Resource World Magazine

A U G U S T / S E P T E M B E R 2 0 1 9 www.resourceworld.com 65 First Nations propose Eagle Spirit pipeline An aboriginal coalition is vowing to send oil and gas from northern Alberta to British Columbia's northwest coast despite a federal prohibition against it. The Eagle Spirit Corridor Chiefs' Council has filed a request with the National Energy Board (NEB) for information needed to move forward with its plan to build two large- diameter oil pipelines and two natural gas lines to ship product from Fort McMurray, AB to a refinery and port near Prince Rupert, BC. That would fly in the face of new federal legislation, Bill C-48, which prohibits oil tankers loading at ports anywhere north of Vancouver Island. Council chairman Calvin Helin says the project will go ahead "no matter what they (NEB) say". Helin is a member of the Lax Kw'alaams First Nation located near Prince Rupert, where the proposed pipeline would terminate. He has said if the pipelines are blocked by the oil tanker moratorium, then the Council, which has 35 First Nations members, will move its product via pipelines to an Alaskan port. "…it's a ridiculous law that is aimed at ensuring that First Nations remain in poverty," Helin told the Calgary Herald. Eagle Spirit formed in late 2012 to promote its vision of a First Nations-managed energy corridor across northern BC, carrying everything from fibre optic, electrical and water lines to pipelines moving liquefied natural gas and Alberta oil. The Lax Kw'alaams Band has launched a constitutional challenge in BC Supreme Court which claims First Nations were not properly consulted on the tanker ban, which they say is discriminatory and infringes on their Aboriginal title. Financing for the two oil pipelines, which would move up to four million barrels a day, would cost about $16 billion. Helin has already signed an agreement with Altacorp Capital, which is partially owned by the Alberta government, to raise the first $12 billion and the project has the backing of Vancouver's Aquilini Investment Group. Alberta welcomes this and other pipeline proposals and has indicated it will launch a constitutional challenge to Bill C-48's tanker moratorium and Bill C-69's expanded regulatory regime. Alberta's inability to ship more oil and gas out of the province is driving investment away and will see oilpatch capital spending drop 9% this year while it rises 3% in the United States and 1.3% globally, according to studies. n operation. The approval was followed quickly by statements from several Aboriginal coalitions indicating they plan to buy into the pipeline. First was BC's Project Reconciliation, which has offered to pay $6.8 bil- lion for a 51% stake in the pipeline project, with financing coming from commitments from oil shippers. It would eventually invest $200 million of annual proceeds into an Indigenous sovereign wealth fund. That was followed by Alberta's Iron Coalition, which has said it wants to buy 50-100% of the pipeline for an as-yet-undisclosed price, and BC's Western Indigenous Pipeline Group. However, the federal government, which bought the pipeline for $4.5 billion from Kinder Morgan Canada [KML-TSX] in 2018 and has said it will sell the pipeline back to the private sector, faces a new chal - lenge from environmentalists. Ecojustice, on behalf of the Raincoast Conservation Foundation and the Living Oceans Society, is seeking a judicial review of the June 18 decision, arguing it endangers southern resident killer whales. In August 2018, Ecojustice got the Federal Court of Appeal to strike down Ottawa's previous approval of the pipeline expansion on grounds that the marine environment hadn't been con - sidered and Indigenous consultations were incomplete. After that, Natural Resources Minister Amarjeet Sohi ordered the National Energy Board to examine the impacts more oil tankers – going from five to an estimated 34 monthly – would have on marine life and hired former Supreme Court Justice Frank Iacobucci to oversee a new round of consultations with 117 affected Indigenous communities. "It's all about moving our resources to export markets but doing it in a responsible and sustainable way in consultation with Indigenous communities and with an eye on environmental stewardship," International Trade Minister Jim Carr told The Canadian Press at the time. Not all First Nations are behind the project. BC's Tsleil-Waututh Nation says it will oppose the decision in the Federal Court of Appeal and others have indicated they will continue opposing the pipeline with litigation, blockades and protests. The Union of BC Indian Chiefs warned First Nations in an open letter that they should reconsider investing in the pipeline because it faces many hurdles, including land claims, and likely won't be as profitable as Ottawa says. The Alberta government says it will create an Indigenous Opportunities Corporation, with $24 million over the first four years plus $1 billion in financial backstops and loan guarantees to help Aboriginal organizations buy into energy developments. But the Petroleum Services Association of Canada warns of more hurdles. PSAC President and CEO Gary Mar recently told BOE Report optimism must wait until the project is completed. "We have seen sig - nificant delays after the project was approved the first time," he said. "It remains to be seen if the Trudeau government will have the convic- tion to support this project in the face of continued litigation and delay tactics by opponents." And Mark Scholz, CEO of the Canadian Association of Oilwell Drilling Contractors, said in a statement the pipeline approval is PIPELINE: continued on page 68

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