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Alberta

EAST TANK FARM EQUITY ARRANGEMENT

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EAST TANK FARM EQUITY ARRANGEMENT

In the fall of 2017 Suncor, Fort McKay First Nation (FMFN) and Mikisew Cree First Nation (MCFN) announced the completion of the acquisition by FMFN and MCFN of a 49 per cent interest in the East Tank Farm Development (ETFD) valued at approximately $500 million. The two First Nations independently financed the acquisition, with the offering structured and marketed by RBC Capital Markets.

The agreement is unprecedented in size and scale for the First Nations and Suncor and is part of a growing trend of Indigenous communities as equity owners. The investment will provide a steady stream of revenue to both FMFN and MCFN for a minimum period of 25 years. Located 35 kilometres north of Fort McMurray, the ETFD provides storage, cooling and blending services for bitumen received from Fort Hills.

At a signing ceremony on Nov. 22, 2017, Suncor, Fort McKay First Nation (FMFN) and Mikisew Cree First Nation (MCFN) announced the completion of the acquisition by FMFN and MCFN of a 49 per cent interest in Suncor’s East Tank Farm Development (ETFD).

The two First Nations independently financed the acquisition, with the offering structured and marketed by RBC Capital Markets. The agreement is unprecedented in size and scale for the First Nations and Suncor and is part of a growing trend of Indigenous communities as equity owners.

“We’ve completed a historic deal for energy development in Canada. This unique partnership has been part of a journey that demonstrates how innovative thinking and collaborative spirit can result in a mutually- beneficial opportunity and it has changed the way Suncor thinks about how our Aboriginal neighbours may participate in energy development,” said Mark Little, president, Upstream, at the time of the signing and now Suncor’s president and CEO. “Through this partnership we’ve learned a lot about working together to create something significant, and I look forward to continuing to work together on this joint investment with Fort McKay First Nation and Mikisew Cree First Nation for many years to come.”

The agreement is held in a limited partnership with Suncor called Thebacha, the Dene word for “river.” The investment will provide a steady stream of revenue to both FMFN and MCFN for a minimum period of 25 years.

“The economic benefits generated from this deal will help our Nation to build capacity within our businesses, develop infrastructure in our community, fund social economic programs, and provide us with the means to help pay for education and training for our youth, and will be felt in our community for generations to come,” says MCFN Chief Archie Waquan.

Located 35 kilometres north of Fort McMurray, the ETFD is part of the existing East Tank Farm and adjoins the Hot Bitumen Terminal (HBT) and its associated tanks. Once Fort Hills begins to produce bitumen, the ETFD will receive the Fort Hills hot bitumen via the Northern Courier Pipeline.

“The deal represents one of the largest business investment to date by First Nation entities in Canada, and not only demonstrates the great potential for partnerships between First Nations and industry but serves as a model for how First Nations can achieve greater self-determination through financial independence,” said, FMFN Chief Jim Boucher, Chief at the time of the signing. “It is an example of how First Nations and natural resource development companies can find ways to support each other for the mutual long-term benefits.”

Thanks to Todayville for helping us bring our members’ stories of collaboration and innovation to the public.

Click to read a foreward from JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President and CEO, Canadian Council for Aboriginal Business.

JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President & CEO, Canadian Council for Aboriginal Business

Click to read comments about this series from Jacob Irving, President of the Energy Council of Canada.

Jacob Irving, President of Energy Council of Canada

The Canadian Energy Compendium is an annual initiative by the Energy Council of Canada to provide an opportunity for cross-sectoral collaboration and discussion on current topics in Canada’s energy sector.  The 2020 Canadian Energy Compendium: Innovations in Energy Efficiency is due to be released November 2020.

Read more on Todayville.

 

Hydro-Québec takes partnerships, environmental measures and sharing of wealth to new levels

 

 

 

The Energy Council of Canada brings together a diverse body of members, including voices from all energy industries, associations, and levels of government within Canada. We foster dialogue, strategic thinking, collaboration, and action by bringing together senior energy executives from all industries in the public and private sectors to address national, continental, and international energy issues.

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Alberta

Calgary panda pair heading home to China after pandemic crimps zoo’s bamboo supplies

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CALGARY — The Calgary Zoo says two giant pandas are on their way home to China today. 

The zoo said in May that it would be sending the pair back early because the COVID-19 pandemic was making it difficult to source bamboo.

The plant makes up 99 per cent of the animals’ diet and the zoo has said it was an expensive and all-consuming effort to cobble together supplies from across North America.

The zoo says on Twitter it was a difficult decision to send the pandas home three years earlier than planned.  

It says it took months of hard work to secure international permits to get the pandas home. 

The zoo posted photos of reams of paperwork needed for the journey, the crates that were to carry the pandas and the Lufthansa Cargo plane that was to take them to China. 

The two adults, Er Shun and Da Mao, were on loan from China to Canadian zoos as part of a 10-year deal signed in 2012. They were to stay in Calgary until 2023.

Two cubs, Jia Panpan and Jia Yueyue, were born in Toronto in 2015. They were sent to China as planned in January. 

The price tag to have the pandas in Calgary was around $30 million, including $14.4 million for the Panda Passage exhibit itself. Expanded parking lots, washrooms and restaurants were also required to accommodate an expected influx of visitors. 

This report by The Canadian Press was first published Nov. 27, 2020. 

Lauren Krugel, The Canadian Press

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Alberta

Calfrac says appeal court rejects Wilks Brothers attempt to block recapitalization

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CALGARY — Calfrac Well Services Ltd. says the Alberta Court of Appeal has rejected an attempt by Wilks Brothers LLC to block the approval of the company’s recapitalization plan.

The company says it has been advised by the court that the Wilks Brothers’ appeal of the final order approving the plan has been dismissed.

Texas-based Wilks Brothers had opposed Calfrac’s recapitalization plan and offered its own hostile takeover offer as an option.

However, the company’s debtholders and shareholders instead opted for management’s plan that will see holders of Calfrac’s senior unsecured notes swap debt for shares, leaving existing shareholders with a reduced stake in the company.

An Alberta court issued a final order this month approving the company’s plan.

Calfrac says it intends to complete its recapitalization transaction as soon as possible.

This report by The Canadian Press was first published Nov. 27, 2020.

Companies in this story: (TSX:CFW)

The Canadian Press

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