Alberta
Indigenous leaders see progress in 2023 but continue to advocate for national loan guarantee program
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Wolf Midstream and its partners in the Northern Lakeland Indigenous Alliance participate in a signing ceremony celebrating a $103 million loan guarantee from the AIOC to obtain a 43% stake in the Access NGL Pipeline System. Photo courtesy AIOC
From the Canadian Energy Centre
By Shawn Logan
“Things are starting to work but self-determination is the ultimate goal.”
When John Desjarlais reflects on 2023, he admits he had feared a growing national tide of Indigenous investment in key energy projects was due to hit a speedbump.
Instead, as a new year approaches, the executive director of the Indigenous Resource Network (IRN) says any doubts have been replaced by optimism that the positive momentum of the last few years will flow into 2024.
“I’m feeling more optimistic now. I’m pleased to see the level of conversation being had with Indigenous leaders,” he said.
“I think there is growing opportunity for Indigenous participation across entire value chains, for board and executive positions, and more meaningful involvement. I think we’re really going to see the needle move in 2024.”
John Desjarlais, executive director of the Indigenous Resource Network in Bragg Creek, Alta. Photo by Dave Chidley for the Canadian Energy Centre
Despite the year’s slow start, Desjarlais said 2023 became something of a bellwether for how the rest of the world views the involvement of First Nations and Métis in Canada’s oil and gas industry.
In April, Desjarlais joined a delegation of Indigenous leaders in Ottawa to meet face-to-face with diplomats from some of the world’s strongest economies. Joined by Haisla Nation Chief Councillor Crystal Smith, First Nations LNG Alliance CEO Karen Ogen and former Enoch Cree First Nation chief Billy Morin, the delegation quickly learned not only was there an appetite for Canadian energy, but for Indigenous knowledge and participation on the critical file.
“Every official had a real desire to really understand Indigenous sentiment around resource development. There was a sincere desire to learn from our perspective,” Desjarlais told the CEC following the meetings with representatives from G7 allies Germany, France, Japan and the United States, as well as Poland and India.
However, while potential international energy partners are intrigued by the potential of relationships with Indigenous energy suppliers, a significant hurdle remains – the need for a national loan guarantee program that would empower more Indigenous ownership in community-transforming projects, particularly oil and gas.
Dale Swampy, president of the National Coalition of Chiefs, is a veteran in the fight for First Nations and Métis to fully benefit from critical resources to directly benefit communities. And he is hopeful there is growing recognition in Ottawa that enabling self-determination is an effective and enduring pathway to prosperity.
“The only way to defeat on-reserve poverty is to create ways to employ people,” he said.
“And the only industry that gives us this opportunity is the natural resources industry.”
Alberta has been a leader in helping open doors to indigenous ownership of major resource projects, launching the Alberta Indigenous Opportunities Corporation (AIOC) in 2019. As the year came to a close, the AIOC announced two more major deals, which will see the total investment backed by the fund to date reach more than $680 million, directly impacting 42 Indigenous groups.
Dale Swampy President National Coalition of Chiefs. Canadian Energy Centre photo
In what marks the second-largest loan guarantee backed by the provincial corporation, 12 Indigenous communities will invest $150 million to obtain 85 per cent ownership in oil and gas midstream infrastructure in the Marten Hills and Nipisi areas of the Clearwater play in Northern Alberta.
While the ink was still drying, two days later another deal saw five First Nations in northwestern Alberta enter into a $20.5 million partnership with NuVista Energy Ltd. for majority ownership of an emissions-reducing cogeneration unit at the Wembley gas plant in the County of Grande Prairie.
The AIOC’s success saw the Alberta government increase its loan guarantee capacity to $2 billion this year, and it’s set to increase it further to $3 billion for the 2024-2025 fiscal year.
Desjarlais’ IRN spent most of 2023 advocating for a federal version of the AIOC, to emulate its success at the national level.
Chief Greg Desjarlais of Frog Lake First Nation signs a historic agreement between Enbridge and 23 First Nation and Métis communities in September 2022. The communities acquired, collectively, an 11.57% non-operating interest in seven Enbridge-operated pipelines in the Athabasca region of northern Alberta for $1.12 billion on September 22, 2022. Photo courtesy Enbridge
In its fall financial update, the federal government announced it would unveil a new Indigenous loan guarantee program when it sets its 2024 budget this spring. But there has been no commitment to include oil and gas projects as part of the program.
Desjarlais said the fact a program has been promised is a good first step – now Indigenous leaders need to convince the federal government that imposing restrictions will only impede economic reconciliation.
“It looks like there is a program coming but we have to take a look at the exclusions,” he said.
“What we really want to see is less paternalism. Things are starting to work but self-determination is the ultimate goal.”
Desjarlais said the last few years have seen significant progress when it comes to Indigenous involvement in resource projects.
On the west coast, Indigenous-owned Cedar LNG and Ksi Lisims LNG will be at the vanguard of Canada’s first significant foray into exporting the in-demand fuel for customers in Asia. While several Indigenous communities across western Canada are investing in critical infrastructure like pipelines and carbon capture and storage projects.
For Swampy, that progress is long overdue. And it’s becoming increasingly clear that Indigenous communities no longer want to be reliant on government supports – they want to take control of their own destinies.
“They want to take part in the prosperity that comes with oil and gas, and they want to own it,” he said.
“All we ask is that we be involved when it comes to the question about land and resources. We don’t want to just be part of these consultations, we want to lead projects.”
Alberta
New children’s book demonstrates how the everyday world is connected to natural resources
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From the Canadian Energy Centre
‘Today’s youth have the opportunity to lead us into the future with innovative solutions for environmental challenges’
After a 24-year career in oil sands land reclamation, author Tanya Richens is sharing her knowledge with young minds.
Her new book, From the Earth to Us: Discovering the Origins of Everyday Things, explores the relationship between natural resources and the things we use in everyday life, from computers and water bottles to batteries and solar panels.
“There is a gap in society’s understanding of where things come from. We are a society driven by consumerism and immediate gratification. We order something online, and it arrives on our doorstep the next day. We don’t stop to think about where it really came from or how it was made,” Richens says.
“There’s an ever-increasing societal position that mining is bad, and oil is even worse… But there’s a simple hypocrisy in those beliefs, since so many things in our lives are made from the raw materials that come from mining and oil and natural gas,” she says.
The book, illustrated by reclamation artist Shannon Carla King, follows young Hennessy Rose and her Cavalier King Charles Spaniel Riley on a trip to a children’s summer camp.
Hennessy’s mom is a guest speaker on the origin of everyday items and the relationship between humans and the earth. Through detailed explanations of items surrounding her, Hennessy’s mom teaches the kids how rocks, minerals, oil and gas from the earth are used to power and aid our lives, creating items such as building supplies, food and hair products, camping and sports equipment, and cell phones.
Author Tanya Richens poses with her two books for children about natural resources. Photo for Canadian Energy Centre
“I thought a simple and fun book explaining the raw materials needed to make everyday items would be valuable for all ages,” Richens says.
“When people feel personally connected to natural resources, they are more likely to promote sustainable practices. Today’s youth will have the opportunity to lead us into the future with innovative solutions for environmental challenges.”
Richens‘ career began with Alberta Environment, where she was a coordinator of reclamation approvals in the oil sands. She oversaw technical reviews of oil sands reclamation applications, communicated with statement of concern filers, coordinated public hearings and provided support for legislative changes.
She moved from government to Suncor Energy, ensuring the company’s compliance on reclamation projects and led initiatives to obtain reclamation certificates. She now works as an independent consultant.
Drawing on her wealth of experience in the field, Richens’ first book, Adventures in Land Reclamation: Exploring Jobs for a Greener Future, seeks to excite kids aged 9-12 years about jobs related to the environment and land reclamation.
Hoping to get From the Earth to Us into the hands of teachers, Richens is heading to the Edmonton Teachers Convention in late February. She says the book supports multiple learning outcomes in Alberta’s new science curriculum for grades 3, 4, 5 and 6.
“Ultimately, I’d like people to understand and acknowledge their individual part in the need for mining and oil and natural gas development. Until the naivety and hypocrisy in the world is addressed, I’m not sure that real environmental change is possible.”
Richens’ books can be purchased on her website at tcrenvironmental.com.
Alberta
Open letter to Ottawa from Alberta strongly urging National Economic Corridor
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Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
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