Thank you, Mr. Speaker. Your Standing Committee on Economic Development and Infrastructure is pleased to provide its Report on August 2012 Hydraulic Fracturing Study Tour: Towards a Policy Framework for Hydraulic Fracturing in the Northwest Territories and commends it to the House.
The emerging shale resource play in the central Mackenzie Valley has the potential to bring unprecedented economic activity and prosperity to the Sahtu region and the Northwest Territories as a whole. These oil and gas resources must be extracted through the use of the horizontal drilling process and multi-stage hydraulic fracturing, used to extract hydrocarbons from deep subsurface shale. Hydraulic fracturing, or fracking, has attracted worldwide attention and continues to be the subject of much publicity and environmental concern. Northern regulators have recently received applications to hydraulically fracture exploratory wells in the Sahtu.
In August 2012, Members of the Standing Committee on Economic Development and Infrastructure, and Sahtu Member of the Legislative Assembly, Norman Yakeleya, traveled to Calgary with the territorial Minister of Industry, Tourism and Investment and departmental representatives on a hydraulic fracturing study tour. Members received presentations from the minerals, oil and gas division of the Department of Industry, Tourism and Investment; the Canadian Association of Petroleum Producers; Husky Energy; and all proponents in the central Mackenzie Valley shale play: TriCan Well Services, the National Energy Board, the Energy Resources Conservation Board of Alberta (ERCB), and the British Columbia Oil and Gas Commission. The committee also visited a gas plant and well site in the Kananaskis area west of Calgary.
Prior to the study tour, the committee sought to establish a basic understanding of the hydraulic fracturing process and the status of drilling activity and regulation in the Northwest Territories and other jurisdictions. The committee met with the departments of Industry, Tourism and Investment and Environment and Natural Resources, as well as the Pembina Institute, to discuss the possible implications of hydraulic fracturing in the Northwest Territories. The goal of this research has been to gain an understanding of the technical, environmental and regulatory aspects of unconventional resource extraction in order to contribute to the development of a responsible policy approach to hydraulic fracturing in the Northwest Territories. The committee would like to take this opportunity to publicly thank all organizations and individuals for their significant time and effort in meeting with Members, engaging in meaningful discussion, and sharing valuable knowledge and expertise. The committee has discussed the findings of its research and prepared this report and recommendations for the Legislative Assembly.
It is well beyond the scope of the committee’s mandate and capacity to comprehensively address all aspects of hydraulic fracturing and its related regulatory processes. Although the committee highlights some areas of specific concern, the main intent of this report is to provide broad recommendations for policy development.
I would now like to turn over the reading of the report to my colleague Mr. Robert Bouchard, MLA for Hay River North.
Thank you, Mr. Hawkins. Mr. Bouchard.
Thank you, Mr. Speaker. The Government of the Northwest Territories, as well as Aboriginal governments with settled land claims, have authority in areas such as air quality and wildlife. The Government of the Northwest Territories is currently negotiating increased management authority for land and water. The committee recognizes the current Mackenzie Valley Resources Management Act as a strong federal law, designed by Northerners, that allows for control of the pace and scale of development. A policy on hydraulic fracturing is needed to supplement provisions in the Mackenzie Valley Resources Management Act that respect cultural and ecological values.
Until a Devolution Agreement is reached, the National Energy Board and federally legislated land and water boards will continue to regulate the Northwest Territories’ oil and gas industry. Prior to devolution, it is important that the Government of the Northwest Territories has input into this process based on sound, publicly supported policy. There are strong signals that, post-devolution, the Northwest Territories will continue regulatory activities through a service agreement with the National Energy Board.
The future of the shale industry in the Northwest Territories largely depends on the regulatory system. The Northwest Territories’ current regulatory process is frequently criticized for various reasons. Through meetings with the National Resource Conservation Board of Alberta and the British Columbia Oil and Gas Commission, Members learned how industry activities can be effectively managed under robust regulations. Both British Columbia and Alberta demonstrated how single-window permitting accelerates regulatory time frames without totally compromising thorough review, industry oversight, consultation with First Nations, and respect for cultural values. The committee recognizes the importance of requiring industry to disclose its activities, establishing regulations for each step of a drilling operation, and the benefits of developing a lifetime regulatory system, from the time land tracts are granted to the time the last well is capped and abandoned.
The Standing Committee on Economic Development and Infrastructure recommends that the Government of the Northwest Territories develop a policy framework on hydraulic fracturing that will guide interim input into regulatory processes and form the basis of a future regulatory system post-devolution, and further that the Government of the Northwest Territories consider the examples of other jurisdictions and adopt best practices where applicable.
I will now turn the floor over to my colleague Mr. Blake.
Thank you, Mr. Bouchard. Mr. Blake.
As Members heard from proponents, the central Mackenzie Valley resource play is considered “frontier” not only because it is remote with little infrastructure to support development, but because specific drilling and production conditions for this shale formation are still largely unknown. The technical considerations and impacts of hydraulic fracturing vary from one shale play to another, depending on a wide range of environmental and geological factors. The success of an operation relies on sound knowledge of local geology and finely tuned engineering and drilling expertise. The committee insists that in order to protect ecological integrity and sustain this industry, a baseline understanding of the environmental and geological features of the central Mackenzie Valley must be established before projects enter the production phase. Should companies choose not to advance to production in the near term, this data will remain a valuable starting point for future development.
In addition to geological mapping, the committee agrees that ground and surface water sources, permafrost conditions, seismicity, and proximity of drill sites to critical habitat are among the issues that must be specifically addressed in baseline information gathering, and that the Government of the Northwest Territories should pursue federal resources to enable this work.
The Standing Committee on Economic Development and Infrastructure recommends that the Government of the Northwest Territories include in its policy framework on hydraulic fracturing a strategy to gather environmental and geological baseline information, with federal support.
I will now turn the floor over to my colleague Mr. Menicoche.
Thank you, Mr. Blake. Mr. Menicoche.
Thank you, Mr. Speaker. While many aspects of hydraulic fracturing are specific to a well’s location, some technical features of this process are universal. Hydrocarbon-bearing shale is found at least one and a half kilometres below surface. A resounding message that the committee heard from all presenters on the study tour is that sufficient well casing, cementing and depth are critical to protecting groundwater and human and environmental health during any horizontal drilling operation. Inadequacies in these areas are among the leading causes of groundwater contamination in shale plays in the United States. Wellbore integrity is also crucial during the drilling and fracturing process and the management of flowback and produced fluids.
In addition to sound wellbore construction, Members also highlight the importance of micro-seismic monitoring to ensure that fractures remain in their target zone, and to monitor, mitigate and avoid any negative impacts of induced seismicity.
Hydraulic fracturing is, by its very nature, water intensive. Proponents may use propane or other hydrocarbon-based fluids to fracture a well; however, the majority of wells are fractured with large volumes of water, sand and chemical additives. A typical well in the central Mackenzie Valley may require 10,000 to 25,000 cubic metres of water; that is 10 to 25 times the amount in the large water tanks in many of our communities, or 10 times the volume of an Olympic swimming pool. Committee members recognize our northern waters as a treasure and a resource that must be preserved through carefully considered management tools. Any policy on hydraulic fracturing in the Northwest Territories must speak to water management. The committee encourages the Government of the Northwest Territories to support industry initiatives to protect water quality, use non-toxic additives to fracturing fluid, and reduce fresh and surface water consumption. The committee agrees full chemical disclosure is vital to environmental protection and public accountability.
The province of British Columbia presented a clear example of how it regulates, monitors, allocates and reports industrial water use. Industry and provincial regulators felt strongly that provinces and territories should lead regional water monitoring. More baseline information is required for the Northwest Territories to develop effective water management tools.
During the exploration phase, industry will ship fluids and other drilling waste to Alberta for disposal. Transporting waste out of the Northwest Territories on the winter road system appears to be an adequate temporary solution; however, industry emphasized that in order to advance to production, a made-in-the-north water treatment or disposal system must be found.
Deep well injection, pumping wastewater back underground, is the preferred disposal method. Certain jurisdictions regulate disposal wells to ensure environmental protection. The committee learned that these wells must be located in areas where natural and technical barriers can create a secure disposal site. The layers of rock above disposal zones must be tested and monitored to ensure that contaminants do not migrate. Proponents highlighted that if a water treatment plant is established, it must be designed specifically for the oil and gas industry.
The Canadian Association of Petroleum Producers has introduced principles and guidelines for industry that include detailed requirements for fracturing fluid additive disclosure and management, baseline groundwater testing, wellbore construction, water sourcing and reuse, and fluid handling transport and disposal. Alberta and British Columbia also have well-established regulations for all phases of the drilling process.
The Standing Committee on Economic Development and Infrastructure recommends that the Government of the Northwest Territories adopt standards for all phases of the drilling process and include these in its policy framework, and strongly recommends these standards be incorporated into regulation at the appropriate time.
I will now turn the floor over to my colleague Mr. Bromley.
Thank you, Mr. Menicoche. Mr. Bromley.
Thank you, Mr. Speaker. Meetings with industry helped the committee establish confidence that proponents will apply their best expertise to development in the central Mackenzie Valley throughout the drilling process. However, the committee insists that environmental and technical challenges require made-in-the-north solutions, as presenters in Calgary also emphasized.
The central Mackenzie Valley is home to many species of wildlife. Land consumption and disturbance, habitat fragmentation, and noise pollution are areas of serious concern for Members as well as for the people of the Northwest Territories. Strategies to monitor the impacts of industry on wildlife and habitat should include the development of independent and project-specific environmental monitoring. The committee highlights the need for comprehensive land-use planning in any area where oil and gas development is contemplated. In the absence of finalized land use plans, area management plans may facilitate both the protection of the natural environment and efficiency in the development of key infrastructure.
The Standing Committee on Economic Development and Infrastructure recommends that the Government of the Northwest Territories include in its policy on hydraulic fracturing the implementation of environmental monitoring and area management plans.
Absent from presentations during the Calgary study tour was discussion of a comprehensive approach to greenhouse gas emissions related to oil and gas production. These emissions are significant and need to be managed. Best practices are available to limit air pollutants. The Government of the Northwest Territories has the authority to uphold provisions in its Greenhouse Gas Strategy, and should take into account greenhouse gas emissions related to oil and gas development in its emissions targets and management objectives. Both Alberta and British Columbia report and publish volumes of flared and vented gases, and the Northwest Territories could adopt a similar requirement and require mitigation.
The Standing Committee on Economic Development and Infrastructure recommends that the Government of the Northwest Territories include greenhouse gas monitoring and mitigation measures in its policy on hydraulic fracturing.
Mr. Speaker, I will now turn the floor over to my colleague, with your permission, Mr. Nadli.
Thank you, Mr. Bromley. Mr. Nadli.
Thank you, Mr. Speaker. Northerners are concerned about the use of hydraulic fracturing, as evidenced by participation in public information sessions and frequent northern media coverage on this issue. Due to anti-fracturing activism and political controversy that surrounds shale resource development, the public has varying views and concerns about the unconventional drilling process. Regulators agreed that public concern and criticism provide opportunities to improve the regulatory system and promote good public policy. Along with proponents, they stressed the need for significant public engagement. British Columbia, with the support of the Canadian Association of Petroleum Producers, is moving toward requirements for full public disclosure of industry activities, including well sites and the chemical composition of fracturing fluids. The committee highlights the province’s fracfocus.ca initiative, a website designed to provide objective information on hydraulic fracturing, and related oil and gas activities and regulations across Canada. The committee agrees the Government of the Northwest Territories should support and consider future contribution to this valuable public resource.
The Standing Committee on Economic Development and Infrastructure recommends that the Government of the Northwest Territories undertake meaningful public consultation in the development of a policy on hydraulic fracturing.
The committee is of the view that the general public and residents in the area where hydraulic fracturing is planned need to be kept informed of industry’s activities and afforded the opportunity to benefit from resource development taking place on our lands.
The Standing Committee on Economic Development and Infrastructure recommends the Government of the Northwest Territories include in its policy on hydraulic fracturing requirements for fair and transparent communication and opportunities for public engagement throughout all phases of the development of shale oil and gas projects.
I will now turn the floor back to the chair of the committee, Mr. Hawkins.
Thank you, Mr. Nadli. Mr. Hawkins.
Thank you, Mr. Speaker. In areas where legislated authority does not exist, it is the committee’s view that the Government of the Northwest Territories must exercise its moral authority to represent and act in the best interest of the people of the Northwest Territories, and promote sound management of our land and resources. The Government of the Northwest Territories has long experience in ensuring that residents’ voices are heard in resource development initiatives, but the time has come for it to assume responsibility for more active policy development as well.
The Calgary study tour and preceding information-gathering helped Members better understand the challenges and opportunities for the further development of the central Mackenzie Valley shale resource play, and the high priority of addressing these issues. In its exploratory phase alone, oil and gas development is generating significant activity in Sahtu communities. The sustainability and success of this industry relies on how the Northwest Territories responds to the risks and opportunities at hand and the steps we take to ensure adequate environmental and geological information, public involvement and regulatory processes before production. To facilitate production in the most socially, environmentally and economically responsible way, the Northwest Territories must establish its own policy to guide the practice of horizontal drilling and hydraulic fracturing within its jurisdiction.
The Standing Committee on Economic Development and Infrastructure recommends the Government of the Northwest Territories provide a comprehensive response to this report within 120 days that includes a plan to develop a policy on hydraulic fracturing.
Mr. Speaker, that concludes the report of the Standing Committee on Economic Development and Infrastructure on the August 2012 Hydraulic Fracturing Study Tour.
Thank you, Mr. Hawkins. Mr. Hawkins.
I seek unanimous consent to waive Rule 93(4) and move Committee Report 6-17(3) into Committee of the Whole for today. Thank you, Mr. Speaker.
---Unanimous consent granted
Committee Report 6-17(3) will be moved into Committee of the Whole today. Thank you.
Thank you, Mr. Speaker. I wish to table the following two documents, entitled Department of Justice Strategic Plan, Five-Year Implementation Strategy, 2012-2017, and the 2011 Public Service Annual Report. Thank you.
Thank you, Mr. Abernethy. Mr. Lafferty.
Mahsi, Mr. Speaker. I wish to table the following document, entitled Annual Report on Official Languages, 2011-2012. Mahsi.
Thank you, Mr. Lafferty. Minister Ramsay.
Thank you, Mr. Speaker. I wish to table the following three documents, entitled NWT Business Development and Investment Corporation Annual Report, 2011-2012; BDIC NWT 2012-2013 Corporate Plan; and GNWT Support to the NWT Film and Media Arts Industry Progress Report. Thank you.
Thank you, Mr. Ramsay. Mr. Beaulieu.
Mahsi cho, Mr. Speaker. I wish to table the following document, entitled Measuring Success and Focusing on the Results, NWT Health and Social Services System, 2011-12 Annual Report.
Thank you, Mr. Beaulieu. Mr. Dolynny.
Thank you, Mr. Speaker. I wish to table various documents pertaining to my analysis of the E3 School. Thank you.
Thank you, Mr. Speaker. WHEREAS Section 48(1) of the Human Rights Act provides for the establishment of an adjudication panel composed of at least three persons, appointed by the Commissioner on the recommendation of the Legislative Assembly;
AND WHEREAS Section 48(5) of the Human Rights Act provides that the members of the panel hold office, during good behaviour, for a term of four years, with the exception of the first members appointed;
AND WHEREAS the appointments of two of the adjudication panel members expired on October 31, 2012;
AND WHEREAS the Board of Management has considered a number of qualified individuals for appointment as adjudication panel members;
AND WHEREAS the Board of Management is tasked with recommending individuals to the Legislative Assembly, and the Legislative Assembly is prepared to make a recommendation to the Commissioner;
NOW THEREFORE I MOVE, seconded by the honourable Member for Mackenzie Delta, that the following persons be recommended to the Commissioner of the Northwest Territories for appointment as members of the Human Rights Adjudication Panel, effective November 5, 2012, for a term of four years:
Mr. Louis Sebert of Fort Smith; and
Mr. Sheldon Toner of Yellowknife.
Thank you.
Thank you, Mr. Bouchard. Motion is in order. To the motion.
Question.
Question has been called.
---Carried
Mr. Yakeleya.
Thank you, Mr. Speaker. WHEREAS investing in prevention, education and awareness, and enhancing addictions treatment programs are priorities of the 17th Legislative Assembly;
AND WHEREAS the Department of Health and Social Services has recently released its Mental Health and Addictions Action Plan 2012-2015, which identifies service gaps including needs for a medical detoxification program, more on-the-land programs, more community follow-up and aftercare following residential treatment, supported independent living programs for individuals with chronic mental illness, stronger integrated service management, more programs targeted towards children and youth, programs to address specialized addiction treatment such as for crack cocaine and prescription drug abuse, programs addressing mental health and addictions issues among the elderly, and more individualized mental health and addictions programs;
AND WHEREAS Northwest Territories rates of substance abuse remain among the highest in Canada and substance abuse is a factor in more than 90 percent of complaints to police in the NWT;
AND WHEREAS the Northwest Territories coroner recently reported a total of 84 suicide deaths between 2001 and 2010, accounting for 10 percent of all deaths during that 10-year period and a trend of between seven and 10 deaths by suicide each year;
AND WHEREAS countless individuals and organizations across the Northwest Territories have for decades been calling for additional investments in mental health and addictions treatment programs, most recently during the pre-budget consultations conducted by the Minister of Finance;
NOW THEREFORE I MOVE, seconded by the honourable Member for Yellowknife Centre, that this Legislative Assembly strongly urges the Government of the Northwest Territories to include sufficient new funding, of at minimum $2 million, in the Health and Social Services 2013-14 Main Estimates for the department to substantially enhance addictions and mental health services;
AND FURTHER, that these funds be added to the department’s base for future years and be directed at program delivery to address service gaps identified in the Mental Health and Addictions Action Plan, 2012-2015, rather than further evaluation and studies, with the ultimate objective of creating a seamless, integrated system of addictions and mental health programs delivered within the Northwest Territories;
AND FURTHER, that the government provides to the Standing Committee on Priorities and Planning, before the February-March 2013 sitting of the Legislative Assembly, a list of the proposed new addictions and Mental Health Program delivery investments to be implemented in 2013-14;
AND FURTHERMORE, that the government provides a comprehensive response to this motion within 120 days.
Thank you, Mr. Speaker.
Thank you, Mr. Yakeleya. Motion is in order. To the motion. Mr. Yakeleya.
Thank you, colleagues. We bring again another motion in regard to this issue. We had two other motions in the 16th. So these motions we bring forward as MLAs because this is a very powerful issue that we’re dealing with.
When we all sat down 13 months ago as MLAs, we talked about our priorities. Our priorities talked about this very issue about having healthy people, independent people and healthy families, and addiction was one of the biggest issues that we talked about. So this motion speaks to our priorities of the 17th Assembly.
This motion talks about recognizing gaps – and the government also recognizes there are gaps – and how do we help people. We want to look at ways that we can create a place where people who want to get help… Sometimes it becomes very difficult for someone to look for help and even ask for help. So we need to create place, a policy within our government that welcomes them to get help without any shame, without any guilt.
So this motion speaks about the strong abuses that are happening in our communities, it talks about the complaints that we get from the RCMP, 95 to 90 percent of the complaints come from our communities. They RCMP say if we did not have alcohol abuse or substance abuse, we know we would be a pretty good community, but most of the complaints deal with that. This motion talks about how we deal with issues of great importance to our people in our communities. Even the coroner’s report talks about people dying with a high rate of alcoholic-related deaths in our communities, and we know them personally.
The people in the North are calling for help. People in the North are looking to us to help our own people. We have been saying this over time, over time, and that we seem yet to be, I don’t know if it’s stuck or stubborn not to find ways how to help them. This motion talks about some specific actions, investing some money into a program that would help them.
Government may say that’s another $2 million, and where do we find that $2 million. Government will say that. We know that. We ask this help for the 16th, same thing. The Minister has embarked on a journey with the addictions forum. I think the Minister is on a path that people will tell him what we’re already saying here. We need programs in our communities. If we could find money for the Deh Cho Bridge, we certainly can find money for this here.
I think once and for all – we’re at the early start of this Assembly – this Assembly could be known for attacking the alcohol abuse and drugs in our community. If anything, we can be known for stepping up and fighting the alcoholism in our communities. When we first became MLAs, people looked to us for hope. They looked for us to lead and stand up and say no longer is this the norm in our communities. No longer is it normal to drink weekend after weekend after weekend. They look to us when we ask them to put their X on our names and they ask us to help them.
There are a lot of good people in our communities who have stopped using alcohol altogether. I know a lot. There are a lot of good people who also want to stop. They have a hard time because of their own personal reasons. This motion talks about creating that place for them. I don’t know what it is but I know people want help.
This motion talks about investing in people. Investing in the hope just as much as we invest in the Deh Cho Bridge, just as much as we invested in the fibre optic line, just as much as we invested money in the Tuk-Inuvik highway. We found money for those infrastructures; certainly we can find money to invest into our people. I ask the Members to speak on this motion and support this motion.
Thank you, Mr. Yakeleya. I’ll allow the seconder on the motion to speak. Mr. Hawkins.
Thank you, Mr. Speaker. I want to thank publicly MLA Yakeleya for bringing forward this motion. It is one that I believe strongly in and I want to thank him for his stewardship of getting it on the floor. I also want to thank the Members in advance of those who will be speaking in favour of it. Of course, I want to use the time now to shame and shun the government, who will not be voting on the motion, who will be abstaining, as we know in advance of this.
Addictions are a relentless problem. I do not have to tell anyone in this House how important action is required. Significant action keeps being called by Members and the public, and the government shows little interest or response. Yet again, they show shameless interest in studying the problem, one that they know well. We have many smart people, hardworking people in our public service that could write book after book on issues like this, yet we need to seek more public input.
There comes a time when public input has reached its peak and we have received more than enough to deal with this problem. Why? Because I can tell you I’ve been here nine years and it’s the same message over. Do something. What? Study again? Do something, please. More excuses. Status quo has become the norm on this particular issue. I call upon this government to say excuses no more, we will act.
There is always money for government projects. Members are asking for what really looks like 1.5 percent on our budget. Yet we hear them whining about balanced budgets, our books, yada, yada, yada. The reality is those books belong to Members, too, not just Ministers. Those books belong to the people of the Northwest Territories. This relentless fight must have this brought to the table and people will understand this in this House, in this business, in this ministry, in this Assembly, that the books belong to the people. The ones we talk about defending and balancing, we’re also putting greater people at risk.
It is our chance to leave this term, as we look forward to just under three years from now, with the sense of accomplishment. When are we going to look back and say what did we do? Sure, fixing a policy line makes sense to some bureaucrat out there, but, quite frankly, I don’t care what they think on that point. I want the citizens to feel strongly when we leave this term that we’ve done something to improve their lives. I want them to be able to look at this last Assembly and say the 17th Assembly pulled up their socks, they changed the ground, they heard our message and they did something. The average person doesn’t care about a little policy line buried in some sentence with commas and whatnot. They want to see action. That’s what this motion speaks to. That’s what Mr. Yakeleya just said a few minutes ago.
There are hundreds and hundreds of pages. There are shelves and shelves of binders. What do they all say? No to this issue. I’d say, finally, let’s get this government behind a yes once in a while. This government could do it. If it was a shiny project that the government thought they’d get some excitement behind, they would have built this years ago.
There are many aspects to this particular motion that need to be further highlighted, one being youth treatment. There is a huge gap in our territorial system. The second one which has come across my desk many times over the years is couples treatment. What do we do?
It’s time the Minister and it’s time the government understand what the people are saying. The people have been leading on this issue far too long. They’ve been calling upon their Ministers to lead on this issue for a change. They are getting tired, as I am getting tired, but I will never miss an opportunity to tell this government to do something. The excuses are over. Let’s get to work.
Thank you, Mr. Hawkins. To the motion. Ms. Bisaro.
