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Providing coverage of Alaska and northern Canada's oil and gas industry
October 2008

Vol. 13, No. 41 Week of October 12, 2008

A short, sharp message

It was brief, but it was an event that carries a strong message for energy companies operating on traditional aboriginal lands in Western Canada.

After a build-up of threats and accusations over two weeks, two aboriginal groups in Saskatchewan brought a halt to work on Enbridge’s Alberta Clipper oil pipeline from central Alberta to Superior, Wis.

The blockades lasted only a couple of days, while Enbridge, Native leaders and government officials swung into action, reaching a swift resolution that allowed construction to resume without any material impact on the C$3 billion project.

A 36-inch, 1,000-mile system, Alberta Clipper is designed to carry 450,000 barrels per day of oil sands production by mid-2010, with design capacity for 800,000 bpd.

The Treaty 4 and 6 communities said they were frustrated by a list of alleged broken promises to deliver hundreds of jobs and millions of dollars in contracts to the aboriginal communities.

Chief Sheldon Wuttunee of the Red Pheasant First Nation said he has been told that 95 percent of contracts had been assigned by Enbridge and his people had landed only a handful of jobs.

Two equipment blockades

The issue got a thorough airing at a mid-September meeting of chiefs from across Western Canada and resulted in two blockades against heavy equipment, stopping the bulk of work on the pipeline.

The dispute had its roots in a Supreme Court of Canada ruling that the Canadian and provincial governments must consult with First Nations when traditional aboriginal lands are affected by resource development.

In Saskatchewan, it has led to demands by the Federation of Saskatchewan Indian Nations and the Metis Nation-Saskatchewan demanding a set share of provincial resource revenues — a non-starter for Premier Brad Wall.

But Federation of Saskatchewan Indian Nations vice-chief Morley Watson said his organization is determined to bridge the gap between those who are “getting rich” from resource projects, while First Nations are being left behind.

“Pipelines are running through our lands and the First Nations are getting peanuts,” said Wuttunee.

Enbridge, governments blamed

He blamed Enbridge and the federal and provincial governments for shrugging off their responsibilities to make sure benefits and access agreements were fulfilled.

Saskatchewan First Nations and Metis Relations Minister June Draude said the provincial government was prepared to “make sure everyone in the province is benefiting” from the rapid expansion of resource development and wants First Nations and Metis people to be “active partners,” provided they operated within the law.

But she said the Alberta Clipper blockades “create anxiety and uncertainty for industry and for the participants.”

Although the details of the settlement were not disclosed, Wuttunee said Enbridge had offered “good incentives” that would see First Nations people become more involved in the project.

Metis Nation-Saskatchewan Vice President Allan Morin said the agreement reached is “satisfactory and (Enbridge) is holding up their end of things.”

Enbridge said 140 aboriginal people are working on the pipeline and more will be hired under agreements it has reached with 40 First Nations and Metis communities along the pipeline right of way.

—Gary Park






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