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ENBRIDGE NORTHERN GATEWAY PIPELINE PROJECT - UPDATE ON FIRST NATIONS POSITIONS ON THE PROPOSED PROJECT (Information for Minister)
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DATE

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June 21, 2011


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PURPOSE

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To provide you with information on conflicting First Nation positions on the Enbridge Northern Gateway Pipeline' (Northern Gateway) project and to identify concerns associated with unsettled landclaims along the pipeline route in British Columbia (Be).
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-SUMMARY
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BACKGROUND

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The Northern Gateway project proposes a 1,170 kilometres (km)-Iong twirl' pipeline to carry up to 525~OOO barrels of crude oil per day from the oil sands area of Alberta to the northern Be' coastal town of Kitimat, and up to 192,000 barrels of coridensate
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per day from Kitimat back to the oil sands .


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The Agency has met and continu'es to meet with First Nations to ensure that there: is;~:-" a clear understanding of the process, to encourage groups to identify their concerns .. to the Panel ~nd to better understand their concerns in order to inform government submissions to the PaneL On May 5, 20·11, the Panel issued the Hearing Order for the project (Annex Dr~' ~n the'-Hearing Order, the Panel indicated that it will start meeting with participants 'or; January 10, 2012. The, Hearing Order indicates that interested participants will be .'~ able to choose from the following options for participation in the joint review . _.~-' process: submit a letter of comment, make an oral statement, become an Intervenor or become a Government Participant. The' Hearing Order also provi'des ~ .Timetabl~. ' ,of Events but there are no formal time limits for the various processes as the· P~nel :', sets 'its own timelines, much the same as the Me'Kenzie Gas Pipeline Joint Review Panel. /,' , J;_;
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ISSUES

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One of the main obstacles for the project is th.e unsettled land 'claims in Be (Annex A). The Northern G.ateway would cross· key watersheds that are home to salmon stocks on which the local Aboriginal communities rely. Some First Nations .. insist that the risk of an oil spill is too great and some have also expressed .. opposition to the Panel, process and alleged- a lack of adequate Aboriginal consultation. The First Nations feel the reliance on the Panel process to act as at: ·.~~~;l' one-time opportunity for Aboriginal gr0ups to provide informa~ion about Aborigirlcil"" ., interests will undermine cqnsultation in a very serious way ·(Annex F). Opposition to oil sands projects including the Northern Gate"Yay has become' a bi'g fUfldraiser for environmental non-governmental organizations. An article in The Vancouver Sun indicateQ that much of the opposition to the oil sands· is funded
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by U.S. foundations built on the fortunes of American capitalists including, ironically, oil magnate John D. Rockefeller and the Pew family, who pioneered the commercial operation of the oil sands." (Annex G). The article goes·on to state that the "Northern Gateway is ·being ostensibly oppos~d by native 9groups. The question is how far those groups are being manipulated and paid by the green movement." The Panel will be assessing the cumulative environmental effects of the project; however, despite receiving numerous requests to consider e'nvironmental effects associated with the development of Alberta's oil sands, the Panel will not add · environmental effects of oil sands development to the revised List of Issues .
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F'i~1St.nations dig in against Enbridge pip.eline


By CARRIETAIT AND NATHAN VANDERKLIPPE From Saturday's Globe and Mail
..

May 13 2011
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Constitutionet clout could drag proposed Northern Gateway all the way to Supreme Court
To the suits sneaking past the first nations' drummers protesting a new oil sands pipeline at Enbridge lnc.s ENB- T shareholder meeting in Calgary this week, it was easy to dismiss the demonstration as little more than a sideshow .
...
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But as the demonstration carried on, Jim Prentice. the former federal minister of Indian Affairs and Northern Development, was inside a hotel across the street ..warning after a. speech that those drums pack a powerful beat. In fact. first nations opponents, he said, wield substantial power over projects such as Enbridge's proposed $S.5... billion Northern Gateway pipeline, the biggest in its history.
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legal experts go even further. The people banging·those drums. some argue, have the, . constitutional clout to put up insurmountable. obstacles· for the proposed Northern Gateway namely, a messy legal debate ·around unsettled land claims along the route that will likely be decided by the Supreme Court of Canada.
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The implications of the high-profile clash between a cohesive group of first nations . opponents and industry over Northern Gateway ex1end far beyond the 525.000 barrels a day ofAlberta oil that are at stake. Mining, forestry and other projects face mirroring challenges, pitting industry against first nations land claims and their call for environmental protection. ..
~ ~

Mr. Prentice and various experts back what first nations in British Columbia have long argued: That the future of Northern Gateway and other industrial projects hinges onmuch more than regulatory approvals. They must secure first nations support for projects. which Enbridg~'s promise·of some $1-biUion in native benefits has failed to do. Instead, it has strengthened already fierce opposition. ..
~

...

"One of the great! public policy failures in Canadian history was the failure to actually execute

land claim .treaties and, in a sense) ntternent, in British Columbia over of course of the last 150 years," Mr. Prentice, nowa vice-chairman at Canadian Imperial Bank ofCommerce, said.
,

"And so the reality on the ground is that the constitutional and legal position of the first
nations is very strong."
• •

....

Threats of a legal fight have already emerged, especially as native groups look to a series of high-profile spills - including two in the U.S. last summer from Enbridge lines - as evidence that pipelines. pose substantial environmental risk.At Enbridge's meeting Geraldine ThomasFlurer, who co-ordinates the anti-pipeline Yinka Dene Alliance, warned chief executive officer . Pat Daniel of what is to come. She referred to the Canadian Constitution, and its recognition .. of aboriginal rights and title.
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Mr. Daniel has acknowledged that it would be "naive" to think that Gateway can garner unanimous support. But he has repeatedly argued that Enbridge can and will 'bring the 'line . into service - 'and said he thinks it can sway some aboriginal opinion - despite the gr~ing rancour.

..

'We think we can build it," he said. nWe think there are huge benefits not only nationally but also reg ionatly on this project"
,

The absence of treaties. combined with a slate of constitutional rights. is what gives first nations in British Columbia more power than bands outside its borders .
...
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liThe result of that is a great deal of uncertainty and there's no way around that uncertainty other than to work through the details," Mr. Prentice, who supports openinq up Asian markets to Canadian crude but stopped short of specifically referring to the 1, 172-kilometre Northern .Gateway pipeline, said in an -interview after his speech.
,

••

Companies negotiating with first nations in B.C. must "recognize [their constitutional and legal position] and treat them as:equals at the table."

But this negotiating process is what will trigger a long legal battle, said Rodney Nelson, a, professor of Canadian studies with, expertise in aboriginal issues at Carleton University in Ottawa. A'sticking point in any negotiations will be the legal obligation of the "duty to consult. an undefined provision in the Constitution Act.

,.

II

..

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Consultation now happens to varying degrees. Town hall meetings, for example, maY,:be ' considered consultation to some, but that does not necessarily mean host companies f~lfii_led their "duty to consult." Negotiations, however extensive and thorough, that end in a stalemate, can also be challenged as failing to meet the "duty to consult" standard. If first nations feel cheated at this point, arbitration will likely start. followed by provincial and federal .. lawsuits involving companies 'and the Crown.

"I think it is inevitable" that the Northern Gateway standoff win end up in the Supreme' Court, . . Prof. Nelson said.

....

... ..

He's not alone. "There's ammunition on the first nations side that allows them to wage a very long struggle," said Gordon Christie, an associate professor of law at the University ofBrit~sh .. . Columbia who specializes in first nations legal issues.
,
"':.

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How that struggle plays out depends in part, of course, on the will - and the financial ability' .: of first nations to maintain a court fight. But unsettled land claims, and the uncertainty over land title they foster, have created enough of a "Iegal mess" that "they could probably drag it
out so long that it just becomes economically not a project to follow through on," Prof. e hristie said. •
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This legal power could translate into a de facto veto. by drawing out the process and -"' substantially increasinq costs .
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Observers have drawn comparisons with the Mackenzie Valley natural gas pipeline. which was first proposed in the 1970s. again with northern first nations presiding over unsettled claims. A federal inquiry at the time recommended, the 1,196-kilometre Arctic pipeline not be built for at least 1Oyears, to allow a chance 'for settlement of those claims.
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