Thank you, Mr. Speaker. WHEREAS there are over $630 million in financial commitments attached to existing oil and gas exploration leases in the Canol shale formation;
AND WHEREAS oil and gas exploration activity has increased significantly in the Sahtu over the past two winter work seasons, and there are strong indications not only that exploration activity will continue to increase, but that a long-term production field employing hundreds and possibly thousands of workers will become a reality;
AND WHEREAS all levels of government stand to benefit from increased resource development in the Sahtu, which could potentially become a major economic driver for the territory;
AND WHEREAS recent events have proven that the existing Mackenzie Valley winter road infrastructure is already inadequate to support current traffic bringing supplies into the region, and will not stand up to even higher traffic levels as exploration activity increases and production activity begins;
AND WHEREAS many potential workers in the Sahtu and elsewhere in the Mackenzie Valley and the NWT are lacking in training and skills needed for employment in oil and gas and related sectors;
AND WHEREAS a substantial capacity-building effort is needed in the near future to ensure Sahtu and NWT residents benefit from employment opportunities arising from the Canol shale play;
AND WHEREAS there is precedent for significant federal human resource development assistance in the Voisey’s Bay area of Labrador which in recent years saw rapid development in its mining sector;
AND WHEREAS it would be tragic if the tremendous potential benefits in terms of jobs and economic growth from the Sahtu oil and gas exploration and development were not realized for want only of a timely and relatively small upfront investment in capacity building and transportation infrastructure;
NOW THEREFORE I MOVE, seconded by the honourable Member for Nahendeh, that the Government of the Northwest Territories immediately initiate discussions with the Government of Canada to prioritize funding for an all-weather Mackenzie Valley Highway from Wrigley into the Sahtu;
AND FURTHER, that the Government of the Northwest Territories immediately initiate discussions with the Government of Canada to seek federal investment in human resource development initiatives along the lines of the Voisey’s Bay model;
AND FURTHERMORE, that the Government of the Northwest Territories provide a comprehensive response to this motion within 120 days.
Thank you, Mr. Speaker.
The motion is in order. To the motion. Mr. Yakeleya.
Thank you, Mr. Speaker. I want to say a few words on this motion here. I thank the honourable Member for Nahendeh for seconding it and Members for allowing me to feed it through the P and P and to bring it to the floor where it is today.
Over the last couple of weeks, we have been hearing from different Members and different Ministers on the Sahtu recent oil and gas exploration activity that’s going on up there. Norman Wells is the oldest oil-producing wells in Canada. It started in 1920 or 1921. In 1943 the Canol pipeline was built right from Norman Wells into the Yukon Territory in regard to the war initiatives by supporting the U.S. Army.
There’s a new technology happening and the people in the Northwest Territories are finding out it’s called hydraulic fracking. Once this hydraulic fracking issue has been given the green light, there will be ample opportunity for people in the Northwest Territories to benefit from the Sahtu play. The companies from Yellowknife, Hay River, Simpson, Inuvik, Tuk, all over, are going to come to the Sahtu to see how they can benefit. It’s not only people in the Sahtu, but everyone. It’s taking a piece of pie that everyone can work on.
The point that I want to make here is that the play is happening now. It’s going on. The activity is there. This winter over $100 million is being spent in the Sahtu. Over 350 workers are working on seismic, driving, camp catering; you name it, they’re working. We recognize this in the Sahtu and we want to know when is this government, the federal government going to look at it and say there’s encouraging results. We could put in some funding like the Voisey’s Bay model for training people in the Sahtu, training people in the North to look at some of these long-term activities. There’s going to be activities such as the hydraulic fracking. We need to get involved in that. There’s environmental protection like wildlife and monitoring. We need to have proper training in that. We need to put together a comprehensive social, economic strategy. We need to put together a strong – and we do have it already, as a matter of fact – the Sahtu people put together a wellness strategy that came out of funding from the $500 million that was targeted by the federal government. They told us to go to work. What would you do if you had a piece of this $500 million? In the Sahtu, over a period of a number of years, sat down and said this is what we want to do.
We know it’s an issue with us. The Minister of Justice and I have been in contact. We know the number of liquor seizures that have been happening on the winter roads. Nobody carries 50 bottles of mickeys for the pleasure of an evening of drinking. We know there’s stuff happening. The RCMP are happening, they’re doing their job. We’ve got to do our job in being responsible for our region. We know crimes have been increasing because of the activity and because of the unrestricted liquor sales in Norman Wells. The Minister of Justice and I have been talking about the sharp increase in crimes related to alcohol, a sharp increase. We know that people are getting hurt. We know that the government has responded and we want to thank you, from the Sahtu, for responding to the needs. The government put $1.2 million into programs and services. They have heard the people, but we need to do yet a little more. We’re looking for some help in the health and social services and we’d hope that the Minister would have some more discussions with his colleagues to look at some of these issues.
We’ve got to start working with our people. Once these developments happen and production happens, these oil companies are going to want certified people to work; pipefitters, welders, they’re going to want them to be unionized because of liability insurance and safety. So we’ve got to look at how we work with the union, because they’re the ones that are going to be contracted to do this work. The days of shovels and thick wheelbarrows are over. So we’ve got to look at some strong training programs.
Of course, protection of environment, the baseline, the air, the water, the animals. I’ve heard it somewhere and I’ve read it, that if we take care of the land, the land will take care of us. That’s so true. Under the ground we’re standing on there’s rich, rich minerals. I think the Government of the Northwest Territories did an estimate of over 600- some-odd billion dollars of resources that we have. We’re a rich nation, a powerful rich nation and we’ve got to get ourselves ready for that.
Thank you, Mr. Yakeleya. To the motion. Mr. Menicoche.
Thank you very much, Mr. Speaker. It’s a pleasure to second this motion by my honourable colleague from the Sahtu, Mr. Norman Yakeleya, only because when we talk about development in the Northwest Territories, I think initially we were talking about a Mackenzie Valley Pipeline, the huge development that we were going to have. The federal government was going to actually kick in a $500 million impact fund to help us address our issues, and this is like a new and emerging issue that often jurisdictions are faced with, especially ours. I know that we had very successful NWT Days in Ottawa and we were all there lobbying for our seven priorities that we had but, regretfully, we didn’t have the time to explain that the Sahtu shale play is having a big impact just with exploration alone, never mind development.
I spoke with the Minister of ITI about some of what Mr. Yakeleya was talking about, you know, let’s ask the federal government for an impact fund similar to the Voisey’s Bay model, but the Minister was saying, well, we’ve got to wait until the reserves are proven. My experience in talking with the industry, as well, is that it is pretty much proven, because they’re building a $50 million road to test some wells. To me that says they’re not going to invest that kind of money and infrastructure just to say it’s unproven.
So I like this motion only because it speaks to our government to say, look, start working with the federal government, we’ve got to get some impact funding and, most particularly, when it comes to my riding, we saw in January when the road was shut down going up north how much of an impact that had on the communities of Wrigley and Fort Simpson. It backed up all the way to Hay River as well. So it just showed me the impact of how huge that Sahtu shale play is, how much investment is going in there and how much industry is impacting our communities.
As well, the Minister of Transportation made a Minister’s statement on February 22nd and talked about how CanNor is supportive of the Mackenzie Valley Highway and the development of it. I’d certainly like to see it proceed. Other regions have their projects. Tuktoyaktuk is developing their road, but there’s no reason why the road cannot be completed north of Wrigley concurrently, at the same time. I know that sometimes we’ve got to wait to release funding, but at the same time with some hard work and lobbying of the federal government to get investments from programs such as CanNor or others. Once we convince our federal counterparts that in order to really support industrial development of this nature, they will have to contribute a similar type of impact fund. I really urge that and that’s what this motion speaks to, as well as many other areas that have to be addressed. We have to pay attention to this. We cannot let this development just run on its own. We have to be aware, we have to work with it, we have to work with our federal counterparts, and at the same time, we have to mitigate the impacts on our communities.
I’ve spoken many times about having nursing in Wrigley and it was almost imminent when we had the Mackenzie Valley Pipeline discussions because that $5 million impact fund spoke about developing the hospital in Fort Simpson and increasing nursing in Wrigley and developing our highway infrastructure north.
I think we still need that type of impact fund and I would urge our Cabinet to begin discussions with Ottawa. Once again, the Voisey’s Bay model comes up time and time again. That’s the type of thing that I support in this motion. I urge all my colleagues to support this motion and urge our Cabinet to begin working with our federal counterparts and to show them the impact this development is having in our North.
Thank you, Mr. Menicoche. To the motion. Ms. Bisaro.
Thank you, Mr. Speaker. I want to make a few brief comments with regard to the motion. I am in support of the motion. I think it’s important that we go back a bit in history and to the beginning of the 17th Assembly when we set priorities for this Assembly. At that time, we set those priorities based on the way the world was at that time. There was a big focus on the Inuvik-Tuk highway and we still have that focus. Times change and I think we have to roll with the times, so to speak, and I think we have to recognize that we currently have a huge amount of activity in the Sahtu region and I think we have to recognize that we have to do something about that. As times change, I think we must also change. We cannot bury our heads in the sand and ignore what is happening in the Sahtu. I’m not suggesting that the government is, but we need to do more than what we’re currently doing. We have to be forward looking and I’m not so sure that we are as forward looking as we should be, and this motion speaks to looking forward.
I would like to give kudos to Mr. Yakeleya and Mr. Menicoche for bringing this motion forward. They are both looking after their constituents, and regions and constituencies. It’s going to be a benefit not only to the Sahtu region, not only to Nahendeh, but I think it’s going to be a benefit to all of the NWT. I think we have to recognize that and, as a government, we have to do something about that.
I am in support of this motion and I would urge the rest of my colleagues to do the same.
Thank you, Ms. Bisaro. To the motion. Mr. Bromley.
Thank you, Mr. Speaker. I appreciate the work being done by my colleagues here. This motion asks for the government to initiate discussions with the Government of Canada on the Mackenzie Valley Highway into the Sahtu. It asks us to begin working a lot more seriously on capacity building so that we can nail down benefits from development activities. That’s a start. Obviously, this is only a start and I hope that as we get into assessing what the impacts are and what the responses need to be, and we need to get on this, we need to think about some of the hard, cold realities that are coming out. Those have to do with the ephemeral nature of oil and shale gas reserves. They’ve been found to have a much shorter life than predicted. They rarely work out. The oil shale plays, for example, two out of 20 oil plays worked out in the U.S. So there’s some serious looks needed so that we can develop appropriately. I’m trusting that the government, as we move forward on this, will be astute in staying on top of what is actually happening. I will be supporting this motion but it is only a beginning.
Thank you, Mr. Bromley. To the motion.
Question.
Question has been called, but I will allow Mr. Ramsay to speak to the motion.
Thank you, Mr. Speaker. I appreciate the concern over what is happening in the Mackenzie Valley. Certainly the developments occurring in the Sahtu region are significant and substantial. The Economic Opportunities Strategy Advisory Panel has held several meetings where the developments occurring in the Sahtu have been raised. I’ve been assured that the panel will be bringing forward a number of recommendations for consideration by this government, which may include a discussion regarding the establishment of a special economic zone.
As industry moves forward to a positive decision to produce oil in the Sahtu, the GNWT will continue to be diligent and position ourselves to respond to ensure the greatest benefits possible come to the residents of the Sahtu and the NWT. The government has directed significant resources to enhance our programs and efforts in the Sahtu region, and if the current exploration program becomes a significant long-term development, we will be ready to step in and support the region as required.
We will continue to work with the federal government to ensure they are aware and ready to assist us in whatever means necessary for this development to move forward. The level of government response in the long term will, of course, be in alignment with decisions by industry on possible production scenarios in the Sahtu. Recent discussion with industry have indicated that if drilling occurs in a timely manner, no production decisions could be made before at least three years from today and no production in the Sahtu with concurrent sustainable activity would be possible before 2020.
We do not want to get ahead of ourselves. While the exploration program that is happening in the Sahtu is significant to the region, it is the tip of the iceberg that may be coming at us. When the time is right, as signaled by industry investment and decisions to produce, then we’ll be looking at even more significant response by this government that will allow us to gain the most benefit from this opportunity.
If I could, just a few comments on the Mackenzie Valley Highway Project from Wrigley to Tuktoyaktuk. This has been identified as a priority of the 17th Legislative Assembly and remains a priority of this government. An all-weather highway up the Mackenzie Valley to Tuktoyaktuk support Canada’s sovereignty goals and territorial aspirations for resource development and other economic opportunities. The Mackenzie Valley Highway is expected to help reduce the cost of living, improve health care and education opportunities, support families in communities in the region, and provide significant long-term employment and contracting opportunities to residents of the NWT. The construction of the Inuvik to Tuk portion of the road is an important first step to realizing the vision of the Mackenzie Valley Highway from Wrigley to Tuktoyaktuk. We are, at the same time, working to move forward on the southern portion of the highway.
The Department of Transportation recently submitted an application to the Mackenzie Valley Environmental Impact Review Board related to the Wrigley to Dempster portion of the highway. This is the official start of the environmental review process and marks an important milestone for an all-weather road through the valley. The federal government, through CanNor, has committed $600,000 of the $8 million estimated cost of the environmental assessment for the southern portion of the proposed highway. The completion of the EA is the first step towards the completion of the highway and we will continue to look for opportunities to fund this work, including seeking out additional federal funding.
Over the past 10 years, working with our federal partners, the GNWT has invested $120 million in incremental improvements that will contribute to the eventual construction of the highway. We will continue to work with the federal government and industry partners to advance the project and support the interests of NWT residents.
The Mackenzie Valley Highway Project is important for economic development in the Northwest Territories. It is being planned so as to maximize business opportunities, training and employment. This requires a strategic, incremental approach, which we are pursuing.
The Department of Transportation is currently developing an update to the 2005 proposal Connecting Canada Coast to Coast to Coast. This document will update the progress we have made in moving the Mackenzie Valley Highway Project forward and identify proposed next steps to continue to advance the project. At the same time, and in anticipation of a new federal infrastructure program, the Department of Transportation is also developing a new strategic investment proposal titled Corridors for Canada: Building for Prosperity, which sets out our priorities for federal transportation infrastructure funding. Opportunities for continued investments into the Mackenzie Valley will be considered. We are also investigating opportunities for collaborations and partnerships using successful, proven models to emphasize local training and employment as well as ongoing benefits for communities.
This government has taken many steps to continue on the path toward achieving the goal of a Mackenzie Valley Highway. The government will be abstaining from voting on this motion.
Thank you, Mr. Ramsay. I will allow closing remarks on the motion to Mr. Yakeleya.
Thank you, Mr. Speaker. Thank you, Members. Just in closing, some of the oral history in the 1920s when the people, the Blondin family had the oil and they were burning it and it was flaring up. They knew it was something special but they didn’t know the value of this product called oil.
Today we’ve come a long way. We have the ability and adaptation to learn and move. It takes years to become a journeyman through training and apprenticeship, and that’s why we asked to start the training program, to start looking at things that take years. You want to be a worker on the pipeline or that production, they’re going to make sure you’re certified and possibly that you’re with a union company. We’re going to have to get ready for that. The days of picks and shovels are over for the Sahtu people. We want to ask this government, because of the enormous amount of record-breaking dollars set in the Sahtu ever, the government should really look at this as a special economic zone and say, yes, they have something here. There are hundreds of millions of dollars spent in the Sahtu region. We should take a look at it. That shale play is being compared to the Bakken field. There are billions of barrels of oil. The Bakken is estimated at 20 billion barrels. The Sahtu Canol shale play resources, they’re saying, are even better than that. That needs to be proven. Those are just words we’re hearing from the area.
We have the duty as Members here to do the right thing. The right thing right now is to put pressure on our government so that they can put pressure on the federal government to say things are happening. As one of the Members said, that’s our duty. Because if this goes, we’re going to leave a significant mark on our land. On the land and water, the oil and animals, the production. If we’re really ready – and I’m glad the Minister said the possibility of a visit down to some of the areas where fracking is going on – we’re going to leave a mark on Canada in the Northwest Territories. We’re leaving a mark now. Companies in Hay River and Yellowknife are looking at the Sahtu. I know there’s companies south of this lake, like I said, Hay River, are doing business up in our area. That’s good. We take our money, we shop here in Yellowknife and we shop in Hay River. There are even companies up in Tuk and Inuvik coming into the Sahtu. There’s lots of work. That’s good for everybody. We want to see our people working. We also need to know that there is treasure in our culture and to look at those areas that are important to us. That’s what sustained us. It was before us, it’s going to be after us.
I just want to close with the oilfields from 1920-1921, what happened when Imperial Oil came in, later the federal government negotiated a treaty, to today. I’m just saying we’ve come a long way, baby, because today our people are taking charge of the land and the wealth and prosperity. We are not being fooled. Maybe we are, but we know now what development means and what it can bring to us. We have come a long way from the days when those treaties were signed to what we have today here in our land.
