pembina the pembina institute about pembina the pembina instituteis an independent non-profit...

138
NORTHWEST TERRITORIES Pembina Citizens’ Rights & Oil & Gas Development Environment & Energy in the North

Upload: dangcong

Post on 13-May-2019

228 views

Category:

Documents


0 download

TRANSCRIPT

NORTHW

EST TERRITORIES PembinaCitizens’ Rights

& Oil & Gas DevelopmentEnvironment & Energy in the North

PI NWT COVER 6/18/04 5:29 PM Page 1

iCitizens’ Rights and Oil and Gas Development: Northwest Territories

Northw

est Territories

Citizens’ Rights& Oil & Gas Development

Environment & Energy in the North

ii The Pembina Institute

Abou

t Pem

bina

The Pembina Institute is an independent non-profit research, education and advocacyorganization. It promotes environmental, socialand economic sustainability through thedevelopment of practical solutions forbusinesses, governments, individuals andcommunities. The Pembina Institute providespolicy research leadership on climate change,energy policy, green economics, renewableenergy, and environmental governance, as wellas extensive formal and public education

programs. More information about thePembina Institute is available atwww.pembina.org or by contacting

The Pembina InstituteBox 7558Drayton Valley, ABT7A 1S7Tel: 780-542-6272Fax: 780-542-6464E-mail: [email protected]

About the Pembina Institute

iiiCitizens’ Rights and Oil and Gas Development: Northwest Territories

Chris Severson-Baker is Director of thePembina Institute’s Energy Watch Program. Hegraduated from the University of Alberta with aBSc in Environmental and Conservation Sciencein 1996, joining the Pembina Institute that sameyear. He has worked to reduce the impacts ofthe oil and gas industry on the environment —providing recommendations to government on

opportunities to strengthen environmentalregulation, and encouraging industry to adoptbetter practices. Chris has represented thePembina Institute on numerous provincial andfederal multi-stakeholder committees focussedon developing environmental managementpolicy for the oil and gas sector.

Mary Griffiths joined the Pembina Institute asan environmental policy analyst in May 2000 towork with the Energy Watch program. She co-authored the book When the Oilpatch Comes toYour Backyard: A Citizens’ Guide to Protecting YourRights, published by the Pembina Institute in2001. Mary is the lead author of Oil and TroubledWaters: Reducing the Impact of the Oil and GasIndustry on Alberta’s Water Resources andUnconventional Gas: The EnvironmentalChallenges of Coalbed Methane Development inAlberta, both published in 2003. Mary works on

air quality issues as a member of the board ofdirectors of the West Central Airshed Societyand with a subcommittee of the Alberta CleanAir Strategic Alliance. She has helped evaluatethe environmental impact of energy projects,including oilsands developments and coal-firedpower plants. Mary has long been an advocatefor the protection of the environment and in2002 she received a Canadian EnvironmentAward in the Clean Air category. Mary holds a BAand PhD in Geography from the University ofExeter, U.K., where she also taught for four years.

About the Authors / Mary Griffiths & Chris Severson-Baker

Ackn

owle

dgem

ents

The Pembina Instituteiv

Many people have helped with this document, byproviding information, answering questions andreviewing the draft text.Without their help, thisguide would not have been possible.The authorswould especially like to thank the following:

Jonathan Allen,formerly at the Inuvialuit Settlement Region Environmental Impact Review Board;

Vern Christensen and Alan Ehrlich,Mackenzie Valley Environmental Impact Review Board;

Mike Doyle,Canadian Association of Geophysical Contractors;

George Govier,Sahtu Land and Water Board;

George McCormick and other staff at Indian and Northern Affairs Canada (DIAND);

staff at the National Energy Board;Adrian Paradis,

Mackenzie Valley Land and Water Board;Paul Scott,

Canadian Environmental Assessment Agency;

James Thorbourne,Inuvialuit Land Administration;

Jennifer Walker-Larsen,Gwich’in Renewable Resource Board.

We would like to recognize Ken Weagle’s workin compiling a comprehensive review ofinformation needed to write the guide and inproviding an initial draft for some sub-sections.

The Regulatory Roadmap series on Oil and GasApprovals in the Northwest Territories, whichwere sponsored by the Canadian Associationfor Petroleum Producers and DIAND, providedthe authors with helpful backgroundinformation and were especially useful incompiling Appendix C.

We appreciate the assistance of all ourcolleagues at the Pembina Institute, includingNiki Wilson, Lori Chamberland and KristaTremblett, and of former colleague JanetSumner. We also recognize the skill anddiligence of our editor, Alison MacAlpine, whomade the guide much easier to read.

Most of all, the Pembina Institute is grateful tothe Walter and Duncan Gordon Foundation,who provided a grant that made the researchand writing of this report possible.

The contents of this paper are entirely theresponsibility of the Pembina Institute and donot necessarily reflect the view or opinions ofthose who are acknowledged above.

© Pembina Institute for Appropriate Development.

ISBN: 0-921719-55-8

Acknowledgments and Disclaimer

1Citizens’ Rights and Oil and Gas Development: Northwest Territories

Contents

About the Pembina Institute ...........................................................................................................................ii

About the Authors ................................................................................................................................................iii

Acknowledgements and Disclaimer...........................................................................................................iv

About the Primers and Guides .......................................................................................................................5

Introduction ..............................................................................................................................................................7

Environmental Impacts of Oil and Gas Development.....................................................................10

❚ Seismic Exploration ............................................................................................................................10

❚ Land Disposition ..................................................................................................................................12

❚ Exploration and Production Drilling............................................................................................13

❚ Well Site Operation .............................................................................................................................15

❚ Oil and Gas Processing......................................................................................................................17

❚ Pipeline Construction and Operation.........................................................................................19

What Are Citizens’ Rights? ..............................................................................................................................23

❚ Step 1: Find Out About the Proposed Development ...........................................................24

❚ Step 2: Get Information About the Company’s Application..............................................25

❚ Step 3: Decide What Concerns You Have About the Proposal .........................................25

❚ Step 4: Provide Public Input to a Board or Government Agency....................................26

Your Opportunity for Public Input .............................................................................................................29

❚ How to Read the Tables ....................................................................................................................29

❚ Public Input at “Right to Enter Land for Exploration” Stage...............................................33

❚ Public Input at “Exploration for Oil and Gas” Stage...............................................................35

❚ Public Input at “Oil and Gas Development Planning” Stage..............................................50

❚ Public Input at “Oil and Gas Drilling and Production” Stage .............................................58

❚ Public Input at “Pipeline Development” Stage........................................................................72

❚ Pipeline Cooperation Plan ...............................................................................................................78

❚ Offshore Developments ...................................................................................................................79

Contents

2 The Pembina Institute

The Environmental Screening and Review Process ....................................................................................80

❚ How Does the Process Work in the Mackenzie Valley? .................................................................81

❚ How Does the Process Work in the ISR? .............................................................................................86

❚ How Does the Process Work Under the Canadian Environmental Assessment Act? ........................90

❚ How Does the Process Work at the National Energy Board? ......................................................92

❚ Intervener Assistance.................................................................................................................................94

❚ How to Appeal a Decision .......................................................................................................................95

Boards, Government Departments and Agencies .......................................................................................96

❚ Canadian Environmental Assessment Agency.................................................................................96

❚ Environment Canada .................................................................................................................................97

❚ Environmental Impact Review Board (in the ISR) ...........................................................................98

❚ Environmental Impact Screening Committee (in the ISR) ...........................................................98

❚ Fisheries and Oceans Canada (formerly DFO)..................................................................................99

❚ Government of the Northwest Territories..........................................................................................99

❚ Gwich’in Land and Water Board..........................................................................................................100

❚ Indian and Northern Affairs Canada (formerly DIAND)..............................................................101

❚ Inuvialuit Land Administration............................................................................................................101

❚ Inuvialuit Regional Corporation..........................................................................................................102

❚ Mackenzie Valley Environmental Impact Review Board ............................................................102

❚ Mackenzie Valley Land and Water Board .........................................................................................103

❚ National Energy Board............................................................................................................................104

❚ Northwest Territories Water Board.....................................................................................................105

❚ Sahtu Land and Water Board................................................................................................................105

Non-regulatory Ways to Address Issues ........................................................................................................107

❚ How to Negotiate with Companies ...................................................................................................107

❚ Working with the Media.........................................................................................................................108

The Public’s Role in Monitoring an Oil or Gas Development...............................................................110

❚ Non-emergency Situations ...................................................................................................................110

❚ Emergency Situations .............................................................................................................................111

3

For More Information..............................................................................................................................................112

❚ Boards, Government Departments and Agencies........................................................................112

❚ Lawyers and Expert Witnesses.............................................................................................................112

❚ Laboratories................................................................................................................................................113

❚ Industry Groups.........................................................................................................................................113

❚ Environmental Groups in the NWT....................................................................................................116

Appendix A: Abbreviations ..................................................................................................................................117

Appendix B: Land Ownership and Land Claim Settlement Areas in the

Mackenzie Valley and ISR ......................................................................................................................................118

❚ Federal Lands .............................................................................................................................................118

❚ Aboriginal Lands Owned Under Land Claim Agreements........................................................118

❚ Territorial Lands.........................................................................................................................................123

❚ Private Lands ..............................................................................................................................................124

❚ Municipal Government Responsibilities ..........................................................................................124

❚ Land Claims and Settlements ..............................................................................................................124

Appendix C: Overview of Relevant Legislation and Regulations ......................................................125

❚ Arctic Waters Pollution Prevention Act.............................................................................................126

❚ Canada Oil and Gas Operations Act ..................................................................................................126

❚ Canada Petroleum Resources Act.......................................................................................................127

❚ Canadian Environmental Assessment Act.......................................................................................128

❚ Canadian Environmental Protection Act, 1999..............................................................................128

❚ Fisheries Act................................................................................................................................................129

❚ Mackenzie Valley Resource Management Act ...............................................................................129

❚ National Energy Board Act ....................................................................................................................130

❚ Navigable Waters Protection Act ........................................................................................................131

❚ Northwest Territories Waters Act ........................................................................................................131

❚ Territorial Lands Act .................................................................................................................................132

Citizens’ Rights and Oil and Gas Development: Northwest Territories

4

Tabl

es a

nd F

igur

es

The Pembina Institute

Tables and Figures

Figure 1. Map of NWT showing land claim areas and treaties ...................................................30

Table 1A. Mackenzie Valley – Right to Enter Land for Exploration for Oil and Gas..............38

Table 1B. Inuvialuit Settlement Region

– Right to Enter Land for Exploration for Oil and Gas .................................................44

Table 2A. Mackenzie Valley – Oil and Gas Development Planning............................................52

Table 2B. Inuvialuit Settlement Region – Oil and Gas Development Planning ....................54

Table 3A. Mackenzie Valley – Oil and Gas Drilling and Production ...........................................60

Table 3B. Inuvialuit Settlement Region – Oil and Gas Drilling and Production ....................66

Table 4. Mackenzie Valley and Inuvialuit Settlement Region

– Transboundary Pipeline Development..........................................................................76

Figure 2. Mackenzie Valley Environmental Assessment Process (simplified) .......................81

Figure 3. Inuvialuit Settlement Region Environmental

Assessment Process (simplified) ..........................................................................................87

Figure 4. Map of Gwich’in Settlement Area showing land ownership..................................119

Figure 5. Map of Sahtu Settlement Area showing land ownership .......................................120

Figure 6. Map of Deh Cho Settlement Region showing land ownership ............................121

Figure 7. Map of South Slave Settlement Region showing land ownership .....................122

Figure 8. Map of Inuvialuit Settlement Region showing land ownership ...........................123

5Citizens’ Rights and Oil and Gas Development: Northwest Territories

About the Primers and Guides

The Pembina Institute’s Energy Watch programhas developed a series of six primers and two guides to help northern communitiesunderstand the potential environmental and,where applicable, human health impacts of oil and gas development. The primers also aim to help these communities effectively take part in managing these risks, ensuring that governments and oil and gas developersare using the best environmental practicesavailable.

Each of the six primers focuses on a differentphase of oil and gas development:

Seismic Exploration — industry activities tocreate a picture or map of the geology belowthe Earth’s surface to find oil and gas reserves.

Land Disposition — the actions companiesneed to take to get the rights to explore forand produce oil and gas reserves.

Exploration and Production Drilling — the activities companies perform to first locateoil and gas, then to find out the size andusability of an oil and gas reservoir, and finallyto reach the oil and gas using intensiveproduction drilling.

Well Site Operation — industry practices toremove oil and gas from undergroundreservoirs and transport it to the surface.

Oil and Gas Processing — actions companiestake to process oil and gas to prepare it for sale.

Pipeline Construction and Operation — industry activity to set up pipelines that carry oiland gas from the place it comes out of theground to the places where consumers will use it.

The two guides focus specifically on citizens’rights around oil and gas development projects:

Citizens’ Rights and Oil and Gas Development:Northwest Territories explains the rights thatcitizens have related to oil and gasdevelopment in the Northwest Territories.

Citizens’ Rights and Oil and Gas Development:Yukon Territory explains the rights that citizenshave related to oil and gas development in theYukon Territory.

To produce these primers and guides, theauthors reviewed the limited oil and gasdevelopment already under way in Canada’sNorth. They also researched the current issues and practices in Alberta, northeast British Columbia, and the Alaskan North Slope,where intensive oil and gas development isalready occurring.

About the Primers and Guides

6 The Pembina Institute

KamikC58 drilling rig in Mackenzie Delta

SOURCE: ENVIRONMENT CANADA

7Citizens’ Rights and Oil and Gas Development: Northwest Territories

Just as they were about twenty years ago,companies are once again actively exploring foroil and gas reserves in the frontier regions ofthe Northwest Territories (NWT) and the YukonTerritory. If developers decide to seriouslydevelop these resources, they will have to builda large capacity (or large diameter) pipeline toexport oil and gas from the far North. Onceregulators and developers make a definitedecision to build one or more pipelines, oil andgas exploration and production activity in theNorth will quickly increase.

Developing the oil and gas resources of the Northwould offer the people living there many oppor-tunities for economic development.But it isimportant that companies developing oil and gasreserves,and governments and other regulatorsoverseeing the work,make sure they do notdamage the cold,slow-growing and sensitivenorthern ecosystems.While there will be unavoid-able environmental impacts because of oil and gasexploration,developers and regulators can reduceimpacts with careful planning and by using thebest available technologies and practices.

Since it is the people of the North who willexperience the most direct impacts, it isimportant that they play a strong role in settingthe terms and conditions of such development.When deciding on the actions they will take,

industry and various levels of governmentneed to be respectful of and consider theneeds and wishes of northern communities.

During the past few decades, the oil and gasindustry has become more aware of theenvironmental impacts associated with itswork. Technologies and practices have becomemuch less environmentally damaging thanthey were in the past. And most, though not all,companies have responded to social andenvironmental concerns. Despite theseimprovements, there are still negativeenvironmental impacts associated with oil andgas development and production. This isespecially true in areas where the activity isintensive.

When the public shares questions, concernsand expectations about this work — directly tocompanies, through the media and throughregulators that inspect the work and enforceregulations — this helps to uphold andimprove industry performance. When thepublic is able to take part in effectivelyinfluencing decisions around oil and gasexploration, this pushes companies to higherlevels of performance. When the public givesinput, examining all companies equally, citizens’engagement ensures that all developers followthe best practices possible.

Introduction

Introduction

8 The Pembina Institute

When companies involve local people and theirconcerns for the long-term health of theircommunities and environment they can buildpositive relationships, increase certainty anddecrease conflicts around the project, andlower their investment risk.

Oil and gas regulations in the NWT are a mix oflegislation from the 1970s or earlier, newerlegislation from the late 1990s, and Aboriginalland claim settlements. Over the years, thegovernment has changed its opinion aboutpublic involvement. The legislation andassociated review processes reflect a growingrespect for consultation with the people wholive in the North.

This guide, Citizens’ Rights and Oil and GasDevelopment: Northwest Territories, explainsthe rights that people in the NWT have whenoil and gas development occurs on their land.It demonstrates the ways that you canparticipate in decisions about oil and gasdevelopment by getting involved in the formalregulatory process and consulting directly withthe company that wants to do thedevelopment work.

There are eight sections in this guide:

• Part 1 offers a general description of theenvironmental impacts associated with thethree stages of oil and gas development:seismic exploration, land disposition andexploration and production drilling.

• Part 2 explains your citizens’ rights andoutlines the four steps you can follow tocommunicate your concerns about an oil orgas development.

• Part 3 describes the opportunities you haveto participate at each stage of oil and gasdevelopment.

• Part 4 outlines the government’s formalenvironmental assessment and reviewprocess.

• Part 5 describes the role of boards,government departments and agencies thatregulate the oil and gas industry andexplains how to contact them.

• Part 6 offers advice on how to negotiate withoil and gas companies and work with themedia.

• Part 7 looks at how the public can help thegovernment monitor and enforce lawsrelated to oil and gas development.

• Part 8 provides a list of organizations, withcontact information, and sources.

9Citizens’ Rights and Oil and Gas Development: Northwest Territories

Appendices at the end of the guide supplyadditional information:

• Appendix A lists all the abbreviations used inthe guide.

• Appendix B describes the land ownershipstructure in the NWT.

• Appendix C provides brief descriptions ofthe legislation that governs oil and gasdevelopment in the NWT.

A wide range of legislation and regulatoryprocesses affect oil and gas development in theNWT. For more details, please review the fiveNWT guides in the Regulatory Roadmaps seriessponsored by DIAND and the CanadianAssociation of Petroleum Producers (CAPP):

• Oil and Gas Approvals in the NorthwestTerritories – Inuvialuit Settlement Region

• Oil and Gas Approvals in the NorthwestTerritories – Southern Mackenzie Valley

• Oil and Gas Approvals in the NorthwestTerritories – Gwich’in Settlement Area

• Oil and Gas Approvals in the NorthwestTerritories – Sahtu Settlement Area

• Oil and Gas Approvals in the Beaufort Sea

All five documents are available free of chargeat www.oilandgasguides.com/aguides.htm.1

1 All Web site addresses provided in this primer were up to date as of November 1, 2003.2 The legislation that set up the department has not been changed, so the Minister is still officially the Minister of DIAND. However, the federal

government prefers to identify the department by its new name, Indian and Northern Affairs Canada (INAC).

The Department of Indian Affairs andNorthern Development (DIAND) haschanged its name to Indian and NorthernAffairs Canada (INAC). In this guide, we usethe old abbreviation, DIAND, because manypeople are more familiar with that name.However, when the department name iswritten in full, we use Indian and NorthernAffairs Canada.2

Similarly, the Department of Fisheries andOceans (DFO) has changed its name toFisheries and Oceans Canada (FOC). In thisguide, we use the older, more familiarabbreviation, DFO.

INDIAN AND NORTHERNAFFAIRS CANADA (INAC)

10

Envi

ronm

enta

l Im

pact

s of

Oil

and

Gas

Deve

lopm

ent

The Pembina Institute

This chapter provides a brief description ofeach of the 6 phases of oil and gasdevelopment and recommends questions thatcan help you assess the impacts of a proposeddevelopment.3

Seismic Exploration

Seismic exploration is a method used by the oiland gas industry to gather information aboutunderground rock formations. It involvescreating shock waves (low-frequency soundwaves) that pass through deep undergroundrock formations, and then interpreting the wavesthat are reflected back to the Earth’s surface.Thishelps to determine which formations maycontain large quantities of oil or gas.

Key questions to ask when reviewing a seismic application:

❑ Has the company assessed sensitiveecosystems within the project area?

❑ How will seismic crews access the area? Will theaccess created be temporary or permanent?

❑ How will they manage and reclaim accessroutes?

❑ What methods will companies use to surveythe area?

❑ Will they use 2D exploration, or 3Dexploration requiring multiple receiver lines?

❑ Will the company use shot holes or vibroseisfor the energy source, or both?

❑ What is the total linear extent of the program?

❑ What is the width of the seismic lines?

❑ How much clearing will they need?

❑ What vegetation clearing techniques willthey use?

3 Not all of the questions listed below will apply to your specific circumstances.

Environmental Impacts of Oil and Gas Development

You can find more detailed informationabout each phase of oil and gasdevelopment in the 6 Primers thataccompany this Guide. Each Primer alsoincludes information about the potentialenvironmental and human health risks andbest practices to reduce those risks.

SIX PRIMERS

There are four basic steps to seismicexploration:• creating access to the area to be explored• creating seismic lines• creating and recording seismic waves• collecting equipment and moving on

4 BASIC STEPS

Seismic means “caused by an earthquake orearth vibration.”

SEISMIC

11Citizens’ Rights and Oil and Gas Development: Northwest Territories

❑ Will the company erect a camp for theproject? For what time frame? Where willthey locate the camp?

❑ In what season will the project occur?

❑ What vehicles will the company use to clearlines and transport equipment andpersonnel?

❑ Will they have to cross water bodies? Howwill they do this? Where will the watercrossings be located?

❑ How will crews protect the soil andvegetative mat?

❑ What erosion mitigation measures will theyuse?

❑ What permafrost protection measures willthey use?

❑ What reclamation practices will they use and will they monitor reclamation successover time?

3D diagram showing seismic exploration

SOURCE: PEMBINA. / CREDIT: DAVE MUSSELL.

12 The Pembina Institute

❑ What are the shot hole setback distancesfrom groundwater wells and surface waterbodies?

❑ Will the company have a wildlife andenvironment monitor?

❑ What wildlife disturbance avoidancemeasures will they use? Does the companyhave policies to ensure workers know howto minimize impacts on wildlife?

❑ Are the waste management practicesacceptable?

❑ Have they assessed the socioeconomicbenefits (e.g., employment of local residents)and impacts?

❑ Have they identified ways they will mitigatepossible effects on other land uses such as traplines,as well as on areas of cultural significance?

Land Disposition

The regulatory process through whichcompanies obtain the rights to explore for and produce oil and gas reserves may be thefirst step in oil and gas development.When the government gives a company the rights to subsurface oil and gas resources in an areathis is referred to as a “land disposition” or “land sales.”

The first step in land disposition is forcompanies to tell the government in whichareas they are most interested in exploring foroil and gas. The government then issues a “callfor nominations” that defines the areas that any

company can place bids on. Companies placebids on blocks of land within the call fornominations area. The government thenconducts an auction-type process to assess thebids submitted by companies. Companies getthe exclusive right to explore those blocks thatthey “win” in the auction.

The government can prevent oil and gasdevelopment on land that it wishes to preservefor its ecological, historical, or cultural value bysimply not auctioning the subsurface rightsthat underlie those areas.

Once they have the rights to explore in aparticular area, companies will conduct seismicexploration to determine whether the area hasthe type of deep underground rock formationsthat could contain oil and gas reserves.4 If itdoes, they next determine the best location todrill exploratory wells to look for oil and gas.

Once companies find areas with potentialreserves they would like to further explore ordevelop, they then go to the propergovernmental authority to get approval to domore exploration and to remove the oil or gas.5

QUESTIONS TO ASK AT THIS STAGE

❑ Has the government completed a Land UsePlan for the call for the proposed areas?

❑ Are there unique ecosystems or criticalwildlife regions within the proposeddisposition area?

❑ Do the areas contain sacred sites, areas oftraditional use for travel, hunting and

4 See the first primer in this series, Seismic Exploration: A Primer, for a detailed explanation of this step.5 See the third primer in this series, Exploration and Production Drilling: A Primer, for a detailed explanation of this step.

13Citizens’ Rights and Oil and Gas Development: Northwest Territories

gathering, and burial grounds or other sitesof deep cultural significance?

❑ What types of conditions will the govern-ment place on successful bids by industry?

❑ What regulations has the government set upfor industry if they discover oil and gas ineconomic quantities?

❑ What regulations has the government set upto manage cumulative impacts?

❑ Has the government assessed socio-economic benefits (for example,employment of local residents) and impacts?

Exploration and Production Drilling

When planning to drill an exploratory well, acompany will select a location on the surfacethat is, as close as possible, directly above thetarget underground location. They begin byclearing and levelling the land to create a flatstable surface, and building access roads to thedrilling site. Because they will need waterduring the drilling process, if there is not anatural water source nearby they will truckwater into the site or drill a water well in areasthat have groundwater. Often a company willset up a mobile camp on the well pad for thedrilling crew to live in while the well is beingdrilled. The well pad is the flat gravel or icesurface area that all of the equipment sits on.

Next crews dig a reserve pit (commonlyreferred to as a “sump”) or bring in a series oflarge tanks, where they will put drilling waste.

Depending on regulatory requirements,workers may dispose of drilling waste on site ortransport the waste out of the area by truckand dispose of it elsewhere. Finally, the crewmoves the drilling rig into place and sets it up.They are now ready to begin drilling.

Workers drill the well using a drill bit that isconnected to a drill pipe. The drilling rig turnsthe pipe and, in turn, the drill bit. The rotatingbit and the weight of the pipe crushes the rockunderground.

QUESTIONS TO ASK AT THIS STAGE

❑ In what season will the company be drilling?

❑ Is the developer proposing exploration-onlywells, or conventional wells that would beconverted to production wells if drilling issuccessful?

❑ How many exploratory or production wells isthe developer proposing?

An “ecosystem” is a system made up oforganisms (plants and animals) and theirenvironment, working together as a unit.

ECOSYSTEM

A disposition is a legal instrument (such as asale, lease, licence or permit) that allows agovernment to give a benefit from publicland to any person or company.

DISPOSITION

14 The Pembina Institute

❑ What methods will crews use to build roadsand camps, and where will these be located?

❑ How big is the well pad? How many wellswill be drilled from the well pad?

❑ What type of vehicles will crews use?

❑ Will crews have to cross water bodies?Where and how will they do this?

❑ How will crews protect the soil andvegetative mat?

❑ What erosion mitigation measures will crews use?

❑ What permafrost protection measures willcrews use?

❑ What reclamation practices will crews use?Will they follow-up to make sure thereclamation is successful?

❑ What sources of fresh water will they use?How much water will they need?

❑ What type of drilling mud will the developeruse? What does it contain?

❑ How will crews manage and dispose ofdrilling waste?

❑ How will crews manage and dispose of solidand human waste?

❑ What is the company’s spill prevention andresponse plan?

❑ How will the crew manage and dispose ofsurface water and produced water?

❑ Is there any chance the workers willencounter hydrogen sulphide?

❑ Does the developer have an

Emergency Response Plan?

❑ What setbacks will the developer use? Whyare the setbacks needed? How big is theevacuation zone?

❑ Will crews use flaring to test wells? Whatalternative testing methods can they use?

❑ Did the company collect baselineenvironmental data?

❑ Has the developer assessed the area forsensitive ecosystems?

❑ Did the company conduct baselinegroundwater quality testing?

❑ Will the project have a wildlife andenvironment monitor?

❑ Has the company clearly outlined measuresto avoid disturbing wildlife? Does thecompany have policies to ensure workersknow how to minimize impacts on wildlife?

❑ Has the developer assessed socio-economicbenefits (e.g.employment of local residents) andimpacts associated with the proposed project?

❑ Has the company outlined a futuredevelopment scenario if exploration drillingis successful, including needs for a gatheringsystem pipeline and production facilities?

❑ Has the developer considered ways they willreduce their impact on other land uses, suchas hunting and trapping?

❑ How will the company manage any newlycreated recreational access to the area?

❑ What are the developer’s plans forreclaiming roads and well sites?

15

Well Site Operation

“Well site operation” includes the oil or gasproduction phase that starts when workers havedrilled a production well and ends when theydeactivate the well and reclaim the well site.

All wells sites have two basic features:

• wellhead — contains valves to control theflow of oil or gas from the reserve.

• well pad — normally made of gravel andlarge enough to hold all the equipmentneeded on the well site, as well equipment toservice the well.

Citizens’ Rights and Oil and Gas Development: Northwest Territories

Drilling Rig

CREDIT: DAVE MUSSELL, PEMBINA INSTITUTE

16 The Pembina Institute

Well sites often connect to all-season roads, orto winter access roads and a dedicatedhelicopter landing area. Almost all well siteshave a connection with a gathering pipelinethat transports the oil or gas to a processingfacility and then to a large-volume transmissionpipeline. The exact design of the well sitedepends on the oil and/or gas formation thatcrews have drilled into, and the hydrocarbonmaterial they are removing. Crews will needdifferent types of equipment depending onwhat they are drawing up the well.

If crews drill into an oil or gas reserve on acurve, instead of straight down, they may beable to put multiple wells and wellheads at asingle well site.

QUESTIONS TO ASK AT THIS STAGE

❑ What type of well is the developerproposing? What well components will theyhave on site?

❑ Will there be all-season access to the wellsite? How often will vehicles travel there?

❑ When do developers plan to abandon andreclaim the well site?

❑ How does the developer plan to reclaim anyaccess roads to well sites?

❑ How will crews manage and dispose ofsurface water?

❑ How will crews manage and dispose ofwaste?

❑ What are the company’s spill detection,response and cleanup capacity andmeasures?

❑ How large is the well pad?

❑ What permafrost protection measures willcrews use?

❑ What sources of freshwater will they use?How much water will they need?

❑ How will crews manage and dispose ofproduced water?

❑ Is there any chance the workers willencounter hydrogen sulphide?

❑ Does the developer have an EmergencyResponse Plan? How big is the evacuationzone?

❑ Will crews use alternatives to flares and flarereduction measures?

❑ What type of fugitive emissiondetection/control system does the developerhave in place?

❑ Are there emission controls on pneumaticdevices?

❑ Are there emission controls on dehydrationunits?

❑ What tank waste prevention measures willcrews use?

❑ What well casing protection measures doesthe company have in place?

❑ How will the developer monitorgroundwater quality?

❑ What noise mitigation measures are beingutilized?

❑ Has the company clearly outlined measuresto avoid disturbing wildlife? Does the

17

company have policies to ensure workersknow how to minimize impacts on wildlife?

❑ Has the developer assessed socio-economicbenefits (e.g., employment of local residents)and impacts associated with the proposedproject?

❑ How will the company manage any newlycreated recreational access to the area?

Oil and Gas Processing

When crews bring crude oil or gas to thesurface through production wells, it maycontain a variety of substances. These includenatural gas liquids (propane, butane andcondensate), hydrogen sulphide (H2S), carbondioxide (CO2), water, sand, silt, and asphaltenes.Before companies can send the oil or gas tomarket, they must process it to remove some orall of these impurities.

Workers can carry out some simple processingtreatments at the well site, such as separatingthe water from the oil (oil/water separation) ordrying the gas to eliminate any liquids present(gas dehydration). After these initialpreparations, workers send the oil or gasthrough a pipeline to a large, centralizedprocessing facility such as an oil battery or agas plant.

After workers have processed the oil at an oilbattery, they ship it by pipeline to a refinery. Atthe refinery it is made into a variety ofproducts, such as gasoline and diesel.

Workers process raw gas in a gas plant so that

the gas will meet pipeline specifications forwater and liquid hydrocarbon content. Theythen send it in large transmission pipelines forsale to markets around North America. Thehydrocarbons removed from the gas at theplant, such as ethane, propane and butane, maybe further processed into other valuableproducts. Companies sell these natural gasliquids to heating or petrochemical marketsthroughout North America.

QUESTIONS TO ASK AT THIS STAGE

❑ What type of a facility is the developerproposing? How often will vehicles travel tothe facility?

❑ How many years does the company estimatethe facility will operate?

❑ How will crews manage and dispose ofsurface water?

❑ How will crews manage and dispose ofwaste?

❑ What does the developer estimate will bethe emissions to air and water?

❑ What are the company’s spill detection,response and cleanup capacity andmeasures?

❑ How large is the site?

❑ What permafrost protection measures willcrews use?

❑ What sources of freshwater will they use?How much water will they need?

❑ How will crews manage and dispose ofproduced water?

Citizens’ Rights and Oil and Gas Development: Northwest Territories

18 The Pembina Institute

❑ Is there any chance the workers willencounter hydrogen sulphide?

❑ Does the developer have an EmergencyResponse Plan?

How big is the evacuation zone?

❑ Will crews use alternatives to flares and flarereduction measures?

Conceptual drawing of typical gas gathering system

SOURCE: PEMBINA INSTITUTE

19Citizens’ Rights and Oil and Gas Development: Northwest Territories

❑ What type of fugitive emission detection /control system does the developer have inplace?

❑ Are there emission controls on pneumaticdevices?

❑ Are there emission controls on dehydrationunits?

❑ What well casing protection measures doesthe company have in place?

❑ How will the developer monitorgroundwater quality?

❑ What noise mitigation measures are beingutilized?

❑ Has the company clearly outlined measuresto avoid disturbing wildlife? Does thecompany have policies to ensure workersknow how to minimize impacts on wildlife?

❑ Has the developer assessed socio-economicbenefits (e.g.employment of local residents) andimpacts associated with the proposed project?

❑ How will the company manage any newlycreated recreational access to the area?

Pipeline Construction and Operation

Pipelines are used to transport oil and gas totreatment plants (e.g., oil batteries and gasplants), and from treatment plants to market.Pipelines are also used to carry water that isproduced by oil or gas wells (produced water)to processing plants so that it can be cleanedand disposed of.

Pipelines come in different sizes and havedifferent pressures, depending on the volumeand type of content they contain. Pipelines arenormally buried underground, but in somecases pipelines are raised above the ground onsupports.

There are two main types of pipelines in the oiland gas industry:

• “Gathering system” pipelines — Thesepipelines collect raw oil and gas from wellsites and carry them to processing facilities,such as a gas plant or an oil battery.Gathering system pipelines tend to have arelatively small diameter and operate atrelatively low pressure.

• “Transmission system” pipelines — Thesepipelines ship the processed oil and gas tomarket. Transmission system pipelines tendto have a large diameter and operate at highpressure.

There are four basic steps to pipelineconstruction:

1. building access roads

2. clearing land

The terms “gas plant” and “oil battery” arecommonly used to describe a collection ofmany different facilities that process raw gasand crude oil.

GAS PLANT & OIL BATTERY

20 The Pembina Institute

3. installing the pipeline

4. building facilities to operate the pipeline

Crews must also build all the facilities that areneeded to operate a pipeline, including thefollowing:

Compressor stations — These buildings, whichare the size of a small house, contain one ormore large gas- or electric-poweredcompressor engines. The compressor engineincreases the gas pressure in the pipeline sothat gas will flow through it. A compressorengine is one of many different units at gasplants and is used to compress gas leaving thefacility by pipeline. Long gas pipelines mayneed a series of compressor stations along thepipeline to boost pressure.

Pumping stations — These buildings containlarge gas- or electric-powered pump enginesthat apply pressure to oil and water so they willflow through the pipeline. Pumping stationsare located at oil batteries and used to push oilthrough pipelines leaving the facility. Long oilpipelines may need a series of pumpingstations along the pipeline to boost pressure.

Aboveground valves — These tools are used tocontrol the flow of contents through thepipeline.

Pipeline tie-in locations — These are the placeswhere other gas or oil pipelines are connectedto the main pipeline.

Pig-traps — These facilities provide accesspoints where operators can insert devicescalled “pigs” that can be used to either clean

out the pipe or scan the inside of the pipe forcracks or corrosion.

After the pipeline has been constructed, all or aportion of the right-of-way is kept clear of treesand shrubs to let vehicles access, check on, and,if necessary, repair the pipeline.

QUESTIONS TO ASK AT THIS STAGE

❑ How long is the pipeline the developer isproposing? How big is the diameter?

❑ What type of oil or gas will the pipelinecarry?

❑ Does the developer have an EmergencyResponse Plan? How big is the evacuationzone?

❑ How wide is the right-of-way? How muchvegetation must crews clear to create theright-of-way?

❑ How much road access will crews have tocreate and how will they create it? Will theaccess they create be temporary orpermanent?

❑ How will crews manage and reclaim accessroutes?

❑ Has the company assessed sensitiveecosystems within the project area?

❑ Will the company erect a camp for theproject? For what time frame? Where willthey locate it? How big will it be?

❑ In what season will construction of theproject occur?

❑ Will crews use temporary snow and ice roadsto transport heavy equipment and materials?

21

❑ How will they protect the soil and vegetativemat?

❑ What erosion mitigation measures will theyuse?

❑ What permafrost protection measures willthey use?

❑ What reclamation practices will they use and willthey monitor reclamation success over time?

❑ Will crews have to cross water bodies? Howwill they do this? Where will they locate the

water crossings?

❑ How will crews manage and dispose ofwaste?

❑ How often will crews visually check the linefor leaks?

❑ Will the company use a centralized controlsystem to control the pipeline and any wellsthat are connected to the pipeline?

❑ How many pumping and compressionfacilities are needed, where will they be

Citizens’ Rights and Oil and Gas Development: Northwest Territories

Caption: Conceptual Drawing of a Gas Plant

SOURCE: PEMBINA INSTITUTE / CREDIT: DAVE MUSSEL

located and what are the air emissions?

❑ Will the company have a wildlife monitor?

❑ Has the company clearly outlined measuresto avoid disturbing wildlife? Does thecompany have policies to ensure workersknow how to minimize impacts on wildlife?

❑ Has the developer assessed socio-economic

benefits (e.g., employment of local residents)and impacts associated with the proposedproject?

❑ Has the company identified ways they willmitigate possible effects on other land usessuch as trap lines, as well as on areas ofcultural significance?

22 The Pembina Institute

Transmission pipelines gather gas from wells and transport it to a Gas Plant

SOURCE: PEMBINA INSTITUTE / CREDIT: DAVE MUSSEL

Citizens’ Rights

23

The government recognizes that people wholive in the North may be concerned about theenvironmental impacts associated with oil andgas development. There are laws that give thepublic the opportunity to comment during thephases of development described in theprevious chapter. These are your “citizens’rights.” Members of the public can play animportant role in identifying key issues andpriorities and making their views known toboth developers and government agencies.

Before you get involved, find out the answers tothe following questions:

• Where will the proposed oil and gasdevelopment occur? There are different lawsand regulations in the Mackenzie Valley andInuvialuit Settlement Region (ISR). In thefollowing chapters, we provide details on theprocess in both areas.

• Who owns the land and who owns themineral rights? The processes you have tofollow will be different depending onwhether the proposed development will takeplace on federal Crown land, on Aboriginalland under land claim agreements, or onprivate land (see Appendix B).

• What stage of development is the developerproposing? There are different rules fordevelopments at the seismic exploration,land disposition, and exploration andproduction drilling phases.

Citizens’ Rights and Oil and Gas Development: Northwest Territories

6 Inuvialuit Final Agreement, Section 2.

What Are Citizens’ Rights?

This chapter explains the steps you canfollow to participate in decisions about oiland gas development in your region.

STEPS TO FOLLOW

The Inuvialuit Final Agreement defines a“development” in the Inuvialuit SettlementRegion as “any commercial or industrialundertaking or venture … other thancommercial wildlife harvesting.”6 It has asimilar meaning in the Mackenzie Valley.Some boards and government agencies usethe word “project” instead of “development.”

DEVELOPMENT DEFINITION

Various independent boards, governmentdepartments and government agenciesmake decisions about oil and gasdevelopment in the NWT. In this guide, weoften refer to these groups as “boards andgovernment agencies” for brevity.

BOARDS & AGENCIES

Throughout this guide,“public” means anindividual or an organization that is not aland claim organization or a municipal,territorial or federal government.

PUBLIC DEFINITION

24 The Pembina Institute

• What type of development is the developerproposing? There are different rules forexploratory wells, production wells andpipelines.

Step 1: Find Out About theProposed Development

You can find out about a proposeddevelopment in one of two ways.You mayreceive a notice from a developer asking thepublic for input before the company applies toa board or government agency for permissionto proceed with a project. In other cases, youmay see an advertisement requesting publicinput after a developer has applied for a permitor licence.

Consultation with Stakeholders

Before a company applies for a licence orpermit or officially announces a project, itusually consults with the people in the areawho could be directly affected by thecompany’s activities. Members of the public,

organizations that will be affected by thedevelopment, and local government bodies arecalled “stakeholders,” so this process is called“company/stakeholder consultation.”

Aboriginal peoples have specific rights thatrequire them to be consulted and to participatein oil and gas developments and environmentaldecision-making on lands held under land claimsettlements and the Deh Cho First NationsInterim Measures Agreement (see Appendix B).As a result, most consultation with stakeholdersis with Aboriginal communities. Consultationwith municipal governments and individuals isoften limited unless they have direct interests inthe area affected by the proposeddevelopment. In some cases, a company willconsult with stakeholders because the lawrequires it to develop a Benefits Plan for theMinister of DIAND (see page 36 for moreinformation about Benefits Plans).

When a company seeks approval for adevelopment project, it must tell the regulatoryboard or government agency which individualsand organizations it consulted and whatproblems are not yet resolved.

Public Announcement of a Development

If the company and the government do notconsider you to be directly affected by adevelopment, you will not be contacteddirectly and invited to participate in thestakeholder consultation process. To find outabout an application, look for notices in localnewspapers. Information may be posted on theWeb sites of boards, government departments

When you see a reference to “consultation,”remember that the company, board orgovernment agency decides how theconsultation process will work and who willbe consulted, unless specific consultationrequirements are set out in land claimagreements or legislation.

CONSULTATION

25

and agencies, and in public registries. If youknow the location and stage of development ofa proposed operation, the tables in the nextchapter will show you where a publicannouncement will appear.

Notices about proposed developments usuallyinclude the following information:

• where you can obtain or view a copy of theapplication;

• whether the development is on Aboriginalland, Crown land, territorial land or privateland;

• what type of permit, licence or approval thecompany needs;

• whether the company must consult withstakeholders, which communities andindividuals must be consulted, and how theywill be consulted (in meetings, open houses,etc.); and

• what opportunities people have for publicinput and any deadlines for that input.

Step 2: Get Information About theCompany’s Application

Once you find out about a development, youneed to learn how decisions about thecompany’s application will be made. The tablesin the next chapter explain the process indifferent regions. The table on page 26 showsyou where you can find specific informationrelated to your region and the company’s stageof development.

Step 3: Decide What Concerns You Have About the Proposal

After you have studied the project application,you may be worried about the development’senvironmental impacts.You may want tocontact the company for more information orto ask it to prevent or minimize those impacts.You may also want to arrange forcompensation if the development affectstraditional land uses.

You can act on your concerns in the followingways:

• Inform the company of your concerns duringthe company’s consultation phase. Thecompany can then try to address yourconcerns and suggestions in its developmentscenario. Boards and government agencieswill take the outcome of the consultationsinto account during their review process.

• Try to resolve issues by getting involved inthe process to establish a Benefits Plan.Under the Canada Oil and Gas Operations Act,a Benefits Plan must usually be in placebefore a company gets approval to proceedwith a development. Local groups have the

Citizens’ Rights and Oil and Gas Development: Northwest Territories

Find advice on how to negotiate with acompany during the consultation process onpage 107.

ADVICE ON NEGOTIATION

26 The Pembina Institute

opportunity to raise their concerns andnegotiate compromises while consultingwith the company to develop a Benefits Plan.

• File a written statement, or “intervention,”with the appropriate board or governmentagency (see Step 4 for more information).

Step 4: Provide Public Input to aBoard or Government Agency

The first action you take to provide public inputto a land and water board or governmentagency may be as simple as writing a letter thatexplains your concerns or objections to a

Region Stage of Development Page Table

Mackenzie Valley Right to enter land for exploration 38 1A (top row)

Mackenzie Valley Exploration for oil and gas 38 1A

Mackenzie Valley Oil and gas development planning 52 2A

Mackenzie Valley Oil and gas drilling and production 60 3A

Mackenzie Valley Pipeline development (wholly in Mackenzie Valley) 60 3A

InuvialuitSettlement Region

Right to enter land for exploration 44 1B (top row)

InuvialuitSettlement Region

Exploration for oil and gas 44 1B

InuvialuitSettlement Region

Oil and gas development planning 54 2B

InuvialuitSettlement Region

Oil and gas drilling and production 66 3B

InuvialuitSettlement Region

Pipeline development (wholly in Inuvialuit Settlement Region)

66 3B

All NWT Transboundary pipelines 76 4

27Citizens’ Rights and Oil and Gas Development: Northwest Territories

particular development. If you submit yourletter, or “written intervention,” within the timelimit set by the board or government agency,you will often be granted “status,” which meansyou are recognized as an “intervener” in thepublic review process and have the opportunityto participate formally in a public hearing.

The process to provide public input to a boardor government agency is different in differentregions of the NWT. Check the tables in the nextchapter to find out the process for a particulardevelopment, and then confirm this informationwith the board or government agency respon-sible for the process. If you have questionsabout the process at any time, ask the board orgovernment agency to explain it to you.

To file a written intervention, follow these steps:

• Write a letter, or “submission,” to the board orgovernment agency that is responsible forapproving the application or issuing thelicence or permit.You can find the name ofthe board or government agency and itscontact information in the public notice thatannounced the application.

• State in your letter how the project affectsyou. In some cases, the board or governmentagency only accepts objections from peopleor groups they consider to be “directlyaffected,” but there are different interpreta-tions of who qualifies as “directly affected.”

• Set out your concerns (such as the possibleimpact on water quality or wildlife) as clearlyas possible. It is helpful to number each ofyour concerns in the letter.

• Describe how the company could addressyour concerns. For example, you may be ableto identify a less sensitive area where thedevelopment would cause less harm, or youmay suggest that the company restrict someactivities to certain times of the year whenwildlife is less vulnerable.

• Make sure the board or government agencyreceives your letter before the deadline.

• Send a copy of your letter to all other boardsand government agencies that will be issuingpermits or licences to the company.

• Send a copy of your letter to the companythat has requested approval from the boardor government agency.You can continue totry to resolve issues directly with the

Local groups have the opportunity to raisetheir concerns and negotiate compromiseswhile consulting with the company todevelop a Benefits Plan.

BENEFITS PLAN

Throughout this guide, we have spelled“intervener” with an “er” at the end. It is alsoacceptable to spell this word with an “or” atthe end, as “intervenor.” This is the spellingyou may find on some Web sites, so searchfor both spellings if you don’t immediatelyfind what you are looking for.

INTERVENER

28 The Pembina Institute

company even after you have sent a letter tothe board or government agency.

You may want to ask the board or governmentagency the following questions:

• What is the company required to do with anypublic comments it receives?

• How are public comments and concernsconsidered by the board or governmentagency?

• What happens if members of the public wantconditions attached to a development or ifthey do not want the development toproceed at all?

• Will there be a public hearing? Whatcircumstances will likely result in a publichearing?

• Can members of the public appeal a board orgovernment agency’s decision about anapproval or decision made after a hearing(see page 95 for more information aboutappeals)?

The board or government agency will considerany issues that you raise in your writtenintervention, and that the company has notaddressed, before it decides whether to approvethe application. It maydecide that the projectmeets all the necessaryconditions and issue anapproval. On the otherhand, it may specifyspecial conditions in alicence or permit toaddress your concerns.

Possible conditions include the following:

• limiting activity during certain seasons toprotect wildlife;

• requiring compensation for impacts onwildlife; and

• specifying the types of drilling waste disposalpractices that are allowed.

If a board or government agency decides that adevelopment could result in significant environ-mental impacts or cause public concern, it mayrefer the application to a review board.Thiscould lead to a public hearing (see the chaptercalled “The Environmental Screening and ReviewProcess,”starting on page 80, for informationabout how the review board process works).

When you receive a response from the board,government agency or company, you can doone of two things:

• If you are satisfied, you may wish to formallynotify the company and any boards orgovernment agencies you contacted thatyour concerns have been addressed.

• If you are unsatisfied, you may want to useother methods to communicate yourconcerns. For example, you may request a

public hearing orcontact the media (seethe chapter called “Non-regulatory Ways toAddress Issues,” startingon page 107, for adviceon how to work with the media).

You can continue to try to resolve issuesdirectly with the company even after youhave sent a letter to the board orgovernment agency.

RESOLVE ISSUES

Your Opportunity for Public Input

29Citizens’ Rights and Oil and Gas Development: Northwest Territories

Your opportunity for public input depends onthe following factors:

• the location of the development;

• the owner of the land that will be developed;

• the stage of development; and

• the stage in the application process.

Sometimes, a board or government agency willissue a licence or permit with little or no publicinput. In other cases, when the project has thepotential to cause significant environmentalimpacts or public concern, it may forward thecompany’s application to a review board so itcan be examined in more detail. This may leadto a public hearing.

In this guide, we refer to five distinct stages ofdevelopment:

• right to enter land for exploration;

• exploration for oil and gas;

• oil and gas development planning;

• oil and gas drilling and production; and

• pipeline development.

The tables in this chapter describe the process, required permits, licences orauthorizations, and opportunities for publicinput at each stage of development in the Mackenzie Valley (Tables 1A, 2A, 3A and 4) and ISR (Tables 1B, 2B, 3B and 4).

How to Read the Tables

Column 1: Region

Some federal legislation, such as the NorthwestTerritories Waters Act and the Canada Oil andGas Operations Act, applies throughout theNWT. However, the Mackenzie Valley and theISR also have different regional legislation andsettlement agreements, which means differentrules, processes and regulatory agencies. In theMackenzie Valley, one piece of legislation calledthe Mackenzie Valley Resource Management Actgoverns environmental regulation andpermitting.

The ISR includes the outer part of theMackenzie Delta, the Arctic Coast and theArctic islands in the NWT (see Figures 1 and 8).In this guide, we define the Mackenzie Valley asall lands in the NWT except lands in the ISR.

Your Opportunity for Public Input

The tables in this chapter describe thedevelopment approval process, requiredpermits, licences or authorizations, andopportunities for public input at each stageof development in the Mackenzie Valley andInuvialuit Settlement Region (ISR).

TABLES

30 The Pembina Institute

Figure 1. Map of Yukon and NWT showing Traditional Territories, Land Claim areas and Treaties

SOURCE: CANADIAN PARKS AND WILDERNESS SOCIETY YUKON CHAPTER

31Citizens’ Rights and Oil and Gas Development: Northwest Territories

There are regional subdivisions within theMackenzie Valley and ISR, depending on whoowns the land and who owns the subsurfacerights. Land ownership in the NWT can bedivided into four categories (see Appendix B):

• federal Crown lands;• Aboriginal lands owned under land claim

agreements;• territorial lands; and• private lands.

The federal government often owns thesubsurface rights to minerals in the NWT, sofederal government legislation governs accessto much of the oil and gas. Companies thatwant to pursue oil and gas developmentprojects have to get approval from DIANDand/or the National Energy Board (NEB).

The first public information about anapplication usually appears when a companyapplies for a land use permit or water licence.

In the Mackenzie Valley, there are three landand water boards that issue land use permitsand water licences:

• Gwich’in Land and Water Board (GLWB)• Sahtu Land and Water Board (SLWB)• Mackenzie Valley Land and Water Board

(MVLWB)

In the ISR, the Northwest Territories Water Board(NWTWB) issues all water licences, and DIANDissues land use permits for Crown lands.TheInuvialuit Land Administration reviews andapproves applications to access and useInuvialuit lands that are referred to as Section

7(1)(a) or 7(1)(b) lands.These lands are definedin the Inuvialuit Final Agreement.The InuvialuitFinal Agreement gives the Inuvialuit surface andsubsurface title to the 7(1)(a) lands close to each

of the six Inuvialuit communities. On 7(1)(b)lands, which are traditional lands beyond the7(1)(a) lands, the Inuvialuit Land Administrationowns the surface rights (including sand andgravel rights), but the federal government ownsthe mineral rights (see Appendix B).

Column 2: Permits or Licences Required

An oil or gas developer may have to apply for anumber of permits and licences at each stageof development. For example, almost anyactivity that occurs on the surface of the landrequires a land use permit. This includesbuilding access roads, constructing camps anddigging sumps. Most industrial surface orsubsurface water withdrawals and dischargesrequire a water licence. The opportunities forpublic input depend on the type of permit orlicence a company is applying for. A companymay not need all of the licences, permits andauthorizations listed in the tables to complete aspecific project.

Once you know the land ownership categoryof a proposed development, you can refer tothe appropriate rows in the tables

LAND OWNERSHIP

Column 3: Legislation

Legislation, and regulations under thelegislation, specify what permits or licences aproject requires. Legislation may also determinethe opportunity for public input. However, thepolicy of the various land and water boardsoften determines the public consultationprocess, rather than specific legislation.

Column 4: Opportunity for Input

In the tables, we distinguish between aninformal opportunity for public input, when thegovernment or a company consults only withthe people affected directly by a development,and a public announcement that allows forbroader public involvement. A publicannouncement of an application for approval, apermit or a licence may or may not be required.If it is required, the company, board orgovernment agency usually places anadvertisement or “public notice” in localnewspapers. The notice tells you about theproposed development and explains where

you can get a copy of the company’sapplication. It also states the deadline forsending in comments and the address whereyou must send them.

In some cases, the board or governmentagency only formally accepts comments fromindividuals or groups that meet certain criteria.For example, you have to comment onapplications for development on Inuvialuit landand Inuvialuit Crown land through the Huntersand Trappers Committees (HTCs). The HTCs areofficial community organizations under theInuvialuit Final Agreement.

Column 5: Information from Boards,Government Departments and Agencies

The board, government department or agencythat makes decisions about an application foran approval, permit or licence is the body thatyou must contact for information and to whichyou must submit your concerns or objections.When a guide is available that explains how aspecific board or government agency works,we have included details here.You can findaddresses and other contact information in thechapter called “Boards, Government Depart-ments and Agencies,” starting on page 96.

Most boards and government agencies in theNWT maintain and provide access to a “publicregistry,” or public information centre. Eachpublic registry contains complete informationon applications to that particular board and isopen to the public at the board or governmentagency offices. Some public registries are

32 The Pembina Institute

A company may need approval from boththe federal government and a local board orgovernment agency in the Mackenzie Valleyor ISR. It is important to identify which boardor government agency is responsible for anapplication, so that you refer to the correctrows in the tables.

WHICH BOARD/AGENCY?"

33Citizens’ Rights and Oil and Gas Development: Northwest Territories

available on the Web. When a public registryexists, we have indicated it in this column.

Column 6: Provision for Public Hearing

If legislation or board policy provides for apublic hearing, it may be held by a land andwater board as part of the application reviewprocess or by a special review board.

Here’s how the review board process works.When the initial screening of an application bya land and water board or government agencyindicates that a development will likely have asignificant environmental impact or causepublic concern, the board or governmentagency forwards the application to theMackenzie Valley Environmental Impact ReviewBoard (MVEIRB) in the Mackenzie Valley or theEnvironmental Impact Review Board (EIRB) inthe ISR. Federal legislation may also trigger areview under the Canadian EnvironmentalAssessment Act in the ISR, or for transboundaryprojects. When both regional and federaljurisdictions trigger a hearing, one board orgovernment agency may take the lead.However, if there is a joint review process, as inthe case of transboundary projects, there is nolead agency.

In all cases, the notice that announces thehearing explains how members of the publiccan make comments and gain “status” at thehearing. In some cases, you may be able toappeal or legally challenge the decision thatresults from a hearing. The chapter called “TheEnvironmental Screening and Review Process,”

starting on page 80, provides more informationabout the review, hearing and appeal processbefore the special review boards. The reviewboard process is the same at every stage ofdevelopment.

Public Input at “Right to EnterLand for Exploration” Stage

Before a company searches for oil and gas inthe NWT, it needs permission to enter the landto conduct exploration activities. The CanadaPetroleum Resources Act enables a company toobtain an exploration licence for a specifiedarea. This later gives the company the exclusiveright to obtain a production licence to developany resources that it finds. The CanadaPetroleum Resources Act applies to the entireNWT and governs exploration in water (marineexploration) and on land-—except on ISR7(1)(a) lands, where the Inuvialuit own the

Look up the name of your land and waterboard in the chapter called “Boards,Government Departments and Agencies,”starting on page 96, to find informationabout its hearing process. A hearing by aland and water board, held when the boardwants to consult with the public as part ofthe initial screening of an application,follows a different process from a hearingbefore a review board.

HEARING PROCESS

subsurface rights. OnISR 7(1)(a) lands, theInuvialuit LandAdministration issuesa concessionagreement that givesa company the rightto explore (see Table1B, row 2). There arealso limited areas ofthe Gwich’in and Sahtu settlement lands wherethese First Nations own the subsurface rightsand are responsible for giving companiespermission to explore.

DIAND’s Northern Oil and Gas Directorateadministers the portion of the CanadaPetroleum Resources Act that sets rules for oiland gas exploration. The Directorate does nothave an office in the NWT. However, you cancontact the Director of the Directorate for moreinformation about the process of issuing rightsand upcoming rights issuing initiatives, or toreceive copies of Calls for Nominations andCalls for Bids.You can find the Directorate’saddress in the chapter called “Boards,Government Departments and Agencies,”starting on page 96.

It is DIAND policy to consult with affectedcommunities before opening land forexploration by issuing an exploration licence.This is the only opportunity for public input atthis stage of development. DIAND contacts theboards, government agencies, stakeholders andpublic interest groups that it believes the

proposed explorationwill affect. In areaswhere land claimshave been settled, theconsultation processusually has a moreformal structurebecause thesettlement agreementgenerally outlines

the process.

After consulting with the local community,DIAND may issue a Call for Nominations.Companies can then decide which blocks of landinterest them. Next, the government issues a Callfor Bids. DIAND publishes its Calls for Bids on itsWeb site at www.ainc-inac.gc.ca/oil/act/Cal/.Youcan monitor this Web site to find out what landDIAND is offering. However, by the time DIANDissues a Call for Bids, it has completed theconsultation process and more public input isunlikely.

DIAND accepts the highest bid on each blockof land, and that company gets an explorationlicence. An exploration licence only allows acompany to explore. It does not give acompany the right to extract oil or gas.

You can find more information aboutexploration licences in the first row of Table1A and Table 1B.

34 The Pembina Institute

A “jurisdiction” is a territorial range ofauthority or control. Regional governmentsand the federal government have specificareas of responsibility in the NWT.Sometimes, these jurisdictions overlap.

JURISDICTION

35Citizens’ Rights and Oil and Gas Development: Northwest Territories

Public Input at“Exploration for Oil and Gas”Stage

Once a company hasthe right to access aspecific area of land, itcan begin theexploration process. Oil and gas explorationprograms generally have two phases:geophysical (seismic) exploration andexploratory drilling.

Federal Government Requirements (Table1A and Table 1B)

Seismic exploration requires an authorizationfor geological / geophysical operations from theNEB. Exploratory drilling requires an authority todrill a well from the NEB. (Because the federalrequirements are the same for the entire NWT,this information appears in both Table 1A andTable 1B.) There is usually no opportunity forinput directly to the NEB, but the NEB reviewsinput received by other bodies, such as the localland and water boards.The NEB will not grantits authorization until the Minister of DIAND hasapproved a Benefits Plan. In order to create aBenefits Plan, the company must consult witheveryone a development will directly affect,including, for example, HTCs.The company mustalso consult HTCs about wildlife compensation.

If seismic exploration and exploratory drillingare likely to affect fish habitats or navigable

waters, thedevelopment mayalso need a FisheriesAct authorizationand/or a NavigableWaters Protection Actpermit from the DFO.

Any of these pieces offederal legislation may

trigger a review under the CanadianEnvironmental Assessment Act (see page 128). Inthe Mackenzie Valley, the MVEIRB carries outreviews under the Mackenzie Valley ResourceManagement Act (see page 129).

Regional Requirements

Seismic exploration requires a land use permit.Exploratory drilling requires a land use permitand may also require a water licence.Applications are handled differently in theMackenzie Valley and ISR.

Mackenzie Valley (Table 1A)

In the Mackenzie Valley, a company must applyfor a land use permit or a water licence fromthe Mackenzie Valley Land and Water Board(MVLWB), Gwich’in Land and Water Board(GLWB) or Sahtu Land and Water Board (SLWB),depending on where the development willtake place. Each board offers differentopportunities for public input. The board startsby conducting an internal preliminaryscreening of the application. When public inputis possible (see Table 1A for details), the boardpublishes a notice in a local newspaper to

It is DIAND policy to consult with affectedcommunities before opening land forexploration by issuing an explorationlicence. This is the only opportunity for publicinput at this stage of development.

DIAND POLICY

invite public comments. During the preliminaryscreening process, the board decides if anenvironmental assessment is necessary. If thedevelopment is likely to cause significantenvironmental impacts or public concern, theboard will refer the application to the MVEIRB.

Inuvialuit Settlement Region (ISR) (Table 1B)

On ISR 7(1)(a) lands, a company will enter into aParticipation Agreement with the InuvialuitLand Administration, which will include aBenefits Plan. For larger projects that extendover both Inuvialuit land and federal (Crown)land, a company will enter into acomprehensive cooperation and benefitsagreement that meets both the Inuvialuit andfederal requirements.

On 7(1)(a) and 7(1)(b) lands in the ISR, theInuvialuit Land Administration issues land usepermits. The Inuvialuit Land Administration willconsider a company’s application and attachvarious conditions to development. However, itwill not issue a land use permit until after theEnvironmental Impact Screening Committee(EISC) has completed its process (see last tworows of Table 1B).

The EISC, which screens developments in theISR, seeks input from HTCs, communities andthe public. Once the EISC process is complete,the boards and government agencies can grantthe permits or approvals required for adevelopment to proceed. However, if the EISChas concerns about the proposed develop-ment, it will probably forward the applicationto the EIRB for a more comprehensive review. Inthis case, there will usually be a joint review bythe EIRB and the Canadian EnvironmentalAssessment Agency, to ensure that the

36 The Pembina Institute

A Benefits Plan shows how a company willprovide employment for Canadians and givethem a fair opportunity to supply the goodsand services a development needs. TheMinister of DIAND may require a BenefitsPlan to ensure that individuals or groupswho are disadvantaged receive training andemployment.

BENEFITS PLAN

You can find a summary of the MVEIRBreview processes in the last row of Table 1A,and a detailed explanation of the processstarting on page 81.

MVEIRB REVIEW

The public may be able to provide commentswhen a company applies for land use permitsand water licences for a development.

PUBLIC COMMENTS

37Citizens’ Rights and Oil and Gas Development: Northwest Territories

requirements of the Canadian EnvironmentalAssessment Act are met.

On Crown lands in the ISR, DIAND issues landuse permits. The process is similar to theprocess for 7(1)(a) and 7(1)(b) lands, except thatDIAND makes the decisions. DIAND forwardsthe application to the EISC for review andensures that the application meets therequirements of the Canadian EnvironmentalAssessment Act.

If a company needs a water licence, it applies tothe NWTWB. A public notice of the applicationappears in local newspapers. For large-scaleprojects, the notice announces the date andlocation of a public hearing. For smallerprojects, the notice simply states that acompany has applied for a water licence. TheEIRB or agencies implementing the CanadianEnvironmental Assessment Act may also triggera hearing during the environmental impactscreening and review process.

Table 1A summarizes the opportunities forpublic input at the exploration stage in theMackenzie Valley.Table 1B summarizes the opportunities forpublic input at the exploration stage in theISR.

The local land and water boards in theMackenzie Valley may hold their ownhearings to consult with the public. However,if a development might cause significantenvironmental impacts or public concern,the local board will send the applicationdirectly to the MVEIRB.

BOARD HEARINGS

For a detailed description of theopportunities for public input during theEIRB process in the ISR, see page 86.

EIRB PROCESS

38 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

Mackenzie Valley Exploration Licence Canada Petroleum Resources Act

Mackenzie Valley Authorization for Geological/Geophysical Operations orAuthority to Drill a Well from NEB

Canada Oil and Gas Operations Act

Mackenzie Valley Benefits Plan Canada Oil and Gas Operations Act, Section 5.2;

Benefits Planrequired before NEB authorization

Table 1A. Mackenzie Valley – Right to Enter Land for Exploration for Oil and GasDepending on circumstances, a company may not need all of the authorizations listed in this table.

39Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

DIAND policy to consult with public/community before openinglands for exploration

Consultation initiated by DIAND (see page 101)

No

No public notice; input only through the processes to issue aBenefits Plan, Land Use Permit,Water Licence, Fisheries ActAuthorization or NavigableWaters Protection Act Permit;processes must be completedbefore NEB authorization

NEB (see page 104)

Public registry at NEB office inCalgary, Alberta; an electronicregistry is being developed at NEB Web site at www.neb-one.gc.ca/PublicRegistries/index_e.htm

Only if the MVEIRB processtriggers public hearings for one of the authorizationslisted under “Opportunity forinput”; we describe theprocess for theseauthorizations in later rows in this table

No public notice; governmentpolicy requires company to consultwith affected communities, groupsor individuals about employmentand training opportunities;government may require companyto pay compensation if develop-ment will have negative effects onhunting, trapping or fishing

DIAND (see page 101)

No

40 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

South Mackenzie Valley Land Use PermitandWater Licence from MVLWB

Mackenzie Valley ResourceManagement Actand

Northwest Territories Waters Act

Gwich’in Settlement Region Land Use Permit andWater Licence from GLWB

Mackenzie Valley ResourceManagement Act andNorthwest Territories Waters Act

Sahtu Settlement Region Land Use PermitandWater Licence from SLWB

Mackenzie Valley ResourceManagement Actand

Northwest Territories Waters Act

41Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

Public notice of applicationadvertised in Northern News (seewww.nnsl.com) and applicationposted on the MVLWB Web site atwww.mvlwb.com;

MVLWB notifies the landowner andaffected communities or FirstNations and seeks their input

MVLWB (see page 103)

Public registry at MVLWBoffice in Yellowknife and onMVLWB Web site at www.mvlwb.com/html/CurrentApp.html

MVLWB may hold hearing;see “Draft Rules of ProcedureIncluding Public Hearings”available at

www.mvlwb.com/html/MVLWBdoc.html OR

MVLWB may refer applica-tion to MVEIRB for review(see last row of table)

Public notice of applicationadvertised in News North and alocal newspaper;

GLWB sends application toaffected communities, Gwich’ingroups, co-management boards,etc. for comment

GLWB (see page 100)

See “GSA Water Licence& Land Use PermitApplication Process” availablefrom GLWB Web site atwww.glwb.com

Public registry in Inuvik

GLWB may hold a hearing ifthere is public concern;GLWBannounces hearings in InuvikDrum and News North OR

GLWB may refer applicationto MVEIRB if there ispotential for significantenvironmental impact

(see last row of table)

No public notice of Land UsePermit application, but SLWBsends application to affectedcommunities and designatedSahtu organizations for comment

Public notice of application forWater Licence posted in NewsNorth, and SLWB sends applicationto affected communities and designated Sahtu organizations for comment

SLWB

(see page 105)

See “Land Use Permit Process(Draft)” and “Water LicenceProcess (Draft)” available from SLWB Web site atwww.slwb.com

Public registry in Fort Good Hope

SLWB must hold a hearingfor a Type A (large-scale)Water Licence and may holda hearing for a Type B Water Licence or a Land Use Permit OR

SLWB may refer applicationto MVEIRB if there ispotential for significantenvironmental impact orpublic concern

(see last row of table)

42 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

Mackenzie Valley Fisheries Act Authorization if development affects fish habitat

Fisheries Act

Mackenzie Valley Navigable Waters Protection Act Permit if development affectsnavigable waters

Navigable Waters Protection Act

Mackenzie Valley Bird Sanctuary Permitif development is within a bird sanctuary

Migratory Birds Convention Act

Mackenzie Valley Preliminary Screening of oneof the applications listed abovemay lead to EnvironmentalImpact Screening andperhaps EnvironmentalImpact Review by MVEIRB

Mackenzie Valley ResourceManagement Act

43Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

No public notice, but DFO maysend application to MVEIRB afterpreliminary screening

DFO – Fish HabitatManagement

(see page 99)

Only if required by MVEIRBprocess

(see last row of table)

Pubic notice of application;opportunity for public input asindicated in the public notice

DFO – Canadian Coast Guard

(see page 99)

Only if required by MVEIRB process

(see last row of table)

Consultation with local communities

Environment Canada – Canadian Wildlife Service

(see page 97)

No

Public notice of application andpublic meetings advertised inNews North, in local newspapers,and on the MVEIRB Web site at

www.mveirb.nt.ca

MVEIRB (see page 102)

See “Draft EIA Guidelines” and“Rules of Procedure forEnvironmental Assessment andEnvironmental Impact ReviewProceedings” available fromMVEIRB Web site atwww.mveirb.nt.ca/MVGuides/MVDocs.html

Public registry on MVEIRBWeb site at www.mveirb.nt.ca

MVEIRB may hold hearing as part of an environmentalassessment process and will hold hearings if there is an environmental impact review

(see page 81 for adescription of the reviewand hearing processes)

44 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

ISR Crown lands and7(1)(b) lands

Exploration Licence Canada Petroleum Resources Act

ISR 7(1)(a) lands Concession Agreement gives right to explore

Inuvialuit Land Administration Rules and Procedures

ISR Inuvialuit-ownedlands; surface access on7(1)(a) and 7(1)(b) lands;can include Crown lands

Cooperation Agreement(voluntary) ORParticipation Agreement(required before gettingLand Use Permit)

Inuvialuit Final Agreement,Section 10

All ISR Authorization forGeological/Geophysical Operations orAuthority to Drill a Wellfrom NEB

Canada Oil and Gas Operations Act

All ISR Benefits Plan

On 7(1)(a) lands, benefits areincluded in Participation /Access Agreement

Canada Oil and Gas Operations Act,Section 5.2; Benefits Plan required before NEB authorization. See InuvialuitFinal Agreement, Sections 10 and 16 forCrown lands and 7(1)(b) lands

Table 1B. Inuvialuit Settlement Region – Right to Enter Land for Exploration for Oil and GasDepending on circumstances, a company may not need all of the authorizations listed in this table.

45Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

DIAND policy to consultpublic/community before openinglands for exploration

DIAND

(see page 101)

No

Concession Agreement may beconditional on obtaining aCooperation Agreement andBenefits Plan, which involve someinput (see below)

Inuvialuit Land Administration

(see page 101)

No

Inuvialuit Land Administration postspublic notice of Inuvialuit LandAdministration Commission publicmeeting; general consultation occursat public meeting among InuvialuitLand Administration Commission,Inuvialuit and other organizations

Inuvialuit Land Administration

(see page 101)

Only if Inuvialuit LandAdministration requestsreview by EISC, which could lead to EIRB review andhearing (see last two rows oftable)

No public notice; input only occursthrough the process to issue aBenefits Plan; DIAND must approveor waive the Benefits Plan beforeother authorizations can be issued;NEB requires a record of publicinvolvement

NEB (see page 104)

Public registry at NEB office inCalgary, Alberta; an electronicregistry is being developed atNEB Web site at www.neb-one.gc.ca/PublicRegistries/index_e.htm

Only if EISC triggers a review by EIRB(see last two rows of table) ORif review under the CanadianEnvironmental Assessment Acttriggers a hearing

(see page 90)

Government policy requires thecompany to consult with Inuvialuitcommunity corporations, and withothers as appropriate

DIAND

(see page 101)

No

46 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

All ISR Wildlife Compensation Inuvialuit Final Agreement,Section 13

ISR 7(1)(a) and 7(1)(b) lands

Land Use Permit Inuvialuit Land Administration Rules andProcedures

ISR Crown lands Land Use Permit Territorial Lands Act

All ISR Water Licence Northwest Territories Waters Act

47Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

No public notice; company expectedto consult with HTCs, communitycorporations and co-managementorganizations

Inuvialuit Land Administration

(see page 101)

Only if Inuvialuit LandAdministration requestsreview by EISC, which could lead to EIRB review and hearing

(see last two rows of table)

Inuvialuit Land Administrationnotifies the public and Inuvialuitorganizations of a public session ofthe Inuvialuit Land AdministrationCommission, which considerscomments presented at the publicsession

Inuvialuit Land Administration

(see page 101)

Only if Inuvialuit LandAdministration requestsreview by EISC, which could lead to EIRB review and hearing

(see last two rows of table)

No public notice; DIAND DistrictOffice consults with HTCs, localcommunities and Aboriginal people

DIAND

(see page 101)

If triggered by CanadianEnvironmental Assessment Actor by Environmental ImpactScreening and EnvironmentalImpact Review processes

(see last two rows of table)

Public notice of application in localnewspapers

NWTWB

(see page 105)

DIAND provides technicalsupport and is responsible forCanadian EnvironmentalAssessment Act review

Public registry at NWTWBoffices in Yellowknife and Inuvik

NWTWB holds hearings for allType A licences (for largerprojects); the EnvironmentalImpact Screening andEnvironmental Impact Reviewprocesses may also trigger ahearing (see last two rows oftable)

48 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

Fish-bearing waters in ISR Fisheries Act Authorizationif development affects fishhabitat

Fisheries Act

Navigable waters in ISR Navigable WatersProtection Act Permit ifdevelopment affectsnavigable waters

Navigable Waters Protection Act

All ISR Bird Sanctuary Permit ifdevelopment is within a birdsanctuary

Migratory Birds Convention Act

All ISR Environmental ImpactScreening

Inuvialuit Final Agreement,Section 11 and

Canadian Environmental Assessment Act(which may have requirements beyond theInuvialuit Final Agreement)

All ISR Environmental ImpactReview

Inuvialuit Final Agreement,Section 11

Environmental Impact Reviewusually meets the requirements of theCanadian Environmental Assessment Act

49Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

No public notice DFO – Fish HabitatManagement

(see page 99)

Only if development triggersCanadian EnvironmentalAssessment Act review

(see page 90)

No public notice DFO – Canadian Coast Guard

(see page 99)

Only if development triggersCanadian EnvironmentalAssessment Act review

(see page 90)

Consultation with localcommunities

Environment Canada –Canadian Wildlife Service

(see page 97)

No

No public notice; EISC sets up panelthat seeks input from HTCs,communities and the public

EISC

(see page 98)

Public registry at EISC office in Inuvik

Environmental Impact Reviewprocess may trigger a hearing

(see last row of table)

Public notice sent to print, radio andtelevision media to announce publicreview

EIRB (see page 98)

Review occurs when:

1. Comprehensive study ismandatory (under CanadianEnvironmental Assessment Act),OR

2. EIRB requires standard public review

Public registry at EIRB office in Inuvik

EIRB may hold public hearingas part of review processes

(see page 86 for a description of the review and hearing process)

EIRB and CanadianEnvironmental AssessmentAgency work together toensure that both federal andEIRB requirements are met

50 The Pembina Institute

Public Input at “Oil and GasDevelopment Planning” Stage

If a company discovers a significant amount ofoil or gas through exploration, it can apply tothe NEB for a Declaration of SignificantDiscovery or a Declaration of CommercialDiscovery—except on ISR 7(1)(a) lands andthose areas of the Gwich’in and Sahtu landswhere the settlementagreements includemineral rights. In the ISR,the Inuvialuit RegionalCorporation and theInuvialuit LandCorporation decidewhether the companycan make a Declarationof Significant Discovery.On all other NWT lands,after the NEB conductsan internal governmentreview, it issues a noticeof intention to issue a Declaration of SignificantDiscovery or Declaration of CommercialDiscovery.

The NEB publishes its notice of intention in theCanada Gazette and in a newspaper that has awide distribution in the areas most affected bythe development. It also posts the notice ofintention on the NEB Web site. When the NEBpublishes a notice of intention, someone the

NEB considers to be “directly affected” has 30days to request a hearing. The NEB definition ofa “directly affected person” may includeenvironmental non-governmentalorganizations and other parties that do notnecessarily live in the affected area, althoughthat is decided on a case-by-case basis.

If the NEB does not hold a hearing, or after thehearing is complete,the NEB decideswhether to issuethe Declaration ofSignificantDiscovery orDeclaration ofCommercialDiscovery that thecompany hasrequested. If thecompany hasrequested aDeclaration ofSignificant

Discovery, it can apply to DIAND for asignificant discovery licence. A significantdiscovery licence gives the company exclusiverights to conduct further exploration in an area,but the company must later obtain aproduction licence before it starts commercialproduction. If the company has obtained aDeclaration of Commercial Discovery, it canapply to DIAND for a production licence.

When the NEB publishes a notice ofintention, anyone who is directly affectedhas 30 days to request a hearing.

NOTICE OF INTENTION

Find more information about NEB hearingson page 92.

NEB HEARINGS

51

Before a companystarts to extract oil orgas, the Canada Oil andGas Operations Actrequires the companyto create a Develop-ment Plan and submitit to the NEB. There isno opportunity forgeneral public input inthe NEB’s decision to approve aDevelopment Plan.However, the NEB will not approve aDevelopment Plan until the company hasconsulted adequately and DIAND has approveda Benefits Plan.

The NEB does preliminary screening to decidewhether implementing the Development Planmay have significant environmental impacts orcause public concern. If the NEB anticipatessignificant environmental impacts or publicconcern, it forwards the Development Plan tothe appropriate review board (the MVEIRB inthe Mackenzie Valley or the EIRB in the ISR) forenvironmental impact review. At this stage, thepublic can participate in the review of theDevelopment Plan.

In the ISR, the Benefits Plan for 7(1)(a) lands ispart of the Participation Agreement that allows

access to the land.For larger projectsthat extend overboth ISR 7(1)(a) and7(1)(b) lands, thecompany will enterinto a compre-hensive cooperationand benefitsagreement thatmeets both Inuvialuit and federalrequirements for aBenefits Plan.

On 7(1)(a) and 7(1)(b)lands in the ISR, a company must create aDevelopment Plan that the NEB approves,and also create a Surface Development Planthat the Inuvialuit Land Administrationapproves. The NEB will wait for the InuvialuitLand Administration to approve the SurfaceDevelopment Plan before it issues its own approval.

Table 2A summarizes the opportunities forpublic input at the oil and gas developmentplanning stage in the Mackenzie Valley.

Table 2B summarizes the opportunities forpublic input at the oil and gas developmentplanning stage in the ISR.

Citizens’ Rights and Oil and Gas Development: Northwest Territories

Even if a company has a Benefits Plan from the exploration for oil and gas stage,it needs to develop a new Benefits Planduring the oil and gas developmentplanning stage because the development’simpacts will be different. During the oil and gas development planning stage,the company usually applies forauthorization to carry out additionaldrilling and production operations.

BENEFITS PLAN

52 The Pembina Institute

Table 2A. Mackenzie Valley – Oil and Gas Development PlanningDepending on circumstances, a company may not need all of the authorizations listed in this table.

1Region

2Permits

or licences required

3Legislation

Mackenzie Valley Declaration of SignificantDiscovery or Declaration ofCommercial Discovery

Canada Petroleum Resources Act

Mackenzie Valley Benefits Plan must be inplace before DevelopmentPlan is approved

Canada Oil and Gas Operations Act

Mackenzie Valley Development PlanApproval

Canada Oil and Gas Operations Act,Section 5.1

53Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

No public notice;NEB notifies people who may bedirectly affected by the Declaration

NEB (see page 104)

Public registry at NEB offices inCalgary, Alberta; an electronicregistry is being developed atNEB Web site at www.neb-one.gc.ca/PublicRegistries/index_e.htm

NEB may hold a hearing ifpeople who are directlyaffected request a publichearing

(see page 92)

No public notice; government policyrequires company to consult withaffected communities, groups orindividuals about employment andtraining opportunities

DIAND

(see page 101)

No

NEB conducts preliminary screeningto decide if environmentalassessment is required.If environmental assessment is required, NEB posts a notice aboutpublic meetings in News North andlocal newspapers, and on theMVEIRB Web site atwww.mveirb.nt.ca

NEB (see page 104)and possibly MVEIRB(see page 102)

See “Draft EIA Guidelines” and“Rules of Procedure forEnvironmental Assessment andEnvironmental Impact ReviewProceedings” available atwww.mveirb.nt.ca/MVGuides/MVDocs.html

Public registry on MVEIRB Website at www.mveirb.nt.ca

MVEIRB may hold a hearing

(see page 81)

54 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

ISR Crown lands and ISR 7(1)(b) lands

Declaration of SignificantDiscovery or Declaration ofCommercial Discovery

Canada Petroleum Resources Act

ISR 7(1)(a) lands

Declaration of Discovery Inuvialuit Final Agreement

All ISR Benefits Plan must be inplace before DevelopmentPlan is approved; on 7(1)(a)lands, benefits are includedin Participation Agreement

Canada Oil and Gas Operations Act

Table 2B. Inuvialuit Settlement Region – Oil and Gas Development PlanningDepending on circumstances, a company may not need all of the authorizations listed in this table.

55Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

No public notice; NEB notifies people who may be directly affectedby the Declaration

NEB

(see page 104)

Public registry at NEB offices inCalgary, Alberta; an electronicregistry is being developed at NEB Web site at www.neb-one.gc.ca/PublicRegistries/index_e.htm

NEB may hold a hearing ifpeople who are directlyaffected request a publichearing

(see page 92)

No public notice; the company mustget agreement from the owner ofthe mineral rights (the Inuvialuitcommunity) and a ConcessionAgreement must be in place

Inuvialuit Regional Corporation

(see page 102)

No

Government policy requirescompany to consult with affectedcommunities, groups or individualsabout employment and trainingopportunities

DIAND

(see page 101)

No

56 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

All ISR Development PlanApproval

Canada Oil and Gas Operations Act,Section 5.1

ISR 7(1)(a) and 7(1)(b) lands

Surface Development Plan Approval

Inuvialuit Land Administration Rules and Procedures

57Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

No public notice; consultation withInuvialuit communities; EISC processprovides for input from HTCs, etc.

(see page 86)

NEB

(see page 104)

For Inuvialuit lands, NEB willwait for results of InuvialuitLand Administration process (see next row)

Note that NEB requiresapproval of Benefits Plan byDIAND

Public registry at NEB offices inCalgary, Alberta;

an electronic registry is beingdeveloped at NEB Web site atwww.neb-one.gc.ca/PublicRegistries/index_e.htm

Only if EIRB or CanadianEnvironmental Assessment Actreview occurs

(see page 90)

No public notice; consultation withInuvialuit communities;

EISC process provides for input fromHTCs, etc.

(see page 86)

Inuvialuit Land Administration

(see page 101)

Public notice if project referredto EIRB

Public registry at EIRB office inInuvik

Only if EIRB or CanadianEnvironmental Assessment Actreview occurs

(see page 90)

58 The Pembina Institute

Public Input at “Oil and GasDrilling and Production” Stage

Development activities in the oil and gas sectorinclude drilling production wells, constructing oiland gas collection and treatment facilities (suchas compressor stations, batteries and gas plants),and constructing pipelines. Many otherconstruction projects associated with thesedevelopments also require permits, licences andauthorizations.These include buildinginfrastructure, such as borrow pits, roads, streamcrossings and work camps.The approval processis similar for almost all of these activities.However, the requirements for pipelines aredifferent, with a different process for“transboundary pipelines”(which run betweenthe NWT and a neighbouring province orterritory or the United States), and for pipelinesthat are entirely within one region.You can findinformation about pipelines starting on page 72.

Federal Government Requirements (Table 3A and Table 3B)

The requirements of the federal governmentapply in both the Mackenzie Valley and the ISR, sothis information appears in Table 3A and Table 3B.

Before a company starts drilling and productionactivities, it must get various construction andproduction authorizations from the NEB andDIAND. Before it can get these authorizations,there must be a Benefits Plan in place. However,the Benefits Plan approved at the oil and gasdevelopment planning stage usually also coversthe oil and gas drilling and production stage. On

ISR 7(1)(a) lands, the Benefits Plan is part of theParticipation Agreement that a company makeswith the local Inuvialuit community.

The company may also need a Navigable WatersProtection Act permit and/or a Fisheries Actauthorization to alter fish habitat.The DFO isresponsible for both of these authorizations.

On Crown lands in the ISR, the company mustacquire land tenure from DIAND, as requiredunder the Territorial Lands Act.The authorizationsthe company needs may include land usepermits, licences of occupation, land leases andaccess road rights-of-way.

Federal legislation may trigger a review underthe Canadian Environmental Assessment Act inthe ISR (see pages 90 and 128).This legislationalso applies to transboundary projects in theMackenzie Valley.

Regional Requirements

Companies need land use permits and waterlicences to carry out drilling and productionactivities. Applications are handled differently inthe Mackenzie Valley and ISR.

Mackenzie Valley (Table 3A)

In the Mackenzie Valley, a company must applyfor a land use permit or a water licence from theMackenzie Valley Land and Water Board(MVLWB), Gwich’in Land and Water Board (GLWB)or Sahtu Land and Water Board (SLWB),depending on where the development will takeplace. Each board offers different opportunitiesfor public input.The board starts by conducting

59

an internal preliminary screening of theapplication.When public input is possible (seeTable 3A for details), the board publishes a noticein a local newspaper to invite public comments.During the screening process, the board decidesif an environmental assessment is necessary. Ifthe development is likely to cause significantenvironmental impacts or public concern, theboard will refer the application to the MVEIRB,which may lead to a public hearing.

Inuvialuit Settlement Region (ISR) (Table 3B)

On 7(1)(a) and 7(1)(b) lands in the ISR, theInuvialuit Land Administration issues land usepermits.The Inuvialuit Land Administration willconsider a company’s application and attachvarious conditions to a development.TheParticipation Agreement or comprehensivecooperation and benefits agreement approvedat the oil and gas development planning stageusually also covers the oil and gas drilling andproduction stage. However, the Inuvialuit LandAdministration will not issue a land use permituntil after the EISC has completed its process (seelast two rows of Table 3B).

The EISC sets up a panel to seek input from HTCs,communities and the public. If there is concernabout the proposed development, the applicationmay be forwarded to the EIRB for review.

On Crown lands in the ISR, DIAND issues land usepermits.The process is similar to the process for7(1)(a) and 7(1)(b) lands, except that DIANDmakes the decisions.The application is forwardedto the EISC for review and to ensure that theapplication meets the requirements of the

CanadianEnvironmentalAssessment Act.

If a companyneeds a waterlicence, it appliesto the NWTWB.A public notice ofthe applicationappears in localnewspapers. Forlarge-scaleprojects, thenotice announcesthe date andlocation of apublic hearing.For smallerprojects, thenotice simplystates that acompany hasapplied for awater licence.The EIRB and anagency implementing the CanadianEnvironmental Assessment Act may also trigger ahearing during the environmental impactscreening and review process.

Table 3A summarizes the opportunities forpublic input at the oil and gas drilling andproduction stage in the Mackenzie Valley.

Table 3B summarizes the opportunities forpublic input at the oil and gas drilling andproduction stage in the ISR.

Citizens’ Rights and Oil and Gas Development: Northwest Territories

Members of the public may beable to provide comments whena company applies for land usepermits and water licences for a development.

The screening process determinesif a project requires an environ-mental assessment, which maylead to a public hearing.

You can find a summary of theMVEIRB review process in the lastrow of Table 3A, and a detailedexplanation of the processstarting on page 81.

For a detailed description of theopportunities for public inputduring the EIRB process in the ISR,see page 86.

COMMENTS

REVIEW PROCESS

60 The Pembina Institute

Table 3A. Mackenzie Valley – Oil and Gas Drilling and ProductionDepending on circumstances, a company may not need all of the authorizations listed in this table.

1Region

2Permits

or licences required

3Legislation

Mackenzie Valley Benefits Plan needed,but usually put in place atDevelopment Plan stage

Canada Oil and Gas Operations Act

Mackenzie Valley ConstructionAuthorization andProduction OperationsAuthorization

Canada Oil and Gas Operations Act

South Mackenzie Valley Land Use PermitandWater Licencefrom MVLWB

Mackenzie Valley Resource Management ActandNorthwest Territories Waters Act

61Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

Government policy requires company to consult with affectedcommunities

DIAND

(see page 101)

No

No public process, but companyshould have consulted withcommunities about Benefits Plan at Development Plan stage (see Table 2A)

NEB

(see page 104)

No

Public notice of applicationadvertised in Northern News (see www.nnsl.com) and applicationposted on the MVLWB Web site atwww.mvlwb.com

MVLWB notifies the landowner andaffected communities or FirstNations and seeks their input

MVLWB

(see page 103)

Public registry at MVLWB officein Yellowknife and on MVLWBWeb site atwww.mvlwb.com/html/CurrentApp.html

MVLWB may hold hearing;see “Draft Rules of ProcedureIncluding Public Hearings”available atwww.mvlwb.com/html/MVLWBdoc.html

OR

MVLWB may refer applicationto MVEIRB for review

(see last row of table)

62 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

Gwich’in Settlement Region

Land Use Permit andWater Licence from GLWB

Mackenzie Valley Resource Management ActandNorthwest Territories Waters Act

Sahtu Settlement Region

Land Use Permit andWater Licence from SLWB

Mackenzie Valley Resource Management ActandNorthwest Territories Waters Act

Mackenzie Valley Fisheries Act Authorizationif development affects fish habitat

Fisheries Act

Mackenzie Valley Navigable WatersProtection Act Permit if developmentaffects navigable waters

Navigable Waters Protection Act

63Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

Public notice of applicationadvertised in News North and a local newspaper;

GLWB sends application to affectedcommunities, Gwich’in groups,co-management boards, etc.for comment

GLWB

(see page 100)

See “GSA Water Licence& Land Use PermitApplication Process” availablefrom GLWB Web site atwww.glwb.com

Public registry in Inuvik

GLWB may hold a hearing ifthere is public concern; GLWBannounces hearings in InuvikDrum and News North OR

GLWB may refer application toMVEIRB if there is potential forsignificant environmentalimpact

(see last row of table)

No public notice of Land Use Permitapplication, but SLWB sends applica-tion to affected communities anddesignated Sahtu organizations for comment

Public notice of application forWater Licence posted in NewsNorth, and SLWB sends applicationto affected communities anddesignated Sahtu organizations for comment

SLWB

(see page 105)

See “Land Use Permit Process(Draft)” and “Water LicenceProcess (Draft)” available fromSLWB Web site atwww.slwb.com

Public registry in Fort Good Hope

SLWB must hold a hearing fora Type A (large-scale) WaterLicence and may hold ahearing for a Type B WaterLicence or a Land UsePermit; hearing announced inNews North OR

SLWB may refer application toMVEIRB if there is potential forsignificant environmentalimpact or public concern

(see last row of table)

No public notice, but DFO may sendapplication to MVEIRB afterpreliminary screening

DFO – Fish HabitatManagement

(see page 99)

Only if required by MVEIRB

(see last row of table)

Public notice of review indicatesopportunity for public input

DFO – Canadian Coast Guard

(see page 99)

Only if required by MVEIRB

(see last row of table)

64 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

Mackenzie Valley Surface Tenure, includingLicence of Occupation,Land Leases and RoadRights-of-Way

Territorial Lands Act

Mackenzie Valley Bird Sanctuary Permit if development iswithin a bird sanctuary

Migratory Birds Convention Act

Mackenzie Valley Preliminary screening maylead to referral forEnvironmental Assessmentand perhaps EnvironmentalImpact Review by MVEIRB

Mackenzie Valley Resource Management Act

65Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

No public notice,but DIAND District Office consultswith local communities

DIAND

(see page 101)

No

Consultation with local communities

Environment Canada –Canadian Wildlife Service

(see page 97)

No

Public notice to announce publicmeetings in News North and localnewspapers, and on MVEIRB Website at

www.mveirb.nt.ca

MVEIRB

(see page 102)

See “Draft EIA Guidelines” and

“Rules of Procedure forEnvironmental Assessment andEnvironmental Impact ReviewProceedings” available onMVEIRB Web site at

www.mveirb.nt.ca/MVGuides/MVDocs.html

Public registry on MVEIRB Website at www.mveirb.nt.ca

MVEIRB may hold hearings aspart of an environmentalassessment process and willhold hearings if there is anenvironmental impact review

(see page 81 for a descriptionof the review and hearingprocesses)

66 The Pembina Institute

Table 3B. Inuvialuit Settlement Region – Oil and Gas Drilling and ProductionDepending on circumstances, a company may not need all of the authorizations listed in this table.

1Region

2Permits

or licences required

3Legislation

All ISR Benefits Plan needed, butusually put in place atDevelopment Plan stage

On 7(1)(a) lands, benefits areincluded in ParticipationAgreement

Canada Oil and Gas Operations Act,Section 5.2

Benefits Plan required before NEBauthorization

See Inuvialuit Final Agreement, Sections 10and 16 for Crown lands and 7(1)(b) lands

All ISR ConstructionAuthorization andProduction OperationsAuthorization

Canada Oil and Gas Operations Act

ISR Crown lands Land Use Permit and/orSurface Tenure

Territorial Lands Act

67Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

Government policy requirescompany to consult with affectedcommunities

DIAND

(see page 101)

No

No public process, but companyshould have consulted withInuvialuit communities aboutBenefits Plan at Development Plan stage

NEB

(see page 104)

No

DIAND District Office consults withlocal communities

DIAND

(see page 101)

DIAND must ensure thatInuvialuit Final Agreement,Section 11 requirements forEnvironmental ImpactScreening and EnvironmentalImpact Review are met

(see last two rows of table)

68 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

ISR 7(1)(a) and 7(1)(b) lands

Land Use Permit Inuvialuit Land Administration Rules and Procedures

All ISR Water Licence Northwest Territories Waters Act

Fish-bearing waters in ISR Fisheries Act Authorizationif development affects fish habitat

Fisheries Act

Navigable waters in ISR Navigable WatersProtection Act Permit if developmentaffects navigable waters

Navigable Waters Protection Act

All ISR Bird Sanctuary Permit if development iswithin a bird sanctuary

Migratory Birds Convention Act

69Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

Inuvialuit Land Administrationnotifies the public and Inuvialuitorganizations of a public session ofthe Inuvialuit Land AdministrationCommission, which considerscomments presented at the publicsession

Inuvialuit Land Administration

(see page 101)

Public notice, if application sent to EIRB

Environmental ImpactScreening and EnvironmentalImpact Review processes maytrigger a hearing

(see last two rows of table)

Public notice of application postedin local newspapers; opportunity forpublic input as indicated in thepublic notice

NWTWB

(see page 105)

Public registry at NorthwestTerritories Water Board officesin Yellowknife and Inuvik

NWTWB holds hearings forType A licences (for largerprojects); EnvironmentalImpact Screening andEnvironmental Impact Reviewprocesses may also trigger ahearing

(see last two rows of table)

No public input DFO – Fish HabitatManagement

(see page 99)

Only if development triggersCanadian EnvironmentalAssessment Act review

(see page 90)

No public input DFO – Canadian Coast Guard

(see page 99)

Only if development triggersCanadian EnvironmentalAssessment Act review

(see page 90)

Consultation with local communities

Environment Canada –Canadian Wildlife Service

(see page 97)

No

70 The Pembina Institute

1Region

2Permits

or licences required

3Legislation

All ISR Environmental ImpactScreening

Inuvialuit Final Agreement, Section 11

and

Canadian Environmental Assessment Act(which may have requirements beyond theInuvialuit Final Agreement)

All ISR Environmental ImpactReview

Inuvialuit Final Agreement, Section 11

Environmental Impact Review usually meets the requirements of theCanadian Environmental Assessment Act

71Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

EISC sets up panel that seeks input from HTCs, communities and the public

EISC

(see page 98)

Public registry at EISC office in Inuvik

Environmental ImpactScreening and EnvironmentalImpact Review processes maytrigger a hearing

(see last row of table)

OR

review under CanadianEnvironmental Assessment Actmay trigger a hearing

(see page 90)

Public notice sent to print, radio and television media to announcepublic review

EIRB

(see page 98)

Review occurs when:

1. Comprehensive study is mandatory (underCanadian EnvironmentalAssessment Act)

OR

2. EIRB requires standardpublic review

Public registry at EIRB office in Inuvik

EIRB may hold public hearingas part of review process – nohearing for small-scaledevelopments

(see page 86 for a descriptionof the review and hearingprocesses)

EIRB and CanadianEnvironmental AssessmentAgency work together toensure that both federal andEIRB requirements are met

72 The Pembina Institute

Public Input at “Pipeline Development” Stage

The Canada Oil and Gas Operations Actregulates oil and gas pipelines that are locatedcompletely within the Mackenzie Valley orcompletely within the ISR. The National EnergyBoard Act regulates “transboundary pipelines,”which run betweenthe NWT and aneighbouringprovince or territoryor the United States.The NEB is responsiblefor both the CanadaOil and Gas OperationsAct and the NationalEnergy Board Act.

Pipelines LocatedCompletely Withinthe Mackenzie Valley

The regulation ofpipelines that arelocated completelywithin the Mackenzie Valley region is verysimilar to the regulation of oil and gas drillingand production in the Mackenzie Valley (seeTable 3A). A company can apply to constructpipelines after it has an approved DevelopmentPlan and Benefits Plan. The NEB makes sure thatthe company has met all of the MackenzieValley and federal legislation requirements forpermits and authorizations. These may includerequirements for a land use permit, a Fisheries

Act authorization if the pipeline crosses a fish-bearing stream, or a Navigable Waters ProtectionAct permit if the pipeline crosses navigablewaters. Then the NEB issues a constructionauthorization under the Canada Oil and GasOperations Act.

Local land and water boards (the MVLWB, GLWBand SLWB) review applications for land use

permits. There may bean opportunity forpublic input if thelocal board decides tohold hearings, or ifthere are significantenvironmentalimpacts or publicconcern and theboard forwards theapplication to theMVEIRB. DFO willreview the applicationif the pipeline affectsnavigable waters orfish habitat.

Table 3A summarizes the requirements forpipelines that are located completely withinthe Mackenzie Valley.

Pipelines Located Completely Within the ISR

The regulation of pipelines that are locatedcompletely within the ISR is very similar to theregulation of oil and gas drilling andproduction in the ISR (see Table 3B). A companycan apply to construct pipelines after it has anapproved Development Plan and Benefits Plan.

The MVLWB, GLWB and SLWB may hold theirown hearings to consult with the public.However, if a development will likely result insignificant environmental impacts or publicconcern, the local land and water boardmay send the application directly to theMVEIRB. The MVEIRB environmentalassessment or environmental impact reviewprocess will provide an opportunity forpublic input.

HEARINGS

73

The NEB makes sure that the company has metall of the ISR and federal legislationrequirements for permits and authorizations.These may include requirements for a land usepermit, a Fisheries Act authorization if thepipeline crosses a fish-bearing stream, or aNavigable Waters Protection Act permit if thepipeline crosses navigable waters. Then the NEBissues a construction authorization under theCanada Oil and Gas Operations Act.

As in the Mackenzie Valley, applications for landuse permits may offeran opportunity forpublic input. On7(1)(a) and 7(1)(b)lands in the ISR, theInuvialuit LandAdministration issuesland use permits.Both the InuvialuitLand Administration Commission and the EISCreview the application, in processes that mayrun in parallel, but the Inuvialuit LandAdministration will not issue a permit until theEISC process is complete (see last two rows ofTable 3B). The EISC sets up a panel to seek inputfrom HTCs, communities and the public. If thereis concern about the proposed development,the application may be forwarded to the EIRBfor review (see page 88). On Crown lands in theISR, DIAND issues land use permits. The processis similar to the process for 7(1)(a) and 7(1)(b)lands, except that DIAND makes the decisions.DIAND ensures that the application meets the requirements of the Canadian Environ-

mental Assessment Act. DFO will review theapplication if the pipeline affects navigablewaters or fish habitat.

Table 3B summarizes the requirements forpipelines that are located completely withinthe ISR.

Transboundary Pipelines

The NEB authorizes any pipeline that crossesfrom either the Mackenzie Valley or the ISR intoa neighbouring territory, province or the United

States. Part III of theNational Energy BoardAct deals with theconstruction andoperation of pipelines.There are two stages inthe NEB pipelineapproval process.Thefirst stage deals withthe project as a whole.

The second stage determines the exact route ofthe pipeline.The NEB publication PipelineRegulation in Canada: A Guide for Landownersand the Public describes the process in detail.This report, published in June 2003, is availableat www.neb-one.gc.ca/safety/PipelineRegulation Canada_e.pdf.

Project Approval

The NEB may hold a public hearing beforedeciding if it will issue a project approvalcertificate to a company. The NEB announcesthe hearing in local newspapers.You mustshow the NEB that you have an interest in the

Citizens’ Rights and Oil and Gas Development: Northwest Territories

Find information about the NEB hearingprocess on page 92 and information aboutcovering the costs of participating in a NEBhearing on page 94.

NEB HEARING PROCESS

74 The Pembina Institute

results of the hearing and clearly state that youwish to intervene in the hearing process if youwant the NEB to recognize you as an“intervener.”The NEB sends interveners a copyof the application and tells them when andhow they can participate in the hearing.

Even if you do not want to intervene at ahearing, you can write a “letter of comment” tothe NEB. Address the letter to the Secretary ofthe Board. The NEB will not give you intervenerstatus and will usually not notify you aboutfurther proceedings if you write a letter ofcomment.

Mapping the Pipeline Route

After the NEB has approved the project as awhole, the company must submit detailedplans to the NEB that show the preciselocation of the pipeline route. These plansmust include the names of affectedlandowners and occupiers, when the companycan determine them. The company mustcontact the landowners along the proposedroute and publish a notice in at least oneissue of a publication that circulates in theaffected area.

If landowners object to the company’sintention to construct a pipeline on theirproperty, they should first discuss theirconcerns with the company and try to reach anagreement. If it is not possible to reach anagreement, landowners must file a writtenstatement with the NEB within 30 days ofreceiving notice of the proposed pipelineroute. Landowners can continue to negotiate

with the company even after they file anobjection. However, it is important not to missthe deadline in case negotiations break down.You should be aware that, after a hearing, theNEB may decide to allow a company immediateright of entry onto a landowner’s property tocreate a right-of-way for the pipeline. The exactpowers of the NEB may depend on particularsettlement agreements.

Landowners whose property is next to—notdirectly on—the proposed pipeline route mayalso believe that the pipeline will have anegative impact on their land. Theselandowners can file a written statement withthe NEB within 30 days of the publicannouncement of the proposed pipeline route.

If the objections the NEB receives are not“frivolous or vexatious” (not worthy of seriousattention or intended to annoy), the NEB willorder a hearing.

Comprehensive Study Report

Before the NEB holds a hearing, a companyproposing a pipeline that requires more than75 kilometres of new right-of-way needs tocomplete a comprehensive study report underthe Canadian Environmental Assessment Act (seepage 128). The company may arrange publicmeetings and open houses while it isdeveloping the report. After the report isfinished, the Canadian EnvironmentalAssessment Agency invites the public tocomment on it. The Minister of theEnvironment then decides whether a panelreview or mediation is necessary. A panel

75Citizens’ Rights and Oil and Gas Development: Northwest Territories

review may be a joint review with a reviewboard — either the MVEIRB in the MackenzieValley or the EIRB in the ISR. In the MackenzieValley, there are arrangements to coordinateCanadian Environmental Assessment Actand MVEIRB reviews. In the ISR, the EIRB panel review process can replace a CanadianEnvironmental Assessment Act panel review, according to an agreement with the federal government.

Compensation for Lands and Damages

Part V of the National Energy Board Act statesthat a company must pay compensation forlands it uses for pipeline construction and forany damages. Sometimes, the company andthe landowner cannot agree on the amount ofcompensation related to the development of atransboundary pipeline. Either the company orthe landowner can then ask the Ministerresponsible for Natural Resources Canada toappoint a negotiator or arbitrator.8 If thesenegotiations fail, the company or thelandowner can ask the Minister to set up anarbitration committee. The NEB does not dealwith disputes about compensation.

Other Requirements for a Transboundary Pipeline

Like other pipelines, a transboundary pipelinewill need various licences. The applicationprocess involves a screening process andpossibly an environmental impact review by a review board (the MVEIRB in the

Mackenzie Valley or the EIRB in the ISR).However, because the NEB regulatestransboundary pipelines and they do not fall under the Canada Oil and Gas OperationsAct, a transboundary pipeline does not require a Benefits Plan. The NEB does expectcompanies to consult with Aboriginalcommunities and other groups and to deal with socio-economic and environmentalissues. It also requires a company to report on its consultation process. In its decision about a transboundary pipeline, the NEB may consider the agreements a company has reached with local groups.

In the case of the proposed Mackenzie Valley Pipeline, the government is preparing a voluntary benefits protocol and benefitsagreement.

8 National Energy Board. Pipeline Regulation in Canada: A Guide for Landowners and the Public. 2003. p. 51-52. Available at www.neb-one.gc.ca/safety/PipelineRegulationCanada_e.pdf.

There may be an opportunity for localgroups to develop a memorandum ofunderstanding or other agreement with acompany. For example, a company mustsign both a temporary access agreement forpipeline construction and a permanentright-of-way along the pipeline route.Aboriginal groups can negotiate for benefitsas part of the agreement.

AGREEMENTS

76 The Pembina Institute

Table 4. Mackenzie Valley and Inuvialuit Settlement Region – Transboundary Pipeline Development

1Region

2Permits

or licences required

3Legislation

Mackenzie Valley and ISR

Applications forLicences/Permits andAuthorizations

(see Table 3A and Table 3Bfor the specific requirementsin the Mackenzie Valley andthe ISR, since these alsoapply for transboundarypipelines)

Resource Management Act

OR

Inuvialuit Final Agreement,Section 11

OR

Canadian Environmental Assessment Act

AND

National Energy Board Act

Mackenzie Valley and ISR

National Energy BoardCertificate of PublicConvenience andNecessity

National Energy Board Act

77Citizens’ Rights and Oil and Gas Development: Northwest Territories

4Opportunity

for input

5Board or government agency

& information sources

6Provision for

public hearings

Public input through theEnvironmental Impact Screeningand Environmental Impact Reviewprocesses

Public notice if application sent forMVEIRB or EIRB review

Public meeting

NEB (see next row)andMVEIRB in Mackenzie Valley

(see page 102)

OR

NEB (see next row )

andEIRB in ISR

(see page 98)

The NEB (see next row) andthe regional authority

(MVEIRB or EIRB) will likelyhold a joint hearing

(see page 83 and page 88)

Public notice of hearing posted inlocal newspapers; opportunity forpublic input as indicated in the public notice

NEB

(see page 104)

There may be two hearings—the first, called a certificatehearing, decides if a companycan construct a pipeline; itmay be followed by a detailedroute hearing

78 The Pembina Institute

Pipeline Cooperation Plan

In June 2002, the regulatory authorities in the NWT that conduct environmental impactassessments and public hearings approved a plan to coordinate planning, avoidduplication, and provide clarity and certaintyin process and timing for the public andcompanies. The plan is called the “CooperationPlan for the Coordinated Review of a Potential Major Natural Gas Pipeline Throughthe Northwest Territories” (Cooperation Plan).The regulatory authorities developed the Cooperation Plan in anticipation of an application for a Mackenzie Valley Gas Pipeline.9

The Cooperation Plan states that eachenvironmental impact assessment authorityand regulator will remain independent and willhave the right to assess the proposed pipelinedevelopment and make recommendations anddecisions. The Cooperation Plan is notsupposed to pre-judge or pre-approve anyproposed project. However, the CooperationPlan proposes an environmental impactassessment framework that coordinates theregulatory processes of the NEB, InuvialuitLand Administration, Mackenzie Valley Landand Water Board (MVLWB), Gwich’in Land andWater Board (GLWB), Sahtu Land and WaterBoard (SLWB) and Northwest Territories WaterBoard (NWTWB).

The Cooperation Plan will take effect after threeagreements are reached:

• between the Inuvialuit and the Minister ofthe Environment;

• between the MVEIRB and the Minister of theEnvironment; and

• between the regulatory agencies (the landand water boards).10

These agreements will add specific details tothe framework and will outline the roles andresponsibilities of each board or governmentagency in the environmental impactassessment and regulatory processes. Theregulatory authorities may not finalize theseagreements until a company proposes aspecific project.

The Cooperation Plan for reviewing proposedtransboundary pipelines in the MackenzieValley could make public participation morestraightforward since it will streamline thereview of all aspects of a project. Coordinatedhearings will save participants time. TheCooperation Plan will also give public groups abetter opportunity to provide input at thebeginning of the review process by requiringhearing participants to be identified early on.

The Cooperation Framework Assumptionsindicate that the Cooperation Plan will includea plan for public involvement and informationon “participant funding” for the joint

9 Cooperation Plan for the Environmental Impact Assessment and Regulatory Review of a Northern Gas Pipeline Project through the Northwest Territories, June2002, available at http://www.ceaa-acee.gc.ca/010/0001/0001/0020/coop-plan_e.pdf

10 See, for example, Federal Government, Mackenzie Valley Impact Review Board and Inuvialuit release draft joint review panel agreement, media release,October 7, 2002, available at www.bmmda.nt.ca/outgoing/News%20release%20Draft%20Agree%204.pdf.

79

environmental impact assessment panelprocess. However, the Cooperation FrameworkAssumptions do not specify how theCooperation Plan will allocate these funds.

Offshore Developments

Offshore oil and gas developments in the ISRgenerally follow the same stages asdevelopments on land. However, companiesneed some additional permits for offshoredevelopments, including disposal at seapermits from Environment Canada’sEnvironmental Protection Branch andpossibly an authoriz-ation under theFisheries Act fromDFO that allowshabitat alteration,disruption ordestruction.

To get a disposal atsea permit, thecompany mustconsult with affected Inuvialuit communitiesand organizations. It must publish a notice inthe Canada Gazette, but it does not have toplace an advertisement in a local newspaper.The ISR EISC will also screen the company’sapplication. This means that the company hasto consult with HTCs and other local bodiesthat the application may affect. If the EISC hasconcerns about the environmental impact ofthe development, it refers the application tothe EIRB. If this happens, there will be a publicnotice about the application in the local

newspaper. The EIRB may hold a publicmeeting (for small projects) or a public hearing(as part of the standard review process). Eitheroption provides an opportunity for publicinput. Since the federal government isresponsible for issuing the permit, there willusually be a joint review process with thefederal government to meet the requirementsof both the EIRB and the CanadianEnvironmental Assessment Act.

If a company’s activities may damage fishhabitat, the company can apply to DFO for anauthorization under the Fisheries Act that deals

with habitat alteration,disruption ordestruction. The DFOexamines plans formitigation and/orcompensationmeasures before itdecides whether ornot to issue anauthorization. If the

DFO provides an authorization, it usuallycontains strict conditions that the companymust meet to minimize damage to fish habitat.The DFO does not have to contact the publicwhen it is making this decision, but the projectthen proceeds for screening by the EISC and,possibly, review by the EIRB. The application isalso reviewed under the CanadianEnvironmental Assessment Act, and there willusually be a joint EIRB and federal process.

Citizens’ Rights and Oil and Gas Development: Northwest Territories

The Cooperation Plan for reviewingproposed transboundary pipelines in theMackenzie Valley could make publicparticipation more straightforward.

COOPERATION PLAN

80

The

Envi

ronm

enta

l Scr

eeni

ng a

nd R

evie

w P

roce

ss

The Pembina Institute

This chapter explains how to communicateyour concerns to the local boards and federalgovernment agencies that are responsible forthe environmental screening (or assessment)and review process. These may include theMackenzie Valley Environmental Impact ReviewBoard (MVEIRB), the ISR Environmental ImpactReview Board (EIRB), and the National EnergyBoard (NEB) oranother “responsibleauthority” under theCanadianEnvironmentalAssessment Act. Theprocess is similar atevery stage ofdevelopment. Thelocation of thedevelopmentdetermines whichboard carries out thereview.

Environmentalscreening occurs atseveral stages in theoil and gasdevelopmentprocess (see the tables in the previous chapter).Whenever a company applies for a licence,permit or other authorization, the local landand water board or federal government agencyscreens the application. DIAND performs the

screening for the NWTWB in the ISR. If theboard or government agency determines thatthe development will result in significantnegative impacts on the environment or publicconcern, it may send the application for anenvironmental review, which may includepublic hearings.

If you learn that anapplication has beenforwarded to theMVEIRB, EIRB or NEB, orrequires review underthe CanadianEnvironmentalAssessment Act, you canwrite a letter to theappropriate reviewboard or governmentagency.

The public notice thatannounces the reviewspecifies the deadlinefor sending yourcomments. If thereview board orgovernment agencyreceives your letter by

the deadline, it may give you “status” at thehearing.“Status” means that the review boardor government agency recognizes you andmay give you an opportunity to participate inthe review or hearing process. In some cases,

The Environmental Screening and Review Process

This chapter explains how to communicateyour concerns to the local boards andfederal government agencies that areresponsible for the environmental screening(or assessment) and review process.

HOW TO COMMUNICATE

In some cases, you can provide a verbalresponse — for example, an audiocassetteor personal presentation at a hearing — tothe MVEIRB, EIRB or NEB. It is important tofind out exactly what a particular reviewboard accepts.

VERBAL RESPONSE

81

anyone who has a serious interest in a projectgets status. In other cases, only people who aredirectly affected by a development get status.The public notice about a review or hearingusually explains who is eligible to submitcomments. If you need more information onthe “rules of procedure” or your status, contactthe appropriate review board or governmentagency.

How Does the Process Work in the Mackenzie Valley?

Figure 2 shows the development stage of aproject, when a company applies for a land usepermit or water licence. The company shouldconsult with First Nations and others who maybe affected before it submits a developmentapplication.

Preliminary Screening

When a company applies for a land use permitor water licence, the Mackenzie Valley Land and

Citizens’ Rights and Oil and Gas Development: Northwest Territories

Land

acquisition

Consultation with FN,

and other local

interests

Development

Proposal

Preliminary Screening

by Appropriate

Land and Water Board

Significant

Environmental

Impact or Public

Concern

Limited

Impact*

Mackenzie Valley

Environmental Impact

Review Board

Environmental Assessement

and possibly

Environmental Impact

Review

Issue Water Licence

or Land Use Permit

Project

rejected

Recommendations

to Boards

Recommendations

to other regulators

Various federal

authorizations.

No public process

Possible Hearings**

*See text regarding land and

water board hearings

**If there is a review, there will

be hearings

Figure 2.Mackenzie ValleyEnvironmentalAssessment Process(simplified)

The public notice about a review or hearingusually explains who is eligible to submitcomments.

Figure 2 provides an overview of theenvironmental decision-making process inthe Mackenzie Valley.

DECISION-MAKING

82 The Pembina Institute

Water Board(MVLWB), Gwich’inLand and WaterBoard (GLWB) orSahtu Land andWater Board (SLWB)usually carries out an initial screening of the application.The appropriategovernmentdepartment carriesout this initialscreening when acompany applies forauthorization underfederal legislation—for example, for geologicalor geophysical operations, construction orproduction governed by the Canada Oil andGas Operations Act. Even in these cases, thecompany usually needs a land use permit aswell, so the appropriate land and water boardmay be the “lead agency” and direct thescreening process.

During the screening process, the local boardconsults First Nations communities that may be affected by the development. It may even decide to hold its own public hearing.If the “screening report,” based on theseconsultations, indicates that the developmentmay cause significant negative environmentalimpacts or public concern, the land and water board will forward the application to the MVEIRB.

MVEIRBEnvironmentalAssessment

When the MVEIRBreceives an applicationfrom a land and waterboard, it asks thecompany to prepare a Developer’sAssessment Report.The MVEIRBdetermines the scopeof the assessment and the issues (whatexactly the companymust include in its

Developer’s Assessment Report). At aminimum, the Developer’s Assessment Reportmust describe the development, the currentstate of the environment, how the develop-ment will affect the environment, what thecompany will do to reduce the impacts on theenvironment, plans for monitoring while theproject is operating, and plans for reclaimingthe land when the project shuts down. TheMVEIRB may consult the public or hold a publichearing about a proposed development.People who could be directly affected can takepart in the hearing. Others who are not directlyaffected, but who would like to take part, canregister as interveners. Interveners have thesame rights as people who are directly affected.Other members of the public may submitcomments, but may not ask questions or becross-examined at a hearing.

During the screening process, the localboard consults First Nations communitiesthat may be affected by the development.

CONSULT FIRST NATIONS

Look up your local land and water board in the chapter called “Boards, GovernmentDepartments and Agencies,” starting on page 96, to find out more about itshearing processes.

LOCAL BOARDS

83

After it has reviewed the Developer’sAssessment Report, the MVEIRB makes adecision about the application. The MVEIRBmay decide that the project is not likely tocause any significant negative impacts on theenvironment or public concern and should beallowed to proceed (with or withoutconditions). In other cases, the MVEIRB maydecide that the negative impacts are so greatthat the project should be rejected. If theMVEIRB needs more information, it willrecommend anenvironmentalimpact review (seethe next section).

Whatever itsdecision, the MVEIRBsubmits a “Report ofEnvironmentalAssessment” to theMinister responsible for DIAND and the NEB.This is necessary because the CanadianEnvironmental Assessment Act requires thefederal government to assess environmentalimpacts, even though the MVEIRB has taken over much of the responsibility forassessment under the Canadian EnvironmentalAssessment Act.

The Minister of DIAND may

• accept the recommendations;

• consult with the MVEIRB to modify them; or

• reject the recommendations and order anenvironmental impact review or initiate ajoint review.

MVEIRB Environmental Impact Review

The MVEIRB conducts an environmental impactreview when the MVEIRB, the Minister of DIANDor other federal ministers, or the NationalEnergy Board decides that it is necessary. TheMVEIRB may carry out this review alone or as ajoint review with the federal authorities. A jointreview may be appropriate if the proposeddevelopment requires approval from a federalgovernment agency as well as from theMVEIRB. In many respects, the environmental

impact review processis similar to theenvironmentalassessment process.However, anenvironmental impactreview is conducted bya specially appointedreview panel (including

three or more members of the MVEIRB andothers), and the company has to produce anEnvironmental Impact Statement (instead of aDeveloper’s Assessment Report).

There are six steps in the MVEIRBenvironmental impact review process.

1. Select the review panel

The MVEIRB selects a panel to conduct thereview. In the case of a joint review, the MVEIRBselects a panel in cooperation with theappropriate federal government agencies.

2. Establish the terms of reference for the review panel

Citizens’ Rights and Oil and Gas Development: Northwest Territories

The MVEIRB may consult the public or hold a public hearing about a proposeddevelopment.

MVEIRB MAY CONSULT

84 The Pembina Institute

The MVEIRB sets the general terms of referencefor the review, in consultation with any affectedFirst Nations. The panel may further focus theseterms of reference, which may include thescope of the project and the main steps of thereview process.

3. Determine terms ofreference for thedeveloper

Based on its ownterms of reference,the review panel willdetermine the scopeof the issues to beaddressed in the environmental impact review.To do this, it will review the material in thepublic registry from the environmentalassessment and may consult with the public.The review panel will then draw up terms ofreference and a work plan for the company.

4. Complete the Environmental Impact Statement

The company completes an EnvironmentalImpact Statement. The statement describes the project, the potential effects of thedevelopment, the cumulative effects (or effects built up over time) and possiblemitigation strategies (or ways to lessen these effects), as well as alternatives to theproposed development.

5. Review the Environmental Impact Statement

The review panel reads the EnvironmentalImpact Statement and tells the company andthe public if the statement is not complete.

Once the Environmental Impact Statement iscomplete, it becomes available for publicreview. At this stage, the review panel andparties conduct a technical review of thequality of the Environmental Impact Statement.The review panel will then usually hold public

hearings.

6. Hold public hearings

The review panel mayhold both technicaland communityhearings. If it decidesto hold publichearings, the review

panel issues a public notice at least 45 daysbefore the hearing date. This notice includesthe following information:

• the date, time and place of the hearing;

• the issues to be considered in the hearing;

• the opportunity for public participation; and

• the date by which anyone affected must fileinformation to be considered in the hearing.

There are two ways that a member of thepublic can get involved in a hearing. A personwho is directly affected or who is granted“intervener” status can be a “party” to a hearing.To get intervener status, you need to apply tothe MVEIRB in writing, following theinstructions in the public notice. Othermembers of the public can make written ororal presentations, even if they are not “parties”to the hearing.

The panel may ask for public input on theterms of reference for the company’senvironmental impact statement.

ASK FOR PUBLIC INPUT

85

There are five steps in the hearing process.

1. Those who are directly affected or who wish toapply to be interveners, file a notice

At least 25 days before the hearing, anyonewho is directly affected or who wishes to be an intervener orparty to the hearingmust file a noticewith the executivedirector of theMVEIRB. Intervenersmust provide awritten summarythat explains whythey are intervening,how they areaffected by thedevelopment, andwhat informationthey will provideduring the hearing. Itis important to meetthe deadline for filing this information.Interveners may represent themselves.If they have a lawyer or other representative,interveners must inform the MVEIRB at least 10 days before the hearing.

2. Those who are not interveners submit their concerns

Members of the public who do not wish toformally intervene can send written submissionsto the review panel before the hearing.They can also make oral presentations at the hearing,at a time the review panel chooses.

3. The review panel holds a pre-hearingconference

The review panel may hold a pre-hearingconference to finalize issues to be discussedat the hearing, set a timetable for the

exchange ofinformation, and work out other issuesassociated with thehearing. The reviewpanel encouragespeople who havesimilar interests tocoordinate theirpresentations at the hearing. Writtensummaries ofarguments fromparties are requiredbefore the hearing.These are circulatedto all other parties.

4. The hearing takes place

The review panel chairperson opens thehearing and asks the company to make itspresentation. Interveners and members of thepublic then have an opportunity to presentinformation and make statements. The reviewpanel and the company may question anyonewho provides information to the review panel.At technical hearings, interveners can questionthe company about its submission. The reviewpanel may hear confidential technicalinformation in private.

Citizens’ Rights and Oil and Gas Development: Northwest Territories

A person who is directly affected or who isgranted “intervener” status can be a “party”to a hearing. Other members of the publiccan make written or oral presentations.

INTERVENER STATUS

Even if you wrote a letter of objection at anearlier stage in the application process, youmust submit a new statement if you want tobe an intervener at a MVEIRB hearing.

FILING A NOTICE

86 The Pembina Institute

5. The review panel writes its report

After the hearing, the review panel writes downits recommendations in a report, and sends thereport to DIAND and the NEB. DIAND and theNEB can accept the report, consult with thereview panel and modify the report, or rejectthe report. Once DIAND and the NEB accept areport, the regulatory agency, which is oftenthe local land and water board, decideswhether to approve or reject the application.If it allows the development to proceed, it willinclude conditions set out in the review panelreport, such as mitigation measures to limitpotential damage.

The Draft Environmental Impact AssessmentGuidelines describe the MVEIRB environmentalimpact review process in detail. If you plan toparticipate in a hearing in any way, read theRules for Procedure for EnvironmentalAssessment and Environmental Impact ReviewProceedings.You can get these documents fromthe MVEIRB or its Web site (www.mveirb.nt.ca).You can find documents relating to a specificapplication or Environmental Impact Statementin a public registry at the MVEIRB’s offices andon its Web site.

How Does the Process Work in the ISR?

Under the Inuvialuit Final Agreement, theenvironmental impact screening andenvironmental impact review process must be complete before a company receives alicence or approval that allows any proposed

development to proceed on Crown lands.On ISR 7(1)(a) and 7(1)(b) lands, the InuvialuitLand Administration Rules and Proceduresapply and screening by the EISC is notautomatic. However, the Inuvialuit LandAdministration can forward an application tothe EISC if it thinks that the proposed develop-ment will have a significant environmentalimpact. The Inuvialuit Regional Corporation or Game Councils can also ask the InuvialuitLand Administration to forward an applicationto the EISC.

The company’s consultation with Inuvialuitcommunities is an important part of theenvironmental impact screening and environ-mental impact review process. Before acompany applies for approval, the InuvialuitLand Administration and EISC expect thecompany to consult the HTCs whose members

The chapter called “Boards, GovernmentDepartments and Agencies,” starting onpage 96, provides information on how tocontact the MVEIRB and the EIRB.

HOW TO CONTACT

Figure 3 provides an overview of theenvironmental decision-making process inthe ISR and shows the main opportunitiesfor public input at different stages.

DECISION-MAKING

87

the development may affect.The EISC believes that the HTCsare a key part of the co-management system, and thefocus for consultation. TheInuvialuit Land Administrationand EISC also expect thecompany to consult with theappropriate communitycorporations and the umbrellaInuvialuit co-managementorganizations—in particular, theFisheries Joint ManagementCommittee and the WildlifeManagement Advisory Council(NWT and/or North Slope). Thecompany must report on thisconsultation in its ProjectDescription. Generally, the EISCwill not screen a ProjectDescription until the companyhas consulted with thecommunity.

Preliminary Screening

A company submits itsapplication to the regulatoryagency (such as the InuvialuitLand Administration or theNEB) and to the EISC forpreliminary screening. Thecompany must submit a ProjectDescription to the EISC and toany HTCs the development mayaffect. The EISC sets up a

Citizens’ Rights and Oil and Gas Development: Northwest Territories

Figure 3. Inuvialuit Settlement Region Environmental Assessment Process (simplified)

88 The Pembina Institute

screening panel that asks for comments fromHTCs, co-management bodies, governmentagencies and the public. Based on what itlearns, if the panel decides that thedevelopment will not have any significantenvironmental impacts, it instructs theregulatory agency to issue the appropriatelicence or permit. If the panel decides that thedevelopment may have significant negativeimpacts on the environment or on present or future wildlife harvesting, the panel refersthe project to the EIRB. EISC OperatingGuidelines and Procedures explains thepreliminary screening process in detail (see page 98 for details).

EIRB Environmental Assessment

When it receives an application to review, theEIRB sets up a review panel. The review panelbases its assessment on an EnvironmentalImpact Statement that the company submits.EIRB Operating Procedures explains therequirements for the Environmental ImpactStatement (see page 98 for details).

The EIRB issues a public notice of referral thatinvites members of the public and organizationsto register if they are interested in participatingin the public review process. If you register bythe deadline specified in the public notice, youbecome a “registered participant.”Registeredparticipants receive a copy of the company’sEnvironmental Impact Statement, additionalnotices about the review and other documents.Registered participants may send the EIRBwritten submissions or attend the public review.

No more than 30 days after it receives thecompany’s Environmental Impact Statement,the EIRB decides if it will evaluate the proposalaccording to the small-scale developmentprocedure or the standard public reviewprocedure.

Small-Scale Development Procedure

The EIRB follows the small-scale developmentprocedure if the project meets the followingconditions:

• It does not affect a large area.

• It does not have a long-term impact.

• It does not have significant impacts on thecommunity.

• It does not have significant cumulativeeffects, or impacts that build up over time.

• It meets any requirements that the EIRB hasset for that general class of development.

• There has been a previous environmentalassessment of the project.

In the small-scale development procedure, thepanel reviews the Environmental ImpactStatement and decides whether a publichearing is necessary. If no hearing is required,

Before a company applies for approval, theInuvialuit Land Administration and EISCexpect the company to consult the Huntersand Trappers Committees (HTCs).

CONSULTATION

89

the EIRB reports its decision to the regulatoryagency. The public hearing process is describedin more detail in the next section.

Standard Public Review Procedure

In the standard public review procedure, thecompany must submit an outline of itsEnvironmental Impact Statement to the EIRB.The EIRB invites registered participants toprovide written comments on theEnvironmental Impact Statement outline. TheEIRB uses these comments to determine thescope of the Environmental Impact Statementitself, and asks the company to prepare a firstdraft. The EIRB sends this draft to the registeredparticipants and again asks them to providewritten comments. The EIRB also asks forcomments from government agencies. Basedon all of these comments, the EIRB instructs thecompany to revise the Environmental ImpactStatement. After the Environmental ImpactStatement is complete, the EIRB appoints areview panel.

At least 60 days before the date of the publichearing, the EIRB publishes a hearing order thatspecifies when and where the hearing will takeplace, along with a schedule for the exchangeof written evidence, a schedule for questions ofclarification, procedural rulings, the order inwhich participants will appear, and rules forparticipants. Sometimes, there is a pre-hearingconference before the hearing. If you are aregistered participant, the EIRB will invite youto the pre-hearing conference.

Registered participants can send writtenquestions to the company, as explained in thehearing order, and the company must replywithin a specified time.You can use this processto clarify issues or get more information thatyou can use at the hearing.

EIRB Hearing

EIRB Operating Procedures explains the EIRBhearing procedures in detail (see page 98).After the chairperson’s opening remarks, thecompany makes its presentation. Registeredparticipants, EIRB staff and panel members mayask the company questions. Members of thepublic who are registered participants canmake presentations at the hearing. Otherregistered participants, such as governmentrepresentatives, will also make presentations.All registered participants may have to answerquestions. EIRB technical advisors may makepresentations and members of the generalpublic who are not registered participants are usually allowed to make statements fromthe floor of the hall. Finally, each officialpresenter has the opportunity to make aconcluding statement.

Citizens’ Rights and Oil and Gas Development: Northwest Territories

The EIRB invites registered participants toprovide written comments on the outlineand first draft of the Environmental ImpactStatement.

WRITTEN COMMENTS

90 The Pembina Institute

After the hearing, the EIRB announces itsdecision in a press release. The EIRB may allow adevelopment to proceed, or it may reject theapplication. The EIRB may also set conditions.For example, if the EIRB believes that adevelopment may cause loss or damage towildlife and wildlife habitat, it will recommendconditions to minimize the impact on wildlifeharvesting. The EIRB must also estimate thecompany’s potential liability (or responsibility)and consider whether, in the worst case, thecompany will be able to pay for any loss ordamage that results from the development.

The Inuvialuit Final Agreement does notprovide for a joint review by the federalgovernment and the EIRB. However, the EIRB’sprocess closely matches the requirements ofthe Canadian Environmental Assessment Act. The

EIRB can choose to substitute the CanadianEnvironmental Assessment Act process for theEIRB process.

How Does the Process Work Underthe Canadian EnvironmentalAssessment Act?

The federal government has a special body, theCanadian Environmental Assessment Agencythat has overall responsibility for theadministration of the Canadian EnvironmentalAssessment Act. However, it is “responsibleauthorities,” such as DIAND, DFO and the NEB,that have specific decision-makingresponsibilities and that must ensure thatenvironmental assessments are carried out tomeet the requirements of the CanadianEnvironmental Assessment Act for developmentson lands that the federal government owns orhas some decision-making responsibilities forin the ISR (see Appendix B). For example, DIANDLands Administration deals with landapplications, and DIAND Water Resources dealswith water (on behalf of the NWTWB). It shouldbe noted that outside of the ISR area in theNWT, the Canadian Environmental AssessmentAct has limited applicability. The main basis forenvironmental assessment in the non-ISR areasof the NWT is the Mackenzie Valley ResourceManagement Act.

There are arrangements in place to avoidduplication between federal and territorialjurisdictions in the review and hearing process.When a development involves several different

Registered participants can send writtenquestions to the company to clarify issues or getmore information that to use at the hearing.

QUESTIONS TO COMPANY

Members of the public who are registeredparticipants can make presentations at thehearing. Members of the general public whoare not registered participants are usuallyallowed to make statements from the floorof the hall.

PRESENTATIONS

91

federal government departments withCanadian Environmental Assessment Actresponsibilities, a federal environmentalassessment coordinator is assigned tocoordinate the participation of all federalauthorities in the Canadian EnvironmentalAssessment Act process.

The type of assessment necessary under theCanadian Environmental Assessment Act variesdepending on the project and the significanceof possible environmental effects. Most projectsreceive a relatively quick assessment during thescreening process. Larger projects that have apotential for greater environmental impacts arelisted in the Comprehensive Study ListRegulations and require a comprehensivestudy. If the environmental effects of a projectare uncertain or potentially significant, or ifpublic concerns warrant it, an assessment by anindependent mediator or review panelappointed by the Minister of the Environmentis necessary. Federal departments carry out anaverage of 5,000 to 6,000 assessments eachyear. Of more than 30,000 projects assessed inCanada between 1995 and the end of 2003,slightly more than 20 were referred forassessment by a review panel. To date, theMinister of the Environment has neverestablished a formal Canadian EnvironmentalAssessment Act mediation process.

Changes to the Canadian EnvironmentalAssessment Act that came into effect in October2003 have increased the opportunities forpublic participation, in part through an

electronic Canadian Environmental AssessmentRegistry that must now be established andmaintained for all projects subject to aCanadian Environmental Assessment Actassessment. Access to the registry is availablethrough www.ceaa.gc.ca/050/index_e.cfm.General information about the changes to theCanadian Environmental Assessment Act can befound at www.ceaa.gc.ca/013/index_e.htmThe basics of environmental assessment areexplained atwww.ceaa.gc.ca/010/basics_e.htm#1, whereyou can also find a description of new classscreenings that are allowed under the revisedlegislation.You can find further informationabout the Canadian Environmental AssessmentAct process, including procedural and policyguidance documents, on the main CanadianEnvironmental Assessment Agency Web site atwww.ceaa.gc.ca/index_e.htm.

The types of projects that are listed in theComprehensive Study List Regulations underthe Canadian Environmental Assessment Actinclude offshore exploratory drilling, offshoreworks for production, offshore pipelines andon-shore pipelines that are over 75 kilometreslong on a new right-of-way. For listed projects,the Minister of the Environment decides at anearly stage in the review process whether acomprehensive study will be conducted, orwhether the project will be referred directly toa review panel or mediator (this is referred to asthe “track” decision). If the comprehensivestudy route is chosen, there is no opportunitylater to refer the project to a review panel or

Citizens’ Rights and Oil and Gas Development: Northwest Territories

92 The Pembina Institute

mediator. Once the comprehensive study routeis chosen, the federal responsible authority(ies)must ensure that a comprehensive study iscompleted and that a comprehensive studyreport is prepared.

The responsible authority(ies) that carry out thecomprehensive study must ensure that thepublic is consulted during the preparation ofthe comprehensive study report, prior to theMinister’s “track” decision. Furthermore, the

responsible authority(ies) must also ensure thatthe public has an opportunity to participate inthe comprehensive study. Also, as a result of therecent amendments to the CanadianEnvironmental Assessment Act, participantfunding is now available (after the Minister’s“track” decision) to assist groups that want toprovide input to a comprehensive study. At theend of the comprehensive study process, acomprehensive study report is prepared andsubmitted to the Minister of the Environment.The Minister makes the report available for aperiod of public review and comment. TheMinister must then issue an environmentalassessment statement. At this point, theMinister can

• refer the project back to the responsibleauthority(ies) for appropriate action becauseit is not likely that it will have a significantharmful effect on the environment;

• refer the project back to the responsibleauthority(ies) for appropriate action, butwith whatever additional mitigationmeasures or follow-up programs theMinister considers appropriate;

• require additional study and/or additionalpublic consultation before a project decisionis made; or

• refer the project back to the responsibleauthority(ies) who will not grantauthorizations, since there are significantadverse environmental effects that are not justified.

There are opportunities for public inputduring the screening, comprehensive studyand panel review stages of a CEAAassessment. Public input during CEAAenvironmental screenings is a decision at thediscretion of the responsible authority(ies).However, public input is required for allprojects that are subject to a comprehensivestudy. Panel reviews focus on obtainingpublic input, with much of this input comingout at hearings held by the panels.

CEAA ASSESSMENT

You can find contact information for theCanadian Environmental AssessmentAgency in the chapter called “Boards,Government Departments and Agencies,”starting on page 96.

CEAA INFO

93Citizens’ Rights and Oil and Gas Development: Northwest Territories

How Does the Process Work at the National Energy Board?

The NEB regulates pipelines that crossterritorial, provincial and international borders.There are two stages to the pipeline approvalprocess. First, the NEB must approve thegeneral project. Then the NEB must approvethe detailed pipeline route.

The NEB may hold a hearing at each stage. Thehearing to approve the general project is calleda “certificate hearing,” because the companymust apply for a certificate of publicconvenience and necessity. The hearing toapprove the detailed pipeline route is called a“detailed route hearing.” Both hearings willfollow similar procedures, which we outlinebelow.

The NEB announces the date and place of itspipeline hearings in a public notice, along withother relevant information. Hearings usuallytake place at locations where people areespecially interested in the application andwhere the NEB’s decision will have the greatestimpact.

Anyone who wants to participate in a NEBhearing can register as an “intervener” or as an“interested party.”The public notice explainshow to register. Interveners must show theyhave an interest in the results of a certificatehearing by completing an “application forintervenor status.” On this form, which you canget from the NEB or from its publication

Pipeline Regulation in Canada: A Guide forLandowners and the Public, you must brieflydescribe your interest in the project and clearlyexplain the issues that you intend to raise. If anintervener does not plan to attend the hearing,he or she must explain the reason why anintervention is required.

If the NEB approves the general project at acertificate hearing, it may still require thecompany to deal with the concerns oflandowners and the public either before orduring construction. The company will proceedto work out the detailed pipeline route. Thenthe NEB will announce the detailed routehearing in the media. The National EnergyBoard Act clearly distinguishes between peoplewho own land that the company requires forpipeline development (Section 34(3)) andpeople who believe that pipeline developmentmay negatively affect their land (Section 34(4)).Both groups have the right to submit a writtenstatement of objection that describes theirinterest in the land and their objections to thepipeline. The NEB must receive all writtenstatements within 30 days of the public noticeannouncing the second hearing. Unless theNEB thinks that a written statement is“frivolous or vexatious or is not made in goodfaith,”11 it will accept anyone who has filed awritten statement by the deadline as anintervener at the hearing. The NEB may alsoallow other people who are not interveners topresent their comments.

11 National Energy Board Act, Section 35(5)(b).

94 The Pembina Institute

NEB hearings occur mostly so that people whoare affected by a proposed pipeline have theopportunity to present their concerns.However, the NEB may also give status toenvironmental associations because, althoughthe application may not directly affect thesegroups, environmental associations may raiseissues that are relevant to the broad publicinterest.

The NEB’s hearingsoperate in a similarmanner to a civil court.The NEB’s powersinclude swearing inand examiningwitnesses andaccepting evidence.Interveners receive all the information that the NEB receives from other parties and alsohave the right to cross-examine witnesses atthe hearing itself. Interveners do not have tohire a lawyer. However, hiring a lawyer for a NEB hearing can be extremely helpful,because both the company and the NEB will have legal counsel.

If you plan to participate in a NEB hearing,read Pipeline Regulation in Canada: A Guide for Landowners and the Public.You can get this publication from the NEB or its Web site(see page 104).

Intervener Assistance

Sometimes, funds are available to help membersof the public cover their costs when they appearat a hearing.Whether or not there are fundsdepends on which board or governmentagency is responsible for the hearing. Usually,local land and water boards in the NWT do notcover costs for interveners.The Territorial Lands

Act, the NorthwestTerritories Waters Act,the Inuvialuit FinalAgreement and theMackenzie ValleyResourceManagement Actdon’t provide forfinancial assistance

for interveners either. However, if the MVEIRBsets up a review panel to conduct anenvironmental impact review, the panel may manage a participant funding program,if the federal government provides money tohelp cover costs for interveners and those who are directly affected, so that they can fully participate. In some cases, funds may also be available to help interveners in a NEB or Canadian Environmental AssessmentAgency hearing.

Anyone who wants to participate in a NEBhearing can register as an “intervener” or asan “interested party.”

NEB PARTICIPATION

95

NEB Funding

Usually, interveners at a NEB hearing must paytheir own costs. The only exception is a detailedroute hearing. The NEB can order the companythat wants to build a pipeline to pay the costsof landowners who are directly or indirectlyaffected by the pipeline.

CEAA Funding

The CanadianEnvironmentalAssessment AgencyParticipant FundingProgram providesfinancial assistance toindividuals and non-profit organizationsparticipating in a federal review under theCanadian Environmental Assessment Act.Participant funding may be available for both acomprehensive study review and for a panelreview. Information is available atwww.ceaa.gc.ca/010/0001/ 0002/index_e.htm.In addition, some intervener funding might beavailable through the “Cooperation Plan for theCoordinated Review of a Potential Major NaturalGas Pipeline Through the Northwest Territories” ifplans for the Mackenzie gas project proceed.

If you think that you may be eligible forintervener funding, it is important to keep thereceipts for all of the costs you incur and to beable to explain why these costs were necessary.

How to Appeal a Decision

Sometimes, you may be able to challenge aregulatory authority’s decision with an appeal

to the Ministerresponsible for theauthority — forexample, the Ministerresponsible for DIANDor EnvironmentCanada.You may also be able to

request a judicial review by the Supreme Courtof the NWT.The appeal must question a point of law or jurisdiction.You cannot simply objectto the decision.

If you want to launch an appeal,consult a lawyer to find out what is possible in your particularsituation.You should act quickly,because youusually have to start the appeal process within a specific time period.For example,you can appeala NEB decision to the Federal Court of Canada,but only within 30 days of the decision.

Citizens’ Rights and Oil and Gas Development: Northwest Territories

In some cases, funds may be available tohelp interveners.

FUNDING

Boar

ds, G

over

nmen

t Dep

artm

ents

and

Age

ncie

s

This chapter briefly describes the role ofboards, government departments and agenciesthat have a say in oil and gas activities. We havelisted them in alphabetical order, and we haveincluded their addresses, phone numbers, E-mail addresses and Web sites, whereverpossible, to make it easy for you to contactthem. It is important to contact a board orgovernment agency as soon as possible if youhave any concerns about a development orquestions about the process for publicinvolvement.

Canadian EnvironmentalAssessment AgencyCanadian Environmental Assessment AgencyMr. Lanny CoulsonDirector Alberta/NWT RegionSuite 100, Revillon Bldg.10237 – 104 StreetEdmonton ABT5J 1B1Tel: 780-422-7704Fax: 780-422-6202E-mail: [email protected]

The Canadian Environmental AssessmentAgency is a federal government agency thatadministers the overall requirements of theCanadian Environmental Assessment Act. Underthe Canadian Environmental Assessment Act, thefederal government must ensure thatenvironmental assessments are carried out for

a range of activities related to oil and gasdevelopment. These activities include oil andgas exploration or production anddevelopment plans that are regulated underthe Canada Oil and Gas Operations Act. Otheractivities that may require an environmental

assessment review include activities regulatedunder the Canadian Environmental ProtectionAct (dumping of waste), the Fisheries Act(alteration or destruction of fish or fish habitat),the Navigable Waters Protection Act, theNorthwest Territories Waters Act and severalother federal acts. An application for a land usepermit on Crown land from DIAND may alsotrigger a review. The Canadian EnvironmentalAssessment Agency provides advice andguidance on the application of the CanadianEnvironmental Assessment Act and may becomedirectly involved in reviews requiringcomprehensive study or panel reviews.However, the main responsibility for ensuringthat the requirements of the CanadianEnvironmental Assessment Act are met rest with

96 The Pembina Institute

Boards, Government Departments and Agencies

This chapter briefly describes the role of boards,government departments and agencies thathave a say in oil and gas activities.

ROLES OF BOARDS, ETC.

97Citizens’ Rights and Oil and Gas Development: Northwest Territories

other federal departments that have projectdecision-making responsibilities that makethem “responsible authorities.”The CanadianEnvironmental Assessment Agency fulfils itsadministrative responsibilities for the CanadianEnvironmental Assessment Act in the NWTthrough its Vancouver regional office.

Information about the Canadian EnvironmentalAssessment Agency and the CanadianEnvironmental Assessment Act can be found atwww.ceaa.gc.ca/013/0001/0002/guide_e.htm.

The Canadian Environmental AssessmentAgency maintains an electronic database atwww.ceaa.gc.ca/050/index_e.cfm containinginformation on all assessments that are beingcarried out under the Canadian EnvironmentalAssessment Act.You can find information aboutthis public registry at www.ceaa.gc.ca/012/012/Registry_e.pdf. The electronic databasemakes it easy to identify all of the assessmentsthat are taking place in the NWT at a giventime or place, or to locate a specific assessment.

Amendments to the Canadian EnvironmentalAssessment Act that came into force in October2003 are described at www.ceaa.gc.ca/013/001/0003/index_e.htm.These changes improve theopportunity for public participation and formallyrecognize the value of traditional knowledge inconducting environmental assessments.You canfind more information at www.ceaa.gc.ca/013/001/0003/participation_e.htm.

Environment CanadaEnvironment CanadaEnvironmental Protection Branch Northern Division301 – 5204 50 AvenueYellowknife, NTX1A 1E2

Tel: 867-669-4700 Fax: 867-873-8185

To report a spill or an environmental accidentin the NWT, call 867-920-8130.

Environment Canada has the authority, underthe Canadian Environmental Protection Act, togrant disposal at sea permits. Before it issuesthese permits, Environment Canada advertisesthe application in the Canada Gazette(canadagazette.gc.ca/partI-e.html) for a 30-daycomment period. An advertisement names acontact person at the company that hasapplied for the permit and providesinstructions on how to comment on theproposed permit.You can read more aboutdisposal at sea permits at www.ec.gc.ca/seadisposal/main/index_e.htm.

Environment Canada also manages the CanadaWildlife Act and the Migratory Birds ConventionAct. You can reach the Canadian WildlifeService, the division of Environment Canadaresponsible for administering these Acts, at theaddress above or at 867-669-4760.

Environmental Impact ReviewBoard (in the ISR)Environmental Impact Review BoardJoint Secretariat Inuvialuit Renewable Resource Committees107 Mackenzie RoadBox 2120Inuvik, NTX0E 0T0

Tel: 867-777-2828Fax: 867-777-2610E-mail: [email protected] Web site: www.bmmda.nt.ca/downloads.htm

The Environmental Impact Review Board (EIRB)reviews oil and gas developments in the ISR if ascreening process shows that a developmentcould have a significant negativeenvironmental impact. We describe this processin the chapter called “The EnvironmentalScreening and Review Process,” starting onpage 86.You can find more details in EIRBOperating Procedures, available from the EIRB orat www.bmmda.nt.ca/outgoing/Opproc01. pdf.

The EIRB is an independent board, not agovernment agency or an Inuvialuitorganization. It selects a panel, usually made upof four members, to conduct the public reviewof a development. Two members are generallychosen from among members appointed bythe federal government and two members areselected from among members appointed bythe Inuvialuit. However, for the standard publicreview procedure, the EIRB can invite eligibleAboriginal organizations to nominate a panelmember. If the panel includes additional

Aboriginal members, the federal governmentcan appoint the same number of additionalmembers. Members of the public can view filesrelated to EIRB applications at the Inuvik officeabove, located in the Inuvialuit CorporateCentre.

You can find information about the ISR on theWeb site of the Beaufort-Mackenzie MineralDevelopment Area at www.bmmda.nt.ca.Youcan find the Inuvialuit Final Agreement, whichis the land claim agreement that applies in theISR, on the Inuvialuit Regional Corporation Website atwww.irc.inuvialuit.com/publications.default.aspThe EIRB and EISC (see below) are planningtheir own Web site.

Environmental Impact ScreeningCommittee (in the ISR)Environmental Impact Screening CommitteeBox 2120Inuvik, NTX0E 0T0

Tel: 867-777-2828 Fax: 867-777-2610E-mail: [email protected] Web site: www.bmmda.nt.ca/downloads.htm

The Environmental Impact ScreeningCommittee (EISC) screens proposed oil and gasdevelopments in the ISR. We describe thisprocess in the chapter called “TheEnvironmental Screening and Review Process”starting on page 86.You can find more detailsin Environmental Impact Screening CommitteeOperating Guidelines and Procedures, available at

98 The Pembina Institute

99Citizens’ Rights and Oil and Gas Development: Northwest Territories

www.bmmda.nt.ca/outgoing/og&p2002.pdf.Members of the public can view files related toapplications at the Inuvik office above. The EISCshares its offices with the EIRB.

Fisheries and Oceans Canada(formerly DFO)Fisheries and Oceans Canada,Yellowknife District OfficeFish Habitat Biologist101 – 5204 50 AvenueYellowknife, NTX1A 1E2

Tel: 867-669-4912 Fax: 867-669-4940

Fisheries and Oceans Canada (formerly knownas the Department of Fisheries and Oceans, orDFO) is responsible for all matters related torivers, lakes, fish habitat and navigable waters.

The department is also responsible for theCanadian Coast Guard. The office for the Arcticis located in Ontario.

Navigation Protection Office Arctic201 North Front Street, Suite 703Sarnia, ONN7T 8B1

Tel: 519-383-1863Fax: 519-383-1989

Government of the Northwest TerritoriesGovernment of the Northwest TerritoriesDirector, Resources, Wildlife and Economic DevelopmentP.O. Box 1320Yellowknife, NTX1A 2L9

Tel: 867-920-3214 Fax: 867-873-0254Web site: www.gov.nt.ca/RWED/index.html

The Government of the Northwest Territories(GNWT) administers territorial laws that parallelor complement federal laws governingenvironmental and safety matters, includingregulations about the reporting and clean-upof spills, fuel storage and fire safety. The GNWTdoes not issue permits. However, it does review applications for resource development.It checks that the development is in line withthe legislative mandates and policies of the

The Government of the Northwest Territories(GNWT) Web site provides an organizationalchart and phone directory. One division ofthe GNWT is the Environmental ProtectionService, which you can reach at the addressabove, by telephone at 867-873-7654, by faxat 867-873-0221 or on the Web atwww.gov.nt.ca/RWED/eps/index.htm.

GNWT WEB SITE

GNWT, and that the development promotes the economic and social well-being of NWTresidents.

The GNWT signed the Inuvialuit FinalAgreement, so it must ensure that a companymeets the requirements of that Agreementbefore it allows a development to proceed. TheEISC screens the business authorizations thatthe GNWT issues, and the EIRB reviews them.These business authorizations are not, however,governed by the Canadian EnvironmentalAssessment Act.

The GNWT is only directly responsible forCommissioner’s lands, which are mainlyterritorial lands that lie within municipalboundaries.

Gwich’in Land and Water BoardGwich’in Land and Water BoardP.O. Box 2018Inuvik, NT X0E 0T0

Tel: 867-777-4954Fax: 867-777-2616E-mail: [email protected] site: www.glwb.com

A company needs a land use permit andprobably a water licence before it undertakesoil and gas exploration or development. TheGwich’in Land and Water Board (GLWB) reviewseach application for a land use permit and/orwater licence in its region. The GLWB sends a

copy of the application, an informationpackage and an invitation to comment to theaffected communities, co-management boards,government agencies and interested groups.The GLWB uses the comments it receives tohelp it decide what course of action to takeduring the preliminary screening of theapplication. If the public expresses concernsabout the project, the GLWB may conduct itsown public hearing or forward the applicationto the MVEIRB. If the proposed developmentcould have significant negative environmentalimpacts, the GLWB will refer the applicationdirectly to the MVEIRB.

At a hearing before either the GLWB or theMVEIRB, people have the opportunity topresent information, suggestions and concernsin a public forum. To announce an upcominghearing, the GLWB publishes a notice ofhearing in the Inuvik Drum and News North. Thehearing is held in a community near theproposed project. The GLWB is flexible andinformal and, where appropriate, may allowevidence that would not normally be allowedunder the strict rules of evidence.

GSA Water Licence and Land Use PermitApplication Process, available on the GLWB Website at www.glwb.com, outlines the applicationprocess, but there is no publication thatdescribes the hearing process. However, once ahearing is announced, you can get moreinformation by contacting the GLWB.

100 The Pembina Institute

101Citizens’ Rights and Oil and Gas Development: Northwest Territories

Indian and Northern AffairsCanada (formerly DIAND)Northwest Territories Region Indian and Northern Affairs CanadaP.O. Box 1500Yellowknife, NTX1A 2R3

Tel: 867-669-2500Fax: 867-669-2709

District Manager, North Mackenzie DistrictP.O. Box 2100Inuvik, NTX0E 0T0

Tel: 867-777-3361Fax: 867- 777-2090

District Manager, South Mackenzie District140 Bristol AvenueYellowknife, NTX1A 3T2

Tel: 867-669-2760Fax: 867-669-2720

Indian and Northern Affairs Canada (formerlyknown as the Department of Indian Affairs andNorthern Development, or DIAND) has severaloffices in the NWT that deal with landadministration, the environment andconservation, and contaminants.

DIAND has published several booklets aboutland and oil and gas development, including ACitizen’s Guide to Oil and Gas in the NWT,Mackenzie Valley Resource Management Act: A

Citizen’s Guide, and Your Guide to Who ManagesCrown Land in the Northwest Territories.You canget these booklets from the DIAND office inyour region.

To get information about how rights are issued,the areas where rights will be issued, and Callsfor Bids for exploration, contact the NorthernOil and Gas Directorate in Quebec:

Northern Oil and Gas DirectorateDirector6th Floor, Room 62610 Wellington StreetGatineau, QCK1A 0H4

Tel: 819-997-0878Fax: 819-953-5828Web site: www.ainc-inac.gc.ca/oil

Inuvialuit Land Administration

Inuvialuit Land AdministrationP.O. Box 290Tuktoyaktuk, NTX0E 1C0

Tel: 867-977-2202Fax: 867-977-2467

Web site: www.inuvialuit.com/irc (look for thelink to the Inuvialuit Land Administration under“Corporate”)

The Inuvialuit Land Administration isresponsible for lands received under theInuvialuit Final Agreement. The Inuvialuit FinalAgreement provides surface and subsurface

title to the lands adjacent to each of the sixInuvialuit communities (called 7(1)(a) lands inthe Inuvialuit Final Agreement). The InuvialuitFinal Agreement also gives surface (and sandand gravel) rights to a larger area within thetraditional lands (called 7(1)(b) lands in theInuvialuit Final Agreement).You can find a mapof these lands in Appendix B. The InuvialuitLand Administration is not responsible for oiland gas rights on 7(1)(b) lands.

The Inuvialuit Land Administration reviews andapproves applications to access and use 7(1)(a)and 7(1)(b) lands. The Inuvialuit LandAdministration Commission holds publicmeetings for most applications that relate to7(1)(a) and 7(1)(b) lands.

Inuvialuit Regional Corporation

Inuvialuit Regional Corporation107 MacKenzie RoadInuvik, NTX0E 0T0

Tel: 867-777-2737Fax: 867-777-2135E-mail: [email protected] Web site: www.inuvialuit.com/irc

The Inuvialuit Regional Corporation managesthe economic, social and cultural affairs of theISR by implementing the Inuvialuit FinalAgreement and in other ways. When acompany wishes to develop resources on ISR7(1)(a) lands, the Inuvialuit Regional

Corporation must approve the project beforethe company can make a Declaration ofDiscovery. A company cannot make plans fordevelopment drilling until it has a Declarationof Discovery.

Mackenzie Valley EnvironmentalImpact Review BoardMackenzie Valley Environmental Impact Review Board Box 938, 200 Scotia Centre (5102 50th Avenue)Yellowknife, NTX1A 2N7

Tel: 867-766-7050Fax: 867-766-7074E-mail: [email protected] Web site: www.mveirb.nt.ca

The Mackenzie Valley Environmental ImpactReview Board (MVEIRB) is not the same as theMackenzie Valley Land and Water Board(MVLWB), described on the next page. If theMackenzie Valley Land and Water Board(MVLWB), Gwich’in Land and Water Board(GLWB), Sahtu Land and Water Board (SLWB) ora government agency discovers during itspreliminary screening of an application that aproposed development might cause asignificant negative impact on the environmentor cause public concern, the board orgovernment agency will refer the application tothe MVEIRB.The MVEIRB can also conduct anassessment on its own, without preliminary

102 The Pembina Institute

103Citizens’ Rights and Oil and Gas Development: Northwest Territories

screening or a referral from a board orgovernment agency. After conducting anenvironmental assessment, the MVEIRB mayrecommend that an environmental impactreview should take place.The MVEIRB will thenappoint a review panel, which will require the developer to prepare an EnvironmentalImpact Statement.The review panel may alsohold a hearing.

The Draft Environmental Impact AssessmentGuidelines provide an overview of the work ofthe MVEIRB. The 2003 draft is available atwww.mveirb.nt.ca/MVGuides/MVDocs.html

Anyone who wishes to take part in a MVEIRBhearing should read Rules of Procedure forEnvironmental Assessment and EnvironmentalImpact Review Proceedings, available at www.mveirb.nt.ca/MVGuides/MVProcedureRules.pdf.

You can view the MVEIRB’s public registryindex, which lists all of the documents relatingto current environmental assessments, at theMVEIRB’s office or on its Web site atwww.mveirb.nt.ca. Some relevant documentsare also available online.

The MVEIRB is working with other governmentdepartments and agencies to coordinate thereview process for pipelines in the NWT. SeeCooperation Plan for the Environmental ImpactAssessment and Regulatory Review of a NorthernGas Pipeline Project Through the NorthwestTerritories, June 2002, available at www.ceaa-

acee.gc.ca/010/9998/nr020107 _e.htm.

Mackenzie Valley Land and Water BoardMackenzie Valley Land and Water Board Box 21304910 50th Avenue, 7th FloorYellowknife, NT X1A 2P6

Tel: 867-669-0506Fax: 867-873-6610E-mail: [email protected] Web site: www.mvlwb.com

The Mackenzie Valley Land and Water Board(MVLWB) reviews applications and issues landuse permits and water licences outside thesettled land claim areas in the Mackenzie Valley.The MVLWB also processes transboundary landuse and water use applications in theMackenzie Valley. To learn more about theMVLWB’s processes, read Guide to the MackenzieValley Land and Water Board, 2003, available atwww.mvlwb.com/supportDocs/Guide%20to%20MVLWB%20Mar%202003.pdf.

The MVLWB expects companies to consult withthe public before they submit an application.For more information, see Public ConsultationGuidelines for Development Applications tothe Mackenzie Valley Land and Water Board,2003, available atwww.mvlwb.com/supportDocs/PublicConsultationGuildlines.pdf.

The MVLWB notifies the owner of land that will

be the site of a proposed development, as wellas affected communities and First Nations. Inparticular, the MVLWB requires First Nations toreview applications to assess the potentialimpact on heritage resources and wildlife. TheMVLWB publishes a notice of all land usepermit and water licence applications in thelocal newspapers.You can also download a listof applications from www.mvlwb.com. To findout more, see Mackenzie Valley Land and WaterBoard’s Consultation Process with First Nations onLand and Water Use Applications, Draft, 2000,available at www.mvlwb.com/supportDocs/FirstNationInvolve.pdf.

Members of the public can comment on anyapplication before the MVLWB. They can raiseconcerns that they have regarding theapplication, and can ask the MVLWB to hold apublic hearing on a land use permit or Type Bwater licence application. Alternatively,members of the public can request that anapplication be referred to the MVEIRB for anenvironmental assessment.

For some types of land use permit or waterlicence, the MVLWB can decide whether ahearing is justified. In other cases, a hearing isrequired.You can find the Draft Rules ofProcedure Including Public Hearings, 2000, atwww.mvlwb.com/html/MVLWBdoc.html.

The MVLWB publishes a notice that advertises a public hearing at least 35 days before thehearing. This notice appears in local andregional newspapers. It may also be read onradio and television, and circulated in otherways necessary to reach everyone the

development may affect. The announcementgives the date and location of the hearing andinformation about how to make a submission.Pay attention to the deadline for filingsubmissions, which will be at least 10 daysbefore the actual hearing. Written,audiocassette, videotape and telephonesubmissions are all acceptable. Submissionsmust be translated into English. Hearingsusually take place in a community close to theproposed development. If the MVLWB hasreceived no submissions by the deadline, it maycancel the hearing.

The MVLWB’s guides and policies are availableat www.mvlwb.com/html/MVLWBdoc.html.Youcan visit the MVLWB’s public registry andreading area at the address above.

National Energy Board

National Energy Board 444 Seventh Avenue SW Calgary, AB T2P 0X8

Tel: 1-800-899-1265 or 403-292-3562Fax: 403-292-5576E-mail: [email protected] Web site: www.neb-one.gc.ca

The National Energy Board (NEB) hears appealsunder the Canada Oil and Gas Operations Actand conducts hearings under the NationalEnergy Board Act. The NEB plays a major role inapproving transboundary pipelines.You canfind a description of the NEB’s processes inPipeline Regulations in Canada: A Guide for

104 The Pembina Institute

105Citizens’ Rights and Oil and Gas Development: Northwest Territories

Landowners and the Public, 2003, available atwww.neb-one.gc.ca/safety/PipelineRegulationCanada_e.pdf.

In the pipeline application process, first thegeneral project and then the detailed routemust receive approval. Both stages may includea public hearing. This guide includes a briefdescription of the NEB public hearing processstarting on page 92.

The NEB does not have an office or publicregistry in the NWT. However, you can findpublic hearing announcements at www.neb-one.gc.ca/hearings/hearingwebcast_e.htm anda public registry of current cases at www.neb-one.gc.ca/PublicRegistries/index_e.htm.

Another helpful publication issued by the NEBis Living and Working Near Pipelines: LandownerGuide, January 2002, available at www.neb-one.gc.ca/safety/livwork_e.pdf.

Northwest Territories Water Board

Northwest Territories Water BoardAttention: Executive AssistantGoga Cho Building, 2nd FloorBox 15004916 – 47 StreetYellowknife, NTX1A 2R3

Tel: 867-669-2772 Fax: 867-669-2719E-mail: [email protected] Web site: infosource.gc.ca/Info_1/ NTW-XA-e.html

The Northwest Territories Water Board

(NWTWB) is an independent board that issueswater licences. The NWTWB must approve theuse of all water in the ISR, except where theamounts are below the thresholds in theNorthwest Territories Waters Regulations. TheNWTWB also regulates the disposal of anywaterborne waste.

When the NWTWB holds a hearing, itannounces the details in local newspapers.Members of the public must submit writtencomments, called “interventions,” at least 10days before the start of the hearing. Others mayspeak about their concerns at the hearing, butwill not receive a copy of the draft waterlicence for comment. The Board’s Rules forProcedure explains how to file an interventionand describes the public hearing process. Thereis a public registry at the NWTWB’s office.

Sahtu Land and Water Board

Sahtu Land and Water BoardP.O. Box 1Fort Good Hope, NT X0E 0H0

Tel: 867-598-2413Fax: 867-598-2325E-mail: [email protected] site: www.slwb.com

Oil and gas activities in the Sahtu jurisdictionusually require a land use permit, and perhapsa water licence, from the Sahtu Land and WaterBoard (SLWB).

When a company applies for a land use permit,it must provide the names of people it hasconsulted and describe any actions taken as aresult of these consultations. When the SLWBreceives an application, it sends it to affectedcommunities and designated Sahtu organiz-ations and asks for comment. The SLWB doesnot make a public announcement aboutapplications for land use permits.

When a company applies for a water licence,the SLWB places an advertisement in a regionalnewspaper and encourages members of thepublic to comment or make recommendations.The SLWB uses the comments it receives tohelp it decide on a course of action at thepreliminary screening of the application. TheSLWB may call a public hearing, if it considersfurther public consultation and inputnecessary. A public hearing is required for aType A (large-scale) water licence application,but is optional for a Type B water licence. TheSLWB conducts public hearings according tospecific rules set out in Sahtu Land and WaterBoard Draft Rules for Public Hearings, availablefrom the SLWB’s office.

If you wish to comment at a public hearing, youmust submit a request at least 10 days beforethe date of the hearing. Note that if there arespecial circumstances, the SLWB chairpersoncan waive (set aside) the 10-day noticerequirement. Written, audiocassette andvideotape submissions are all acceptable.Yourrequest must contain the followinginformation:

• your name, address, telephone and/or faxnumber;

• whether you will be represented by counselor an agent, and, if so, that person’s nameaddress, telephone and/or fax number; and

• a brief statement explaining your interest inthe hearing.

You must show that your participation in thehearing will provide relevant evidence, culturalawareness or cross-examination. The SLWBdecides who can participate in a hearing. TheSLWB may require people with similar intereststo make a joint presentation to the Board.

If the SLWB has no concerns, it sends its reportto the MVEIRB. The MVEIRB decides if thescreening is complete or if an environmentalassessment is required. If the SLWB believesthat the proposed project may have significantnegative environmental impacts or causepublic concern, it refers the application to theMVEIRB and requests an environmentalassessment.

Consult with the SLWB to find out the exactprocess for a specific application. Whether theSLWB or the MVEIRB holds a hearing dependspartly on whether the application is for a landuse permit or a water licence.

You can find more information about the SLWB,including the SLWB Water License Process andthe SLWB Land Use Permit Process, atwww.slwb.com.

106 The Pembina Institute

Non-regulatory W

ays to Address Issues

107Citizens’ Rights and Oil and Gas Development: Northwest Territories

Non-regulatory Ways to Address Issues

Previous chapters described the formalprocesses you can use to participate indecisions about oil and gas development. Thischapter looks at other ways to exercise yourcitizens’ rights. For example, you can havediscussions and conduct informal negotiationsdirectly with a developer.You may also be ableto interest the media in development issuesthat concern you.

How to Negotiate with Companies

Most companies have experience dealingdirectly with members of the public who havequestions and concerns about oil and gasprojects. They usually welcome opportunitiesto meet with interested parties, to provideinformation and to try to resolve issues outsideformal regulatory decision-making forums.

When involved in discussions with a company,make sure you do the following:

• Get everything in writing. If you have an oralagreement or telephone conversation with acompany representative, ask him or her toconfirm it in writing and to send copies tothe proper boards and governmentagencies.

• Ask the company to explain anything you donot understand. If some of the writteninformation the company has provided isnot clear to you, ask the company to providean explanation in writing.

• Tell the company any concerns you haveabout the project. Suggest ways they couldchange the project to address your concerns.Be persistent if the company does notadequately resolve your concerns right away.

• Don’t make a deal with the companywherein they only agree to deal with yourissues of concern if you agree not to takepart in a hearing. Sometimes, it is notpossible for you and the company to resolveall of the issues. However, if a public hearingis held, it will be shorter and more focused ifyou have resolved as many issues aspossible. A shorter, more focused hearingbenefits all parties involved.

• Recognize that some “give and take”may benecessary.For successful negotiation,bothparties must be able to reach their final object-ives and be willing to agree with each other.

• Negotiations can take a long time. Ofteneveryone involved needs a lot of time toreview and write documents. Therefore, it is

This chapter looks at ways to exercise yourcitizens’ rights by conducting informalnegotiations directly with a developer orworking with the media to communicateyour concerns.

CITIZENS’ RIGHTS

108 The Pembina Institute

important to research opportunities forintervener funding (see page 94). It may be reasonable to ask the company forfunding to make sure that members of thepublic can be more effectively engaged inthe consultation.

Working with the Media

Using the media to raise public awarenessabout an issue is not always appropriate. Undersome circumstances, however, it can be animportant tool:

• It can make other members of the publicaware of the proposed project and yourconcerns. This can help build support foryour activities and increase your chances ofsuccess in negotiating with the company.

• It can encourage a company to negotiate.Many companies worry about their publicimage and would like to avoid negativepublicity. Real or potential media attentionon an issue may be an incentive for acompany to try to resolve issues.

• It may ensure that boards and governmentagencies are aware of and involved in your issue.

Media include

• local, regional and national newspapers;

• local and regional radio stations; and

• community and regional television stations.

If you have a message to get out, sending out amedia release can be helpful.Your media

release does not have to be long, but you needto consider the following:

• Decide on your main message and state thisclearly in the first sentence.

• Include a brief outline of your key concernsand the outcome you want.

• Include one or more contact names andnumbers.

• Put a short title at the top of the release —something eye-catching. Put the date at thetop as well.

• Keep the release short — less than a page.You may want to include quotations and a concise statement of your position on the issue.

• Consider including a separate “backgrounder.”A backgrounder gives only factualinformation on the subject, rather than opinions.

• Make sure you are aware of the deadline formaking submissions to the media.

• When your media release is ready, fax ordeliver it to your local and regionalnewspapers, radio and television stations.Follow up with phone calls to selectedmedia contacts.

• Send a copy of your media release to boththe company and the board or governmentagency that is dealing with the applicationor issue. They will be better able to addressyour concerns if they know in advance whatyou are saying.

109Citizens’ Rights and Oil and Gas Development: Northwest Territories

Here are some tips to remember when you aredoing an interview with the media:

• Stick closely to your message. Use yourmedia release as a guide.

• Write down the points you want to raise andtalk about the most important topics first.

• Try to anticipate the questions theinterviewer will ask you and practise yourreplies.

• Always be polite. Insulting a company orindividual could lead to a lawsuit and willnot help you build public support.

• Ask your interviewer to provide your tele-phone number in the news story so that otherinterested people can get in touch with you.

• Provide telephone numbers of otherpeople, including company employees andgovernment representatives, theinterviewer should contact. News storiesalways try to include different viewpoints.Giving the interviewer this information ishelpful and allows you to influence theinterviewers’ choice of sources.

• Build a good relationship with keyjournalists. Call to thank them after theyrun a news story. Also, keep a list of all yourmedia contacts and send them updates onnew developments as they occur. This willencourage follow-up articles andbroadcasts and increase public awarenessof your story.

HOW TO TALK TO THE MEDIA

The

Publi

c’s R

ole in

Mon

itorin

g an

Oil o

r Gas

Dev

elopm

ent

Once an oil or gas development project hasapproval to proceed, members of the publiccan play an important role in monitoring theoperation. The licence or permit that acompany receives to operate a well, pipeline orother oil or gas facility usually sets certainconditions the company must meet. Thesealways include a requirement to meet generalenvironmental standards that protect the air,land and water. There may be other conditionsas well.

Boards and government agencies often do nothave enough inspectors to monitor operationsfrequently for compliance with the terms of alicence or permit. Members of the publicshould watch for any of the followingproblems:

• smells, smoke or poor air quality caused byflaring, leaks or gases venting from well sites,pipelines or processing facilities;

• spills and leaks around a well, pipeline orother equipment;

• surface water contamination caused by a spill;

• impacts on soil or vegetation caused byvehicle movement;

• improper waste disposal;

• wildlife disruption;

• excessive noise from a compressor or otherequipment;

• noise or nuisance from service personnelwho maintain the wells, pipelines or otherequipment;

• problems with site maintenance;

• problems with access roads; and

• problems with reclamation.

Non-emergency Situations

If the issue you identify will not cause severe andimmediate harm, contact the company and askit to resolve the problem.You should also informyour local land and water board. If the localboard did not issue the company’s licence orpermit, ask the board to forward your complaintto the appropriate organization. DIANDinspectors enforce the terms and conditions ofthe land use permits and water licences issuedby the land and water boards. Find out whereyour complaint was directed so you can followup later to ask what action was taken.

Depending on the urgency of the situation, youmay need to make your initial complaint bytelephone, but it is a good idea to follow up in

110 The Pembina Institute

This chapter looks at how you can monitor adevelopment after it is operating to makesure companies minimize impacts on theenvironment.

MONITOR DEVELOPMENT

The Public’s Role in Monitoring an Oil or Gas Development

111Citizens’ Rights and Oil and Gas Development: Northwest Territories

writing. If you write to the company, send acopy of your letter to the government as well.

If your concern has to do with transboundarypipelines, contact the NEB. The NEB employsinspectors to make sure companies complywith the National Energy Board Act. Section 49of the National Energy Board Act gives theseinspectors the right to access the pipeline, anyexcavation activity within 30 metres of thepipeline, and any facility the company isconstructing across the pipeline or nearby.Sections 50 to 51 of the National Energy BoardAct set out an inspector’s powers and thepenalties if a company does not comply.

Emergency Situations

If you smell a gas leak or observe an oil leakthat might cause immediate injury, contactyour local emergency response centre at once.You should also call the company and theboard or government agency responsible formonitoring the operation.

In some areas, natural gas contains somehydrogen sulphide. If you live in an area near asour gas well, pipeline or processing facility, youmay smell hydrogen sulphide.The companyshould have an emergency response plan todeal with potential problems because hydrogensulphide is poisonous. It can cause immediatedeath at concentrations of about 1,000 parts

per million (ppm) and is acutely toxic tohumans at lower levels.The “rotten egg” smellassociated with hydrogen sulphide can bedetected when concentrations are as low as0.02 to 0.03 ppm. At 1 to 5 ppm there is amoderate to strong offensive odour. Prolongedexposure to these concentrations may causepeople to experience nausea and headaches,and their eyes may water. Sensitive people, suchas pregnant women, children and people withmobility problems or heart or lung conditions,may want to evacuate when hydrogen sulphidelevels are at 1 ppm (based on a one-houraverage exposure). Authorities will probably notrequest or order mandatory evacuation of thegeneral public until hydrogen sulphide levelsare several times higher. Follow the instructionsin the emergency response plan. At high levels,between 25 and 100 ppm, hydrogen sulphideparalyzes the nerves that enable people tosmell, so they can no longer detect the gas.

Natural gas that contains hydrogen sulphideis called “sour gas”.

SOUR GAS

For M

ore

Info

rmat

ion

Boards, Government Departmentsand AgenciesSee the chapter called “Boards, GovernmentDepartments and Agencies,” starting on page96, for information about how to contact theauthorities that regulate oil and gasdevelopment.

Lawyers and Expert Witnesses

In many cases, you will be able to present yourown views to a hearing arranged by a board,government department or agency. However, ifyour argument is complex, you may wish tohire a lawyer and/or expert witness. Look for alawyer and/or expert witness who hasexperience with energy issues and with thehearing process. If you do not know anyonesuitable, you can contact the EnvironmentalLaw Centre, Alberta, or West CoastEnvironmental Law.

Before you hire a lawyer or expert witness,discuss his or her fees. If there is no intervenerfunding (see page 94), you will have to pay thecosts yourself. If there is intervener funding, youmay be able to claim reasonable costs for suchexpenses as legal and consultant fees, and the

costs of attending a hearing. Although yourlawyer may be able to tell you about intervenerfunding that was provided in other cases, youwill probably not be able to find out in advancewhat proportion of your costs, if any, will be paid.

Environmental Law Centre, Alberta204, 10709 Jasper AvenueEdmonton, ABT5J 3N3

Tel: 1-800-661-4238 or 780-424-5099Fax: 780-424-5133Web site: www.elc.ab.ca

West Coast Environmental Law 1001, 207 West Hastings StreetVancouver, BC V6B 1H7

Tel: 604-684-7378Fax: 604-684-1312E-mail: [email protected] site: www.wcel.org

112 The Pembina Institute

For More Information

This chapter looks at other resources you canuse to help you exercise your citizens’ rights.

OTHER RESOURCES

113Citizens’ Rights and Oil and Gas Development: Northwest Territories

Laboratories

It is important to make sure that an accreditedlaboratory conducts all water and soil tests.TheCanadian Association for Environmental AnalyticalLaboratories (CAEAL) accredits laboratories bytesting their proficiency and evaluating them onan ongoing basis.The CAEAL evaluates eachlaboratory separately and accredits it for specifictests.This means that different laboratories,evenwithin the same company,may be accredited toperform different tests.The Taiga EnvironmentalLaboratory is an accredited federal laboratory thattests soil, sediment and water in the NWT.You canget more information about accreditedlaboratories from CAEAL,which maintains an up-to-date list of accredited laboratories atwww.caeal.ca/regions.html.

Taiga Environmental LaboratoryIndian and Northern Affairs CanadaP.O. Box 15004601-52nd AvenueYellowknife, NTX1A 2R3

Tel: 867-669-2781Fax: [email protected]

Canadian Association for EnvironmentalAnalytical Laboratories300-265 Carling AvenueOttawa, ON K1S 2E1

Tel: 613-233-5300 Fax: 613-233-5501Web site: www.caeal.ca

Industry Groups

Canadian Association of Geophysical Contractors1045, 1015 – 4th Street SWCalgary, ABT2R 1J4

Tel: 403-265-0045Fax: 403-265-0025E-mail: [email protected] site: www.cagc.ca

The Canadian Association of GeophysicalContractors represents the companies thatundertake seismic exploration.You can find theSeismic Information Pamphlet on theAssociation’s Web site. Operators give thispamphlet to the owners of land where they areconducting seismic exploration. TheAssociation’s Web site also contains informationabout the best practices for specific activities.

Canadian Association of Petroleum Landmen350, 500 – 5 Avenue SWCalgary, AB T2P 3L5

Tel: 403-237-6635Fax: 403-263-1620E-mail: [email protected] site: www.landman.ca

Oil and gas companies hire professional landagents, or landmen, to deal with surfacelandowners and land administration. Landmenare involved in negotiations with landownersfrom the initial request to explore land to the

time when a well or pipeline is abandoned andreclaimed. The Canadian Association ofPetroleum Landmen can provide you withmore information about landmen.

Canadian Association of Petroleum Producers2100, 350 – 7 Avenue SWCalgary, AB T2P 3N9

Tel: 403-267-1100Fax: 403-261-4622Web site: www.capp.ca

The Canadian Association of PetroleumProducers (CAPP) is an industry grouprepresenting about 140 companies involved inthe exploration, development and productionof crude oil and natural gas in Canada. CAPPmember companies account for about 97% ofthe nation’s total production of petroleum.

Together with DIAND’s Northern Oil and GasDirectorate, CAPP participated in theRegulatory Roadmaps Project. This projectproduced detailed guides to oil and gasdevelopment in the NWT. The guides arewritten to assist industry, but provideinformation that can be useful for members ofthe public. The following guides can be foundat www.oilandgasguides.com/aguides.htm:

• Oil and Gas Approvals in the NorthwestTerritories – Inuvialuit Settlement Region: Aguide to regulatory approval processes for oiland natural gas exploration and production inthe Inuvialuit Settlement Region, 2001.

• Oil and Gas Approvals in the NorthwestTerritories – Southern Mackenzie Valley: Aguide to regulatory approval processes for oiland natural gas exploration and productionon public lands in the Southern MackenzieValley, 2000.

• Oil and Gas Approvals in the NorthwestTerritories – Gwich’in Settlement Area:A guide to regulatory approval processes for oil and natural gas exploration andproduction in the Gwich’in Settlement Area, 2002.

• Oil and Gas Approvals in the NorthwestTerritories – Sahtu Settlement Area: A guide toregulatory approval processes for oil andnatural gas exploration and production in theSahtu Settlement Area, 2002.

• Oil and Gas Approvals in the Beaufort Sea – Aguide to regulatory approval processes for oil and natural gas exploration andproduction in Canada’s frontier lands in theBeaufort Sea, 2002.

CAPP has written a Guide for Effective Public

114 The Pembina Institute

115Citizens’ Rights and Oil and Gas Development: Northwest Territories

Involvement, which advises companies on howto conduct effective public consultation. Theorganizations has also worked with membersand stakeholders to develop more than 50industry best practices and comprehensiveoperating guidelines, on topics such asemergency response planning and flaring. In2000, CAPP issued its first annual Environment,Health and Safety Stewardship Progress Report,summarizing industry performance on a widerange of stewardship matters.

The CAPP Web site provides backgroundinformation on the industry and links to otherWeb sites.

Canadian Centre for Energy Information201, 322 – 11 Avenue SW Calgary, ABT2R 0C5

Tel: 1-877-606-4636 or 403-263-7722Fax: 403-237-6286E-mail: [email protected] site: www.centreforenergy.com/silos/ET-CanEn01.asp

The Canadian Centre for Energy Informationaims to be the primary source for energyinformation in Canada. The Centre isresponsible for the former PetroleumCommunication Foundation, which provides

background information about industrypractices.You can find the followingpublications at www.pcf.ca/bookstore/default.asp#general:

• Our Petroleum Challenge: Exploring Canada’sOil and Gas Industry

• Flaring: Questions and Answers

• Sour Gas: Questions and Answers

• Canada’s Pipelines

Canadian Energy Pipeline Association1650, 801 – 6th Avenue SWCalgary, AB

T2P 3W2

Tel: 403-221-8777Fax: 403-221-8760E-mail: [email protected] site: www.cepa.com/index.html

The Canadian Energy Pipeline Associationrepresents Canada’s transmission pipelinecompanies. Pipelines transport oil and gas fromproducing regions to markets throughoutCanada and the United States. The CanadianEnergy Pipeline Association states that itspriorities include pipeline safety and integrity,environmental stewardship, Aboriginalrelations and landowner relations.

Environmental Groups in the NWTCanadian Arctic Research Committee

Yellowknife Office3rd Floor, Mackay Building4910 - 50th StreetBox 1705,Yellowknife NWTX1A 2P3

Tel: 867-873-4715Fax: 867-920-2685

Director of ResearchKevin O'ReillyE-mail: [email protected]

Ottawa Office1276 Wellington Street 2nd FloorOttawa, Ontario K1Y 3A7

[email protected]: 613-759-4284Fax: 613-759-4581Toll Free: (866) 949-9006

Executive DirectorKaren WristenE-mail: [email protected]

Canadian Parks and Wilderness Committee,NWT Chapter4th Floor, 4921 – 49th StreetP.O. Box 1934Yellowknife, NWTX1A 2P4

Tel: 867-873-9893Fax: 867-873-9593E-mail: [email protected] Web site: www.cpaws.org/grassroots-chapters/nwt.html

Greg Yeoman, Conservation Director

Ecology NorthEcology North 5013- 51th StreetYellowknife, NT X1A 1S5

Tel: 867-873-6019 Fax: 867- 873-9195E-mail: [email protected]

Ecology North is an affiliate of the CanadianNature Federation.

WWF Canada245 Eglinton Ave. East, Suite 410Toronto, ONM4P 3J1Phone: 1-800-26-PANDAIn the Toronto area: 416-489-8800Fax: 416-489-8055E-mail: [email protected]

Peter Ewins, Director: Arctic Conservation Bill Carpenter, NWT Regional Conservation Director

116 The Pembina Institute

Appendix A: Abbreviations

117Citizens’ Rights and Oil and Gas Development: Northwest Territories

Appendix A: Abbreviations

The following abbreviations appear in this guide:

DFO Department of Fisheries and Oceans (Federal) – now Fisheries and Oceans Canada (FOC)

DIAND Department of Indian Affairs and Northern Development – now Indian and Northern Affairs Canada (INAC)

EIRB Environmental Impact Review Board (Inuvialuit Settlement Region)

EISC Environmental Impact Screening Committee (Inuvialuit Settlement Region)

GLWB Gwich’in Land and Water Board

GNWT Government of the Northwest Territories

HTC Hunters and Trappers Committee (for each Inuvialuit community)

ISR Inuvialuit Settlement Region

MVEIRB Mackenzie Valley Environmental Impact Review Board

MVLWB Mackenzie Valley Land and Water Board

NEB National Energy Board

NWT Northwest Territories

NWTWB Northwest Territories Water Board

SLWB Sahtu Land and Water Board

118

Appe

ndix

B

The Pembina Institute

Land ownership in the NWT can be dividedinto four categories:

• federal Crown lands;

• Aboriginal lands owned under land claimagreements;

• territorial lands, including Commissioner’sland; and

• private lands.

This list is approximately in the order oflandmass size, from largest to smallest.

Land ownership determines who is responsiblefor managing oil and gas developments.However, land ownership only partlydetermines the regulatory procedures thatapply to oil and gas activities and theopportunities for public input. In most cases,the federal government owns the subsurfacerights to minerals even if another entity owns the surface rights. The exceptions areparts of the Gwich’in and Sahtu SettlementAreas and ISR 7(1)(a) lands, where theAboriginal communities own both surface and subsurface rights.

Federal Lands

In the NWT, the federal government takes onwhat is almost a provincial government role.The federal government maintains directcontrol over most of the natural resources in

the NWT (oil and gas, minerals, land and water),and it receives royalties (or payments) for theresources extracted from the NWT—exceptwhen the Aboriginal peoples own thesubsurface rights. Inuvialuit communitiesreceive royalty payments directly fordevelopments on ISR 7(1)(a) lands. The Gwich’inand Sahtu, on the other hand, do not receiveroyalties directly. Instead, they receive apayment from the federal government thatrepresents a share of royalties paid to thefederal government in the Mackenzie Valley.

In addition to managing these naturalresources, the federal government controls theenvironmental management system for federalCrown lands, which comprise over 90% of alllands in the NWT. The federal governmentexercises this control indirectly, through variousboards that report to federal ministers, ordirectly, through federal departments such asDIAND. However, the federal government mustconsult with others before making manydecisions.

Aboriginal Lands Owned UnderLand Claim AgreementsMackenzie Valley

There are five regions in the Mackenzie Valley,based on settled and unsettled land claims (seeFigure 1 on page 30):

Appendix B: Land Ownership and Land Claim Settlement Areas in the Mackenzie Valley and ISR

119Citizens’ Rights and Oil and Gas Development: Northwest Territories

• the Gwich’in Settlement Area, which includesmost of the Mackenzie Delta and part of thePeel River watershed in the Yukon (seeFigure 4);

• the Sahtu Settlement Area, which comprisesa large portion of the central NWT, centeredin Norman Wells and including all of GreatBear Lake (see Figure 5);

• the Deh Cho area, which is located in thesouthwestern NWT, (see Figure 6);

• the Dog Rib Area, which is located north ofGreat Slave Lake; and

• the South Slave Area, which lies south andeast of Great Slave Lake, (see Figure 7).

Although some parts of the Mackenzie ValleyResource Management Act apply throughoutthe region, each settlement region also has itsown legislative requirements.

In the Gwich’in and Sahtu Settlement Areas, theGwich’in Tribal Council and Sahtu LandCorporations have special status. Their lands arereferred to as private lands (see below). Theyhave surface rights in the entire settlementarea and mineral rights in part of the area.DIAND must consult them before any newlands are released for exploration. They alsoprocess all applications for land use permitsand water licences for oil and gas exploration.The Gwich’in Comprehensive Land ClaimAgreement covers the Gwich’in SettlementArea. The Sahtu Dene and MétisComprehensive Land Claim Agreement coversthe Sahtu Settlement Area.

Figure 4. Map of Gwich’in Settlement Area showing land ownership

SOURCE: CANADIAN PARKS AND WILDERNESS SOCIETY YUKON CHAPTER

120 The Pembina Institute

Figure 5. Map of Sahtu Settlement Area showing land ownership

SOURCE: CANADIAN PARKS AND WILDERNESS SOCIETY YUKON CHAPTER

121Citizens’ Rights and Oil and Gas Development: Northwest Territories

The Deh Cho FirstNations InterimMeasures Agreementprovides the Deh ChoFirst Nation with rightsthat are similar to theGwich’in and Sahturights. The Deh Cho FirstNation is in the processof negotiating a landclaim agreement withthe Government ofCanada and theGovernment of theNWT.

Most of the Dog RibArea lies over theCanadian Shield andhas limited oil and gasdevelopment potential.The Dog Rib First Nation signed theTlicho Agreement inAugust 2003.

The South Slave Area lies over the CanadianShield in the east and over a sedimentary basinin the west. There has been limited oil and gasexploration in the area, but in the west theSouth Slave Area shares a border with areaswhere companies have made significantdiscoveries, near Cameron Hills. Land claimnegotiations are in progress in the South SlaveArea (Akaitcho Territory Dene First Nations).

Inuvialuit Settlement Region (ISR)

The ISR is in the northern NWT and extendsfrom the Mackenzie Delta to include the highArctic islands of the NWT (see Figure 8).

The land in the ISR falls under the InuvialuitFinal Agreement. The Inuvialuit own surfacerights on about 20% of the land; however, thefederal government owns more than 97% ofsubsurface mineral rights. The Inuvialuit ownboth surface and subsurface rights on 7(1)(a)lands, which comprise less than 3% of land inthe ISR. The Inuvialuit own surface rights only

Figure 6. Map of Deh Cho Settlement Area showing land ownership

SOURCE: CANADIAN PARKS AND WILDERNESS SOCIETY YUKON CHAPTER

on 7(1)(b) lands, which comprise a further 17%of land in the ISR. The federal government owns

both surface and subsurface rights on theremaining 80% of land in the ISR.

122 The Pembina Institute

Figure 7. Map of South Slave Settlement Area showing land ownership

SOURCE: CANADIAN PARKS AND WILDERNESS SOCIETY YUKON CHAPTER

123Citizens’ Rights and Oil and Gas Development: Northwest Territories

The Inuvialuit Land Administration regulates allInuvialuit lands. Although the federalgovernment owns and allocates oil and gasresources on most of the lands in the ISR,DIAND must consult Inuvialuit organizationsnear proposed oil and gas development sitesbefore the federal government releases theselands for exploration. Furthermore, when theEISC assesses development applications, it mustconsult local HTCs.

Territorial Lands

The Government of the Northwest Territories(GNWT) does not issue authorizations for oil andgas activities or land use permits and waterlicences. However, it does participate in oil andgas approval and permit processes by reviewingproposals for resource activities to check thatthey are in line with the legislative mandates andpolicies of the GNWT and to ensure that

Figure 8. Map of Inuvialuit Settlement Region showing land ownership

SOURCE: CANADIAN PARKS AND WILDERNESS SOCIETY YUKON CHAPTER

proposed developments promote the economicand social well-being of NWT residents.TheGNWT is only directly responsible forCommissioner’s lands, which are lands that areusually inside the municipalities in the ISR.Whilethe territorial government owns the land surface,the federal government owns the subsurfacerights on Commissioner’s lands.You can findmore information on the GNWT on page 99.

Private Lands

Land claim agreements with the Gwich’in andSahtu have given these First Nations specialrights to their lands, and a company mustobtain their permission to gain surface accessto these lands. The agreements also give theGwich’in and Sahtu subsurface rights to someof their lands.

In the ISR, lands defined under Section 7(1)(a)of the Inuvialuit Final Agreement aresometimes described as private lands.

Municipal GovernmentResponsibilities

Although municipal governments administerrather than own land, they have someopportunities for input into oil and gasdevelopments. Municipalities can createmunicipal development plans to limit certaintypes of development, including oil and gasdevelopments. The Territorial Land UseRegulations under the Territorial Lands Act donot apply to municipal lands but, under theMackenzie Valley Resource Management Act,

land and water boards must consult withmunicipal governments. This allowsmunicipalities to provide input on applicationsfor land use permits and water licences and toappear at public hearings.

Land Claims and Settlements

You can find information about land claims inthe NWT at www.ainc-inac.gc.ca/pr/agr/index_e.html.

1984 Western Arctic Claim, Inuvialuit FinalAgreement

1992 Gwich’in (Dene/Métis) ComprehensiveLand Claim Agreement

1993 Sahtu Dene and Métis ComprehensiveLand Claim Agreement, Volume I (effective date 1994)

1993 Sahtu Dene and Métis ComprehensiveLand Claim Agreement, Volume II (effective date 1994)

2000 Dog Rib Agreement-in-Principle

2001 Deh Cho First Nations Interim MeasuresAgreement

2001 Deh Cho First Nations FrameworkAgreement

2003 Deh Cho Interim ResourceDevelopment Agreement

2003 Tlicho (Dog Rib) Agreement

You can find the two treaties that cover parts of the NWT, called Treaty 8 and Treaty 11,at www.ainc-inac.gc.ca/pr/trts/hti/site/trindex_e.html.

124 The Pembina Institute

Appendix C

125Citizens’ Rights and Oil and Gas Development: Northwest Territories

Some information in this appendix is modifiedfrom Oil and Gas Approvals in the NorthwestTerritories – Inuvialuit Settlement Region: A guideto regulatory approval processes for oil andnatural gas exploration and production in theInuvialuit Settlement Region, Northern Oil andGas Directorate, DIAND and CanadianAssociation of Petroleum Producers, 2001.

We have listed the legislation in alphabeticalorder and included some relevant regulationsunder each act. We have also included a shortdescription of the acts that are most relevant tooil and gas development in the NWT (indicatedin the list with an asterisk (*)). See the chapterscalled “Your Opportunity for Public Input” and“The Environmental Screening and ReviewProcess” for a discussion of how this legislationapplies in specific situations.

You can find the text of all federal legislationand regulations at

http://laws.justice.gc.ca/en/index.html

Arctic Waters Pollution Prevention Act *

Arctic Shipping Pollution PreventionRegulations

Arctic Waters Pollution PreventionRegulations

Canada Oil and Gas Operations Act (COGOA) *

Canada Oil and Gas Certificate of Fitness Regulations

Canada Oil and Gas Diving Regulations

Canada Oil and Gas Drilling Regulations

Canada Oil and Gas Installations Regulations

Canada Oil and Gas Geophysical OperationsRegulations

Canada Oil and Gas Operations Regulations

Canada Oil and Gas Production andConservation Regulations

Oil and Gas Spills and Debris LiabilityRegulations

Canada Petroleum Resources Act *

Frontier Lands Petroleum RoyaltyRegulations

Frontier Lands Registration Regulations

Canada Wildlife Act

Canadian Environmental Assessment Act *

Comprehensive Study List Regulations

Exclusion List Regulations

Federal Authorities Regulations

Inclusion List Regulations

Law List Regulations

Regulations Respecting the Coordination byFederal Authorities of EnvironmentalAssessment

Procedures and Requirements

Appendix C:Overview of Relevant Legislation and Regulations

126 The Pembina Institute

Canadian Environmental Protection Act, 1999 *

Disposal at Sea Regulations

Fisheries Act *

Fishery (General) Regulations

Petroleum Refinery Liquid EffluentRegulations

Gwich’in Land Claim Settlement Act

Mackenzie Valley Resource Management Act *

Exemption List Regulations

Mackenzie Valley Land Use Regulations

Preliminary Screening RequirementRegulations

Migratory Birds Convention Act

National Energy Board Act *

National Energy Board Act Part VI (Oil andGas) Regulations

Onshore Pipeline Regulations, 1999

National Energy Board Pipeline CrossingRegulations, Parts I and II

Navigable Waters Protection Act *

Northwest Territories Waters Act *

Northwest Territories Waters Regulations

Sahtu Dene and Métis Land Claim Settlement Act

Territorial Lands Act *

Territorial Lands Regulations

Territorial Land Use Regulations

Western Arctic (Inuvialuit) Claims Settlement Act

Arctic Waters Pollution Prevention Act The Arctic Waters Pollution Prevention Actprohibits depositing waste into Arctic marinewaters unless this activity has been authorized.The Act does not apply to inland waters.

Several federal departments share theadministration of the Arctic Waters PollutionPrevention Act. Transport Canada administersArctic shipping. DIAND administers non-shipping activities, such as artificial islands, iceislands and anchored drilling installations. TheNEB administers drilling from ships. DFO,including Fish Habitat Management and theCoast Guard, also has a role. No directauthorizations are issued under the ArcticWaters Pollution Prevention Act, but federaldepartments may recommend that terms andconditions be attached to authorizations underthe Canada Oil and Gas Operations Act or theTerritorial Lands Act.

Canada Oil and Gas Operations Act

The Canada Oil and Gas Operations Act appliesto all onshore lands in the NWT and to offshoreareas to a distance of 200 nautical miles fromthe coast. This Act requires that exploration,development, production and transportation ofoil and gas be regulated to promote workersafety, protection of the environment andconservation of hydrocarbon resources. The Actgoverns all lands in the NWT, in both theMackenzie Valley and the ISR, including Crownlands and Aboriginal lands.

127Citizens’ Rights and Oil and Gas Development: Northwest Territories

Before a company can start any oil or gasrelated development in the NWT, it must havean authorization for geological/geophysicaloperations, authority to drill a well or operatinglicence from the NEB, depending on the stageof development. Before the NEB issues any ofthese authorizations, it usually requires thecompany to set up a Benefits Plan (as requiredby Section 5.2 of the Canada Oil and GasOperations Act). To create a Benefits Plan, thecompany has to meet with local communities.This may be the first time that the communitiesfind out about a proposed development, and itallows them to start negotiating with thecompany. The Canada Oil and Gas OperationsAct regulations and guidelines set out therequirements that a company must meetbefore any development starts. The NEBdecides which of these requirements thecompany must meet.

Approvals that the NEB may issue under theCanada Oil and Gas Operations Act and itsregulations include the following:

• geological or geophysical operationsauthorizations;

• drilling program approval;

• approval to drill a well;

• approval to alter condition of a well;

• construction authorization;

• approval of development plan;

• authorization to conduct environmentalstudy;

• authorization to undertake a divingprogram;

• authorization to conduct a geotechnical orengineering feasibility program;

• approval for well operation;

• safety plan approval;

• environmental protection plan approval;

• emergency response plan approval;

• oil spill response plan approval;

• production operations authorization;

• well operations program authorization; and

• decommissioning/abandonment workauthorization.

To get Canada Oil and Gas Operations Actauthorizations, a company may have toparticipate in public hearings, which offeropportunities for public input.You can findmore details on this process in the chaptercalled “The Environmental Screening andReview Process,” starting on page 80.You canfind a complete list of all of the Canada Oil andGas Operations Act’s regulations at thebeginning of this Appendix.

Canada Petroleum Resources Act

The Canada Petroleum Resources Act is a federalact that applies to Crown lands in theMackenzie Valley and ISR, to NWTCommissioner’s lands and to ISR 7(1)(b) lands.The Canada Petroleum Resources Act governsthe allocation of Crown lands to the privatesector, the tenure (the period during which a

128 The Pembina Institute

company owns rights) of the allocated rights,and the setting and collection of royalties. OnISR 7(1)(a) lands, the Inuvialuit LandAdministration Rules and Procedures governthese matters.

The Canada Petroleum Resources Act governsthe following authorizations:

• exploration licence (issued by DIAND);

• Declaration of Significant Discovery (issuedby the NEB);

• Declaration of Commercial Discovery (issuedby the NEB);

• production licence (issued by DIAND); and

• subsurface storage licence (issued byDIAND).

Canadian EnvironmentalAssessment ActThe Canadian Environmental Assessment Actsets rules for the environmental assessmentand review of projects involving the federalgovernment. It requires the appropriate federalauthorities to assess projects on federal lands,as well as projects that are proposed,authorized or funded by the federalgovernment. The Canadian EnvironmentalAssessment Act also created the CanadianEnvironmental Assessment Agency (see page96). The Canadian Environmental AssessmentAgency is responsible for the federalenvironmental assessment process, althoughthe requirements of the CanadianEnvironmental Assessment Act may be carried

out by other boards or government agencies.

In the ISR, the federal responsible authoritiesmay use screening conducted by the EISC tomeet their requirements under the CanadianEnvironmental Assessment Act. In the MackenzieValley, the Mackenzie Valley ResourceManagement Act replaces the CanadianEnvironmental Assessment Act, and theMackenzie Valley Environmental Impact ReviewBoard (MVEIRB) replaces the CEAA. However, inboth regions the Canadian EnvironmentalAssessment Act may apply for projects ofnational interest.

The Canadian Environmental Assessment Actprovides the opportunity for public input inscreening, in comprehensive study reports andat review hearings. Revisions to the Act thatcame into force in October 2003 include a newcategory of class screening for projects that arenot likely to cause significant negativeenvironmental effects. This category includesan opportunity for public comment.

Canadian EnvironmentalProtection Act, 1999The Canadian Environmental Protection Actdeals with issues relating to the following:

• the management and regulation of toxicsubstances, from development to disposal;

• objectives, guidelines and codes of practiceto protect environmental quality;

• requirements for reporting the release ofsubstances to the environment; and

129

• the management and regulation of disposalat sea activities.

Environment Canada’s EnvironmentalProtection Branch gives advice to boards andother government departments and agenciesabout the discharge of waste from oil and gasexploration and production activities.

Fisheries Act

The DFO is responsible for administering andenforcing the Fisheries Act, which protects fishand all other marine life and their habitats.Canadian fisheries waters include all waters inCanada’s territorial sea and fishing zones, andall inland waters.

Anyone conducting work in or near water isresponsible for conserving and protecting fishand fish habitat. The DFO assesses project plansand mitigation plans to determine whetherthey will damage or destroy fish or habitat, ordeposit any harmful substance into fisherieswaters.

If a company’s activities will destroy fish habitat(in any way other than by fishing), the companyshould get an authorization under Section 32of the Fisheries Act. Authorization underSubsection 35(2) of the Fisheries Act allowshabitat alteration, disruption or destruction. TheFisheries Act imposes various responsibilities ona company with respect to fish-ways,obstructing fish channels and waterways(Section 20), altering water flow, screeningwater intakes (Section 30) and depositingdeleterious (harmful) substances (Section 36).

In a sense, a company’s decision to apply forauthorizations under the Fisheries Act isvoluntary because there is no prohibition onproceeding without authorization. However, if acompany’s activities lead to a contravention(violation) of the Fisheries Act (by destroyingfish and/or fish habitat), the company can beprosecuted.

Mackenzie Valley ResourceManagement ActThe Mackenzie Valley Resource Management Actis federal legislation that creates an integratedco-management structure for public andprivate lands and waters throughout theMackenzie Valley in the NWT.

The Mackenzie Valley Resource Management Actestablishes public boards to regulate the use ofland and water, to prepare regional land useplans to guide development, and to carry outenvironmental assessments and reviews ofproposed projects in the Mackenzie Valley. TheMackenzie Valley Resource Management Act alsoprovides for the monitoring of cumulativeimpacts on the environment, and for periodicindependent environmental audits.

The Mackenzie Valley, as defined in theMackenzie Valley Resource Management Act,includes all of the NWT, with the exception ofthe ISR and Wood Buffalo National Park.

Under land claim agreements, First Nations cannominate (choose) one-half of the members ofa Mackenzie Valley Resource Management Actpublic board, reflecting the board’s jurisdiction

Citizens’ Rights and Oil and Gas Development: Northwest Territories

130 The Pembina Institute

over First Nation settlement lands. The federalgovernment and territorial government choosethe other public board members.

In the Mackenzie Valley,“First Nations” refers tothe Gwich’in First Nation (represented by theGwich’in Tribal Council), the Sahtu First Nation(represented by the Sahtu SecretariatIncorporated), and bodies representing otherDene or Métis of the North Slave, South Slaveor Deh Cho regions.

The Mackenzie Valley Resource Management Acthas seven parts:

• Part I – General Provisions Respecting Boards

• Part II – Land Use Planning

• Part III – Land and Water Regulation

• Part IV – Mackenzie Valley Land and WaterBoard

• Part V – Mackenzie Valley EnvironmentalImpact Review Board

• Part VI – Environmental Monitoring andAudit

• Part VII – Transitional Provisions,Consequential Amendments, and ComingInto Force

Regulations under the Mackenzie ValleyResource Management Act are:

• Exemption List Regulations – outlineactivities that do not require preliminaryscreening. There is only one exemption for oil and gas developments, for minorchanges to a pipeline within a road or railright-of-way.

• Mackenzie Valley Land Use Regulations –outline what types of land use activities mayrequire a permit.

• Preliminary Screening RequirementRegulations – outline what types of projectproposals require a preliminary screeningbefore authorization.

In the Mackenzie Valley, land and water boardsissue land use permits under the MackenzieValley Land Use Regulations and water licencesunder the Northwest Territories Waters Act (seenext page). Each land and water board has itsown specific jurisdiction. The Mackenzie Valleyalso has land use planning boards that developand implement land use plans for their ownsettlement areas. The Mackenzie ValleyEnvironmental Impact Review Board (MVEIRB)is responsible for environmental impact reviewand assessment across the entire MackenzieValley, including the Sahtu and Gwich’inSettlement Areas.

National Energy Board Act

One of the NEB’s responsibilities under theNational Energy Board Act is to authorize theconstruction and operation of inter-provincialand international oil and gas pipelines, as setout in Part III of the Act. The NEB also providesexpert technical advice to other boards andgovernment departments, including DIAND.

The NEB process depends on whether aproposed pipeline is subject to Section 52 orSection 58 of the National Energy Board Act.

131

Section 52 requires proposed pipelines to get acertificate. However, Section 58 allows the NEBto exempt pipelines shorter than 40 kilometresand various facilities from the requirement for acertificate.

The National Energy Board Act sets out theprovisions required for compensation when acompany buys land for any pipeline that comesunder its jurisdiction. The Act also provides for negotiation and arbitration when acompany and landowner cannot reach anagreement on issues relating to a pipeline.This includes arbitration on compensation(Sections 88 to 90).

The location of the start point and end point ofa proposed pipeline will influence theenvironmental assessment and approvalsprocesses. Transboundary pipelines that start inor pass through the ISR are subject to both theInuvialuit Final Agreement and the CanadianEnvironmental Assessment Act. If the pipelineextends south into the Mackenzie Valley, it isalso subject to the Mackenzie Valley ResourceManagement Act. The NEB considers the extentof each project and whether any proposedupstream or downstream facilities should beconsidered when assessing the cumulativeenvironmental impacts.

Since several different governmentdepartments and agencies are involved in atransboundary pipeline application, they will negotiate the arrangements for anenvironmental assessment process.

Navigable Waters Protection Act

If a company needs to block navigable waters(a waterway that is deep and wide enough toaccommodate boats), it must get authorizationunder the Navigable Waters Protection Act. DFOdecides whether a waterway is “navigable.”

Regulations under the Navigable WatersProtection Act require companies to remove all of their equipment and any debris (garbage)on the water surface or bed after their work is complete.

Northwest Territories Waters Act

The Northwest Territories Waters Act and itsregulations license development activities inthe NWT that

• use inland water;

• directly or indirectly discharge waste intowater; or

• physically alter inland waterways.

Whether an activity requires a licence andwhich type of licence is required depend onhow much water the activity uses, how muchthe activity alters the water flow, how much(waste) water is discharged and what aquaticeffects the activity may have. Depending on theintensity of the activities, the developer mayneed a Type B (the lower threshold) or Type A(for larger projects) licence.

Water licences set the terms and conditions forthe use of water, and may include a range of

Citizens’ Rights and Oil and Gas Development: Northwest Territories

132 The Pembina Institute

conditions for site preparation (includingstream crossings), construction and operationof a project, as well as for the finalabandonment and restoration of the site.

Schedule IV of the regulations defines thethresholds for oil and gas exploration anddevelopment. For example, a company needs aType A licence if it wants to deposit any wasteassociated with oil and gas production. It needsa Type B licence if the project discharges wasteto a sump.

The Northwest Territories Waters Act may requirepublic hearings, and public input at thosehearings, as outlined in the chapter starting onpage 80. The Act is administered by DIAND andenforced by DIAND inspectors.

Territorial Lands Act

The Territorial Lands Act deals with the sale orlease of the surface of territorial lands in theNWT. Some of these lands are the responsibilityof DIAND, while some are controlled by theCommissioner of the NWT. The Act permits theGovernor in Council to authorize the sale, leaseor other disposition of lands, and to makeregulations that authorize the Minister ofDIAND to make dispositions. DIAND conductsan internal review before granting a dispositionand consults with people who are affected,including Aboriginal communities and HTCs,but there is no public input process.

The Territorial Land Use Regulations, whichgovern the temporary use of Crown lands inthe ISR, set minimum thresholds fordevelopment. Above these thresholds,companies must get a land use permit.

A P

RIM

ER

PembinaSeismicExploration

Environment & Energy in the North

PI Seismic COVER 6/18/04 1:06 PM Page 1