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Alberta

ONE RELATIONSHIP AT A TIME:  THE PATH TO PROJECT SUCCESS

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ONE RELATIONSHIP AT A TIME:  THE PATH TO PROJECT SUCCESS

Infrastructure development is full of risks, which are managed in a number of ways. Risk management might sound cold and impersonal, but it has the potential to incent real human connections and build genuine relationships. Key risks may have leading practice on how best to mitigate, transfer, ignore or hold those risks, but when it comes to energy development across Canada, meaningful consultation and accommodation is non- negotiable. As most are well aware at this point, the Crown must consult and accommodate where Aboriginal or Treaty rights are impacted. Far from being a mandatory ‘checkbox’ in the process of project development, the undertaking of engagement and relationship-building holds the potential for mutual benefits for both the project and the impacted First Nations, Inuit, or Métis community.

Genuine relationship-building is a solid foundation for partnership on energy projects, to the benefit of both parties. This partnership can take the form of Impact Benefit Agreements (IBA) Mutual Benefit Agreements (MBA) or equity participation arrangements, among others. Both IBAs and equity arrangements have the potential to grow economic and social prosperity, but determining which approach is the best fit will be influenced by the priorities and capacity of both the developer and the Indigenous community.

In both these common approaches there are similar objectives:

  • Compensation for and mitigation of potential impact
  • Influence or control over project design and development
  • Securing benefits for the community
  • Securing social license
  • Working towards consent and support of the project
  • Reduced risk of opposition or disruption
  • Improved financing as a result of managed risks

Both also reflect an underlying premise that it is no longer acceptable to develop resources or energy infrastructure in a manner where impacts fall to one party, and benefits to the other.

When comparing and contrasting IBAs and equity arrangements, some key considerations are the degree of potential impact, the capacity and interest of the community in the project’s development and management, the project’s term, risk tolerance of either party, and financing and funding opportunities.

Impact Benefit Agreements between a project developer and impacted Indigenous community formalize project benefits sharing. Often, these IBAs will provide some employment, training, and contracting opportunities, but the economic benefits will often be tied to the project’s degree of impact to traditional lands and lifestyle (e.g., land impacts, hunting and gathering impacts, etc.). Regardless of how well the project is performing, the IBAs will guarantee a steady revenue stream to the Indigenous community. This can be a safe bet for risk adverse councils but holds the potential for serious revenue inequity in the case where the project is successful and very profitable.

Pivoting from partnership to ownership, equity participation agreements clearly scale the revenue sharing between the project developer and community as the project success and profitability increases. If the energy project does well, the First Nation, Inuit, or Métis equity partner is also going to do well and see greater revenues. The inverse is also true. In these equity arrangements, which are becoming more prevalent in the eastern provinces, the Indigenous partner has a greater say in project operations, as they are a shareholder. It also arguably provides more security to the developers, as the Indigenous partner is a proponent of the project, and no longer a potential opponent. Both partners would look to maximize the economic benefits of the project, while minimizing the adverse economic, environmental and social consequences flowing from the project. Without focusing too much on the direct revenue arrangement, equity arrangements will often also include guaranteed or preferential opportunities for contracting, procurement, employment and training.

To be clear, in either an IBA or equity arrangement model, the duty to consult and accommodate is neither negated nor automatically fulfilled. But the relationship between developer and community becomes formalized and clearer, adding transparency and certainty to an otherwise risk-filled process.

Managing project risk is a mandatory part of project development. But the means of managing risk holds so much potential for empowerment, leadership, and benefit. Project success and economic development are not an end in themselves, but rather a means to an end – the end being healthier and more prosperous First Nations, Inuit, and Métis communities, and Canada as a whole. All the while moving the dial on reconciliation through real connections, business developments, and cultural education – one relationship at a time.

Robyn Budd was a 2019 member of the Energy Council of Canada’s Young Energy Professionals program and was a Manager in KPMG’s Global Infrastructure Advisory practice, based in the unceded territory of the Musqueam, Squamish, and Tsleil-Waututh nations (Vancouver). She was also the Leader of KPMG’s National Indigenous Network.

Zachary McCue is Founder of The Waabgaag Group, with expertise in renewable, infrastructure, and resource development, specializing in equity participation and impact benefit agreements. He is a proud member of Curve Lake First Nation and is based in Ontario.

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.

 

Click to read more stories from this series.

Read more on Todayville.

INDIGENOUS CONSULTATION AND ENGAGEMENT AT CANADA’S ENERGY AND UTILITY REGULATORS

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

Exercise in ‘patience’ pays off for Kadri, says winning a factor in joining Flames

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By David Alter

Nazem Kadri said the Calgary Flames expressed interest the moment he became an unrestricted free agent, but it was an “elaborate process” before he finally signed on the dotted line on Thursday.

“The patience definitely did me some good,” Kadri told reporters in a Zoom call Friday. “There were some decisions to be made.”

The Flames’ wild off-season took another dramatic turn Thursday when the team signed the coveted free agent to a seven-year, US$49-million deal.

Before the deal could be made official, Calgary sent forward Sean Monahan and a conditional 2025 first-round pick to the Montreal Canadiens for future considerations in a move to create salary cap space for Kadri’s contract.

“That’s part of the reason why it’s been taking so long,” Kadri said from Paris, where he is on vacation.

The 32-year-old Kadri was one of the biggest names available in free agency after an all-star season with Colorado that ended with the Avalanche winning the Stanley Cup.

The benefits of returning to Canada, where his NHL career started, and taking part in the ‘Battle of Alberta’ with the provincial-rival Edmonton Oilers were benefits to signing with the Flames, but what ultimately led him to sign was how close he feels the team is to winning a Stanley Cup.

“Ultimately, it’s about winning and that played a huge factor in me coming to Calgary,” Kadri said. “The time is now and it certainly can be close with the moves we’ve made and me hopping on board.”

The 31-year-old Kadri had 87 points (28 goals, 59 assists) in 71 games for the Avalanche in 2021-22. He added 15 points in 16 playoff games, including the overtime winner in Game 4 of the Stanley Cup final against Tampa Bay.

That was his return to action after being injured in Game 3 of the Western Conference final after being hit from behind by Edmonton forward Evander Kane.

Kadri’s addition capped a wild off-season for the Flames that saw star forward Johnny Gaudreau walk away in free agency.

The Flames’ leading scorer last season (115 points), and a finalist for the Hart Trophy as league MVP, Gaudreau informed the Flames before the start of the free agency period that we would not be re-signing with the Flames in a desire to move closer to home.

The New Jersey native signed a seven-year, $68.25-million contract with the Columbus Blue Jackets when free agency opened on July 13,.

Calgary was then informed that forward Matthew Tkachuk, who had a breakout season with 42 goals and 104 points, would not sign a contract extension after the upcoming season.

What looked like a potential nightmare for Calgary started to turn around when the Flames dealt Tkachuk to Florida for a package that included forward Jonathan Huberdeau, who had 115 points last season, and defenceman Mackenzie Weegar.

The Flames then locked up Huberdeau long-term with an eight-year, $84-million contract extension.

“It’s alarming to anybody when you lose players of that magnitude,” Kadri said. “But I think Brad (Flames GM Brad Treliving) has done a great job getting some return and valuable players.”

This is not the first time the Flames have tried to add Kadri to their roster. The Flames attempted to acquire him from the Toronto Maple Leafs in 2019, but Kadri used the no-trade clause in his contract to veto the deal. Kadri was then traded to the Avalanche on July 1, 2019.

“I didn’t see myself leaving (Toronto),” Kadri said about the situation. “That had nothing to do with the city of Calgary or the organization, I just wanted to stay where I was.

“It’s important for me to clarify that. I think it’s important because I’ve always admired the city of Calgary and Canada in general. I’m a Canadian boy. I love playing in Canada but it’s certainly ironic, but it was always a team that was on my radar.”

Kadri was selected seventh overall by Toronto in the 2009 NHL draft and has 512 points (219 goals, 293 assists) in 739 career games with the Maple Leafs and Colorado.

The London, Ontario native has yet to have his day with the Stanley Cup, but his plans include taking it to his hometown.

He also said he’s going to bring it to Toronto, where he spent his first eight NHL seasons.

“I’ve done a lot of growing up in that city as well and there’s been lots of supports of mine there,” he said.
This report by The Canadian Press was first published Aug. 19, 2022.

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Alberta

‘Just horrid’: Police watchdog now investigating death of man in Alberta RCMP cell

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CALGARY — An Alberta man is hoping for answers now that the province’s police watchdog is investigating the death of his son while in RCMP custody.

Addison Hartzler, 30, was found dead in an RCMP holding cell in Grande Prairie, Alta., on June 3, nine hours after he was arrested for public mischief on suspicion he had falsely reported a break-and-enter at the home where he was staying.

Greg Hartzler said he was told his son was acting in a “psychotic and delusional” manner, but police didn’t call paramedics or have him assessed by a doctor.

“They never even sought any medical attention in the entire nine hours they had him in custody. At no point in time was he ever assessed medically,” Hartzler told The Canadian Press Thursday.

“If they had, I believe he would have gone to the hospital in Grande Prairie directly from the house instead of the holding cell.”

The case was being investigated by RCMP, but Hartzler requested the Alberta Serious Incident Response Team look into it.

He was only informed Wednesday that ASIRT had taken over the investigation as of Aug. 9.

Hartzler said he wants to know if the RCMP was negligent in his son’s death and to protect other parents from going through a similar experience.

“Oh, Lord — If we can be an advocate for this, I guess maybe that’s our lot in life,” Hartzler said.

“From a father’s perspective and a family’s perspective, it’s just horrid. We were expecting him to be at our house that morning. By noon he was planning to leave Grande Prairie to come to his brother’s graduation,” he said.

Hartzler said his son had been in the Grande Prairie area northwest of Edmonton since April looking for work. He said they talked a day before his son’s death and the younger Hartzler seemed fine as he watched an NHL playoff game.

The father said he is relieved ASIRT is investigating.

“We’re trusting that we at least get somewhat of a better investigation with ASIRT doing it and hopefully more objective than what I believe RCMP (would do), even though it was their special unit. We’re hopeful we will get a more thorough investigation,” Hartzler said.

“At the end of the day, everything and every direction we turn to points to negligence. As Canadian people, we have to start saying enough is enough and the RCMP has to be held accountable for these types of actions.”

An RCMP spokeswoman said it’s not unusual for the special unit to do the investigation on cases where there are injuries to people in custody.

“What typically occurs is that even though it remains with us, there is an ongoing process where information about the investigation is shared with ASIRT so they have awareness of what happened and the facts and information as it progresses,” said Cpl. Deanna Fontaine.

“In this case, in the course of that, a decision was made by ASIRT to take it back.”

Alberta Justice said the original decision to leave the investigation with the RCMP was made due to a lack of resources with ASIRT at the time.

“ASIRT’s resourcing issues at the time were well known and were raised in correspondence with the Hartzler family’s lawyer in the interest of being fully transparent regarding the capacity challenges the agency was facing,” said spokesman Jason van Rassel.

“We can now confirm that the director of law enforcement referred this case to ASIRT for investigation on Aug. 9. As this matter is now with ASIRT, Alberta Justice and Solicitor General isn’t able to provide further comment.”

This report by The Canadian Press was first published Aug. 18, 2022.

Bill Graveland, The Canadian Press

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