traditional territory or off Reserve lands. The Indian Oil and Gas Regulations form the rules that Industry must follow when developing those resources. The existing regulations were first enacted in 1974 with minor changes in 1995. This is one of the major reasons for amending the oil and gas regulatory regime. Other regimes, for example the provinces, update their rule sets on a regular basis to ensure that they are current and remain relevant to the constant changes in oil and gas development technology.

First Nations have been involved throughout this process of amending both the Act and the Regulations. Our involvement has been achieved through a Joint Technical Committee (JTC1), which consists of technical members from the major producing First Nations, members of the Indian Resource Council (IRC), IOGC and CIRNAC. The JTC1 has been provided

resources to secure outside technical expertise and legal counsel to assist throughout this process. Our involvement is governed by an agreed to terms of reference (TOR). The TOR require IOGC to provide the JTC1 with drafting instructions (DI) for our review and in turn the JTC1 would review and request changes to the DI, based upon our experiences and expertise with on Reserve oil and gas development. IOGC then would either make those changes or provide the JTC1 a written response as to why they didn’t make those changes. The DI would then be used by the Federal Legislative drafters to develop the actual regulations. The draft regulations followed the same process. After approximately 5 drafts of the regulations, the JTC1 was in the position to support the amended regulations to begin the Federal Legislative process to become law.

The regulations were split into 10 modules and will be amended on a phased approach. The first phase contains 3 modules, First Nation Audit, Drainage and Sub-surface, which is scheduled to be passed by Canada in June of 2019 and tentatively come into force on August 1, 2019. Phase 2 contains Surface, Exploration, Environment, Royalties, Money Management, Conservation and

Enforcement. Phase 3 will contain any remaining areas within the regulations that fall outside of the first two phases. The Indian Oil and Gas Act has already been amended in 2009 and will not come in force until the Phase 1 regulations are amended and passed by the Federal Government.

A training package was designed to assist individual First Nations with the implementation of these amended regulations with an emphasis on areas that First Nations should consider changing their existing procedures at the First Nation level to complement the new regs. Although, the regulations are intended to improve the way IOGC manages First Nation oil and gas development it is important that First Nations are aware of all the changes contained in Phase 1. As these changes or amendments may have an effect on how First Nation’s structure their other agreements, for example joint ventures or participation agreements. The increased protection of First Nation land and environment will in turn increase the liability for Band owned companies, thus First Nations will need to be cognizant of this before securing these types on agreements. The JTC1 is available to provide this training upon request from individual First Nations.

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INDIGENOUS ENERGY

SUMMIT HIGHLIGHTS

The Indian Resource Council held the Indigenous Energy Summit (IES) in Calgary, Alberta January 22-23, 2019. The IES saw over 400 attendees from across Canada gather to discuss Energy equity ownership opportunities. Over the 2 day conference delegates heard presentations from The First Nations Major Projects Coalition, Project Reconciliation, Crosbie and Company, Criterium Group.

Panel discussions from Industry included speakers such as Trans Mountain President and CEO Ian Anderson, Tamarack Valley President Brian Schmidt, Modern Miracle Network President Michael Binnion, and Canadian Energy Pipeline Association President and CEO Chris Bloomer. Other speakers included IRC Board Member Chief Roy Fox alongside Christopher Slubicki of Modern Resources Inc..

Keynote speakers included Dr. Vivian Krause, IRC Chairman Wallace Fox, Alberta Energy Minister Margaret McCuaig- Boyd, Minister of Indigenous Relations Richard Feehan, and AFN Regional Chief Marlene Poitras.

Day two consisted of the IRC Annual General Meeting followed by presentations from Canapux, a consortium of Wapahki Energy/Heart Lake First Nation/CN Rail and Sproule. The conference wrapped up with a presentation from Roger Fragua of Cota Holdings LLC/NDN Energy LLC speaking on the opportunities and desire for International collaboration between First Nations in Canada and the Tribes of the United States.

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TOP NOTCH OILFIELD CONTRACTING SERVICES

Top Notch Oilfield Contracting (TNOC) from Fort St. John is one of those quiet little success stories, similar to that classmate from school who had their head down working away and knocking every challenge out of the park consistently along the way. Judy and Boomer Desjarlais started TNOC over 15 years ago on a dream and with a small budget. Judy shared that “It started with a request for workers to help some brush cutting, we started with some small savings in our account, we saw an opportunity and went for it”. A great decision that has led to impressive growth over the next decade. Located in the heart of the Montney in Fort St. John, B.C.; Judy and Boomer have completed contracts for a number of large Oil and Gas companies developing Lease pads, providing building and road maintenance, and more. Judy states “We’re proud of our work, we work hard and train our employees to

help them advance in their careers”, this couldn’t be truer as you will find a spotlight on one of TNOC’s employees Courtnal Apsassin in this issue of Elements. TNOC has played a great part of this young man’s career development. Judy says “It’s been a journey, there has been some bumps in the road and challenges along the way but we’re proud to have persevered, all while providing opportunities for those who are looking to be a part of that growth”. When asked what she sees for the future Judy states “We’re excited about the potential projects that are on the horizon. These construction projects provide opportunities for local contractors, put dollars back into communities and help companies like us continue to grow”. To find out more about Top Notch Oilfield Contracting Services Inc and their contact information visit them on the web at www.tnoc.ca

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Individual Spotlight

COURTNALL APSASSIN

ELEMENTS

It’s -22 degrees at mile 135 on the Alaska Highway. The cold has long ago chased bears into hibernation and brought with it blankets of snow. As the sun breaks over Pink Mountain, a snow hare huddles against a backdrop of pines covered in snow and branches crystalized with frost. Its fur blends in perfectly with the cotton snow falling slowly. A hundred years since the arrival of industry, this scenic winter wonderland has changed very little since the days of the Wild West we read about in storybooks.

At the bottom of the hill, a tall frozen plume of exhaust announces the arrival of Courtnall Apsassin, a contractor at Top Notch Oilfield long before the beast he rides comes into view. He doesn’t arrive on horseback as his ancestors before although in this mountain setting, somehow his entrance is just as grand. He’s at the controls of a Caterpillar 14M Grader, elite in its class and the envy of every operator who’s ever run one.

I stopped to talk to Courtnall, but the client has him on a tight schedule so we agree to meet in the construction camp he’s staying at to talk after work. As he drives away, I watch the almost perfect snow-bank curling out from the large wing mounted on the side. Diamond-tipped Sandvic cutting edges bite into the icy road-top, winging the spoils to the side. He works quickly, no lost movements. He leaves a road safe to drive on. I have to admit it looks good.

For a few minutes after the sound of the diesel engine has faded, I sit there on the side of the road. The snow hare twitches a black nose, and I finally see him against the pine he’s sitting beneath. Somewhere up ahead, a squirrel scolds, and I decide to soak in nature as perfect as it ever was a million years ago.

After a few minutes, a service truck passes, tires crunching on the snow-packed road. Then a logging truck. Just as I’m about to leave, a wide load enters the valley on a truck built for off-road moves. An amber strobe light flashes from the front pilot truck as I hear the driver call ahead on the radio

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to Courtnall, asking him if it was clear to start up the hill. In these icy conditions, every move has to be calculated.

As the procession crests the hill, I have to admit I’m proud of this kid. His work keeps these rigs going. His workmanship keeps industry rolling out here on the back hills. I know parts of his story, but not everything, so I’m here to find out.

He’s not quick to open up about his life. His past, his childhood- all off bounds to someone who doesn’t take the time to know him. He’s proud of his Blueberry River heritage. But his past is riddled with turmoil and unrest. He bounced around from reserve to reserve, back and forth between parent’s housing arrangements. Some would say the odds were stacked against him. When asked about where his friends are now, the ones he knew growing up, he tries to put the best spin on things but soon I realize that many of his closest buddies struggle with alcohol and substance addiction. Abuse of many kinds- he knows what it’s about. He talks very quietly about suicide, and the affects that unforgiving animal has had on his personal life. The details are painful, and he shies away from telling me too much.

So, I don’t pry.

But when the conversation turns to running equipment, his entire demeanour changes. His smile is quick and confident and he picks up a grease gun and starts to service the many joints on his machine, a rag tossed over his shoulder. His body language says a million words. This is a topic he’ll talk about all day. As an operator myself, I wondered how he got his start. How it came to be that not only is he running equipment out here, he’s running the Cadillac of graders. Typically, the man running this beast is in his late 40s, grizzled, a life of experience awarding him this seat. I’m generalizingbut I’ve hired thousands of operators. I know.

But, it turns out his story is not what I was expecting.“I started out labouring for a lot of years, and just kept

showing up and being where I was supposed to be. Then one day someone tried me out on a dozer when the operator didn’t show up. I knew this is what I wanted to do with my life- run equipment. Then, PETRONAS Canada gave me a chance to live my dream through a new training program they came out with in 2017.”

I decided I wanted to know more about this training program, so I keep talking. “You make any mistakes since you started?”

“Oh man, I made a lot of mistakes.” He looks sheepishly at the door as though someone might overhear him. Then he shrugs again.

“I’ve learned every way to break a door window. I’ve learned how NOT to let my cutting edges wear out before ordering new ones. I’ve learned what speed to NOT try to grade uphill, I’ve learned how not to….” He keeps talking but I’m lost in thought already, carried back to my early years running equipment. I remember all of this.

He gives a lot of credit to Cory, his immediate PETRONAS Canada supervisor. Cory is a direct “call it like he sees it kind of guy. A former boxer who doesn’t see the need for candycoating the truth, he’s not afraid to show Courtnall where he went wrong, or how he’s wearing his edges out too quickly. He doesn’t hold back when showing him how to set his wing so the shoulder is cut safely, perfectly. He certainly didn’t hold back when he made rookie moves.

But underneath the gruff exterior, Cory has some begrudging compliments to pay him when he’s not in ear-shot.

“He’s a good guy. He tries hard every day. He’s come a long way.” He thinks about it and laughs. “Yeah, he’s come a long way. He’s doing excellent actually. Anyone can get into a piece of equipment and ‘drive’ it. Not everyone can operate it”

I’m not about to break the code by telling Courtnall this. But apparently, I don’t need to. A few weeks later he called me at the end of the day.

“Man- Cory told me I did a hell of a job today. That’s what he said- a hell of a job” I could hear the pride in his voice. I talk to him a bit, and seems he’s had a good day.

“The head guy, Lloyd? He came out and was watching me for a few hours. He gave me a thumbs up- must have been doing something right!”

I managed to get Lloyd alone for a coffee, and he opened up about how this program came to be.

Over coffee, he told me it was a direct mandate from

PETRONAS Canada’s president and CEO, Mark Fitzgerald. A few years ago, Mark’s vision was to come up with a program that was thorough, sustainable, and invested into the lives of local First Nations. Mark challenged his team to come up with a program that would positively impact the lives of First Nations and teach them skills and a trade that would benefit them long term. As I sip coffee with Lloyd, I see the passion in his face as he describes building this program, tweaking it, making sure it covered every point properly. I know this man helped build this program, but he is careful to give credit to the PETRONAS Canada site supervisors who make it all happen, his managers in Calgary who support the field staff, and a CEO who sparked the vision in the first place. As I’ve learned over the years, a course is only as good as the instructor, and this program is well-done. I watch his eyes light up talking about the young men and women that are currently in the program. I look at Corey and Courtnall, inspecting a hydraulic hose.

I wonder briefly if these men know how much their opinion means to Courtnall. I suspect they do. I wonder if PETRONAS Canada knows the impact this program has had on the men and women who are going through it. Somehow, I have to think this is what their president saw when he envisioned this a few years ago.

I walk over to Courtnal before I drive away and shake his hand. I ask him a question I think I already know the answer to-

“Where do you see yourself in ten years?” He doesn’t hesitate for a second.

“Training some guy like me from Blueberry River to run a grader” he laughs and I see Lloyd’s smile beam.

“Yes, that would be cool” he went on. “It would remind me of how I started, when someone took a chance on me.”

I know that’s where he will be in ten years. I hope I get to see it. I hope I get to be like a snow hare blending in the surroundings- not seen, but watching Courtnall train another young man or woman. I’d hide a smile as he came across gruff and hard to please. I’d see the way he said “good job” when his training finally got through. I’d see him take his time to not just train someone to drive it, he’ll do his best to make an operator out that person.

I’ll watch him pay it forward. I’ll be proud to say he worked for me.

What the heck- I’m proud of him now.~Written by Trevor Argue

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