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Alberta

INDUSTRY-INDIGENOUS RELATIONS: A TREND TOWARD DEEPER ENGAGEMENT

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INDUSTRY-INDIGENOUS RELATIONS: A TREND TOWARD DEEPER ENGAGEMENT

The Canadian oil and natural gas industry has a strong history of engagement with Indigenous peoples. Since its early initiatives, the petroleum sector has had many learnings and opportunities for growth with respect to its interactions with Indigenous communities. Consequently, these relationships have evolved towards ever-deepening forms of engagement including consultation and business partnerships. However, the nature of these relationships has been difficult to communicate with credibility; arrangements between companies and communities are often confidential, thus limiting the ability of industry to share positive stories of engagement.

 The Canadian Association of Petroleum Producers (CAPP), an association that represents Canada’s oil and natural gas producers, has utilized multiple surveys of its members in order to better understand the relationship between industry and Indigenous peoples. One of these surveys, known as the Telling Our Story survey, was commissioned by CAPP and conducted by Dr. Ken Coates of the University of Saskatchewan. Additionally, CAPP developed its own survey focused on procurement, community investment and consultation capacity funding in the oil sands. These surveys provide data that demonstrate the value producers place on building long-term, sustainable relationships with Indigenous communities. In particular, economic engagement is viewed as a primary opportunity to establish good relations and support Indigenous self- determination.

Survey Methodology

The purpose of the Telling Our Story survey was to collect information about the oil and natural gas industry’s efforts to engage Indigenous communities. Research was conducted by Dr. Ken Coates, Canada Research Chair in Regional Innovation at the Johnson-Shoyama Graduate School of Public Policy, University of Saskatchewan. Dr. Coates used a comprehensive survey of industry representatives, in partnership with CAPP, plus CAPP’s member companies and partner associations including the Canadian Council for Aboriginal Business, the Petroleum Services Association of Canada, the Canadian Energy Pipeline Association, and the Canadian Association of Geophysical Contractors. A total of 122 companies participated in the study, representing a cross-section of the oil and natural gas industry in Canada. Data was collected in a confidential manner, anonymized and aggregated into a final report. The survey highlighted key themes related to industry’s engagement with Indigenous communities.

Consultation and Community Engagement

Companies within the oil and natural gas industry have developed long-term relationships with communities, and these relationships are multifaceted. Of course, a core aspect of relationship-building takes place through consultation processes. The trend toward consultation accelerated in 2004 with the Supreme Court of Canada decision on Haida Nation v. British Columbia, which determined the Crown has a duty to consult and accommodate Indigenous peoples when making a decision that could affect their constitutional rights. Procedural aspects of this duty can be delegated   to   industry, and now industry conducts the majority of project consultations. Survey respondents noted that today, companies are actively engaged in this process, seeking to ensure meaningful, two-way discussion in consultations. CAPP members indicated that they view these relationships formed through consultation as critically important to their business. Many companies have teams of staff dedicated to consulting and building relationships with communities, and funding is often provided to support community capacity to engage in consultations. A separate survey of CAPP’s oil sands members found that between 2015 and 2016, oil sands operators provided $40.79 million for consultation capacity funding to local Indigenous communities.

Associated with consultations are a variety of forms of engagement. CAPP’s members placed particular value on supporting various community activities, social and cultural priorities, and infrastructure needs. The aforementioned survey of oil sands members found that between 2015 and 2016 operators in the region spent $48.6 million on Indigenous community investment. According to companies, these focused investments positively impact relationships. Furthermore, there has been a trend toward the negotiation of long- term, collaborative agreements between project proponents and Indigenous communities in areas of operation that address community concerns and include clauses related to procurement, employment, community investment, dispute resolution, capacity funding and other topics of importance to the proponent and the community.

Economic Engagement

According to oil and natural gas producers, there is a strong emphasis on economic engagement as the priority in building relationships. In particular, procurement – the purchasing of goods and services from Indigenous businesses – presents a significant opportunity for mutual benefit. Both joint venture partnerships and preferential contracting arrangements with Indigenous-owned companies enable companies to build links and trust with communities. The focus on these arrangements is evidenced by substantial financial investment: in 2015 to 2016, oil sands producers spent $3.3 billion on procurement from 399 Indigenous owned- companies in 65 Alberta communities. While a sizable proportion of Indigenous businesses may be small or new, the data suggests their role in the sector will continue to increase.

This type of engagement allows Indigenous peoples to leverage their own expertise, build capacity, and ultimately establish pathways to prosperity. In this regard, industry can play an important role in supporting successful, self-determining communities. Although procurement was ranked most highly in terms of its benefit to the relationship between producers and communities, there are other forms of economic engagement; a number of companies have Indigenous recruitment strategies and support training programs intended to build the technical skillset of Indigenous employees and contractors.

Conclusion

The research commissioned by CAPP highlights the emphasis that oil and natural gas sector companies place on meaningful consultation, partnerships, and in particular, economic engagement. Industry has made strides in building deeper partnerships, and it is expected that the trend toward more meaningful engagement will continue. As an industry association, CAPP believes the oil and natural gas sector has an important role in tangibly advancing reconciliation together with Indigenous peoples in response to the Truth and Reconciliation Commission’s Call to Action 92. CAPP believes its role in reconciliation can be described as identifying and finding feasible ways to share economic opportunities arising from resource development, while continuing to learn, grow and improve strong relationships based on trust, respect, and open communication. Industry’s understanding will continue to develop, and the sector is open to further dialogue in order to inform its understanding of industry’s role in reconciliation.

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 below to read more stories from Energy Council of Canada’s Compendium series.

Read more on Todayville.

 

ECONOMIC RECONCILIATION IS A PRIORITY AT ENBRIDGE

PETER SUTHERLAND SR GENERATING STATION POWERS NORTHEAST ONTARIO

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

Calfrac Well Services reports Q4 profit due to debt settlement gain

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CALGARY — Calfrac Well Services Ltd. reported a fourth-quarter profit of $125.9 million, boosted by a gain on the settlement of debt.

The oilfield services company says the profit for the quarter ended Dec. 31 amounted to $2.19 per diluted share.

The result included a $226.3-million gain on the settlement of debt and a $54.2-million deferred income tax expense.

Calfrac posted a net loss of $49.4 million or $17.07 per share diluted in the fourth quarter of 2019 when it had fewer shares outstanding.

Revenue totalled $180.7 million, down from $317.1 million a year earlier.

Calfrac underwent a recapitalization plan late last year that saw holders of its senior unsecured notes swap debt for shares, leaving existing shareholders with a reduced stake in the company.

This report by The Canadian Press was first published March 4, 2021.

Companies in this story: (TSX:CFW)

The Canadian Press

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Alberta

Alberta pastor charged with breaking COVID-19 health orders to appeal bail conditions

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EDMONTON — An Alberta pastor accused of holding Sunday services that violated COVID-19 rules is to appeal his bail conditions today.

James Coates with GraceLife Church, west of Edmonton, has been in jail for just over two weeks.

Coates is charged with violating Alberta’s Public Health Act and with breaking a promise to abide by conditions of his bail release, which is a Criminal Code offence.

The church has been holding services that officials say break public-health orders on attendance, masking and distancing.

A judge has ordered Coates to go to trial in May.

A lawyer with the Justice Centre for Constitutional Freedoms is representing the pastor.

The group says the lawyer will argue that his client’s imprisonment and the charge he faces violate his charter freedoms of conscience, religion, association and peaceful assembly.

The judge is also to hear a statement from Coates’s wife about the effect the pastor’s imprisonment has had on his family and community members.

“Charter freedoms do not disappear because the government declares regular church services to be outlawed, while allowing hundreds of people to fill their local Walmarts,” Justice Centre president John Carpay said in a statement.

“Pastor Coates is a peaceful Christian minister. The justice of the peace should not have required him to violate his conscience and effectively stop pastoring his church as a condition to be released. This is a miscarriage of justice.”

The church has continued to hold services, even though Coates is in jail. Many gathered again on the weekend as RCMP and Alberta Health Services monitored the situation.

“Observations were again made that the church held a service beyond the designated capacity,” the Mounties said in a news release.

“The Parkland RCMP remain engaged in continued consultations with several partner agencies to determine the most productive course of action in relation to the church.”

Police fined the church $1,200 in December and a closure order was issued in January.

Coates had been addressing the province’s health restrictions in his sermons. He told worshippers that governments exist as instruments of God and there should be unfettered freedom of worship.

This report by The Canadian Press was first published March 4, 2021

Fakiha Baig, The Canadian Press

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