Aboriginal group positioned for future growth
First Nation communities in BC meet to discuss pipeline impacts
Officials grilled on oilsands impact on Alberta’s Athabasca River
Montana’s Wolf Point linked to Canadian oilsands
NWT Aboriginals protest at being shut out of oilsands hearings
Gamer generation gets virtual training for service rigs
Mackenzie Valley Pipeline Project moving forward
Aboriginal group positioned for future growth
By Dene Skylar
Aboriginal groups across northern Canada are positioning themselves to become meaningful contributors to their beneficiaries by creating economic development organizations that create opportunities and wealth for their people. Mackay Range Development Corporation of Tulita, Northwest Territories is one of these fast growing economic development organizations.
(Back row L to R) Wilbert Menacho, Cathie Menacho, Maurice Mendo, (seated) Sarah Horassi and Leon Andrew attend the Yellowknife GeoScience Forum, November 23, 2006.
After the Sahtu Dene and Métis Comprehensive Land Claim Agreement (SDMLCA) came into effect on June 23, 1994, the Tulita Dene established the Tulita Land Corporation and the Tulita Financial Corporation to administer their rights and implement their vision. The Mackay Range Development Corporation (MRDC) was then created as a wholly owned business subsidiary of the Tulita Land Corporation. In essence, these organizations are collectively held by the Dene beneficiaries of Tulita.
Wilbert Menacho, a Tulita Dene Beneficiary, is the President of MRDC. Mr. Menacho is a hard working dedicated individual who is mandated to engage business opportunities for the Tulita Dene. Like many other Aboriginal business organizations, this promising economic development corporation seeks to balance responsible environmental protection with ethical business practices. Menacho states, “our mission is to protect and conserve the environment and wildlife of the settlement area for present and future generations. It is our intent to leave a legacy of good business, education and long-term security for our children and grandchildren. We are a young organization with growing pains but we are moving forward and seeking out opportunities for our people through respectful business relationships with companies that share our values and vision.”
In the short time since MRDC was formed, significant business growth has occurred. MRDC has created a division called Mackay Range Oilfield Services specifically to deal with oil and gas related opportunities. A long list of Strategic Partnerships have been established through Joint Ventures in areas such as Drilling Rig Supplier; Sampling; Expediting & Logistics; Helicopter Ser-vices; Surveying / Map-ping Services; Pipeline Services; Drilling & Core; Trucking; Fixed Wing Services, as well as various others, with new partnerships continuing to be formed. The proposed Mackenzie Gas Pipeline mega project a pipeline right-of-way will literally run a few kilometers past Tulita so there is urgency for MRDC to secure meaningful business relationships. Add to this, the vast resource potential for precious minerals, coal, gas, oil, diamonds, gold, silver, uranium etc… as well as some of the most pristine, beautiful waters and wilderness in arctic Canada, the whole Sahtu Region is becoming more attractive to investment and economic development. Much of the work will be exploratory in nature, but as more significant oil, coal and other mineral finds prove themselves to be viable, infrastructure will be required. If Aboriginal groups are to benefit from this potential economic development, they will need to put in place strategic business plans that position them to meet their objectives. Their corporations will also have to balance economic development with the protection of the environment and the need for employment and business opportunities for their people.
Wilbert Menacho is well aware of the need to balance these issues. He states, “We pride ourselves on being innovative in our business approach by seeking a balance between local involvement and benefit as well as overall viability and profitability of each enterprise we have critical mass issues, capacity development issues but in the end we have to work together and support each other to make our business enterprises successful.”
The corporate world is starting to take notice of the extensive potential of the Tulita Land District and the Sahtu Settlement Region. As exploration work increases, Aboriginal corporations like the Mackay Range Development Corporation will be there to play a meaningful role in advancing their beneficiaries standards of living through economic development participation. “This is our home and native land. Our Dene people have lived here since time immemorial. We expect mutual respect when it comes to our people’s desire to have meaningful involvement that ensures economic benefits flow to our people. We hope that others see that our philosophy of sharing is beneficial to those that engage in a respectful business relationship with us.” MRDC is definitely positioning itself for growth by expanding its economic development foundation. Good leadership, good advisors, good planning and hard work will assist Aboriginal groups like MRDC. Native Journal will be following up on Mackay Range Development Corporation so watch for it in future editions and keep tuned in to www.nativejournal.ca.
First Nation communities in BC meet to discuss pipeline impacts
Wet’suwet’en First Nation Elders, youth and other community members gathered in Hazelton mid-October to discuss how proposed oil and gas pipeline projects could impact their territories, local wildlife and fish. The workshop was the second in a series of five workshops being held in communities along the proposed pipeline route.
At least six large-scale pipeline and energy projects are scheduled for development in British Columbia during the next five years. Once pipeline infrastructure is in place, it will be easier to open up culturally and environmentally sensitive areas such as the Nechako and Bowser Basins in central BC to further development. The pipeline routes affect dozens of First Nations communities and could have negative impacts on British Columbia’s fisheries, disturb wildlife habitat, and contribute to global climate change. The workshop series Protecting Our Land: Resource Development in Aboriginal Communities explored the social and environmental impacts of development, and examine ways to balance these impacts with potential economic benefits.
“Treaty 8 holds lessons for other First Nations in BC. We have lived with the impacts of oil and gas development for 50 years,” said Chief Liz Logan, Chief of Fort Nelson First Nation in Treaty 8. “The fish and wildlife that could be disturbed or threatened are not only valued as a species but are a source of income for many people living in communities along the pipeline route. We have already seen examples of oil spills, like the one at Pine River in 2000 that killed tens of thousands of fish,” said Chief Logan. “It took two years for our fish stocks to begin to recover.”
“It’s not only the fish and wildlife, but the cumulative effects of development that concern many of us,” said Diane Abel, former Councilor of West Moberly First Nation in Treaty 8. “Once one company builds roads and facilities, it makes it easy for other companies to come in and start developing the land for other types of industry.”
“We have economic development, but we also have a lot of challenges. The pace of development is too fast. We have been asking the government to slow it down so we can protect some of our last sacred and traditional areas, and we are asking for a more equal role in sustainable development,” Diane Abel added.
Alberta is already paying the high price of environmental and social impacts caused by rushing ahead with oil and gas projects without a long term development plan in place.
These problems are most pronounced in areas affected by oil sands development.
A report released by the Canadian Parks and Wilderness Society and the Pembina Institute in August 2006 warned that projected development of Alberta's deep oil sands which underlie 25% of the province will drive many boreal wildlife species, including caribou, lynx, marten and some forest bird species to local extinction. The town of Fort McMurray is unable to keep up with housing and infrastructure needs resulting from the oil sands boom. Pipeline projects and other developments may carry similar implications for British Columbia.
“The workshops were a great opportunity to learn in advance about potential impacts of oil and gas development and determine whether the benefits will outweigh the impacts,” said Karen Campbell, Staff Counsel with the Pembina Institute.
Officials grilled on oilsands impact on Alberta’s Athabasca River
By Bob Weber
Federal officials were grilled November 22nd over the impact oilsands development will have on rivers depended upon by Aboriginals in northeastern Alberta.
Imperial Oil's (TSX:IMO) $5.5-billion Kearl project, combined with other projects in the area could suck enough water out of the Athabasca River to destroy the commercial and subsistence fisheries, says Karin Buss, a lawyer who represents the Athabasca Chipewyan and Fort McKay First Nations.
Producing oil from bitumen requires vast amounts of water, that is drawn largely from Alberta’s Athabasca River (pictured).
Buss says governments have been unable to set limits on the amount of water withdrawn from the river and are unwilling to enforce a solution.
``We're getting to levels where we're going to lose habitat for fish and there's a potential to lose fish populations,'' she said outside hearings held by Alberta's energy regulator into the Kearl project.
Producing oil from bitumen requires vast amounts of water, water that is drawn largely from the Athabasca River.
Aboriginal people have already noticed the level of the river dropping and they fear the consequences for a vital resource.
``We get the bulk of our food from the land,'' said Lisa King, an environmental specialist with the Athabasca First Nation, who added that fish is on the table in her community as often as four times a week.
A commercial fishery in the area also provides jobs, said King.
``We're worried. There are too many unknowns out there.''
Government bodies have so far been unable to decide how much water needs to flow through the Athabasca to maintain its ecosystem.
But Alberta Environment and the federal Department of Fisheries and Oceans (DFO) are within a couple months of implementing regulations on water withdrawal to prevent the river from falling below historic low-flow levels.
``There needs to be something put in place right now,'' said spokeswoman Kim Hunt.
A second phase of regulation will attempt to bring all parties together to decide how to deal with the river in the future.
``We know we're not going to achieve consensus right now.''
The regulations won't cut companies off entirely during low-flow periods, said Bob Lambe, DFO regional director-general. But they will force reductions in the amount that can be withdrawn and encourage companies to make best use of those times when there's lots of water in the river.
``What they would be able to do is use some sort of means to take (water) when there is less risk,'' he said.
But the proposed regulations acknowledge fish habitat will still likely suffer during low-flow periods, and Buss says they lack an absolute limit of what can be withdrawn.
``There's no cut-off, and there's no cut-off in sight,'' she says.
A better solution already exists, says Buss.
Water levels are only a problem in the winter. A storage pond impounding water from the abundant summer flow would ensure oilsands plants get all they need during the winter, while keeping the Athabasca high enough to support fish.
Buss says the pond, which could be used by all energy companies in the area, would cost between $150 and $200 million.
``We don't need to risk the river,'' she said. ``(But) industry doesn't want to pay for storage.''
Hearings on the Kearl project will last until the end of the week.
Montana’s Wolf Point linked to Canadian oilsands
Montana’s Governor proposes oil refinery in the heart of NAEG operations
Native American Energy Group, Inc. (NAEG), a publicly traded, independent energy company operating out of Wolf Point on the Fort Peck Indian Reservation in Northeast Montana, has reported on some enthralling news from the state’s Governor's office. The Schweitzer administration has named Wolf Point as one of seven Montana towns that might welcome an industrial-sized refinery for the purpose of processing crude oil from Canada's mega-field, oil sand development. Describing the administration's plan is an article entitled, "Governor gauging interest in new refineries," by The Gazette State Bureau that can be viewed at
http://www.billingsgazette.net/articles/2006/09/08/news/state/30-refineries.txt
To Native American Energy Group, Inc. that had set up its infrastructure on the Fort Peck Indian Reservation two years ago, the strategic direction taken by the state to increase industry and vitality with the addition of a new oil refinery at Wolf Point, an area that is already the trade center for Northeast Montana, can mean several things… greater energy development to the area in which the Company operates its energy business, evolving opportunity, along with an expanding local economy, provided that there is acceptance of the change, which is crucial. The Fort Peck Tribes play a large role in the decisions and the economy of Wolf Point.
The breadth, pace, and extent to which Montana will expand its electricity and oil & gas capacities are of primary interest to Dirs., Joseph D'Arrigo and Raj Nanvaan of the Native American Energy Group as co-founders of NAEG and currently CEO and CFO, respectively. In January of this year they met with several members of Governor Schweitzer's administration regarding the administration's energy plans, and they presented the Company's own energy-development agenda before the State Tribal Affairs Committee at a televised meeting of the State/Tribal Relations Interim Legislative Committee.
NAEG is committed to strengthening Native American communities in tune with their own goals and needs by (1) maximizing oil & gas production on tribal lands through enhanced oil recovery techniques; and (2) by the implementation of renewable-energy resource solutions; (3) by building energy-efficient, affordable housing; and (4) by offering education, training & jobs to qualified individuals from among the reservations.
CEO Joseph D'Arrigo stated, "I've truly benefited from the discussions that took place earlier this year regarding the administration's long-term economic and energy policy, and our own. I am sure NAEG can be considered a valued partner to these energy-development initiatives of the Governor and his administration that are aimed at bring prosperity to the various areas in which we operate. While NAEG's success is not contingent upon the addition of a refinery, in and of itself, the implication is more so a case of our Company being part of the evolving opportunities that arise here, and that we are helping to bring about as a company to this area, and to the tribal communities and, of course, this includes receiving our due of recognition for same. We have worked hard to achieve a strong presence in Fort Peck, while exhibiting steady growth by doing what we said we would do. I am reminded of George Bush, Sr. who was up through here gathering oil & natural gas leases when he was younger than I am. The NAEG team has also been knocking on the doors of landowners just as George was, but we are still at it going on six years now, so it good to see that everyone is rowing in the same direction.
The Schweitzer administration's push for energy development, overall, including renewable energy resource solutions in Eastern Montana is confirmatory of NAEG's business model, and can certainly only impact the Company in very positive ways going forward. Finally, we thank Governor Schweitzer for his strong leadership role. It is my belief that he will be responsible for having put Montana on track to becoming one of the richest states in America."
NWT Aboriginals protest at being shut out of oilsands hearings
By Bob Weber
Northern Aboriginals are protesting that they have been shut out of hearings into Alberta's latest oilsands mega-
project, even though Imperial Oil's (TSX:IMO) $5.5-billion Kearl project could affect the river they depend on for fish and transportation.
``We never did get notification, or even a phone call,'' said Paul Boucher, negotiator for the Deninu Ku'e, based in Fort Resolution, NWT. They live along the Slave River downstream of the Kearl project and other industrial development.
The Deninu Ku'e were expected to make a short appearance before the Energy and Utilities Board during closing arguments on the Kearl project November 28th. But their representatives were denied the right to make a formal presentation or cross-examine witnesses – and that doesn't seem right, said Boucher.
``A technicality cannot determine our ability to practise the way we live,'' he said. ``Who consults with us?''
When the Deninu Ku'e finally heard about the Kearl hearings and filed an application for intervener status on Oct. 10, they were told it was too late.
Boucher said the fact his people weren't consulted on the effect the project might have on the waters they depend on for food and transportation has violated their constitutional rights.
River levels have already fallen significantly and people are concerned, he said.
Courts have ruled that the Crown has a duty to consult Aboriginals over development on their traditional lands – including a recent Federal Court decision involving the Dene Th'a that threw the Mackenzie Valley pipeline hearings into uncertainty earlier in November.
The Deninu Ku'e don't want to go to court, Boucher said.
``We want to work this out. I want for them to listen to our concerns, to come to our community and tell us about this project.''
But court action similar to that of the Dene Th'a, who have paralyzed the Mackenzie Valley hearings with a lawsuit, is always a possibility, he said.
``It's not an Alberta issue anymore. It's a national issue.''
A federal government spokesman was not immediately available for comment.
Bob Curran, a spokesman for the energy board, said it's not the board's fault the Deninu Ku'e didn't get an application in on time.
The board is only responsible for notifying communities and groups living close enough to the proposed project to be affected by any emergency plan. After that, it's up to people to keep informed.
``They're so far outside of proximity to the project they would have to come to us and prove they are somehow impacted. The onus is on them.''
Lisa Grotkowski of Alberta Environment said the province does work with adjoining jurisdictions on environmental issues. Alberta and Saskatchewan are currently discussing ways of dealing with acid-rain-causing emissions from the oilsands that blow eastward.
``Our air, land and water doesn't have borders,'' she said.
But getting the word out is up to the board, she said.
Gamer generation gets virtual training for service rigs
By Shirley Collingridge
SimuLynx spells relief for the oil and gas industry plagued by a deficit in skilled workers and for hands-on learners struggling with traditional learning methods. Terris-Hill Productions Ltd. (Terris-Hill) is collaborating with Concord Well Servicing (Concord Well) to bring its version of Serious Gaming to the industry: a three-dimensional, interactive, computer-delivered training program for service rigs.
While simulating detailed industrial environments, SimuLynx presents virtual hazards, results, and consequences, and is fully interactive with real-time experiences and challenges. Thanks to virtual learning, students gain the fundamentals of the job in an environment where they can fail safely – without loss of life or loss of face.
“It is the only competency-based program,” said Kevin McNulty, Terris-Hill Productions partner. “When you go through our training program – the computer-based training program and then the hands-on portion of the training portion on the rig, you will receive a NAIT certificate.”
Terris-Hill saw a need for change in the industry and teamed up with industry expert Concord Well. With the exception of an occasional video, explained McNulty, training has changed little since the fifties and sixties; demographics have changed dramatically.
“We realized that up until the last 10 years, the kids that were coming into the industry were typically rural kids,” said McNulty, “kids that had worked with machines and had a fairly good mechanical aptitude.”
“As the price of oil goes up and activity in the patch continues to increase, we have… used up a lot of [those kids],” he said. “Now they tend to be young, male, 18 to 24, and more likely than not, urban.”
“The one common factor is that they have typically done a lot of computer gaming,” he added. “In fact, they are the highest ratio of demographics that have gaming experience – to the tune of about 65 to 70 percent.”
In today’s educational system, the gaming trend has been a problem, but for proponents of Serious Game technology, this trend is a bonus.
Serious Gaming targets students who “typically do not go on to post secondary education, students that tend to be visual learners, that tend to be tactile learners,” said McNulty. “They learn by watching and doing. They are not people that you are going to give a three-ring binder full of text to and expect them to learn from it.”
“There has been great interest in the Aboriginal community because it really fits that kind of demographics as well,” he said. “A lot of these kids are very much hands-on learners.”
Concord Well is working with Faculty of Native Studies at the University of Alberta to translate the training program into Cree.
“We have to leverage on the technology that is effective as a learning medium,” he added. “We have taken a cue from what the US military has been doing for quite a few years in terms of taking gaming technology, combining it with instruction design and e-learning theory, and building a learning tool that’s interesting, that’s fun, and that these kids can relate to – something that they are used to.”
For the past four years, Terris-Hill has worked on the virtual learning concept with the help of some very knowledgeable friends.
“Concord Well has provided the subject matter expertise. They have provided rig managers and actual rig personnel for two days a week for almost a year to build the content for us and to do all the risk analysis and hazard analysis,” said McNulty.
Typical of computer games, a brief tutorial shows how the game works, but “We had to keep in mind, a lot of video games out there are designed for… kids who do a lot of gaming. We understood that, although a lot of these kids do play games, a lot of them do not,” he said. “We made it much simpler to operate than the typical computer game.”
“We also need to be able to run it on any computer – any two, three, four-year old computer so that people do not need to go out and buy an Xbox or buy a gaming machine to be able to run it,” he added.
SimuLynx trains users for the service rigs, from entry-level junior floor hand, to senior floor hand, derrick hand and finally driller. Eight categories simulate a typical day on the service rigs.
“Before you go anywhere, you have to inspect the rig. The [transportation module] involves all the regulations around transportation,” said McNulty. “Then it goes through several other modules, one of which is running tubing – the basic work on a well. Then rod work, swabbing and all of these other tasks.”
“It includes totally about 2000 learning minutes in the whole process – about some 30 hours of learning for each individual to go from junior floor hand through to driller,” he said.
As an entry-level position, junior floor hand has a steep learning curve; it contains about 40 per cent of all the learning minutes. “Then the senior floor hand has about roughly 10 or 15 per cent,” said McNulty. “The derrick hand has about 10 or 15 per cent. And the balance is the driller.”
“If you pull a lever when your buddy is not properly positioned, you can run into some problems. It is absolutely critical that you learn within the context of the team. That is what this game does for you,” he added.
“This is brand new technology. It has not been used in industry before. Period,” he said. “[It is] the same kind of technology that NASA and the airline companies use in flight simulators, and that militaries use. It is used in the healthcare industry for emergency response training and some anti-terrorist training. It is used for training people in life and death situations such as healthcare, airlines, NASA, and military.”
“The reason that they use it is because it is very compelling. The learners learn much quicker than through conventional training and they retain the learning for far longer than conventional training,” said MacBain.
In October, the Terris-Hill launched a demonstration at the CIBA conference and tradeshow in Edmonton. The company expected the junior floor hand module to be complete by March 2007.
SimuLynx already has high industry interest. “We have got over 25% of the service rig fleet in Canada that will use it once it hits the market,” said McNulty.
In the future, Terris-Hill plans to create similar projects for other aspects for drilling rigs, for gas plants, and mining, and forestry.
Established in 1979, Concord Well serves the western Canadian oil and gas industry with contract services for new and existing wells. The company currently operates 53 service rigs. In 1994, Concord began developing field-driven proprietary computer software that streamlines operations and administration, and offers clients clear and accurate itemization of work performed. This technology also enables Concord to provide to clients an accurate record of all subsurface work performed on a well.
Concord's parent entity, CCS Income Trust, trades as TSE:CCR.UN.
For more information about Concord Well Servicing, visit www.concordwell.com. For more information about Terris-Hill Productions, visit www.terris-hill.com.
Mackenzie Valley Pipeline Project moving forward
One possible roadblock to the Mackenzie Valley Pipeline moving forward appears to have been resolved. The Deh Cho First Nations, of approximately 4,500 people, claim traditional territory which amounts to about 40 per cent of the Mackenzie Valley Pipeline route, were the only group not to sign on to the deal.
Last June, the Deh Cho rejected a deadline to accept the 34 per cent share the group was holding open for them. But in late October, two Deh Cho chiefs, representing almost fifty percent of the Deh Cho, split from Deh Cho Grand Chief Herb Norwegian. The two Deh Cho Chiefs have formed a corporation to purchase and hold their portion of those shares in the Mackenzie Valley Pipeline Project and are lobbying others in the area to reject the stance of Grand Chief Herb Norwegian. Chief Herb Norwegian has been using the Mackenzie Valley Pipeline Project as leverage in land-claims negotiations.
Commercial Director Carl Chala of the Aboriginal Pipeline Group (APG), is encouraged by the communities taking initiative. The Aboriginal Pipeline Group (APG) hopes to take one-third share in the project for First Nations along the pipeline route. Chala said, now the overall Deh Cho leadership has passed on the deadline to buy in, the APG will consider selling shares to individual communities.
Keyna Norwegian from the Liidlii Kue First Nation, which represents more than 1,200 Dene from the Fort Simpson area, right in the heart of the pipeline's proposed route, said that at the regional level, the members decided to take our share of the pipeline.
The 600 member Acho Koe First Nation from Fort Liard, led by longtime development proponent Harry Deneron, is the other member of the joint venture.
Former premier of the Northwest Territories, Jim Antoine, has been visiting other Deh Cho communities and is attempting to have them joining the new joint venture.
Kenya Norwegian is actively talking to the other communities in the Deh Cho, to assess if they are interested. Kenya Norwegian believes it is a mistake to link pipeline ownership with land-claim and self-government talks and that political negotiations shouldn't prevent the Deh Cho Dene from doing business. She considers the pipeline an economic opportunity. Keyna Norwegian indicated surveys of her people in both 2002 and 2003 showed "overwhelming" support for the pipeline.
This is good news for the $7-billion Mackenzie Valley Pipeline proposal, which has been stalled by regulatory delays, cost inflation and court decisions. Meanwhile, main project proponent Imperial Oil (TSX: IMO) has said it will have a new esti
mate of costs –expected to be significantly higher – early in the new year.
The Mackenzie Valley Gas Pipeline in the Northwest Territories of Canada, will be 700 miles long, and has 7 trillion cubic feet of known reserves. When the Mackenzie Valley Gas Pipeline comes on line, it will deliver as much as 1.8 billion cubic feet of gas a day.
In June 1997, Apex Resources Group Inc. purchased a 3.745% working interest in the Itiyok 1-27 Well in the Beaufort Sea in Canada. The Itiyok 1-27 Well was originally drilled in 1983, at a total cost of CAD$85 million. A review of Well data and geological prognosis indicates that a 640 acre area would contain proven recoverable gas reserves of 108 Bscf and proven recoverable oil reserves of 8,976 MSTB, with Apex Resources Group Inc. 3,745 % working interest net reserves of 4.04 Bscf and 336 MSTB. Seismic data indicates a structure closure of approximately 40 square KM with a gross potential reserve of 1.16 TCF and 160 MMSTB (Apex 3.745 % working interest net - 34 Bscf and 4.7 MMSTB). The lands in which the Apex Resources Group Inc. owns an interest comprise of 21.54 square KM containing gross potential reserves of 625 Bscf of gas and 86 MMSTB of oil (Apex 3.745 % working interest net - 23.4 Bscf of gas and 3.2 MMSTB of oil). Values of Proven, probable and possible gas and oil reserves, of Apex 3.745 % working interests, as per Citadel Engineering report, have been published in previous news releases.
The progress of the pending construction, of both the Mackenzie Valley Gas pipeline & the Alaska Gas pipeline, is significant for the producing of the Itiyok 1-27 Well in the Beaufort Sea in Canada. With the North American need for new gas supplies continuing to increase, intensifying the necessity to complete the pipelines, while adding significant value to Apex Resources Group Inc. 3.745% working interest in the Itiyok 1-27 Well.