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OIL & GAS

June 2010 index

Inuit join call for moratorium on offshore drilling in the north

Ottawa dumps plans to test oil spill cleanup in Arctic this summer

Tahltan Nation signs landmark agreement with AltaGas

Feds and NWT complete an interim response to the JRP Report for the Mackenzie Gas Project

Inuit join call for moratorium on offshore drilling in the north

Northerners are forming a united front to urge caution in developing Canada’s Arctic offshore energy resources.

A fourth leader has joined the call to stop oil drilling in northern waters until safeguards are in place to prevent a disaster like the one in the Gulf of Mexico.

Mary Simon, head of the national group Inuit Tapiriit Kanatami, says no drilling should be permitted at all unless Aboriginal people have a voice in reviewing the plans.

“Any future drilling should only proceed if we were comfortable with the safeguards that are in place.”

In a letter to Prime Minister Stephen Harper on May 26th, Simon calls for “an immediate pause or ‘time out’ on drilling in the Beaufort Sea in order to take stock of environmental risks and needed risk reduction and mitigation measures.”

Similar statements have been made over the last two weeks by at least three other interested parties.

The Inuvialuit Regional Corp. has asked for a moratorium on drilling in the Beaufort Sea, while on May 25th, Northwest Territories Premier Floyd Roland echoed that call.

Nunavut Tunngavik Inc., which oversees the Nunavut land claim, told a parliamentary committee that drilling should proceed only on the basis of the “most rigorous international standards available.”

“We’re pretty much saying the same thing,” said Simon. “The basic messaging is very much the same.”

Concerns have been growing across the North about energy development as a BP well blowout off the coast of Louisiana continues to pump hundreds of thousands of barrels of crude oil into the Gulf of Mexico.

Although no drilling in Canadian Arctic waters is scheduled, energy multinationals have bought exploration leases for vast areas of the Beaufort Sea. The National Energy Board is planning hearings on how exploration wells in those waters will be regulated.

As well, energy companies have announced plans to drill in Arctic waters controlled by the United States and Greenland, both immediately adjacent to Canadian waters.

Industry and environmental experts have long warned that existing methods to clean oilspills in frigid or ice-choked water are ineffective.

Simon pointed out that land claims give northern Aboriginals a significant voice in development on shore, but the same isn’t necessarily true for the oceans. She said activity in Arctic waters should be jointly regulated by Ottawa, the territories and the Inuit.

In her letter to Harper, Simon also recommends that the government beef up an industry-funded insurance plan that pays for environmental cleanup.

She also says any relaxation of Arctic drilling standards – such as a request by energy companies to withdraw a requirement for same-season relief wells – should be rejected.

Environmentalists are backing the call from northerners for tougher drilling standards. The World Wildlife Fund told MPs recently that both American and Greenlandic drilling regulations are tougher in some respects than Canadian rules.

Craig Stewart of the group’s Arctic program pointed out that the U.S., Greenland and Norway all have regulations for leasing and drilling. That allows those countries to control where and when exploration takes place. Canadian rules only kick in when a drilling program is announced.

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Ottawa dumps plans to test oil spill cleanup in Arctic this summer

Ottawa has dropped plans to test its cleanup methods for Arctic oilspills by dumping up to 1,200 litres of crude into northern waters.

The reversal came within hours of protests by Inuit groups over the plan.

Government spokesmen say the plan never would have gone ahead without full consultations with local communities.

But Inuit leaders point out that scientists had made all the plans and applied for permits before anyone came and talked to them.

They say that suggests that the federal government still doesn’t really know what it’s doing in the North.

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Tahltan Nation signs landmark agreement with AltaGas

On May 28th, the Tahltan Nation announced it has signed a landmark impact benefit agreement (IBA) with Coast Mountain Hydro LP, an indirect, wholly owned subsidiary of AltaGas Income Trust (AltaGas) for the Forest Kerr run-of-river hydroelectric project, sited in Tahltan Traditional Territory in northwest BC. The agreement comprises a combination of environmental protections, cultural resource protections and economic participation for the Tahltan Nation. 

“The Tahltan Nation is proud of this Impact Benefit Agreement with Coast Mountain Hydro Corp. and the increased economic security that it will provide for generations to come,” says Annita McPhee, Chair of the Tahltan Central Council. “This agreement establishes ownership, management of our resources and profit sharing while taking into consideration the protection our environment as a renewable energy project.  This IBA will set the bar for resource development projects and demonstrates the results of a successful relationship with a company in Tahltan Territory that respects our Aboriginal title and rights”

 “Any land and resource decisions affecting Tahltan Traditional Territory must respect the environment, the Tahltan way of life and the Tahltan people,” said Annita McPhee.  “The agreement reflects the significant input we’ve gathered from consultation with community members and, while protecting our territory and our way of life, provides our Nation with long-term economic security.”

The Forest Kerr Project will provide business opportunities for members of the Tahltan Nation to participate in the construction, operation and maintenance of the project, and Tahltan university graduates will have opportunities to enroll in training programs with AltaGas. The agreement also provides economic benefits to the Tahltan Nation, including shared ownership and royalties.

“The Forrest Kerr Project represents an exciting partnership for AltaGas with the Tahltan Nation and with the Government of British Columbia,” said David Cornhill, Chairman and Chief Executive Officer of AltaGas. “The project is an important evolution in AltaGas’ power business as we continue to build long-term, contracted, generation assets. The Forrest Kerr Project will provide the people of British Columbia with clean and reliable power from a significant water resource. We are very pleased to be building this project with the people of the Tahltan Nation.”

 Working with companies that meet high environmental standards is critical to the Tahltan Nation’s protection of its Aboriginal title and rights.  The IBA secures commitment from AltaGas to construct, operate and maintain the Forrest Kerr Project in keeping with high environmental standards that meet and, in some cases, beat provincial environmental standards. The agreement also includes provisions to allow for Tahltan participation in ongoing environmental review, reporting and recommendation procedures for the project.

 The Tahltan Central Council exists to define and protect Tahltan inherent Aboriginal rights and title, to protect the eco-systems and natural resources of Tahltan traditional territory through pursuing sustainable economic development, and to strengthen the cultural wellness of the Tahltan Community by promoting traditional values based on the concepts of caring, sharing, cooperation, truth, honour, fairness and above all, respect.

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Feds and NWT complete an interim response to the JRP Report for the Mackenzie Gas Project

The Governments of Canada and the Northwest Territories announced May 17th that they have completed an interim response to the Joint Review Panel’s (JRP) report for the Mackenzie Gas Project (MGP). The interim response addresses the JRP’s 176 recommendations regarding mitigation of the potential environmental and social impacts of the proposed MGP.

“The Governments of Canada and the Northwest Territories have collaborated to respond to the JRP recommendations regarding the Mackenzie Gas Project. The release of this information brings us closer to another MGP milestone,” said Environment Minister Jim Prentice. “The environmental assessment of the project will be finalized under the Mackenzie Valley Resource Management Act and the Canadian Environmental Assessment Act. This will assure Northerners and all Canadians that the environmental and socio-economic impacts of this project have been assessed under a rigorous process.”

“This government recognizes the importance of the mitigation measures outlined in the JRP report and acknowledges the need for sustainable economic development within a rigorous environmental stewardship framework in the Northwest Territories.” said Chuck Strahl, Minister of Indian Affairs and Northern Development and Federal Interlocutor for the Metis. “The sharing of the Interim Response will inform consultations with Aboriginal groups prior to the preparation of the final response.”

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