Issue #11 - November 2015
Canada’s First Nations Energy Publication
NEW APPROACHES
National Energy Business Centre of Excellence
O’CHIESE ENERGY LP ALBERTA ENERGY
REGULATOR NEBCE / ENFORM Partnership
INDIAN
RESOURCE
COUNCIL
“First Nations and Energy Transmission” 2015 AGM/Conference and Trade Show December 2 & 3, 2015
Presentations by: - Tim McMillan - Chief Darren Whitford - Josee Touchette - Ryan Franke - Dr. Brenda Kenny - Chief Darcy Bear - Doug Eyford - and more
President, Canadian Assocation of Petroleum Producers O’Chiese First Nation CEO, National Energy Board VP Business Development, Tahltan First Nation President, Canadian Energy Pipeline Association Whitecap Dakota First Nation Partner, Eyford Macaulay Shaw & Padmanabhan LLP
Chiefs, Council, Technicians and Industry are invited to attend.
Grey Eagle Resort and Casino Calgary, AB For more information t: 403.281.8308 www.irccanada.ca Sponsorship opportunities and booth space available, contact us today to reserve your place
elements
Issue #11 - November 2015
National Energy Business Centre of Excellence (NEBCE)
Table of Contents
MESSAGE FROM THE DIRECTOR New Approaches
JTC1
4 6
Modernization Of The Indian Oil & Gas Regulations
ELEMENTS PROFILE Standing On Our Own - O’Chiese First Nation
ALBERTA ENERGY REGULATOR Achieving Excellence
Steve Saddleback Director National Energy Business Centre of Excellence Indian Resource Council
IRC ON FILM A Brief History
8 10 11
Paul Lu (Maxpo Communications Inc.) Co-Editor David Blondeau (Maxpo Communications Inc.) Concepts, Designs and Layout David Spade | Melanie Parsons Writers
Indian Resource Council of Canada 235, 9911 Chiila Boulevard Tsuu T’ina Nation, Alberta T2W 6H6 T: 403-281-8308 F: 403-281-8351 W: www.irccanada.ca
NEBCE Mandate
“To support First Nations in their efforts to attain greater management and control of their energy resources.” Elements© is a quarterly publication distributed by National Energy Business Centre of Excellence (NEBCE) and IRC Inc. Any use of content or duplication without written consent is not permitted.
message
FROM THE DIRECTOR Steve Saddleback
Tansi!
To commemorate this special issue, I share the announcement of our most recent partnership with ENFORM! Together, we will deliver oil and gas training courses to our First Nation members. We believe this is a great opportunity, as the training will include First Nations input, perspective and expertise on regulations surrounding resource development and activity on and around our traditional territories. ENFORM is the industry leader and the safety association for the oil and gas industry.
Welcome to the National Energy Business Centre of Excellence (NEBCE) Winter 2015 Issue of Elements “New Approaches.” In this issue, we share stories of companies and organizations that are implementing new and successful approaches within their business plans. Going forward and in keeping with our own ‘new approaches’, as the present Director, I am pleased to advise that over the next several months our staff will be exploring fresh ideas to improve our services at NEBCE. We are designing a new look to better experience Elements Magazine!
At NEBCE, we will put our energies to work by adopting new approaches and building strategic partnerships to maximize opportunities for our organization and membership. Make sure you visit our website at www.nebce.com, to learn more about the Centre and the services we offer. Watch for details announcing the upcoming INDIGENOUS ENERGY SYMPOSIUM taking place in 2016. I hope to see you all there!
Five months ago, I respectfully took over the helm as Director of NEBCE. I am also a husband and father of 2 beautiful little daughters, and a proud member of the Samson Cree Nation located in the Treaty No. 6 area of Maskwacis. Prior to my appointment of this position at the IRC, I worked for a leading energy infrastructure company. My career and education is focused in economic development and finance. I am excited at the opportunity of working for First Nations across Canada and leading NEBCE to the forefront as the Canadian centre for First Nations oil and gas services.
elements
- Issue #11 / November 2015
Sincerely, Steve Saddleback
Director National Energy Business Centre of Excellence
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National Energy Business Centre of Excellence (NEBCE)
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JTC1
MODERNIZATION
of the Indian oil and gas regulations
by David Shade, Project Manager, JTC1
The passing of the Indian Oil and Gas Act 2009, which has not come into force, provides for the development of a regulatory framework that allows Indian Oil and Gas Canada (IOGC) to regulate the development of oil and gas activity on First Nation lands in a more effective, efficient and transparent manner. First Nation input is key to the development of these regulations and this is being achieved through a Joint Technical Committee 1 (JTC1). The JTC1 consists of First Nation Oil and Gas “Subject Matter Experts” (SMEs) from the major oil and gas producing First Nations, members of the Indian Resource Council (IRC), IOGC staff and staff from Indigenous and Northern Affairs Canada (AANDC). Their mandate is as follows; The JTC1 will continue to assist IOGC and AANDC in modernizing First Nation Reserve lands oil and gas regime by reviewing draft regulatory content, providing guidance and ensuring First Nation perspectives are fully considered during the development of new Indian Oil and Gas Regulations. The objectives of the new Regulations are the following; • Provide modern tools that enable IOGC to protect First Nation interests in the performance of its role as fiduciary, regulator, and manager towards First Nations’ oil and gas resources pursuant to the Indian Oil and Gas Act; • Modernize the oil and gas regulatory regime on First Nation reserve lands by: 1) streamlining administration, processes and reducing red tape; and 2) providing clear and transparent rules and eliminating regulatory gaps in the current regulations; • Regularize certain practices unique to operations on First Nation reserve lands while also reflecting a measure of consistency with modern industry practices; • Make First Nation reserve lands more attractive to industry by creating investment-ready communities which facilitates economic development and investment from the private sector while understanding that industry investment is both market and prospect driven; • Ensuring First Nation’s benefit in the following areas, but is not limited to; legal certainty around the governing of oil and gas exploration and development, optimizing leasehold benefits, fair royalties, new auditing powers, environmental protection, protection of cultural significance areas and protection from drainage.
The regulatory review process ensures full participation from First Nation members on the JTC1.There are several opportunities to review the development of these regulations. The first being the drafting instructions, which includes a description of the policy intent or direction and then the committee, will review the actual draft regulations and provide written feedback to IOGC.
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- Issue #11 / November 2015
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National Energy Business Centre of Excellence (NEBCE)
The work has been dividend into phases that contain specific modules to assist in the completion of this project. The content of the phases are as follows; • Phase 1 o Drainage and Compensatory Royalty o First Nation Audit o Tenure (Subsurface) • Phase 2 o Environment o Tenure (Surface) o Exploration o Moneys Management o Royalty (Formula & Administration) • Phase 3 o Conservation • Remaining Phase o Enforcement-most enforcement issues will be dealt with in each of the above modules, however any remaining issues will be concluded in this last Phase The JTC1 has completed their review and have submitted comments to IOGC on the all Phase 1 modules and also reviewed and submitted recommendations on drafts 1 and 2 of the regulations. We are currently waiting for the 3rd draft of the regulations and this is expected to be the final draft. The amended Regulations and Act are expected to come into force by the last quarter in 2016. Although First Nation members on the JTC1 shall report back to their respective Chief and Councils or appointing bodies, it is the responsibility of IOGC and Indigenous and Northern Affairs Canada to consult with individual First Nations on the development and implementation of these new regulations.
For more information, please contact the Project Manager, David Shade at (403) 281-8308 or email davids@irccanada.ca.
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- Issue #11 / November 2015
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National Energy Business Centre of Excellence (NEBCE)
Elements Profile on O’Chiese First Nation
by Melanie Parsons
ON OUR OWN STANDING BUILDING INDEPENDENCE AND A SUSTAINABLE FUTURE
O’Chiese First Nation is situated in Treaty No. 6 territory and located near Alberta’s Baptiste River and Rocky Mountain House. It is home to 1276 band members The O’Chiese are descendants of Canada’s Cree and Saulteaux people. Members of O’Chiese primarily speak Saulteaux and some speak Cree as well. Great esteem is taken in practicing their culture and retaining traditional languages. Cultural pride is further evidenced by the community leader’s practice of seeking the guidance and support of their elders in all nation matters. Growth and balance is important to the O’Chiese community and this is achieved through building independence and a sustainable future for the nation. Since the establishment of the O’Chiese Business and Investment Centre in 2009, the community has taken the lead role in the development of the resources and its’ regulations within the Nation. As in the O’Chiese Business Charter Mission statement, we will, “provide economic prosperity for the O’Chiese First Nation by managing the Nation’s businesses effectively, building new businesses prudently, and investing its money wisely.” O’Chiese Nation is exercising their right of ownership and the control of their land and their future. “How we first looked into going down this avenue was by completing a needs assessment. We had a high rate of social assistance and needed to find ways we could lower those numbers,” said Councillor Barry Saulteaux.
In the six short years since the launch of the communities plan, O’Chiese First Nation is celebrating eight growing band-owned businesses and partnerships that includes the creation of 70 full time jobs and employment of 140 of their members through various business ventures. O’Chiese First Nation Chief and Council and Ian Arcand, CEO, Business and Investment Centre continue to look for new opportunities to build their sustainable business network model. “We want to capture 100 per cent of the activity in the area and strategically expand across Canada in the future” said Mr. Arcand, “The overall goal for O’Chiese is to provide employment right at home for its members. Also to have members that are trained and skilled to operate their own company one day.” An O’Chiese Education Fund has been created to build capacity within the nation and its businesses. “All our partners participate. The donations are used to send members interested in working for the nation’s companies to training,” added Mr. Arcand. Additionally, training programs are provided on or close to O’Chiese First Nation. Courses include Emergency Medical Responder, Industrial Security and an upcoming Class 1 Driver Training and Heavy Equipment Operator course.
O’Chiese Chief and Council established a solid foundation through investments in real estate, a sand and gravel pit, a gas bar and a convenience store. They realized they would need to take bigger steps to reach their broader, long-term goals. This resulted in taking back control of the valuable minerals and resources found on O’Chiese land. Today O’Chiese Energy LP (OECLP) is responsible for much of the nation’s success in business, employment and capacity development of its membership and group of companies.
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- Issue #10 / Winter Edition 2015
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National Energy Business Centre of Excellence (NEBCE)
needs assessments and discuss how revenue generated from the group of companies can be used to alleviate some of the issues arising. The O’Chiese Business and Investment Centre have begun work on a long-term community development plan with a leading engineering firm. Consistency and stability are key success factors in the undertakings of O’Chiese group of companies and in the elections of its leadership. The Nation recognizes that it takes time to develop ideas and mutually beneficial partnerships. Mr. Arcand states that a key to First Nations development is consistency and belief in community leadership, “you have to let the tree grow is what the Elders say. You plant it and let it grow.”
Revenue generated by OECLP is incorporated back into the community. “With the money that’s being made we reinvest by making another company or building something else that’s going to sustain the Nation long term,” proudly explained Councillor Salteaux. O’Chiese Nation broke barriers when they made it clear that royalties were not enough and wanted back control of the minerals in 2010 after discontinuing a long-term lease with a major oil company. O’Chiese leadership challenged old rationale and strategies with confidence in their ability to succeed. The message to government and industry was clear. O’Chiese was determined to be an equal partner and player in the oil and gas industry. Councillor Saulteaux shared that the reason they assumed control of their resources was due to the guidance they received from community members, and, more specifically, the Elders. He said, “They saw we were selling over
The achievements of the O’Chiese Business and Investment Centre and group of companies demonstrates what one nation can do to ensure its people will have something for future generations. “We live for today but tomorrow is for our kids. Whatever we build today is for our kids tomorrow to build upon. The Elders tell us to look out for tomorrow not only today,” articulated Councillor Saulteaux. For more information on O’Chiese First Nation and the group of companies please visit their website at www. ochiesebusinesscentre.ca
our mineral rights but not getting much in return”. Next came OECLP and according to Mr. Arcand, “We don’t want to just be a regular royalty recipient company. We’re in the process of developing a 10- year plan to be a competitor and acquire lands and drill wells. O’Chiese Energy wants to be competitive and drill anywhere as any other oil company.” As part of the overall long term plan, O’Chiese purchased a small interest in a brand new deep cut gas plant near Alder flats. This particular business venture expects to earn O’Chiese three to four million per year for the next 50 or more years. While OECLP proves to be successful in generating revenue for the community, its success can also be measured by how many people are choosing to stay in the community or moving back due to the opportunities it has created. With success and growth come new challenges such as a shortage of housing and overcrowding. O’Chiese leadership continues to complete
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- Issue #10 / Winter Edition 2015
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National Energy Business Centre of Excellence (NEBCE)
The Achievement of
From the time the Alberta Energy Regulator (AER) was created in 2013, one of our priorities has been to build an organization that achieves excellence.
First Nations Weigh in on Regulatory Energy Regulator
Three major themes about what constitutes regulatory excellence emerged from the day: • Establishing credibility through a fair, inclusive, and transparent process • Building and maintaining relationships of trust and reciprocity • Ensuring clear and consistent lines of reciprocal communication
To reach this goal of “regulatory excellence,” we have had to search for the best way to be a leader in oil and gas regulation and land on a common definition of it.
A full report summarizing the dialogue session is available on University of Pennsylvania’s website, at www.bestinclassregulator. org.
This search began in 2014 when the AER launched a project— run by experts at the internationally renowned University of Pennsylvania’s Program on Regulation—to help identify the key attributes of a “best-in-class” regulator, understand how the AER can adopt these attributes, and measure our progress.
When the University of Pennsylvania delivers its peer-reviewed framework to the AER by the end of this year, the AER expects to measure its performance against best-in-class attributes on a regular basis.
Considerable work has gone into the initiative this year, including a stakeholder summit in Calgary and an Aboriginal dialogue session in Edmonton.
This is about more than achieving a title of “excellent” or “bestin-class”; it is about transforming ourselves into a regulator that continually improves our work, has strong relationships with Albertans, and can lead the next era in energy regulation.
The Aboriginal dialogue, held on March 26, brought together representatives of various First Nation and Metis peoples to work collaboratively through key issues of energy regulation from their perspectives.
About the Alberta Energy Regulator
Throughout the day, discussions were graphically recorded in a large-scale visual format. Participants included representatives from the Indian Resource Council, Indian Oil and Gas Canada, Métis Settlement General Council, Métis Nation of Alberta, Treaty 6, Treaty 7, Treaty 8, Alberta Energy Regulator, and the University of Pennsylvania.
The Alberta Energy Regulator ensures the safe, efficient, orderly, and environmentally responsible development of hydrocarbon resources over their entire life cycle. This includes allocating and conserving water resources, managing public lands, and protecting the environment while providing economic benefits for all Albertans.
The dialogue was not a formal consultation between the AER and participants, nor was it a search for consensus among the participants. Instead, it aimed to generate ideas and share our visions for our province and how we can and should work together to develop our resources in a manner that is safe, environmentally responsible, and respectful of all viewpoints.
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- Issue #10 / Winter Edition 2015
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National Energy Business Centre of Excellence (NEBCE)
IRC on Film
A Brief History The video will be available to view on our website (www.irccanada.ca) and at tradeshows we attend in the future. Check out some of our shots behind the scenes in the making of.
We have been busy in the office this past month compiling a short documentary video on the history of the Indian Resource Council. We are pleased to unveil this to you at our 2015 AGM/Conference and Tradeshow.
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National Energy Business Centre of Excellence (NEBCE)
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