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TMX opposition dwindles
Two more First Nations say settlements protect environmental, cultural interests Gary Park for Petroleumnews
The more First Nations that do an about face and sign on as supporters of the Trans Mountain pipeline expansion, TMX, further raising hope of an indigenous ownership stake in the project, the more the dwindling ranks of First Nation opponents dig in against the plan to ship crude bitumen across British Columbia.
The latest deal with the Canadian government, as owner of TMX, saw two First Nations dropping out of Federal Court of Appeal litigation, leaving only four to join environmentalists and some municipalities to waging battle.
The two indigenous communities said in a joint release with TMX that their change of mind represents a “significant step forward” to address environmental, archaeological and cultural heritage concerns.
The Upper Nicola First Nation said the pact includes resources to support its active involvement in emergency response and monitoring measures of the new pipeline while also helping avoid and mitigate impacts on the community’s interests and stewardship areas.
The other signatory, Stk’emlupsemic te Secwepemc, said its leadership had determined an agreement could be used as part of a larger strategy to protect its cultural, spiritual and historical connections to the land.
Upper Nicola Chief Harvey McLeod said his negotiators came up with the “best deal” possible, although a number of significant consultations issues still need attention.
Equity proposal Michael LeBourdais, a director with the Western Indigenous Pipeline Group, WIPG, which is seeking a 51% share of TMX, said that although the Canadian government “can’t tip its hand, it has been pretty receptive” to the aboriginal equity proposal.
He said WIPG plans to line up two banks as key lenders and also hopes to obtain federal loan guarantees, noting the government’s purchase last year of the existing 300,000 barrel per day Trans Mountain line and the planned addition of 590,000 bpd on TMX have cost an estimated C$11.9 billion.
“To me, happiness would be 51% (ownership),” said LeBourdais. “We’ll pay market value for this pipe with the support of our bankers and (federal) guarantees.”
WIPG might also qualify for a slice of the Alberta government’s new C$1 billion for real world First Nations business ventures.
In addition to WIPG, there is Project Reconciliation, PR, a First Nations coalition that is also targeting an ownership share in TMX and hopes to develop a single aboriginal proposal.
“I don’t think the federal government is going to look at any group and pick one over the other,” said Delbert Wapas, head of PR.
He said that bringing the groups together may require government intervention.
“I’m all for whatever is going to help us decide because I don’t want the opportunity squandered,” he said.
Suncor backs proposal The hopes of a comprehensive First Nations’ proposal has strong backing from Suncor Energy, Canada’s largest bitumen producer, whose Chief Executive Officer Mark Little wants the Canadian government to negotiate the sale of TMX back to the private sector, including Indigenous ownership.
He also challenged the energy industry and other Canadian industries to build new partnerships with First Nations across Canada.
“It is very important that we do these types of equity deals so we can have more and more First Nations share in the prosperity of the energy industry,” he said, suggesting Trans Mountain should lead the way on that front.
Government losing patience Meanwhile, the Canadian government is showing signs of losing patience with the latest bid by the four holdout First Nations in their effort to convince the federal appeal court that the government has failed to engage in consultations since the same court quashed approval of TMX.
They argued before a three-judge panel that the government failed in its obligation to hold meaningful dialogue between August 2018 and June 2019.
Maureen Killoran, an attorney for Trans Mountain, told the court that the company has conducted six years of consultations with First Nations and other affected parties and that will continue through the project life cycle.
She said the issues raised by the opponents are merely relitigation of issues raised in the original court hearing and are effectively a veto against the project.
Killoran said the arguments raised by the indigenous groups should be dismissed.
Separately, a positive signal came from Prime Minister Justin Trudeau, who in a series of year-end interviews said, “that pipeline (TMX) is going to get built.”
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