NWT enters new chapter; gains control of its oil, gas, minerals

It was April 1 and it was no prank, but it was surely a day of fresh hope and good cheer in the Northwest Territories.

For one of Canada’s three Arctic jurisdictions, it was a moment of historic significance when the NWT came as close as it could to attaining the same powers as the 10 Canadian provinces by taking control over its on-shore lands, water and natural resources.

The so-called devolution ended decades of negotiations that stalled and spluttered until Prime Minister Stephen Harper gave the most decisive prod by any Canadian government that has enabled the NWT to cross a threshold a finally gain the same status that was granted to the Yukon Territory 11 years ago.

In its most basic terms, the NWT will have the ability to collect royalties on the production of oil, natural gas and minerals rather than watching that money transferred into federal coffers, until some was returned as federal handouts.

For now that will be about C$60 million in revenues, with one-quarter shared directly with aboriginal governments, and hopes high that the amount will grow from nine new mining projects by 2020 and possible oil development in the Central Mackenzie Valley.

Five of the NWT’s seven aboriginal communities are full partners in the devolution agreement, while the Dehcho and Akaitcho First Nations mulling over whether they will sign on.

Decision making will largely transfer

NWT Premier Bob McLeod remembers when federal officials had more “authority and responsibilities” than cabinet ministers in the NWT government.

“Now with devolutions, that’s not the case at all,” he said, noting that northerners will be “making the decisions about the things that affect them most.

“They’ll control the breadth and pace of development and that’s how I believe it should be. We have a special attachment to the land and water, so we’ll make sure we have balanced development,” McLeod said.

Emboldened by its news status, the NWT government has made a case to the Canadian government to raise the region’s borrowing limit to C$1.8 billion from C$800 million to fund infrastructure that could spur on resource projects by financing power delivery and roads.

Investment called vital

He said the NWT is acquiring regulatory advice from Canada’s National Energy Board and the governments of Alberta and British Columbia to smooth the transition and build a regulatory regime.

And it’s not a case where industries are relying solely on the NWT to carry the infrastructure load.

Husky Energy is building an all-season road to access its work sites in the Central Mackenzie Valley and ConocoPhillips is mulling the construction of a winter road on top of its application to build a year-round work camp for 325, based on documents filed with the Sahtu Land and Water Board.

For all the optimism that is building there are some bumps in the road, with some aboriginal communities concerned that the doors could be thrown wide open to exploitation of land and water.

Under the devolution legislation, four existing regional land and water boards are supposed to be merged into one over the next year, prompting the Tlicho government near Yellowknife to challenge the elimination of its area board.

Garth Wallbridge, an aboriginal attorney in Yellowknife, told the Canadian Broadcasting Corp. that the NWT has a “duty to consult” with aboriginal groups relating to any plans that could have an impact on their land or treaty rights, which means more than just listening to the residents then proceeding with the original plans.

—Gary Park