Alberta
Line 3 replacement helps Native American community curb poverty, says Indigenous business owner
‘We wanted to let other people know that all the Native Americans don’t oppose the pipeline’
Article from the Canadian Energy Centre
Written by Deborah Jaremko
On the White Earth Reservation in northwest Minnesota, Matt Gordon takes great pride that his family’s Native American-owned construction company is able to help workers support their families in a region where 21 per cent of the population lives in poverty.
Gordon Construction is working on Enbridge’s Line 3 Replacement Project, and that ongoing work is helping provide vital jobs and income for a region that has seen its share of struggles.
The company has over 150 employees, 60 of whom are recognized federally as Native Americans, Gordon says. Of the other 90 employees, many are married to a Native American member, supporting a Native American family, or living on the reservation.
“All that money stays on the reservation. One guy that works or one lady that works, they take care of not only their children or their significant other or spouse, they take care of their aunt or their grandma. It’s a big web is what they take care of,” he says.
“These are union jobs for a lot of these people. You get hours built up and good health insurance. You don’t have to go to Indian Health anymore. You have a retirement after you’re vested and you have a sustainable income.”
Activist hypocrisy
After anti-pipeline activists wreaked havoc on a worksite earlier this month, Gordon and five fellow Native American business leaders working on Line 3 released a joint letter calling out activists in part for “intentionally creating a false narrative that there is no Native American support for this project and the economic impacts and opportunities it brings to our people.”
The work of Native Americans employed by Gordon Construction and other companies were disrespected and put on hold when protestors descended on the work site, claiming to be defending the environment and Indigenous rights.
“They ended up not only damaging our equipment, they put gravel in our fuel tanks, in our hydraulic tanks, flattened all the tires. They essentially took that place over for almost 24 hours. They just left garbage everywhere,” Gordon says.
“It’s a touch of irony how these people are coming in to say they’re there for the environment, but then it’s just total chaos and anarchy and then they leave a mess. It took three days for that place to be cleaned up before we could go back to work.”
Gordon says the letter was also a reminder that there’s not universal opposition to Line 3 from Native Americans.
“We wanted to let other people know that all the Native Americans don’t oppose the pipeline,” Gordon says.
“It’s a good thing all the way around up in the northwest Minnesota corridor.”
Early advocate for Line 3
From his office window in the small town of Mahnomen, where his family has been for generations, Gordon often sees oil trains rolling by. It’s an ongoing reminder of both the power of U.S. oil demand and the risks of transportation without pipelines.
“We see oil coming up and down every day. It’s not going to stop just because one pipeline shuts down,” he says. “Pipelines are indisputably safer.”
Gordon was an early advocate of the Line 3 project, having previously worked with owner Enbridge including doing pipeline integrity digs for safety inspection on the existing pipeline.
“Essentially they have a structure set up on safety and environmental similar to that of working for the government, but I would say it’s even more stringent,” he says.
“My big thing of it is that they are a fair company. They work with you and they’re not trying to bankrupt you or make you lose money. They want you to succeed because if you’re a success, they’re a success.”
Benefits in Mahnomen
Mahnomen County, inside the White Earth Reservation, has the lowest per capita income in Minnesota. It’s about $21,000 per year, according to the U.S. Census Bureau.
Gordon says that working pipelines, community members are able to make much more.
“You’re looking at guys that are working 60 hours a week, anything after eight hours a day is overtime, and all these guys are bringing home $2,500, $3,000 a week, which is huge to a lot of people in the community. Pretty proud of that fact.”
In addition to its contracts on the new Line 3, Gordon Construction is looking forward to supporting decommissioning and reclamation of the existing pipeline.
“Not only are we working now, but we’ll be working in the future when they’re doing the decommissioning of the line and shutting the old line down with final restoration. That’ll be a two to three year project,” Gordon says.
“We’ll have 40 to 60 guys dedicated to the final restoration portion after the line is done. And then you have the decommissioning aspect, and we’re trying to help support that process also.”
News release from Alberta RCMP
Canada Border Services Agency (CBSA) officers, working with the Integrated Border Enforcement Team (IBET) in Alberta, a joint force operation between the RCMP Federal Policing Northwest Region, CBSA and Calgary Police Service, seized 189 kg of cocaine following a secondary examination of a commercial truck seeking entry at the Coutts port of entry on Nov. 13, 2024. The drugs have an approximate wholesale value of $2 million.
“The safety and security of Canadians is the RCMP Federal Policing Northwest Region’s top priority. With the support of various law enforcement agencies, we’ve successfully prevented harmful drugs from entering Canada and harming our communities.
- Supt. Sean Boser, Officer in Charge of Federal Serious Organized Crime and Border Integrity – Alberta, RCMP Federal Policing Northwest Region
“I want to commend our CBSA officers who prevent illegal narcotics from breaching our borders and disrupt crime networks. In cooperation with our law enforcement partners, the RCMP and the Calgary Police Service, this significant seizure serves as another example of how Canada’s borders are being secured and drugs are kept off our streets.”
- Ben Tame, Director, Southern Alberta and Southern Saskatchewan District, Canada Border Services Agency
“Our efforts to combat drug trafficking rely heavily on working closely with our partner law enforcement agencies, including the CBSA and RCMP. This is a significant seizure that undoubtedly had the potential to cause serious damage to our community.”
- Supt. Jeff Bell, Criminal Operations & Intelligence Division, Calgary Police Service
IBET’s mandate is to enhance border integrity and security along the shared border, between designated ports of entry, by identifying, investigating and interdicting persons, organizations and goods that are involved in criminal activities.
All partners are engaged in the ongoing criminal investigation.
From the Fraser Institute
By Tegan Hill
As Albertans look toward a new year, it’s worth reviewing the state of provincial finances. When delivering news last month of a projected $4.6 billion budget surplus for fiscal year 2024/25, the Smith government simultaneously warned Albertans that a budget deficit could be looming. Confused? A $4.6 billion budget surplus sounds like good news—but not when its on the back of historically high (and incredibly volatile) resource revenue.
In just the last 10 years, resource revenue, which includes oil and gas royalties, has ranged from a low of $3.4 billion in 2015/16 (inflation-adjusted) to a high of $26.1 billion in 2022/23. Inflation-adjusted resource revenue is projected to be relatively high in historical terms this fiscal year at $19.8 billion.
Resource revenue volatility is not in and of itself a problem. The problem is that provincial governments tend to increase spending when resource revenue is high, but do not similarly reduce spending when resource revenue declines.
Overall, in Alberta, a $1 increase in inflation-adjusted per-person resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year, but a decline in resource revenue is not similarly associated with a reduction in program spending. Over time, this pattern has contributed to historically high levels of government spending that exceed ongoing stable levels of government revenue.
And while the Smith government has shown some restraint, spending levels remain significantly higher than reliable ongoing levels of government revenue. Put simply, unpredictable resource revenue continues to help fund Alberta’s spending—and when resource revenues inevitably fall, Alberta is at high risk of plummeting into a deficit.
Indeed, Finance Minister Nate Horner continues to emphasize that we are “living in extremely volatile times” and warning that if oil prices fall below $70.00 per barrel a budget deficit is “very likely.” According to recent forecasts, the price of oil may hit $66.00 per barrel in 2025.
To avoid this fate, the Alberta government must do more to rein in spending. Fortunately, there’s plenty of options.
For example, the government spends billions in subsidies (a.k.a. corporate welfare) to select industries and businesses every year. A significant body of research shows these subsidies fail to generate widespread economic benefits. Eliminating this corporate welfare, which would generate significant savings in the budget, is a good place to start.
If the Smith government fails to rein in spending, and Alberta incurs a budget deficit, it will only mean more government debt on the backs of Albertans. And with Albertans already paying approximately $650 each in provincial government debt interest each year, that’s something Albertans simply can’t afford.
With a new year set to begin, the Smith government continues to warn of a budget deficit. But rather than simply prepare Albertans for more debt accumulation—financed by their tax dollars—the government should do more to avoid red ink. That means cutting wasteful government spending.
Tegan Hill
Director, Alberta Policy, Fraser Institute
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