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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.

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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

Politician booted by Alberta Conservatives for opposing LGBT agenda allowed back into party

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From LifeSiteNews

By Anthony Murdoch

An Alberta politician who was kicked out of her party for speaking out against the LGBT agenda in schools has been overwhelmingly voted back into the ruling United Conservative Party by caucus members. 

In a statement Wednesday, the United Conservative Party (UCP) caucus under Premier Danielle Smith confirmed that after an internal vote, MLA Jennifer Johnson will again be a member of the party.

“I am pleased to join the United Conservative Caucus, where I will be able to continue representing my constituents and help make life better for all Albertans,” Johnson said. “Over the past 17 months, I have grown both personally and professionally. Now, I am eager to apply what I have learned to benefit everyone who calls this province home.” 

It is worth noting that Johnson won her seat after she was booted from the UCP, securing the backing of her constituents as an independent.

The UCP did mention that Johnson has met with “numerous groups and individuals from the LGBTQ+ community” since her election, and has “engaged on topics of importance to the community and is committed to continuing that work as a member of the government caucus.” 

While Johnson did meet with various pro-LGBT activists, she seemed to do so without endorsing the opinions of those activists, with one video in particular going viral showing Johnson refusing to state that “trans women” – men who call themselves women – are real women.

Johnson’s refusal to go along with the demand that she affirm that men are women if they say they are even gained the attention of U.K. author J.K. Rowling.

Rowling, seemingly impressed with Johnson, posted a link of the video of Johnson and the activist and wrote, “It never seems to occur to them that there’s no bigger indicator of not being a woman than trying to bully people into agreeing you’re a woman.”

LifeSiteNews was given information from a well-connected member of the UCP, who asked to not be named, that many MLAs in the party supported Johnson and wanted her back in the party.   

Smith slowly opened up to the demands of her caucus members who wanted Johnson back into the party, which led to the recent vote allowing her back in.  

Regarding the incident with the transgender activist, Johnson made it clear that contrary to rumors, it was not Smith who ordered her to attend the meeting with the activists.

Johnson said that she “supports” the work of Smith and her UCP government and looks “forward to working with all Members of the Legislature in the fall session on the Parental Rights legislation and other important bills.”  

While Smith has been largely soft on social issues of important to conservatives, earlier this year the premier did announce what is effectively the strongest pro-family legislation in the country, strengthening parental rights and protecting kids from life-altering so-called “top and bottom” surgeries as well as other extreme forms of transgender ideology.

 

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Alberta

Lawyers ask Alberta court to allow businesses to seek damages from gov’t for COVID shutdown

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 From LifeSiteNews

By Anthony Murdoch

If the case is allowed to proceed, any business operator in Alberta from 2020 to 2022 who was negatively impacted by COVID orders would be eligible to join the lawsuit. Any payout from the lawsuit would come from the taxpayers, which ironically includes the business owners themselves.

Alberta business owners who faced massive losses or permanent closures due to COVID mandates might soon be able to proceed with a class-action lawsuit against the provincial government after lawyers representing the businesses were in court for a certification hearing.

The court heard from the business group’s lawyers regarding the lawsuit proposal, which comes from Alberta-based Rath & Company. Lead counsel Jeffrey Rath said the Alberta government has been placed on notice for its actions against businesses during the COVID lockdown era.

The Rath lawsuit proposal names Rebecca Ingram, a gym owner, and Chris Scott, a restaurant owner, as “representative plaintiffs who suffered significant financial harm due to (former Alberta Chief Medical Officer) Dr. (Deena) Hinshaw’s Public Health Orders.”

Well-known freedom-oriented constitutional lawyer Eva Chipiuk was with Rath in court for the certification hearing. In an X post on October 3, she shared that it was an “interesting two days in court arguing on behalf of businesses impacted by Alberta’s public health orders.”

“In the heart of democratic societies lies a fundamental principle: Justice must not only be done but must also be seen to be done. When justice systems operate in the open, public trust is maintained. People need to witness fairness, impartiality, and due process in action,” she wrote.

“When governments operate in the light of public scrutiny, they uphold not just the law but the trust of their citizens, ensuring that governance is not just a mechanism of power but a beacon of justice and equality.”

Chipiuk shared that a decision on whether or not the lawsuit will be allowed to proceed will be coming in a few months. She noted it will be “interesting how the judge decides in this case.”

“And will be very interesting how the government responds. They had an opportunity to get ahead of this issue but chose not to. We shall see if they took the right path or if they will be catching up and making up later,” she said.

Alberta Justice Colin Feasby noted at the end of the court certification hearing that both sides made good arguments, but the earliest a decision would be ready is December 1.

Chipiuk and Rath told the judge that the government’s public health orders exceeded their legal authority and, as a result, all businesses affected by the COVID orders should be compensated.

The government’s legal team claimed that the COVID orders were put in place on a good faith initiative and that it was Alberta Health Services, not the government, that oversaw enforcement of the rules.

If the case is allowed to proceed, any business operator in Alberta from 2020 to 2022 who was negatively impacted by COVID orders would be eligible to join the lawsuit. Any payout from the lawsuit would come from the taxpayers, which ironically includes the business owners themselves.

The Alberta Court of King’s Bench’s Ingram v. Alberta decision put into doubt all cases involving those facing non-criminal COVID-related charges in the province, which in effect has allowed the class action to get this far.

As a result of the court ruling, Alberta Crown Prosecutions Service (ACPS) said Albertans facing COVID-related charges will not be convicted but instead have their charges stayed.

Thus far, Dr. Michal Princ, pizzeria owner Jesse JohnsonScott, and Alberta pastors James Coates, Tim Stephens, and Artur Pawlowski, who were jailed for keeping churches open under then-Premier Jason Kenney, have had COVID charges against them dropped due to the court ruling.

Under Kenney, thousands of businesses, notably restaurants and small shops, were negatively impacted by severe COVID restrictions, mostly in 2020-21, that forced them to close for a time. Many never reopened. At the same time, as in the rest of Canada, big box stores were allowed to operate unimpeded.

Class action is about ‘accountability, transparency, and justice,’ lawyer says

Before the hearing, Chipiuk said it is crucial for the public to “understand the significant impact of the unlawful public health orders on Albertans. The financial, psychological, and tragic consequences cannot be ignored.”

“At the end of the day, Premier Smith must recognize the gravity and optics of this situation. Fighting against those harmed by the Province’s unlawful orders, while the Province heavily favored the public sector over the private sector, does not foster an environment that encourages entrepreneurs or promotes business and investment in Alberta,” she wrote on X.

“This case calls for accountability, transparency, and justice. The Province must acknowledge the devastation caused by its illegal actions and stop evading responsibility. This case also presents an opportunity for Premier Smith to demonstrate to Albertans that government overreach will not go unnoticed, and those harmed by it will be compensated — principles that align with the proposed amendments to the Alberta Bill of Rights.”

Danielle Smith took over the United Conservative Party (UCP) on October 11, 2022, after winning the leadership. Kenney was ousted due to low approval ratings and for reneging on promises not to lock Alberta down as well as enacting a vaccine passport.

Smith, however, has been mum on the class action as well as other lawsuits against the government that are in the works. She has promised that changes will be coming to the Alberta Bill of Rights that she said will offer Albertans more protections against government overreach.

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