Mr. Speaker, I rise before the House today to inform you that Cabinet has agreed to begin developing regulations under the NWT Oil and Gas Operations Act that will set out filing requirements for projects involving hydraulic fracturing.
The Northwest Territories has significant natural resource potential that could help create prosperity, jobs and economic opportunities for Northerners and the whole country. Devolution has given the Government of the Northwest Territories new powers to manage resource development. We are committed to using those new powers to ensure that the development of Northwest Territories petroleum resources proceeds in a responsible, sustainable way that creates prosperity for our residents, while protecting the environment and human health and safety.
As you are aware, Mr. Speaker, the GNWT mirrored the federal legislation that was in place prior to April 1, 2014. Our government assumed responsibilities for an already well-developed environmental protection and regulatory system as part of devolution. It is the same system that has overseen the development of diamond mining and other projects in the Northwest Territories. That system already allows hydraulic fracturing under guidelines established by the National Energy Board prior to devolution.
Our strategy was to devolve and then evolve. Developing a made-in-the-North regulatory system that promotes responsible, sustainable management of our natural resources and protection of the land and environment is an ongoing process. That work is aimed at refining the current system to better reflect northern priorities and values. Developing regulations for hydraulic fracturing filing requirements is part of that process.
This is an important issue and we are putting together a plan for how we will proceed. We will not develop regulations without consulting Members, the public, Aboriginal governments, industry, NGOs and other stakeholders. Any regulations we do develop will be based on current science, recognized best practices and will consider all the views presented during consultations.
The GNWT has been working on this issue since early 2012 and has already undertaken research into environmental best practices used by industry and regulators in other jurisdictions. Standing committee has been involved in this process and I want to recognize their contributions. We will benefit from the significant work that the GNWT has already done and will also draw heavily from the good work that the National Energy Board had done in developing its hydraulic fracturing filing requirements. This will be an opportunity to strengthen those requirements and ensure they align with northern priorities and values.
Mr. Speaker, it is also important to remember that decision-making around resource development, including hydraulic fracturing, is shared among several Ministers at both the federal and territorial level and boards established under the Mackenzie Valley Resource Management Act. Proponents must also have a land use permit and a water licence, issued by regulators other than the regulator for oil and gas operations. These decisions are guided by an established legislative and policy framework that includes the MVRMA, territorial legislation, the Land Use and Sustainability Framework, Sustainable Development Policy, Water Strategy, Economic Opportunities Strategy and commitments under settled claims.
New hydraulic fracturing regulations would complement the integrated, already well-developed environmental protection and regulatory systems in the Northwest Territories. They would apply to any hydraulic fracturing projects in the NWT, in both the Mackenzie Valley, regulated by the NWT oil and gas regulator, and the Inuvialuit Settlement Region, regulated by the National Energy Board. New regulations would provide clarity to decision-makers, industry and the public around filing requirements, ensuring proponents understood NWT expectations before they prepared their applications.
Mr. Speaker, the Canol shale holds an estimated two to three billion barrels of oil which, if developed, would create prosperity for the residents of the Sahtu and provide for royalties to the GNWT that could support investment in NWT priorities. We are all aware of the proposed hydraulic fracturing activities in the Canol shale and the often heated and polarized debate around the use of hydraulic fracturing as a technique to extract petroleum from certain kinds of rock formations.
Our government is committed to protecting the health of our people and environment and creating prosperity for our residents by responsibly and sustainably developing our natural resource potential. We will continue to work with the people of the NWT, industry, the Sahtu, Aboriginal governments and Members to identify and adopt best practices on hydraulic fracturing that will allow us to balance our commitment to protecting the environment with efforts to create prosperity for NWT residents. We will provide more details on how we will proceed with the development of regulations and the timelines for consultation in late June. Thank you, Mr. Speaker.
