first nations lng facilitators report

First Nations LNG Summit – Facilitators Report November 2013

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Prince George, British Columbia October 9-‐10, 2013

F a c i l i t a t o r ’ s R e p o r t

First Nations LNG Summit


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Facilitator’s Report Prepared by Co-‐Chair: Miles Richardson, President Miles Richardson and Associates [email protected] Submitted to Host Organization: Carrier Sekani Tribal Council


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Table of Contents

1 Introduction ........................................................................................................... 1 1.1 Organization of Report ................................................................................................ 2

2 Day 1: October 9, 2013 ........................................................................................... 3 2.1 Presentations Summaries ............................................................................................ 3

2.1.1 Welcoming and Opening Remarks .............................................................................. 3 2.1.2 International Perspective ............................................................................................ 5 2.1.3 Government ................................................................................................................ 6 2.1.4 BC First Nations Leadership Council ........................................................................... 7 2.1.5 Upstream – Natural Gas Extraction Panel ................................................................... 8 2.1.6 LNG Industry ............................................................................................................... 9 2.1.7 Cumulative Impacts Panel ......................................................................................... 10 2.1.8 Summary of Day 1 Presentations and Facilitator’s Reflections ................................ 12

3 Day 2: Oct 10, 2013 .............................................................................................. 13 3.1 Presentation Summaries ........................................................................................... 13

3.1.1 Pacific Trails Pipeline Partnership Panel ................................................................... 13 3.1.2 Lessons Learned Panel .............................................................................................. 14 3.1.3 Summary of Day 2 Presentations .............................................................................. 16

3.2 First Nation Breakout Sessions .................................................................................. 17

4 Concluding Reflections: Facilitator’s Recommendations ....................................... 18

Appendix A: List of First Nations and Organizations in Attendance ............................. 21

Appendix B: First Nations Natural Gas Declaration…………………………………………Attached

Appendix C: First Nations Energy and Mining Council Workshop Agenda……….Attached

Appendix D: BC First Nations LNG Summit Discussion Paper…………………………..Attached


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1 Introduction On October 9th and 10th, 2013, First Nations from across northern British Columbia (BC) convened at the BC First Nations LNG Summit in Prince George to discuss considerations, options and approaches for coming together in response to and in advance of proposed natural gas development across northern BC. Also present at this Summit were federal and provincial government Ministers, international interests in securing sources of liquefied natural gas (LNG), industry representatives, legal commentators, and First Nations non-‐governmental organizations. This Summit was organized by a number of First Nations and First Nations organizations who are driven by the belief that if First Nations come together to develop their response to the proposed increase in natural gas development in northern BC the outcome will be dramatically better for their communities than if they respond to these development proposals one-‐by-‐one. Coming together can help First Nations get better information about the full scope of the potential and likely impacts, whether positive or negative, from these proposed projects, strengthen their ability to protect their title, rights, and interests, and negotiate the best deal, if these developments are found to be consistent with northern BC First Nations priorities, values, and responsibilities for their lands, waters, and communities. This Summit builds on the momentum established by an earlier conference on these proposed natural gas developments, held in Prince Rupert, BC, in June of this year, which convened the initial collective discussion about coming together as northern BC First Nations to deal with the proposed increase in natural gas projects in this region. The organizers were concerned that if First Nations continued on as they had been going, negotiating with each developer independently of each other, some would be left out altogether from any deals that would be negotiated with developers, the aggregate value and standards of protection negotiated between developers and all First Nations in BC would be lower than if First Nations pooled their power, and critical knowledge of potential environmental effects would be lost. This Summit in Prince George moves forward this discussion amongst First Nations, to facilitate the process of coming together to protect northern BC First Nations’ title, rights and interests and maximize their power and negotiating position relative to industry and the federal and provincial governments. This Summit also discussed plans for holding a subsequent gathering of northern BC First Nations to keep the momentum going and facilitate collaboration amongst Nations. A First Nations Natural Gas Strategy Website has been created, which outlines the communications plan amongst northern BC First Nations involved in this collaboration: www.fnlngstrategy.ca.


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1.1 Organization of Report The sections below in the main body of the report cover the presentation topics, speakers, and discussions over the two days of the Summit, followed by a number of appendices that provide context on the Summit. The first day of the Summit, October 9, 2013, consisted largely of panel presentations. The day commenced with Lheidli T’enneh First Nation Chief Dominic Frederic and Carrier Sekani Tribal Council Tribal Chief Terry Teegee welcoming the delegates and convening the Summit with opening remarks. Co-‐facilitators Miles Richardson and Leonard Thomas provided further context on the background of and reasons for holding the Summit and discussed the plans for the Summit with the delegates. These opening remarks were followed by presentations on international perspectives on BC First Nations and LNG by His Excellency Norihiro Okuda, the Ambassador for Japan, and by Grand Chief Ed John of the First Nations Summit as well as a Hereditary Chief from the Tl'azt'en Nation and a North American Representative to the United Nations Permanent Forum on Indigenous Issues. This presentation topic was followed by a set of presentations by government representatives, including the Honourable Joe Oliver, the federal Minister of Natural Resources and the Honourable John Rustad, the BC Minister of Aboriginal Relations and Reconciliation. Next, the BC First Nations Leadership Council, including Grand Chief Ed John and Regional Chief Jody Wilson-‐Raybould, BC Assembly of First Nations. In the following panel, Fort Nelson First Nation Chief Sharleen Gale and Lana Lowe, Director Fort Nelson First Nation Lands Department, presented reflections on the upstream First Nations experience with respect to the extraction of natural gas. Summit delegates then heard from a panel from the LNG industry, including Robert Kendel, the Vice-‐President of Aboriginal and Stakeholder Relations for TransCanada; Robert Whitwham, Vice President of Canadian LNG for Spectra Energy; David Molinski, Policy & External Affairs Lead of Kitimat LNG for Chevron; and Steve Swaffield, Acting President of BG Group Canada. This panel was followed by a panel on cumulative impacts, and included West Moberly First Nation Chief Roland Willson; Rodney J. Northey, Partner and Member of Environmental Law Group at Gowlings; and Nathan Cullen, Member of Parliament for Skeena-‐Bulkley Valley, as speakers. The second day of the Summit, October 10, 2013, featured a few more panel discussions, followed by First Nations breakout sessions, to facilitate decisions by First Nations on key strategic issues. The panel discussions focused on the Pacific Trails Pipeline First Nations Limited Partnership and lessons learned on managing and preparing for development. The first panel included Bob Rae, PC, OC, OOnt, QC, Chair of the Pacific Trail Pipeline First Nations Limited Partnership Group, former Premier of Ontario and former Member of Parliament for Toronto Centre; Harold Calla, Executive Chair of the First Nations Financial Management Board; and David Luggi, executive member of the Pacific Trail Pipeline First Nations Limited Partnership Group. The lessons learned panel included Dehcho First Nations Grand Chief Herb Norwegian; Wet’suwet’en First Nation Chief Karen Ogen; Robert Dennis of the Wet’suwet’en First Nation; Robert Botteran of the Wet’suwet’en First Nation. The First Nations breakout sessions


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identified key action items with respect to economic, environmental, and socio-‐cultural impacts to be taken over the next three-‐month, six-‐month, and longer-‐term periods. A series of appendices, including a list of First Nations and organizations that participated in the Summit, the draft of the First Nations Natural Gas Declaration, the First Nations Energy and Mining Council LNG Workshop Agenda, and discussion paper for the Summit, follow the main body of the report. The latter three documents follow as separate attachments.

2 Day 1: October 9, 2013

2.1 Presentations Summaries

2.1.1 Welcoming and Opening Remarks Chief Dominic Frederic, Lheidli T’enneh First Nation

Chief Fredric commenced his address to the Summit delegation by reminding them that each community has their own way of doing things and that “we don’t need to recreate the wheel”. The First Nations along the energy corridor have protocols to follow, which guide them and tell them they are connected to the land and are stewards of the land. He also noted that, in addition to being stewards of the land, First Nations people are also have an important role to play in the larger economy, as miners, loggers, pipe fitters, etc. He explained that negotiations are so important to First Nations because they are a key opportunity to ensure that First Nation communities can be sustainable and so that future generations have something to look forward to. Tribal Chief Terry Teegee, Carrier Sekani Tribal Council

Tribal Chief Terry Teegee began his address to the Summit delegation by acknowledging that this year is the 250th anniversary of the Royal Proclamation, and reflecting that, in some ways, this anniversary represents 250 years of baggage for First Nations people and all Canadians. He stated that First Nations are trying to rectify this history through negotiations and, when necessary, litigation. However, he noted that these processes meant to redress some of this history have often divided Nations and neighbours. This LNG Summit represents an opportunity to come together as one group to openly discuss, very candidly, how natural gas projects may affect First Nations people for many generations into the future. He urged First Nations along the energy corridor to form a collective voice and use their united strength to make the right evaluations and decisions with respect to proposed natural gas projects in the region. Many First Nations leaders have noted that, although colonization will change a people, First Nations also can also take what they find useful from colonizing cultures and make the best decisions best for their communities. Tribal Chief Teegee reiterated that the goal of this Summit is to come together as a collective and, “not just think, but act like the resources under discussion are ours


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to take responsibility for”. He stated that the ultimate goal is to have First Nations sign on to a Declaration that commits all to work together with an open mind and learn from each other all along the energy corridor. It is better to talk about the costs and benefits of natural gas development now rather than when it may be too late, in the future. He ended his address by stressing that First Nations need to build relationships based on mutual trust in order to pool their power and put themselves in a strong negotiating position with those proposing to develop the gas resources on their territories. He reminded the delegation that government and industry need this development more than First Nations do. Miles Richardson, Co-‐Chair Mr. Richardson thanked the Nadleh Whut’en Louie Singers and Traditional Dancers for reminding the Summit delegation that “All that First Nations people are depends on our relationship to our place, our territories. That is what our cultures express in our songs and our dances”. Mr. Richardson’s opening remarks focused on the importance of leadership and nationhood, and the fact that these natural gas development proposals are regarded as a generational opportunity that do not come around everyday. While many will want to reap the benefits of these opportunities, strong leadership will be critical to enabling these opportunities to be realized. He stressed that everyone who has an interest along the energy corridor needs to be involved, and that the function of the organizing committee has been to create an environment where everyone felt comfortable and willing to work together with respect to natural gas development. He noted that most First Nations people do not realize how much power they have, but also stressed that the full magnitude of this power will never be realized unless First Nations can unite. He encouraged the Summit delegation and organizing committee to consider a principle agreed to at the Northwest Energy Opportunities Conference in Prince Rupert in June of this year: that a united front must be developed by First Nations, and that once First Nations come together, they can assess the potential concerns and benefits of these proposed developments on their territories. Leonard Thomas, Co-‐Chair Mr. Thomas began by reflecting on the manner in which First Nations are covered in the media, and the impact this coverage has on the general public’s perception of First Nations. He noted that First Nations are most often portrayed as fighting amongst themselves, while in reality First Nations are looking for change. The grassroots people are standing up to demand a greater say about the direction of development. The goal of this Summit is to provide a venue to bring First Nations people to come together on how to deal with proposed natural gas development. He stated that for the Summit to be effective, people would need to set aside their differences and start to work together, “to sit back side by side and set the space for a good relationship now and into the future”. He also cautioned that while government and industry may stress the limited timeframe for decision-‐making, most of the natural gas projects under discussion are still years away, so there is still time to set ourselves up for success.


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2.1.2 International Perspective His Excellency Norihiro Okuda, Ambassador for Japan His Excellency began his address by acknowledging that the Summit was taking place on the traditional territory of the Lheidli T’enneh First Nation. He shared his efforts over the past two months to learn more about the proposed natural gas developments and First Nations territories. He has learned that to develop natural gas in Canada it is critical to develop mutual trust and understanding with First Nations. His purpose in attending the Summit was to listen and learn. In exchange, he hoped the Summit delegation would listen to Japan’s position on and future plans for natural gas development. He explained that none of Japan’s nuclear reactors have been in operation since the tsunami and Fukushima nuclear power plant disaster in 2011. This has led Japan to procure natural gas as alternative energy source. At the same time that Japan’s need for natural gas has increased by approximately 30%, natural gas prices have increased by 50%. As a result, Japan is trying to decrease its dependency on existing LNG suppliers and is looking to work with other suppliers, such as the United States (US) and Canada. Ambassador Okuda explained why Japan viewed Canada as such an attractive potential source of LNG. First, Canada has an abundant supply of natural gas. Canada ranks 5th in the world for LNG supply. It is estimated that Canada could supply Japan for 140 years. Second, Canada is geographically close to Japan, which reduces transportation costs. For example, shipping from Canada to Japan takes ten days, while shipping from Mexico to Japan takes twenty days. Finally, Canada has a stable political environment. All of these reasons combine to make Canada a very attractive source of LNG for Japan. The Ambassador noted that Japan has a long history building relationships with indigenous peoples in Japan, which puts Japan in a good position to understand and respect the importance of good relationships with First Nations in Canada. Many Japanese companies have a great interest in doing business in Canada, but their plan is to first talk with First Nations to develop a mutual trust and understanding. Then and only then, will they look at moving forward in doing business here. The Ambassador concluded by stating that cooperation between Japan and Canada on LNG projects has the potential to have great mutual benefit for the governments and business communities in each country, as well as First Nations people. Grand Chief Ed John, First Nations Summit Grand Chief Ed John, a Hereditary Chief from the Tl'azt'en Nation, a long-‐standing representative on the First Nations Summit Task Group (political executive), and a North American Representative to the United Nations Permanent Forum on Indigenous Issues, thanked the Japanese Ambassador for speaking with the Summit delegation. He explained that, in the fall, the Carrier Sekani people look at the beautiful land, as leaves change to reds and yellows, and remember their ancestors. He explained that, in the fall, First Nations people know that they are moving into a difficult time of year where they depend on one another for their survival. He acknowledged that Japan lost many of its people as a result of the tsunami and the Fukushima nuclear plant disaster. Grand Chief Ed John presented gifts to the Ambassador for Japan, including a frog bowl, representing the clans that have the responsibility to hold the land together, and hand-‐made moccasins that in themselves are a gift from the land and the hands of


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the Elder that made them. Finally, he asked that Japan “walk in our footsteps to understand our people and to work together with us”.

2.1.3 Government Honourable Joe Oliver, Federal Minister of Natural Resources1 Minister Oliver began his address to the Summit participants with the statement “all the Aboriginal and non-‐Aboriginal people across Canada stand at a pivotal moment in our economic history”. He asserted that LNG is a critical part of the economic transformation of the country and quoted National Chief Shawn Atleo in saying that “Economic development is one key to unleashing the full potential of First Nations citizens and communities in a way that benefits the country as a whole”. The Minister acknowledged that trust “is the single most important ingredient of success in realizing these [natural resource] opportunities”, along with mutual respect and understanding of perspectives and interests. The Minister identified four central messages gleaned from meetings with First Nations over the last year: 1) there is an over-‐arching obligation to protect the land and the water for future generations; 2) there is the need to respect Aboriginal and Treaty Rights and advance reconciliation through negotiation, consultation and dialogue; 3) meaningful economic participation for First Nations in natural resources development is critical and includes a level of participation that creates sustainable incomes and improved economic circumstances over the long-‐term; and 4) the expectation that the Government will fulfill its legal duty to consult in a meaningful, effective way. He outlined three specific examples of policy change that he believed would benefit First Nations; 1) his intention to entrench the principle of “polluter pay” in law, 2) the allocation of $13.5 million over two years to support enhanced consultations with Aboriginal communities on major projects and 3) the appointment of Douglas Eyford as the Special Federal Representative on West Coast Energy Infrastructure. In conclusion, the Minister stated that he was focused on jobs, growth and long-‐term, sustainable prosperity, whiles stressing that his responsibility to all Canadians was to ensure this is accomplished in a safe manner. Honourable John Rustad, BC Minister of Aboriginal Relations and Reconciliation Minister Rustad began his address by highlighting the long-‐standing nature of BC’s relationship with Japan and noting that a number of other countries are also looking at natural gas opportunities in BC. Because of the great amount of interest in BC natural gas from abroad, he viewed LNG as a “game changer” for the province. The Minister reiterated that Canada’s natural gas sector is safe and responsible. He pointed out that Canada has supplied natural gas across North America for more than 50 years, but those opportunities have decreased as other players, particularly the US, have come on stream to supply the North American market, suppressing the prices Canadian suppliers can get for natural gas in North America. At the same time, however, demand has increased abroad, particularly in Asia. Minister Rustad stated that the BC Jobs Plan has been designed to allow for the development of infrastructure required to

1 Quotes taken directly from Minister’s Speech.


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make BC a competitive source for LNG. The BC LNG Strategic Plan was critical to making this happen. He stated that the BC government is looking at five LNG plants to be developed by 2020, contributing to an aggregate GDP of $1 trillion and, at peak construction, 60,000 jobs. The BC government views LNG as a key opportunity for prosperity in BC. To help realize that opportunity, the BC government is proposing to create a Prosperity Fund, to help future generations to invest in and capture their own opportunities. He noted that the BC government is dialogue with First Nations to discuss shared decision-‐making, but emphasized that because BC is in competition with many other countries to provide LNG to the Asian market, it regards this development to be extremely time sensitive. In closing, the Minister stated First Nations people have a great opportunity to benefit from the jobs training programs his government will be providing, which will be essential to the success of this sector.

2.1.4 BC First Nations Leadership Council Grand Chief Ed John, First Nations Summit Grand Chief Ed John began his lunchtime address by acknowledging members of his community, the Tl'azt'en Nation, and noting that his community has already been significantly impacted by resource development such as forestry and mining. He asked the delegation to look closely at the proposed natural gas project corridor map included in their packages and to situate their own communities in relation to the proposed developments, if they had not done so already. He introduced Doug Eyford, the Special Federal Representative on West Coast Energy Infrastructure, to the crowd, and noted that his role is to engage First Nations communities in BC and Alberta. Mr. Eyford reports directly to the Prime Minister and will issue a final report on his findings related to First Nations interests in energy development by the end of November this year. The Grand Chief concluded these remarks by encouraging government representatives to consult with First Nations early on in the natural gas development process. Regional Chief Jody Wilson-‐Raybould, BC Assembly of First Nations Regional Chief Jody Wilson-‐Raybould of the BC Assembly of First Nations contextualized these proposed natural gas developments in relation to what is happening across the country. She stated that this is a critical moment for First Nations, who are facing a “perfect storm”. She noted some of the factors contributing to this “perfect storm”:

• First Nations are becoming more and more empowered and are in a period of nation rebuilding;

• International movements such as Idle No More are giving more indigenous people a greater voice and raising awareness of indigenous peoples concerns amongst the general public;

• The Federal government is determined to get resource development underway; • There are calls for reform of the Federal Comprehensive Claims process; and • The Province of BC is trying to establish its own balance with the economy and the

environment.


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All First Nations people (and Canadians) need to understand the complexity of this time and understand and embrace the hard work that needs to be done. She identified four pillars to rebuilding Nations: 1) access to lands and resources, 2) strong governance, 3) education of our people, and 4) healthy First Nations communities. She pointed out that First Nations have great leverage to ensure their rights are properly addressed. Her central message to the First Nations delegates was for them to focus efforts on having the federal government create the substantive framework for true government-‐to-‐government reconciliation. Together, First Nations and the federal government need to address issues of shared territory, moving beyond the Indian Act and ensuring genuine co-‐management of lands, waters and resources. Finally, she stressed that, when contemplating moving forward with responsible resource development, First Nations people should never lose sight of the fact that “Resource development is not an end in itself, but a means of achieving healthy First Nations cultures.”

2.1.5 Upstream – Natural Gas Extraction Panel Chief Sharleen Gale, Fort Nelson First Nation Chief Gale began by stating that First Nations not only have a right to care for their lands, they have a responsibility to do so, and this will continue long after the resources have been removed. She stated that her ancestors agreed to share their lands. This was enshrined in the historic Treaty 8, which is understood by signatory First Nations to provide the necessary space to “walk our own path”. Chief Gale stated that the Fort Nelson First Nation is not against development but wants to protect the ability of its people to live off the land while participating in economic opportunities. Chief Gale reminded the delegation that the Fort Nelson First Nation is no stranger to oil and gas development, and noted that over the years they have become stronger in their understanding of these sectors. Their goal for this Summit is to help people understand the impacts of natural gas development upstream, in their territory in particular. In 2008, the Fort Nelson First Nation started to see enormous changes on the land that resulted from exploration and shale gas development. In her closing comments she reiterated First Nations’ responsibility to care for the air, land and overall environment. She implored the Summit delegation to think about shale gas development when thinking about LNG because you cannot have LNG without extracting the gas from the earth. Lana Lowe, Director Fort Nelson First Nation Lands Department Ms. Lowe demonstrated how the footprint of LNG production includes the extraction of shale gas through fracking. She stressed that, in BC, LNG cannot be separated from the process by which the resource is extracted. She warned that if the LNG projects that are proposed for BC move ahead as planned, there would be a 600 percent increase in fracking activity within Fort Nelson First Nation territory. This would have devastating effects on that territory and the people who depend on it. She also pointed out that the shale gas development that is a necessary component of LNG development results in significant greenhouse gas (GHG) emissions. These GHG emissions are most prominent in northeastern BC. Ms. Lowe stated that it is hard to estimate what the scope of natural gas development will look like in Fort Nelson First


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Nation territory, but it is clear it will have huge effects. They have been working for five years to figure out how to protect their lands and their people in the face of natural gas development. This is not a new phenomenon for this Nation.

2.1.6 LNG Industry2 Robert Kendel, Vice-‐President of Aboriginal and Stakeholder Relations, TransCanada Mr. Kendel opened the LNG industry panel presentations by stating that TransCanada is committed to supporting a future First Nations LNG meeting in the northeast of the province. TransCanada has had an Aboriginal policy in place since 2002, which aims to guide the company with respect to the legal and constitutional rights and title of First Nations. One of its goals is to maximize employment and contracting opportunities for First Nations and support building a skilled First Nations work force. The company recognizes that each First Nation is unique and that different arrangements will needed for different First Nations. TransCanada is currently talking to approximately 40 First Nations and has been building relationships with First Nations for over 50 years. Mr. Kendel acknowledged that the northwest coast of BC is new territory for TransCanada. TransCanada approached its engagement with First Nations under two streams: Economic Development and Capacity Building. The benefits that would flow from its project include jobs, training contracts, cash payments and long-‐term steady revenue. He noted, however, that there are real challenges in the BC LNG sector, primarily concerning the condensed timeframe and the need for regulatory approvals before Final Investment Decision (FID). Commenting on proposal raised by a number of speakers for the creation of a collective First Nations engagement along the energy corridor, TransCanada stated that it welcomes negotiations with a collective group, but will continue to respect those who want individual negotiations, within a time-‐sensitive decision-‐making context. He noted that, if regulatory approvals are delayed, TransCanada could lose a foothold in the market. Mr. Kendel acknowledged the importance of discussions on cumulative effects. He stated that TransCanada would participate in those discussions, but would do so without trying to lead the discussions. Robert Whitwham, Vice President, Canadian LNG, Spectra Energy Mr. Whitwham acknowledged that First Nations should have the ability to participate in and benefit from LNG projects. He stated that Spectra Energy works hard to contribute positive, long-‐lasting benefits for all communities impacted by their projects. Mr. Whitwham informed the Summit that Spectra’s Environmental Impact Assessment Report would be filed in early 2014, and that it expects its project to generate a great variety of benefits for First Nations and British Columbians. He stressed, however, that a collective will is needed to make the Spectra vision a reality. 2 Each company provided detailed presentations on the history of their companies, existing LNG projects, the perceived benefits to First Nations and a process for moving the western Canadian LNG sector forward. These are on file with the CSTC Summit organizing Committee.


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David Molinski, Policy & External Affairs Lead, Kitimat LNG, Chevron Mr. Molinski shared a case study example with the Summit delegation to highlight the benefits that a Chevron project could have for First Nations. Chevron, through the First Nations Limited Partnership (FNLP), has been working with collaboratively with the Kitselas Nation near Terrace to bring $22 million dollars to the Kitselas Development Corp. This infusion has resulted in a dramatic change for the community, reducing unemployment from 80% unemployment to 40% since the partnership was developed. He also observed that young people in the community have a more positive outlook on their future. For example, he stated that many young people in the community are now considering schooling to develop careers in the gas industry. Steve Swaffield, Acting President, BG Group Canada Mr. Swaffield reviewed a natural gas resource map of northeastern BC, showing that BC’s unconventional natural gas resources are massive and estimated to be greater than 1200 tcf GIP3. He reflected upon the fact that many companies have entered the western Canada LNG development market and noted that his company has a joint venture with Spectra Energy to build and operate a pipeline that connects the BC shale gas basin to Asian markets. BG Group is engaging with First Nations potentially affected by the its Prince Rupert LNG project in order to build relationships, assess impacts, determine mitigation measures and negotiate benefit agreements. He noted that this engagement occurs at a number of levels, including bilateral meetings, technical workshops, formal regulatory processes, community sessions and benefits discussions.

2.1.7 Cumulative Impacts Panel Chief Roland Willson, West Moberly First Nation Chief Wilson, an experienced analyst and commentator on the cumulative impacts of energy development in northeastern BC, utilized Google Earth imagery to show the direct and visible impacts of development on water resources, caribou and sacred landscapes. He noted that the impacts of this development are far greater than what is being portrayed by industry or government. Each community must be proactive in determining the full scope of existing and potential impacts from this development. Documenting activities, impacts and processes happening at the ground level and using the latest tools to demonstrate these impacts is critical to any planning, negotiation or litigation process. He warned the Summit delegation that the ‘political speak’ used by government does not reflect the reality First Nations face everyday in their territories. Rodney J. Northey, Partner and Member of Environmental Law Group, Gowlings Mr. Northey acknowledged that cumulative impacts are a serious concern and that the associated issues must be addressed proactively, rather than reactively. He noted that the proposed pipelines would cross the traditional territories of many First Nations and fragment

3 tcf GIP = trillion cubic feet Gas In Place


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territories on a macro scale. He acknowledged that despite the real cause for concern, the current environmental assessment (EA) process fails to adequately take into account and address cumulative impacts. Some communities and regions are using land use planning to attempt to manage cumulative impacts, but it is currently not clear how land use planning can be used to address concerns regarding pipeline development. He noted that with the recent federal omnibus legislation, the federal plan appears to be to devolve EA responsibility from the federal government to the provincial level. He finds this concerning, particularly as the BC Environmental Assessment Act doesn’t define “environment” or “environmental effects”. Mr. Northey stated that land use planning can be used to manage cumulative effects, though it does not usually use that exact language. There are two stages to land use planning that relate to cumulative effects management. The first step is to develop and approve regional land use plan (LUP). The second step is to review proposed projects for consistency with the LUP before any approval of the project. For greatest effect, it is important to create a regional LUP before projects of concern are approved. LUPs do not apply to projects that have been approved before the LUPs were developed. He recommended the following with respect to developing LUP(s) for the proposed natural gas corridor: 1. Identify existing corridors, 2. Endorse a prohibition of new natural gas development corridors until the new LUP is in place, 3. Require proposed new LNG projects to use existing corridors. The key to limited the cumulative effects from natural gas pipelines in northern BC is to stop the fragmentation and allow no new corridors before an LUP is developed for the region. Nathan Cullen, Member of Parliament for Skeena-‐Bulkley Valley Mr. Cullen began his address with the following observation: “There seems to be a bit of a pressure sales pitch going on here”, referring to a number of previous speakers, particularly from industry and government. He noted that each party to this development process has a role to play. As the Member of Parliament for Skeena-‐Bulkley Valley (including Haida Gwaii) he sees his role as an ally to First Nations. He presented the Skeena Development Model, developed in cooperation with the Tahltan Nation. This model rests on the following seven principles:

1. First Nations – Any proposed new development will hold meaningful consultations, and respect the rights of First Nations with regard to land and traditional use.

2. Environment – Wildlife, fisheries, and the natural environment need to be protected, and companies need to be held accountable for accidents or threats to the ecosystem the local people rely upon.

3. Consultation – All communities deserve to be treated as partners, and they need to be consulted on all projects before the project can proceed.

4. Long Term Legacy – The local people want to move away from feast-‐or-‐famine economic models, and organize projects so they have long-‐term positive impact on communities and the environment.


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5. Integrity – The local people will measure the integrity of a company by how well it protects communities and the environment, and how well it lives up to its promises. A company’s track record is increasingly important, and good proponents will stand behind their work.

6. Go Local – Projects that offer training and jobs to local workforce first are necessary. There is also a desire to keep jobs in the region over the long-‐term by creating opportunities to add value to the raw resources that are extracted here.

7. Infrastructure – Projects need to help offset the increase use of the regional social services, healthcare, roads and bridges that result from their activities, and contribute to upgrading and maintaining them.

2.1.8 Summary of Day 1 Presentations and Facilitator’s Reflections Co-‐facilitator, Miles Richardson, summarized a number of the key themes raised in the presentations during the first day of the Summit, including:

• First Nations see negotiations as a key means of securing the best access for their people to opportunities arising from proposed resource development, and for maintaining and enhancing their role as stewards of their territories.

• There was a strong interest amongst the First Nations along the energy corridor to come together in responding the opportunities and threats associated with natural gas development in their territories.

• Japan is developing an understanding and respect for the First Nations of this land. This respect could become the foundation for mutually beneficial relationships as Japan’s LNG companies begin negotiations to access natural gas reserves in First Nations traditional territories. Canada’s potential to become a key supplier of LNG for the Asian market is dependent on political stability, geographical proximity and resource access certainty.

• Government representatives emphasized the job creation potential of the LNG sector and the benefits that will flow to the First Nations, the province and the country as a whole. They acknowledged the importance of respectful and meaningful engagement with First Nations, and that all developments are to being considered in the context of global competition for LNG market developments.

• BC First Nation leaders expressed a commitment to work at the regional, national and international levels to assist First Nations leveraged the position they now hold in relation to LNG development.

Mr. Richardson noted that the goal of those organizing these gatherings, including the previous conference in Prince Rupert and this summit in Prince George, is to encourage all First Nations that may be impacted by natural gas development to work towards building a united front and


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collaboratively consider the opportunities and challenges these activities present. Coming together in these fora allows First Nations from all parts of the energy corridor, and those with insight from similar experiences in other territories, to share insights about the nature of the potential impacts and opportunities from these developments and how to best position ourselves to protect the lands and waters upon which we depend and partner in opportunities that are consistent with our priorities, values and responsibilities.

3 Day 2: Oct 10, 2013

3.1 Presentation Summaries

3.1.1 Pacific Trails Pipeline Partnership Panel Bob Rae, Chair of the First Nations Limited Partnership (FNLP) Mr. Rae shared lessons learned from taking a collective approach in the FNLP. He made seven key points about forming this partnership:

1) The FNLP agreement with the Pacific Trails Pipeline demonstrated that a collective approach works best because it yields the best value in the opportunity for the First Nations involved. There will be $200 million in cash flow to First Nations over the life of the pipeline, in addition to the creation of a joint venture leading to direct contracts and large-‐scale economic opportunities beyond that cash flow. Negotiating collectively will yield higher returns for First Nations than they would achieve independently.

2) Such a collective approach must respect and protect Aboriginal rights and responsibilities. There can be no derogation from any other discussions on rights and title or other discussions that First Nations have with government.

3) Some issues are matters that need to be negotiated between First Nations and government. The pace of government decision-‐making can be slow. First Nations should be mindful of this when assessing which issues need to be resolved with government before proceeding with business arrangements. There is always a risk of losing control over market timeframes if all of the issues are put before government for resolution before a business deal can proceed.

4) Timeframes are real. Prices and demand for LNG are driven by and fluctuate on the global market. These projects are huge investments and proponents are not just looking at one country as a source of LNG, but at four or five countries, because of the complexity and uncertainty involved in these investments. A major factor in companies’ assessment of where to invest is the likely timeframe for negotiations and the regulatory review and approval process. These timeframes are a key factor for First Nations to consider when making their assessments of these projects and negotiating their relationships with the proponents.


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5) The courts have established a duty to consult and accommodate and governments recognize this duty exists. It is critical that First Nations are prepared to clearly identify what they are looking for in terms of accommodation. For example, First Nations, individually and as a collective, need to be clear on the difference between gaining an equity share in a project and a guaranteed cash flow deal. Which is better or worse for the First Nations in question? This is not an ideological question, but should be answered based on a number of variables. There are costs and benefits of each approach. The FNLP took the guaranteed cash-‐flow approach because the equity approach seemed to have significant risks (i.e. owning a share (equity) vs. owning a bond (guaranteed cash flow)). These decisions must be based on facts and figures.

6) Keep an eye out for hidden costs. No one will finance a large project for free. It is important to have an understanding of the fee structures for the borrowing from banks.

7) Finally, these decisions should be based on facts not emotions. Harold Calla, Executive Chair, First Nations Financial Management Board Mr. Calla stressed the need, at the beginning of any negotiation process, to thoroughly consider the implementation phase of the agreement and ask the question: What benefit will be left when the gas stops flowing? If equity is an objective in the negotiations, then the real question is: How will we develop the benefit distribution model within the collective entity we create? First Nations need to look at post-‐project opportunities and manage the wealth generated by the project to transfer. Finally, Mr. Calla emphasized that the greatest leverage comes from working together. David Luggi, Pacific Trail Pipeline, First Nations Limited Partnership4 Mr. Luggi delivered his presentation in camera to First Nations delegates only. He offered some reflections on the Pacific Trail Pipeline project and associated agreements and concluded with recommendations for moving forward with regard to other natural gas projects.

3.1.2 Lessons Learned Panel Grand Chief Herb Norwegian, Dehcho First Nations Grand Chief Norwegian focused his comments on the value of an LUP5 as the foundation for decision-‐making in land development processes. He emphasized that a credible process needs to bring together all walks of life that have anything to do with the land. The Dehcho created a series of land use and occupancy maps over a seven-‐year period. It was only after the foundation was laid by clarifying the scope of existing land use that the Dehcho took on the more comprehensive LUP process. He advised that an LUP is a critical tool in dealing with proponents and government considering development projects on First Nations territories. Despite serving as an invaluable tool for First Nations to protect their rights and interests in the

4 As Mr. Luggi asked for this presentation to be delivered in camera, no summary is provided here. However, the presentation is on file with the CSTC First Nations Summit organizing committee. For a copy, please contact them directly. 5 See cumulative effects discussion above in subsection 2.1.7.


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land, he stressed that it is not necessarily the case that LUPs close off development. It is true that the Dehcho wanted to ensure as much protection of the land as possible, but they also recognized the need for appropriate development to sustain their people. The foundational land use and occupancy maps showed where the priority areas for protection and which areas would be more appropriate for development, based on documented evidence. These use and occupancy maps are clarify the terms of engagement with government and industry. For example, companies can view these maps before commencing with exploration activities to evaluate whether it is possible for a project to proceed where they are looking. The LUP process is open and transparent, and puts First Nations at the helm of ensuring exploration and development is based on and consistent with their priorities, values and responsibilities. Grand Chief Norwegian views LUPs as a key alternative to the extinguishment of Aboriginal title and rights. He advised First Nations to include the general public in the LUP process, especially if there is a substantial population living in the territory. As a prerequisite to a successful LUP process, however, he recommended that First Nations negotiate Interim Measures Agreements with government to limit development while treaty negotiations proceed. Chief Karen Ogen, Wet’suwet’en First Nation Chief Ogen’s address to the First Nations delegation at the Summit emphasized the need to respect one another’s opinions and the decisions that communities make. She stressed the need to critically assess whether there are ways of doing things differently and what the real benefits of proposed projects are likely to be for our people? The Wet’suwet’en First Nation have been proactive in developing their understanding of oil and gas development in their territory. They developed a three-‐year strategy to demonstrate to their own members that their leaders are proactive and progressive in their approach to community development. Chief Ogen concluded recommending other First Nations leaders to sign the First Nations Declaration on Natural Gas as she did. Robert Dennis, Wet’suwet’en First Nation Mr. Dennis shared the Wet’suwet’en First Nation approach to economic benefits, environmental protection, and consultation and accommodation.

1) Economic Benefits – He explained the formula used by the Wet’suwet’en First Nation to determine what the economic benefits of a project are likely to be: Determine the real economic opportunities related to a project, add any revenue sharing negotiated with the government, and determine how many jobs could be created as well as the number of contracts/businesses derived from a project. In their case, the Wet’suwet’en First Nation were able to secure guaranteed contracts (not first rights of refusal), set a target number of Wet’suwet’en to work at the project site, and secure a cash payment to the Nation. They formed their own Economic Development Corporation that has secured three contracts from gas companies and additional contracts from mining companies.


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2) Environment -‐ Members of their community are concerned about the impacts from all of the resource development in their territory. To address this community wide concern, a community-‐based process was created that involves the Chief meeting the community members on a regular and frequent basis to explain what is happening. The Nation also hired an environmental lawyer to assist the community in moving forward with their three-‐year strategy. As a result, they are now meeting regularly with the BC Environmental Assessment Office.

3) Consultation and Accommodation – The central message provided here was that “if you do not know what the impacts are, you are in no position to negotiate accommodation”. Therefore, First Nations communities need to develop and insist on the tools to gain full knowledge of the potential and likely impacts from development to gain leverage to secure the best position at the negotiation table, should the project be consistent with their priorities, values, and responsibilities. The clear commitment to this community-‐based process has been very successful at giving the Chief the mandate to meet and negotiate with companies. The community maintains control of the consultation process by keeping a detailed log of activities related to business development and/or consultation. This prevents the company or government claiming to have consulted when the records prove may prove otherwise.

Robert Botterell, Wet’suwet’en First Nation Mr. Botterell provided a legal perspective on the Wet’suwet’en First Nation’s approach to natural gas development in their territory.

1) The Wet’suwet’en First Nation established an Natural Gas Industry Table to discuss topics such as: cumulative impacts, timing and location of project infrastructure, the Wet’suwet’en First Nation’s role in decision making, control over the use of lands. This table is the forum where they will deal with the possible conversion to an oil pipeline.

2) With respect to equity participation, Mr. Botterell noted that the Wet’suwet’en First Nation supports a collective effort to negotiate an equity stake, but feel that they must proceed down all the fronts at once, and participate in concurrent negotiations because of the time constraints. There is no time to set aside one opportunity in the hopes of concluding negotiations on another. The Nation’s vision and strategy must always drive the process they participate in.

3.1.3 Summary of Day 2 Presentations Before moving to the First Nations’ break-‐out groups, the Co-‐facilitator, Miles Richardson summarized a number of the key points made in the morning’s presentations:

• The resounding message delivered by the morning speakers was one of fostering “collective power” to strengthen the negotiating position of First Nations along the energy corridor.


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• The benefits of negotiating collectively include greater respect for and protection of First Nations rights, improved community preparedness for negotiations, better information and perspective to inform accommodation expectations.

• Nations should think about what the implementation phase should look like right at the outset, to ensure there will be capacity to fairly and effectively manage the distribution of wealth for the benefit of current and future generations.

• Land use planning is a strong tool for directing developments to proceed only where consistent with First Nations priorities, values, and responsibilities, protecting large areas of land of critical importance to First Nations, and for protecting against extinguishment of Aboriginal title and rights in the long term.

• Each Nation must develop a formula for successful resource development negotiations. An inclusive community-‐based process where all members of the community are engaged regularly, where leadership and staff have the capacity to and are engaged in evaluating all aspects of the economic potential and risks of proposed projects (including those that may occur after those projects are completed), with a separate table for political discussions with government, and industry when needed, was recommended.

3.2 First Nation Breakout Sessions Approximately 100 First Nations delegates participated in breakout sessions during the afternoon. The objective of these sessions was to create an Action Items document meant to facilitate decisions by First Nations on key strategic actions. The delegates broke into three groups, each dealing with a different issue: environmental impacts, economic impacts, and socio-‐cultural impacts. They were asked to provide their top priorities for action in the next three-‐month, six-‐month, and longer-‐term timeframes. The following table is a summary of the breakout groups discussion. It is important to note that this table is meant to represent a preliminary discussion and is in no way representative of all the priorities put forward by delegates. The purpose of this summary table is to facilitate discussion and set the stage for developing the next First Nations Natural Gas Strategy meeting.


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Table 1: Summary table of Action Items from First Nation Breakout Sessions Oct 10, 2013

Potential Impacts

Economic Impacts Environmental Impacts Social-‐Cultural Impacts Timeframe for Action

3 Months

1.Get mandates from traditional leaders; 2. FN working groups (equity ownership, LNG skilled negotiator team, funding capacity; 3. Opportunity analysis (gaps, inform/training)

1. Water Mgmt. / Cumulative Impacts Plan – Marine, fresh, ground waters, wildlife; 2. LUP on FN principles, i.e. energy corridor; 3. Base data gathering for FN enviro standards

1. Steering Committee; 2. ID best career practices/projections (pre and post project); 3. Manage social upheaval from new wealth/jobs

6 Months

1. ID FN assets, talents and opportunities with engagement, training plan; 2. Good governance plan in community/FN level; 3. FN equity sharing plan

1. PG FN follow up with enviro focus; 2. Coordination of EA process on FN principals; 3. Baseline analysis/ongoing yr to yr

1. Career partnerships (jobs), human resource inventory; 2. Plan for increased land access (competition); 3. Bio sample base started

Longer Term

1. Stronger transport regulation/legislation; 2. Contracts/financing and revenue sharing for corridor; 3. FN development corps.

1. FN Enviro Authority/higher standards; 2. Develop Terms of Ref. /Strategy by FN experts; 3. LUP snapshots

1. Land governance/ownership protocols (Band v. Traditional owners)/land banks; 2. Use own languages 3. Articulate own Laws to collectively make development safer

4 Concluding Reflections: Facilitator’s Recommendations

1. Establish a united front amongst First Nations along the natural gas corridor Currently, no organization has the mandate to represent First Nations with respect to natural gas development throughout northern BC. In the interim, I recommend that the three conference steering committees – from the Northwest Energy Opportunities Conference in Prince Rupert in June 2013; this summit, the BC First Nations LNG Summit, in Prince George in October 2013; and the upcoming conference to be held in Fort Nelson in March 2014 -‐ be responsible in each of their respective regions to consult with participating First Nations on defining the structure for a purpose-‐specific organization to represent northern BC First Nations with respect to natural gas development and bring this proposed structure forward for approval by the First Nations at the upcoming follow-‐up conference planned to occur in Fort Nelson in March 2014.


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The mandate of the interim steering committee is to work together and consult with First Nations in their regions in designing this purpose-‐specific structure in advance of the follow-‐up conference planned to occur in Fort Nelson in March 2014. At this conference, northern BC First Nations will have the opportunity to vote on whether to approve this structure as a representative for their Nations with respect to natural gas development in northern BC.

2. Negotiating mandate of united front of First Nations along the natural gas corridor Once the structure and decision-‐making process for the united front amongst First Nations along the natural gas corridor has been approved, this entity must develop and approve a mandate, strategy, work plan, and budget for a negotiating team, to organize and advance the interests and authorized positions of this united front amongst First Nations along the natural gas corridor. This must include a specific mandate to negotiate a framework, including agreed principles and objectives of any potential collective business deal for northern BC First Nations. Consideration must be given to appropriate revenue sharing amongst First Nations along the entire natural gas value chain. This entity will also be tasked with developing an approach to securing a federal sovereign loan guarantee to help support First Nations equity participation in natural gas projects being proposed along the natural gas corridor. There are currently several LNG and many other related negotiations underway in BC; it would be prudent to make note of these initiatives, and either partner or make information sharing arrangements with them to aide the negotiations process. The BC First Nations Energy and Mining Council and the First Nations Financial Management Board attended both the Prince Rupert and Prince George conferences, and have offered their technical support and participation in the negotiations process. These offers ought to be seriously considered.

3. Credible and reliable environmental data and information

At the previous conference in Prince Rupert in June 2013, Northwest Energy Opportunities, and at this summit, First Nations have made it clear that, although natural gas development may represent the opportunity of a lifetime, they are only prepared to move forward in support of such development if that can be done in balance with the maintenance of their cultures and traditional ways of life. Being able to continue to harvest and eat from the land and waters is integral to the maintenance of northern BC First Nations cultures, and requires a sound and thriving ecosystem. A number of participants at each conference noted concern about impacts on fish, birds, other wildlife, water quality, and a number of other environmental factors that could affect their ability to maintain their culture if not properly assessed, monitored, and managed. Salteaux First Nation Chief Harley Davis cautioned the delegates in moving forward, to consider the environmental impacts that could come from natural gas development in northern BC, stating that “No one is speaking for mother earth.” Stewardship is a critical value for northern BC First Nations, to ensure their peoples can continue to survive and thrive for countless generations to come. Moving forward, First Nations will want to ensure that any development that does occur is done in harmony with ecological and cultural integrity. I recommend that, to ensure northern BC First Nations have the best information on and ability to limit impacts to the environment, before and after any project approval, the representative structure discussed above form a partnership with an independent organization with a strong reputation for environmental impact assessment and monitoring to undertake community-‐driven, community-‐based environmental monitoring, supported by the technical capacity of that independent environmental organization and funded by the developer(s).


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4. Information sharing and communications amongst First Nations

A number of First Nations and organizations have already gathered a wealth of data and information that can help northern BC First Nations become well informed on the issues, impacts, benefits, and strategies. These parties should ensure they are sharing this information amongst northern BC First Nations, so these Nations are in a strong position to defend their rights and interests. The next conference should clarify further the process for information sharing. In the interim, the interim steering committee should act as a conduit for the sharing of information among northern BC First Nations with respect to natural gas development. Efforts are already underway to develop accessible tools for communicating on these issues with northern BC First Nation communities and the wider public, such as the website: www.fnlngstrategy.ca. Further discussions will identify other communications tools and develop a communications plan for moving forward with respect to natural gas development in northern BC.


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Appendix A: List of First Nations and Organizations in Attendance

First Nations and First Nations Organizations Adams Lake Indian Band Lake Babine Nation

Assembly of First Nations Lheidli T'enneh First Nation

Burns Lake Band Metlakatla First Nation

CFNR - Canada’s First Nations Radio McLeod Lake Indian Band

Carrier Sekani Tribal Council Moricetown Band

Coastal First Nations Nak'azdli Band

Dease River First Nation Nadleh Whut'en First Nation

Daylu Dena Council Nee Tahi Buhn Band

Dehcho First Nations New Relationship Trust

Doig River First Nation Nisga'a Nation

First Nations Energy and Mining Council Prince George Nechako Aboriginal Employment and Training Association First Nations Financial Management

Board Saikuz First Nation

Fort Nelson First Nation Saulteau First Nation

First Nations (PTP) Limited Partnership Group

Skin Tyee Nation

Squamish Nation

First Nations Summit Stellat'en First Nation

Gitanyow Band Tahltan Central Council

Gitxaala Nation Takla Lake First Nation

Gitxsan First Nation Tl'azt'en Nation

Gitxsan Development Corporation Treaty 8 Tribal Association

Halfway River First Nation Union of BC Indian Chiefs

Haisla Nation Council Upper Fraser Fisheries Conservation Alliance Kiteslas First Nation

Kitsumkalum First Nation West Moberly First Nation

Kwadacha Nation Wet'suwet'en First Nation


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Government Departments, Agencies and Offices Aboriginal Affairs and Northern Development Canada

Member of Parliament for Skeena-Bulkley Valley

Alberta Ministry of Energy Natural Resources Canada

BC Ministry of Aboriginal Relations and Reconciliation

North Central Local Government Association

BC Ministry of Natural Gas Development Special Federal Representative for West Coast Energy Infrastructure

Embassy of Japan

Member of Legislative Assembly for Stikine Western Economic Diversification Canada

Member of Parliament for Prince George-Peace River

Industry, Legal and Other Associations Apache Canada Ltd. McElhanney Services Ltd.

All North Consultants Ltd. MNP

BG Group Nattrass Consulting Inc.

BMO Nexen

Canadian Chamber of Commerce in Japan

Kitisault Energy

Pacific Northwest LNG

Copper Moon Pacific Trails Pipelines

Castlemain Group Pacific Northern Gas

Chevron Canada Shell Canada

Deloitte LLP Spectra Energy

Dentons Canada LLP Summit Camps

Four Directions Management Services Ltd. Surerus Pipeline Ltd.

Gowlings LLP TERA Environmental Consultants

Highland Powerlines Tewanee Consulting Group Inc.

Inpex Gas BC TransCanada

Japan Montney Ltd. Triton Environmental Consultants Ltd.

Japan Oil, Gas and Metals National Corporation

Woodfibre Natural Gas Ltd.

first nations lng facilitators report

Documents

nations energy

nations leadership council

facilitators reflections

lng industry

facilitators recommendations

organization of report

summary of day

appendix b