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Providing coverage of Alaska and northern Canada's oil and gas industry
June 2003

Vol. 8, No. 22 Week of June 01, 2003

Bridging the gap in British Columbia

Government, aboriginals, industry make headway in defusing tensions

Gary Park

Petroleum News Calgary Correspondent

The British Columbia government and aboriginal leaders from the province’s petroleum-rich northeast corner have quietly moved from confrontation towards co-operation in the last year.

In a measured way, the two sides have turned down the heat after a series of tense land blockades in 2001 that forced Petro-Canada, Anadarko Petroleum and Canadian Natural Resources to shut down operations and threatened to cap a prolific gas play.

Since then there has been a concerted three-way effort by government, industry and aboriginal leaders to establish a clearer regulatory path that gives industry greater certainty over land access and the First Nations a share of the economic benefits without undermining their treaty rights.

Latest phase

The latest phase in a step-by-step process saw British Columbia Energy and Mines Minister Richard Neufeld dedicate C$1.9 million over three years to foster partnerships between the Treaty 8 First Nations and industry, and to promote Native participation in northeastern British Columbia’s oil and gas industry through a C$40 million Economic Measures Fund.

Since its creation in April 2002, the fund has approved 112 projects valued at C$25 million.

A further boost to the process is a Canadian Association of Petroleum Producers-Treaty 8 forum to facilitate discussions involving First Nations, the industry and government.

Neufeld said May 16 that the “leadership and innovation demonstrated by the Treaty 8 chiefs over the last year has gone a long way in developing partnerships and creating employment and training opportunities for First Nations.”

Chief Malcolm Apsassion of the Blueberry River First Nation – one of eight in the Treaty 8 region – said earlier this year that “through a co-operative process we should be able to move forward on several fronts.”

He said the aboriginals are not opposed to development, but are committed to “ensure economic initiatives are sustainable within our treaty territory. One day industry will leave, but we will still be here.”

Chief Garry Oker of Doig River First Nation, noting that “whatever has been tried in the past has not worked,” said First Nations “have to be part of the solution ... it’s time for a new beginning.”

Timely regulatory decisions

However, the difficulty of closing the gap between industry and aboriginals was evident at a Fort St. John conference last fall.

Duke Energy Canada President Bob Reid stressed that although the industry agrees it must act as a good custodian of the environment it also needs “timely regulatory decisions.”

He said Duke had invested C$100 million in a plant, but has been stalled for two years trying to obtain a permit to build a pipeline.

“You cannot have oil and gas development without consequences,” Reid said.

Larry McCoy, Murphy Oil’s vice-president of exploration and land, called for greater clarity on restrictions companies faced on land they wished to purchase.

He warned that Murphy has “very mobile dollars and we can spend them in Alberta and Saskatchewan, or elsewhere.”

Chief Stewart Phillip, president of the Union of British Columbia Indian Chiefs, said he could not remember in 30 years when First Nations chiefs had been so resolved to speak with one voice in dealing with the oil and gas sector.






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