First Nations

Harper cabinet readies major B.C. pipelines push

B.C. First Nations leaders to meet with key federal officials Sept. 23 in Vancouver

By CHRIS HALLl

A parade of cabinet ministers and senior bureaucrats will head to British Columbia starting next week as part of a major push to mollify opponents of building oil pipelines to the West Coast, CBC News has learned.

Prime Minister Stephen Harper is signalling he intends to make progress on proposals to connect Alberta's oilsands with ports in British Columbia and the lucrative Asian markets beyond.

The new initiative is in large part a response to a report from the prime minister's special pipelines representative in British Columbia. Douglas Eyford told Harper last month that negotiations with First Nations — especially on Enbridge's proposed Northern Gateway — are a mess.

Eyford's report to the prime minister, and his final report in November, will not be made public.

But sources tell CBC News Eyford urged the federal government take the lead role in dealing with Indian bands on both the Gateway project and the proposed expansion of Kinder Morgan's Trans-Mountain pipeline.

• Special Report: Northern Gateway 
• The Alberta oilsands explained
• Canada's main pipeline network 

First Nations leaders in B.C. confirm they are to meet on Sept. 23 in Vancouver with a delegation of deputy ministers from Aboriginal Affairs, Natural Resources, Environment and other departments with direct oversight of the proposed projects.

Grand Chief Stewart Phillip, of the Union of British Columbia Indian Chiefs, said the request to meet came out of the blue on Thursday, with no agenda — and no indication of what Ottawa is prepared to offer.

"I have a sinking feeling that perhaps they're covering their backsides in terms of a consultation record,'' Phillip said in an interview from Vancouver. "And looking towards laying the groundwork that will be necessary when the decision is finally made by Prime Minister Harper and the cabinet, regardless of what the joint review panel comes forward with in terms of an approval or a rejection of these proposed projects.''

Federal bureaucrats aren't the only ones with orders to head to B.C.

Starting Monday, Harper has directed key ministers on the file to promote the projects in the province.

Natural Resources Minister Joe Oliver will continue to be the lead minister. Aboriginal Affairs Minister Bernard Valcourt will be in B.C. all next week, although the primary reason for his trip is to attend hearings of the Truth and Reconciliation Commission. Others planning trips before Thanksgiving are Transport Minister Lisa Raitt and Environment Minister Leona Aglukkaq.

Phillip said they have all asked for meetings with First Nations.

Adding to the sudden flurry of interest from politicians, Phillip said B.C. Premier Christy Clark wrote to request a sit-down with them too, proposing a time that actually overlaps with the federal meeting.

"I find it very disturbing … that there's such an urgency attached to both letters," Phillip said, noting the chiefs had heard nothing from the politicians for months, until now.

Energy superpower — or pipe dream?

Federal sources say the objective is to work proactively to convince First Nations, community groups, and B.C.'s government that moving oil through the province is good for the economy, and good for them.

Prime Minister Stephen Harper is making a push to convince B.C. Premier Christy Clark, background, and B.C. First Nations to drop their opposition to proposed pipelines carrying Alberta oil and gas through the province for export. (Jonathan Hayward/Canadian Press)

It's the second prong in a fall campaign to realize Harper's vision of Canada as an energy superpower, a vision that so far remains just a pipe dream, when so much of the country's vast oil deposits remain in landlocked Alberta.

CBC News reported last week that Harper wrote U.S. President Barack Obama in late August to propose joint standards for reduced greenhouse gas emissions for the oil and gas sector in both countries, in return for presidential approval of the proposed $7-billion Keystone XL pipeline from Alberta to refineries on the U.S. Gulf Coast.

And now comes the new overtures in British Columbia, complete with a more conciliatory tone from the federal Conservatives, who until now have opted largely for confrontation over co-operation with pipeline opponents.

Sources tell CBC News that the Prime Minister's Office met recently with First Nations representatives, asking what Ottawa could do to address their concerns.

The meeting on Sept. 23 is a followup. Representatives from the B.C. Assembly of First Nations and Coastal First Nations are also invited.

First Nations focus

Federal officials say they aren't there to make specific offers, but to engage groups directly affected by both the proposed Northern Gateway pipeline to Kitimat, B.C., and Kinder Morgan's Trans-Mountain pipeline to Burnaby, B.C.

Ottawa is also increasing its efforts to appease the B.C. premier. Clark set out five conditions to approve the controversial Northern Gateway project, including improved methods to prevent and clean up spills and a bigger share of revenues for the province.

Natural Resources Minister Joe Oliver is one of the Harper ministers who will be spending more time in B.C. over the next few weeks. (Darryl Dyck/Canadian Press)

Ottawa already responded to some of these demands, for example, announcing new regulations last spring to improve the safety of oil tankers and oil-handling terminals, raising the corporate liability for offshore spills to $1 billion and imposing a new set of fines of up to $100,000 for safety breaches that, if unaddressed, could lead to more serious problems.

But dealing with the concerns of First Nations bands remains the biggest challenge.

Federal officials acknowledge that Enbridge did a poor job in dealing with bands along the proposed Gateway route. Media reports suggest the company now faces a nearly impossible task to earn local support.

The outlook is better, if not exactly rosy, for U.S. based Kinder Morgan’s plans to twin its Trans-Mountain pipeline that runs from Edmonton through Kamloops to Burnaby.

At least three First Nations oppose the plan, which would triple the amount of crude oil being transported each day to 890,000 barrels. Area Indian bands say the line is old and prone to leaks.

One of the communities, the Coldwater Indian Band near Merritt, will be in a B.C. court Oct. 30 looking for a judicial order that would prevent Ottawa from approving the expansion without its consent.

The company plans to file its formal application with the National Energy Board later this year.

In an email, Coldwater Chief Harold Aljam said his band has met with Eyford, but no one from the federal government has contacted the band for a further meeting.

Coldwater, he said, is still preparing to go to court.

Big stakes

For First Nations, the fear is the Harper government intends to push through both pipeline proposals no matter what.

Much of the discussion will be about the economic benefits of the projects and the role the pipelines will play in diversifying Canada’s energy exports.

Ottawa is feeling the pressure from the oil and gas industry, as well as other business groups.

In a report to be released next week, the Canadian Chamber of Commerce says being captive to the U.S. market now costs Canadian oil producers $50 million a day. Of that, $10 million is lost tax revenues to various levels of government.

The message: someone has to show the political courage to push through pipelines.

And that person, no doubt, will be Stephen Harper. The man with the pipe dreams.

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Doug Eyford, a Vancouver lawyer and treaty negotiator, is discouraging the notion that there are any shortcuts on the road to reconciliation

By JUSTINE HUNTER

The Prime Minister's envoy appointed to bring First Nations onside to develop energy corridors across British Columbia is warning that much time has already been lost, setting the stage for "confrontation and resistance" rather than agreement.

While Ottawa is cranking up the pressure to reach a quick resolution to provide new export pathways for Western Canada's energy resources, Doug Eyford, a Vancouver lawyer and treaty negotiator, is discouraging the notion that there are any shortcuts on the road to reconciliation.

Mr. Eyford is not due to deliver his fact-finding report to Prime Minister Stephen Harper until November. But in a speech at a summit on liquefied natural gas in Vancouver, Mr. Eyford outlined a series of hurdles on the First Nations energy file, from overlapping land claims to an entrenched history of litigation.

At the same time, Natural Resources Minister Joe Oliver was also in Vancouver, expressing concern that opportunities for "billions of dollars" of development could be lost if settlements cannot be struck in a timely way with aboriginal leaders.

B.C. is poised for a major energy boom, with a significant array of development projects on the drawing board, from the Enbridge Northern Gateway pipeline to liquefied natural gas plants. Because much of the province remains subject to unresolved land claims, the federal government plays a key role in these projects, with a duty to consult with First Nations in the path of those developments.

"First Nations communities are expected to become experts in energy policy and make decisions that may permanently alter their cultural connection to their traditional territories," Mr. Eyford told the LNG conference on Sept. 23. "These projects are profoundly challenging for aboriginal leaders, and confrontation and resistance are the likely outcomes if their communities are not effectively engaged during the planning and development stages."

Ottawa has sought to integrate its obligation to consult on major resource projects into environmental assessments, as it did in the Northern Gateway pipeline application. But Mr. Eyford said that does not allow for the "deep consultation" required in major resource-development projects.

"From a risk management perspective, governments cannot afford to stand at arms-length from projects of regional or national importance," he said.

And the challenge of overlapping land claims "should not be underestimated," he said. "The spectre of endless conflict among aboriginal groups, including litigation, may influence final investment decisions." The Enbridge pipeline proposal alone would have to cut through lands claimed by 30 First Nations.

Mr. Eyford was drawing on the lessons he learned from a similar case that was, like the current proposals to move heavy oil from Alberta to B.C.'s coast, deemed to be in the national interest.

In 2008, Mr. Eyford was appointed by Transport Canada to resolve a dispute that was holding up expansion plans for the port of Prince Rupert. Five First Nations were involved, with overlapping and unresolved land claims. After years of litigation, the parties were entrenched and mistrustful. Delay, he said, was endemic.

"I anticipated that formal agreements would be completed within a matter of months. I was wrong," Mr. Eyford noted. The file, already four years old when he was brought in, took another three years to resolve.

Mr. Eyford was appointed last spring to help map out a settlement strategy, and he has already delivered a preliminary report to the Prime Minister. That report has not been made public. However, there are indications that his advice has led to a renewed effort to reach out to First Nations in B.C.

Last week, Ottawa dispatched five deputy ministers to Vancouver to meet with aboriginal leaders to "better understand the issues and priorities" of First Nations for resource and infrastructure development. This week, the Canadian Environmental Assessment Agency offered up cash to help First Nations participate in the Northern Gateway pipeline review.

Art Sterritt, executive director of the Coastal First Nations, dismissed the offer – $14,000 for his organization – as "a joke." However, he said he is hopeful Mr. Eyford is delivering a clear message to Ottawa about what needs to change. He said the efforts come too late to win over support for the Enbridge pipeline proposal, but could influence other developments in the energy sector.

"Northern Gateway is dead," Mr. Sterritt said in an interview. "But if we can develop a new relationship with Canada, perhaps we can sit down and have a conversation."

www.theglobeandmail.com

 

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