Achi news desk-
Some indigenous communities in northern Alberta hope the Trans Mountain pipeline expansion will mark the beginning of a new chapter in their relationship with Canada’s oil sands industry.
The $34 billion pipeline project from Alberta to the BC coast promises better access to export markets for oil sands producers, who are expected to achieve record output this year.
The expected opening of the pipeline on May 1 is a big deal for the Fort McKay First Nation, located about an hour’s drive north of Fort McMurray and home to about 800 people of Dene, Cree and Métis descent.
“It’s important to the Fort McKay First Nation. When there’s an opportunity like the Trans Mountain pipeline, the question is, how can we really use it to transfer that opportunity to Fort McKay?” said Chief Raymond Powder in an interview.
“Because I’ve shared that with my partners in the industry from time to time – I’ve said, ‘You know, if you want to grow and want to expand and all that, it’s not that’ n problem for us.’ “
But Fort McKay also needs opportunities for growth as the industry expands, he said.
Located smack-dab in the middle of the Athabasca oil sands, Fort McKay is the bull’s eye on the dart board of the world’s third largest crude oil reserve.
The First Nations community is surrounded by industrial development, and the arid smell of the nearby oil sands facilities can be detected on the breeze. The band members like to draw attention to the black, tarry-smelling soil that lines the roads and driveways of residents here – evidence of the rich bitumen deposits that are so close to the surface.
In Fort McKay, the complex relationship the oil sands industry has with indigenous people is evident. The First Nation is one of the wealthiest in the country, thanks to revenue generated from impact benefit agreements with oil sands developers as well as the many First Nations-owned businesses that serve the oil and gas sector.
Because of these spin-off benefits, the community has a beautiful long-term care center facing the Athabasca River, a state-of-the-art arena, a virtual golf facility and other amenities not commonly found on reserves.
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But Powder is quick to point out that his community’s relationship with industry hasn’t always been so rosy.
“When you go back to the history of who Fort McKay is, we didn’t initially have a good relationship with industry because of the fact that who we are as First Nations and our identity is tied to the land,” he said.
Fort McKay also currently has significant concerns about the safety and environmental impact of the massive oil sands wastewater tailings ponds in the area.
“And so the advent of industry had a huge impact on our own livelihood and traditional way of life,” said Powder.
“But on the positive side of all that, we’ve had the opportunity to grow our programs, grow our services, grow our infrastructure.”
Not all First Nations see their industrial neighbors this way.
Eriel Deranger is a member of the Athabasca Chipewyan First Nation, which is currently suing the Alberta Energy Regulator over a series of toxic tailings pond leaks from Imperial Oil’s Kearl oil sands facility.
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She is also the executive director of Indigenous Climate Action, an advocacy group focused on the water, air and health impacts of the oil sands on First Nations communities.
Deranger describes the relationship between indigenous communities and the oil sands industry as an “economic hostage situation,” explaining that many communities see the negative effects of oil sands development but do not speak up because there are no economic opportunities others to be found.
“It’s very important that we don’t get bogged down in the argument of, ‘Well, if indigenous people are business partners in pushing these projects forward, then they must be right,'” said Deranger.
“The problem is that this industry has such a tight grip economically. But we can’t keep saying we need this for our economy, because there won’t be an economy if our state burns down this summer because of wildfires because of climate change. “
Oilsands development has been a double-edged sword for Indigenous communities in the past, said Justin Bourque, former CEO of the Willow Lake Métis Nation and president of Fort McMurray-based Âsokan Generational Developments, a consulting firm specializing in Indigenous industry partnerships. .
“Philosophically, the resource has been extracted from the traditional territories of the indigenous peoples of the area. They have lived and endured the development, both environmentally and physically and as well as the growth of Fort McMurray,” Bourque said.
But as he looks to the future, Bourque sees increasing opportunities for First Nations to participate in the oil and gas sector as equity ownership models become more common, allowing communities to benefit from long-term, predictable sources of revenue.
“I think now with reconciliation and some ESG factors, corporations are now thinking more openly about sharing a long-term relationship with indigenous communities when and where they operate,” said Bourque.
He also pointed to the federal government’s recent announcement that it will offer $5 billion in loan guarantees to support indigenous communities seeking ownership in natural resource and energy projects.
“I think it’s going to be a very positive catalyst to allow these communities to become much more active in the industry, which will only make the industry stronger.”
Last month, the Fort McKay First Nation struck a memorandum of understanding with Suncor Energy Inc. on the opportunity to develop an oil lease on its reserve lands.
While Suncor is still assessing the quantity and quality of bitumen that can be mined in the area, if the project goes ahead, it would be the first ever oil sands production on reserve lands in Canada.
Powder said the agreement follows a new path for economic development on indigenous lands and will help secure the community’s long-term future.
“It’s a pretty huge deal and it’s actually a great achievement,” Powder said, adding that the deal will mean that if the oil sands industry grows in the coming years, Fort McKay will grow with it. .
“We don’t want any ceiling on opportunities for Fort McKay in terms of industry and the spin-offs of what the Trans Mountain pipeline has to offer,” he said.
