Good afternoon, colleagues.
Before we start today, I would like to take this opportunity to recognize the achievements of my aunty in Alaska, Mrs. Sally Smith.
Sally Smith received the Shirley Demientieff Award on October 24, 2013, at the Alaska Federation of Natives Convention in Fairbanks.
The award, presented each year at AFN, was given by Governor Sean Parnell for advocacy on behalf of native women and children in Alaska.
A Yu’pik from Dillingham, Sally Smith has served as a health care advocate and leader for 45 years. Smith has worked tirelessly in Alaska and across the world to improve the health of Alaska natives and native Americans. She has dedicated her life to establishing culturally and scientifically appropriate cancer clinical research for Alaska native people.
Sally Smith serves on the board of directors for the Alaska Native Tribal Health Consortium and has previously chaired the National Indian Health Board of Directors. She is the current chairman of Alaska Native Medical Centre.
On behalf of Members of the 17th Assembly, I would like to send my congratulations to Mrs. Sally Smith.
Mr. Speaker, tourism is a vital industry here in the Northwest Territories. Of all sectors, tourism presents the greatest likelihood of creating economic opportunities in each region, especially in the smaller communities. This is especially true of our Aboriginal tourism sector. Through the Department of Industry, Tourism and Investment, the Government of the Northwest
Territories has been working with the Aboriginal Tourism Champions Advisory Council to advance and develop Aboriginal tourism in the NWT.
This week at the NWT Tourism Conference and Annual General Meeting, the council will publicly launch its recommendations for the Aboriginal Tourism Strategy and Action Plan, a recommendations report that I will be tabling later today. I am happy to share the highlights of these recommendations with all Members.
The Aboriginal Tourism Champions Advisory Council is the lead organization responsible for overseeing the planning, product development, and promotional initiatives and implementation of the Aboriginal Tourism Framework Strategy. The council includes Aboriginal people with a passion for tourism, representing the diversity of Aboriginal cultures in the Northwest Territories. I want to thank the council members Ms. Ria Letcher and Ms. Jenni Bruce, our co-chairs; Mr. Grant Beck, Mr. Knute Hansen, Ms. Peggy Jay, Mr. Doug Lamalice, Ms. Margaret Nazon, Mr. Moise Rabesca, Ms. Judith Wright-Bird, Ms. Karen Wright-Fraser and Mr. Richard Zieba for bringing us one step closer to making Aboriginal tourism a viable sector in the Northwest Territories.
Mr. Speaker, the council has recommended increasing awareness and support for Aboriginal tourism among Aboriginal communities, organizations and governments. They have recommended improving skills for Aboriginal businesses involved in the tourism industry.
They want to see us make full use of youth and elders’ involvement in tourism. They have recommended that we promote Aboriginal culture and language through tourism.
The value of developing the Aboriginal tourism sector is not just about additional revenue and jobs at the local level. During the time the council spent talking to people to develop these recommendations, many said that the true value of developing this sector is in revitalizing and invigorating a sense of pride in Aboriginal culture and traditions.
Communities are already benefiting from visitor interest in authentic Aboriginal tourism experiences. For example, the Department of Industry, Tourism and Investment worked with the community of Deline to organize a familiarization tour with a group of travel wholesalers. The visitors were impressed with the experiences available there and have made plans to visit Deline next year with other groups.
We are going to take action to grow Aboriginal tourism in our territory. The need for input from various other departments, agencies and Aboriginal organizations is noted in the report, so the next step we are taking now is to discuss these recommendations with them.
These discussions will take place through this winter and next spring, and on the basis of the feedback received, we will draft a comprehensive strategy outlining how we can develop and promote Aboriginal tourism in the Northwest Territories.
Mr. Speaker, we will continue to work with communities, the Aboriginal Tourism Champions Advisory Council, and other Government of the Northwest Territories departments to ensure a prosperous Aboriginal tourism industry, which will help to ensure a diversified and healthy economy that provides all regions and communities with opportunities and choices. Thank you, Mr. Speaker.
Thank you, Mr. Ramsay. The honourable Premier, Mr. McLeod.
Mr. Speaker, I wish to advise Members that the Honourable Jackson Lafferty will be absent from the House today to attend the Labour Ministers federal-provincial-territorial meeting in Toronto. Thank you, Mr. Speaker.
Thank you, Mr. Speaker. My statement today will focus on policing, especially in our smaller communities like Tsiigehtchic.
Mr. Speaker, and Members of the Assembly, it is crucial that the RCMP be seen and heard in our communities. It is crucial for our community members to build a relationship with the RCMP in order to have a safe neighbourhood and safer communities. Back in the day, Tsiigehtchic, known then as Arctic Red River, had one of the strongest detachments in the Delta right up until 1969. Arctic Red River had two members stationed in the community, along with a special constable.
These members used to patrol the Delta with their dog team. Two or three dog teams used to travel to Fort McPherson, visiting people and checking to see if everything was alright. These dog teams then travelled throughout the Delta, visiting families who were at their traplines. Many people remember these old stories of when we had RCMP in Tsiigehtchic.
After 1969 we have had no one stationed in Tsiigehtchic. Members from the detachment in Fort McPherson do come over to Tsiigehtchic to patrol when they can, but there is a need for law and order right now in Tsiigehtchic. People have to phone to Fort McPherson, and in most cases, they get the station here in Yellowknife. They then need to explain what the emergency is and then wait an hour or more for the RCMP to show up in Tsiigehtchic. If there was a family dispute, can you imagine what the consequences would be?
I’m speaking for the people of Tsiigehtchic when we ask, time and time again, to have RCMP posted in the community. Special constables were a common practice in the past. Special constables were the lifeline to RCMP members. They were translators, guides and more or less introduced them to the Delta. Thank you.
Thank you, Mr. Blake. Member for Range Lake, Mr. Dolynny.
Thank you, Mr. Speaker. You know that question we all asked our Grade 11 teacher: When am I ever going to use this in the real world? Well, today that question is being put to the test.
I am pleased to say that I took statistics in Grade 11 some 30 years ago, and with this ancient knowledge my office took the liberty to evaluate statistically how well Cabinet responded to Regular Members’ oral questions from October 17th to November 4th of this year.
You’re probably wondering why this Regular Member would go through such trouble. This is a good question, and in truth, the science geek in me thought it would be a fun exercise, but the political side of me wanted to use this opportunity to get a mid-term report card for our Cabinet by evaluating the responses of concerned Regular Members. In essence, a small snapshot in time would speak volumes to the stewardship and effectiveness of Cabinet on how they are seen by the public.
So, before I share the results with you and the Members of this House, I want you to be assured that all the rules pertaining to statistical protocols were adhered to, aggregate parameters, qualifiers, as well as other determinants were clearly established in the onset of data collection. In fact, if a response failed within the question determinant, the results went in favour to the Cabinet.
So, what did we discover during these 11 sessional days? There were 478 questions asked during oral questions by Regular Members. Of those questions, 313, or 65.48 percent of the time the Minister answered the question asked. Of the remaining questions, 165, or 34.51 percent of the time the Minister did not answer the question asked. The standard deviation or response phrase have a plus/minus rate of 3.8 percent error. Thank you Grade 11 statistics course.
What does this report card tell us? Clearly, we have to ask ourselves is roughly two out of three questions being answered by Cabinet is a good grade or is this something that can be refined during the remaining life of the 17th Assembly.
I will not answer that question today, but I will leave this with Cabinet to reflect on until we return next February and allow the bank of public opinion the opportunity to weigh in. Thank you.
Thank you, Mr. Dolynny. Member for Nahendeh, Mr. Menicoche.
Thank you very much, Mr. Speaker. My statement today is directed toward our new Minister of Transportation. It’s just to let him know about my two favourite words in this Assembly: Highway 7.
I would also like to welcome the Minister to the file. Seriously though, my constituents want to be sure that their new Minister knows just how valuable Highway No. 7 is to the Deh Cho. Road conditions are always at the forefront when it comes to local and territorial elections, federal engagement and budget debates.
Highway No. 7 is the gateway to the North. The highway makes our living and brings work to us. Highway No. 7 is also an asset to tourism in the Dec Cho. From the legendary Nahanni National Park to big game hunt, from the Horne Plateau to day trips on the Mackenzie River, the Deh Cho region and the Nahendeh riding is one of the most spectacular of the Northwest Territories, but road conditions on Highway No. 7 scare most of our tourists away.
I’m sure the new Minister is aware of the dollars added to the budget this year to promote tourism. To pave the way to increase tourism in the Nahendeh, all we have to do is improve Highway No. 7.
Highway No. 7 is also vital to industry. Already, oil companies are travelling through the Nahendeh riding, in Fort Liard, and also on their way to the central Mackenzie Valley shale resources. Canadian Zinc’s Prairie Creek Mine is in the heart of the Nahanni and adds to the pulse of the Northwest Territories economy. One of the mine’s greatest needs is a reliable transportation corridor.
Finally, Highway No. 7 is the lifeline for the people who live in the Nahendeh. Too often they try to escape to B.C. when the chipseal turns to chowder and they risk their wheels in bathtub-sized potholes.
I hope by now the map to a robust economy, not only for the Nahendeh riding but also the Northwest Territories, is becoming clear to the Minister. Highway No. 7 belongs to the people of the Northwest Territories and reflects the pride we take in our region, the value we place on our resources and the importance of our communities.
I would also like to invite the Minister to ride down Highway No. 7 at his earliest opportunity.
Thank you, Mr. Menicoche. Member for Hay River South, Mrs. Groenewegen.
Thank you, Mr. Speaker. With this being our last day in the Legislature and Remembrance Day coming up on Monday, I’d like to dedicate my statement today to Remembrance Day.
There will be a service in Hay River sponsored by the Royal Canadian Legion. I have been very proud to participate in that service in past years. This year, as well, my colleague MLA Robert Bouchard and I will be proud to lay wreaths at the cenotaph at the Legion Remembrance Day service and read the scriptures for that service as well.
After I mentioned this week earlier, having left home at such a young age and coming from a family of veterans, I adopted the veterans that I learned to know and love in the Northwest Territories and in Hay River. Sadly, many of them have now gone on, have passed on and are fewer and fewer now, and we remember so fondly spending Remembrance Day services with them. I can’t name them because I would surely forget some, but their families know who they are and they are still dear to our heart.
As we commission the Highway of Heroes on Friday with our Minister of Transportation, and as we look for ways to remember the proud tradition and service of the Canadian military in peacekeeping and in war actions, I hope that we will all take the time to live up to the commitment that we make that we will remember them.
Thank you, Mrs. Groenewegen. Member for Sahtu, Mr. Yakeleya.
Thank you, Mr. Speaker. I’m going to do my Member’s statement from a song that is sung by Merle Haggard. No, it’s not the one We Don’t Smoke. It’s called The Fighting Side of Me.
I hear people talking bad about the way we do things here in the House, harping on words we use in debating and griping about the way things ought to be. I don’t mind switching sides and standing up for things I believe in, but when you’re running down my fellow MLAs, they’re walking on the fighting side of me, running down a way of life our countrymen have fought and died to keep. If they don’t love it, leave it. Let these words that I’m reading be a sign. If you are running down my Bill 24, you’re walking on the fighting side of me.
I read about the oil and gas guys who claimed they don’t believe in reporting. I just wonder how long the rest of us can count on being contamination-free. They love our oil and our diamonds and they preach about some other way of living. They are running down my regulatory board. They are walking on the fighting side of me.
They are walking on the fighting side of me, running down my Sahtu winter road funding, which hardworking men and women have fought for and kept it rut-free. If they don’t love it, leave it. Let these words that I’m reading be a sign. They are running down my wish for a $7 a day daycare. They are walking on the fighting side of me.
Finally, I want to say to you all, to all the heroes who give their service, and to the families for lending their support to us so that we could be standing here fighting for our own people. That is truly a grateful thanks from the Sahtu and the people of the Northwest Territories. Thank you.
Thank you, Mr. Yakeleya. Member for Yellowknife Centre, Mr. Hawkins.
Thank you, Mr. Speaker. I’m going to be speaking on the Deh Cho Bridge and the need for an independent audit and a process regarding a number of the problems.
All I can say is, if FDR was alive today, I’m sure he would describe the Deh Cho Bridge as this: The Deh Cho Bridge is a project that will live in infamy. Why? Because it has been cursed with problems. I may describe it as a ship of our great territory. I would say that it appears to have been launched without the bottle being broken, cursed from the beginning.
We all know that the 1,045 metre structure was supposed to be the pride of every territorial citizen. It has been a dream upon many since the ‘50s, but it wasn’t until that magic pen signed that original deal back in 2007 and the sod was turned. I would say that this project would have never seen the light without that initiative.
From the start it seemed to be under some type of grey cloud. Now, as we start to reflect and look back and, as I say, we look forward, do we want to continue the same types of errors?
The Deh Cho Bridge itself was built on complicated and ever-shifting sands. We are here today because of those things. To begin with, we can’t even continue without mentioning the fact that it was even launched without a reliable design, which was only finished halfway through the project. How do we be proud of a project like this and realize without taking the opportunity to look back? It’s time for an independent audit on this whole process.
As a Member of this Assembly during that time, it was a turbulent and emotional problem. As I recall, there was much political will being tugged and towed in both directions. Do we help the people from Providence who wanted the bridge under their leadership, under their vision and under their guidance, or do we continue to hunker down and plow our way through it and say, shame, this bridge will never work?
I believed in the bridge concept from the start, but there always seemed to be problems with it, even in the Assembly here. I had often heard stories about Members calling and complaining to the Toronto lending company about the instability of the bridge organization and the inability for Members to support the project. It’s things like this that sank the process and caused problems all the way through. We need to find out what the truth was. Why did the GNWT get saddled with the $200 million line of credit, or I should say loan in this case, and in the end that could have collapsed this government?
I will have questions for the Minister who now is the Minister of Transportation, to ask him about some of the failings of this particular project and maybe what we need to look into for public scrutiny. Thank you, Mr. Speaker.
Thank you, Mr. Hawkins. Member for Weledeh, Mr. Bromley.
Thank you, Mr. Speaker. In the middle of October, over 50 volunteers dragged six truckloads of garbage from the bush north of the Vee Lake Road boat launch. This area hosted events like the annual Yellowknife Ski Loppet and Frostbite 45, and is used by local recreation clubs as well as individual mountain bikers, bird watchers, hikers, hunters and leaseholders.
I want to offer my thanks and congratulations to all involved. The volunteers came from Great Slave Snowmobile Trail Riders, Scouts Canada, the Yellowknife Multisport Club, NWT Motor Sports Club, Yellowknife Amateur Radio Society, and local cabin owners.
The GNWT and members of the local exploration industry provided $24,000 in funding to the community groups. The City of Yellowknife provided garbage bags and waived tipping fees on small items. The cleanup effort was initiated and coordinated by TerraX Minerals as part of their consultation process with user groups in the area that they are exploring. They have provided, through this work, an excellent example of how to reach out to the community and get something useful done in the process.
Apparently there is still more out there to clean up, including larger items like old cars and fuel tanks. There are plans in the works for a larger cleanup next year and I look forward to it.
I am aware that Weledeh constituents David Connelly and John Stephenson – and I see John in the gallery today – played key roles in this project, and there were certainly others not mentioned here.
Again, I would like to offer, on behalf of all of us here I’m sure, congratulations and thanks to all involved. Mahsi.
Thank you, Mr. Bromley. Member for Frame Lake, Ms. Bisaro.
Thank you, Mr. Speaker. I want to follow up today on Mr. Bromley’s statement from Monday and express my concerns with the response from the Giant Mine Remediation Team, their response to the recommendations in the environmental assessment report from the Mackenzie Valley Environmental Impact Review Board about the Giant Mine Remediation Project.
It’s been almost four months since the Mackenzie Valley Review Board released its final report on the old gold mine’s remediation. I’m on record that I was pleased with the report’s recommendations, recommendations which directed the federal government to go above and beyond the existing cleanup plan, recommendations which responded to the concerns of residents and Aboriginal governments.
The report has 26 recommendations and it lays out a solid and a collaborative path for remediation. The MVERB report was positive and reflected the views of NWT residents, Yellowknife city council, the Yellowknives Dene First Nation, the North Slave Metis Alliance, Yellowknife Members of the Legislative Assembly, and our local MP, Dennis Bevington. All have indicated their support for the recommendations.
Now we hear from the proponent, the remediation project managers, one of whom represents the GNWT, “The cleanup team has a responsibility, like any other project proponent, to answer questions and explain how the review board’s report would affect its proposal to clean up the mine. That may include doing cost estimates.” I’m sure they do have that responsibility, but it gives rise to a number of real concerns for me.
It concerns me that the developer, the Remediation Project Team, is the same organization as the decision-maker, Aboriginal Affairs and Northern Development Canada, or AANDC. It concerns me that AANDC is getting internal input from the cleanup team on the report. If the team is providing new information to whoever is going to be putting together the response for the Minister, will anyone else have the same opportunity? It concerns me that government officials who have the final say on the project seem to be evaluating the review board’s recommendations based on cost.
The cleanup is already expected to cost almost $1 billion, and in the grand scheme of things, the added cost resulting from the review board’s recommendations are but a drop in the bucket. Costs should not be a limiting factor in doing the project the right way.
I seek unanimous consent to conclude my statement.
---Unanimous consent granted
Mr. Speaker, it concerns me that the project team speaks as if the decision is done. The team itself responds to the public as if their decision is final. This quote appears on AANDC’s website Frequently Asked Questions: “The answers are in and it’s time to move forward with a solid long-term plan.” For me that solid long-term plan must include an independent oversight of the project. It would help build public confidence if people from this community have further input into this project, rather than just the project team itself.
In closing, I want to quote one of the questions from the AANDC Frequently Asked Questions. It says, “How do you know you’ve got it right?” And that’s exactly the point, Mr. Speaker. Thank you.
Thank you, Ms. Bisaro. Member for Inuvik Boot Lake, Mr. Moses.
Thank you, Mr. Speaker. Earlier this week I did a Member’s statement on the legacy of Members in this House who have served for this government. Today I’m going to talk about a different legacy: building a legacy in our youth, in our communities and in our future leaders.
Today I want to talk about the Northern Youth Abroad Program. The Northern Youth Abroad Program specifically is designed to meet the unique needs of youth living in isolated communities in Canada’s North, specifically the Northwest Territories and Nunavut. This program was initially designed to help find Nunavut teachers to help with the success in education. Yesterday we went through a little theme day here, talking about the challenges that we have in the Northwest Territories, and yet we have an organization down in Ottawa that’s providing these types of services to our youth in the Northwest Territories.
Today was the deadline for applications for the Northern Youth Abroad Program. There were 44 applications across the Northwest Territories; however, the group will only select 20 moving forward when they’re putting the program on. Some of the successes that this program has done for students in the Northwest Territories is increased graduation rates, it’s given students high school credit and it’s also given people the opportunity to volunteer in the North, allowed volunteering in the South as well as create volunteer abroad students, specifically in Africa.
This program works on developing leadership development, healthy living, producing self-confidence and self-esteem in our northern youth. Like I said, although today was the deadline, they are going to accept applications until November 12th. I encourage all Members to speak to their youth in the communities, as well as all educators to get their students signed up for this program. Thank you.
Thank you, Mr. Moses. The Member for Tu Nedhe, Mr. Beaulieu.
Mahsi cho, Mr. Speaker. [English translation not provided.]
…who have passed away in the past month; although one was in June, I’ve waited.
Mr. Speaker, George Fabien was born July 15, 1926, and passed away at age 86 on June 23, 2013. The late George Fabien was born and raised in Fort Resolution from a large family. Today Elizabeth Beck of Yellowknife is the only living sibling in his family.
Elder Rosa Fabien was born February 23, 1921. She passed away at the age of 92 on October 10, 2013. The late Rosa was born Mariane Rosa Lafferty in Fort Rae, daughter to Jean Baptiste-Seehe Lafferty and Adeline Ekfwitcho.
Rosa and George were married in Fort Resolution April 12, 1951, and were married for over 61 years. They lived a long and happy life; however, they had no children of their own. They had many nieces and nephews, great-nieces, great-nephews and great-great-nieces and nephews. They were loved by their families and they dearly loved their family members.
John Bjornson was born on January 26, 1948, and passed away at age 65 on October 28, 2013. John was originally from Estevan, Saskatchewan, and moved to Fort Resolution in 1972 where he decided to make his home permanent. John was a carpenter/contractor as well as a business owner of a building supplies store in Fort Resolution. John is responsible for providing homes for 50 percent of the community through his contracting business. John is survived by his wife and daughters, Rosie, Natasha, and step-daughter Pamela, son Rowen, along with seven grandchildren.
Elder Marcel Norn was born on May 8, 1932, and passed away at age 81 on November 1, 2013. Marcel was born and raised in Fort Resolution. Marcel is survived by his children George Lafferty, Dwight Norn, Raymond Norn, Marcella Fabien and Trina Balsillie; his sisters, Nora Rhinlander and Joan Delorme; and his brothers, Bill Norn, Joe Norn and Stanley Norn. Marcel is also survived by many grandchildren, great-grandchildren and great-great-grandchildren, and many nieces and nephews.
The community of Fort Resolution mourns the loss of this respected elder. Marcel always made the point of participating in community meetings, events, and kept himself aware of what was happening in the community. Mr. Speaker, I’d like to pass my condolences on to the family and friends of George and Rosa Fabien – Rosa was originally from Behchoko – John Bjornson and elder Marcel Norn. Thank you, Mr. Speaker.
Thank you, Mr. Beaulieu. Member for Inuvik Twin Lakes, Mr. McLeod.
Thank you, Mr. Speaker. I was glad to hear our colleague from Hay River South talk about Remembrance Day and remembering those who have gone off to battle to give us the freedom that we enjoy today. We have a lot of holidays during the year. Christmas and Easter I always thought as two of the most important ones, but I always thought Remembrance Day was another day that we should always make sure that we pay respect to those that have given their lives so we can enjoy the lifestyle that we have today.
I spoke to students in Inuvik a number of years ago and I talked about the fact that we look up to hockey players and actors and songwriters and rap stars and I think sometimes we have our priorities mixed up. My heroes are those that went to war and sacrificed their lives so we can enjoy the life that we live today. When you’re younger, you don’t pay much mind to it, but as you get older and you have children of your own, grandchildren of your own, you realize that this is an opportunity that so many of these young gentlemen were not able to have, men and women.
I was reading an interesting article called Letters from the Front and it was excerpts of letters that they had written to their families back home. One line always got me, and that was a 28-year-old private sent a letter home saying, “I give my life willingly for my country, knowing that it was given in a righteous cause.” That was the attitude that so many of them went with. They were scared, the letters talked about the fear that they had, but they still went because they felt it was still the right thing to do.
I think, not only today but as we go on and the memories get older and older, we should teach our children and grandchildren, those who come behind us, to never forget the sacrifice they made. They even made the sacrifice so that people can go out and give white poppies, which a lot of Veterans don’t agree with, but we have that type of freedom because of the sacrifices these gentlemen and ladies made, so let’s never forget that. Thank you, Mr. Speaker.
Thank you, Mr. McLeod. Item 4, reports of standing and special committees. Mr. Hawkins.
As part of developing the Northwest Territories’ policy approach to hydraulic fracturing, representatives of the Standing Committee on Economic Development and Infrastructure joined a delegation led by the Minister of Industry, Tourism and Investment on a tour of the Bakken shale formation in Saskatchewan and North Dakota, between September 29th and October 4, 2013.
The delegation, made up of the Minister; Members of the Legislative Assembly; staff from the departments of Environment and Natural Resources, and Industry Tourism and Investment; the Northwest Territories Geoscience Office; the National Energy Board; and leadership from Sahtu communities, travelled to Regina, Stoughton and Estevan, Saskatchewan; and Williston, New Town and Mandaree, North Dakota. The group met with a large number of people representing the Saskatchewan Ministry of the Economy, including Minister of the Economy, the Honourable Tim McMillan; the Saskatchewan Geological Survey; Cenovus Energy Incorporated; Crescent Point Energy Corporation; Statoil; the City of Williston; the State of North Dakota; the Consul General for North Dakota; members of the Three Affiliated Tribes Mandaree, Hidatsa and Arikara Nation; ONEOK Incorporated; and Cheveyo Energy Incorporated. The standing committee thanks all presenters for their time in meeting with the delegation and their thoughtful responses to questions and comments. Committee members also thank the Minister and the Department of Industry, Tourism and Investment for coordinating the tour and making it possible for the entire delegation to participate.
Existing land use plans, the devolution of land and resource management, and self-government agreements place the Northwest Territories in a much different position than jurisdictions in the Bakken. Our situation also differs widely in terms of volume of activity, infrastructure, workforce and regulatory regime, but valuable lessons can still be drawn from the delegation’s experience. The committee’s observations may be summarized under three broad themes highlighted in a presentation by City of Williston Commissioner Brad Bekkedahl: planning, people and partnerships. Members would also like to take this opportunity to comment on the tour’s scope and further committee direction on this important issue.
A resounding message, by far the most emphasized to the delegation, is the need for effective planning and preparation for development. Presentations at provincial, state and community levels highlighted infrastructure, regulatory, environmental and social needs.
Mr. Speaker, this being a lengthy report, I now would like to pass a portion of it over to my colleague Mr. Bromley, Member for Weledeh, to continue.
Thank you, Mr. Hawkins. Mr. Bromley.
Thank you, Mr. Speaker. Shale oil development in the Bakken area has placed immediate and unrelenting strain on all types of infrastructure. Transportation infrastructure is a primary concern. There are currently 9,322 producing wells in North Dakota, and the state expects that an additional 2,000 will be drilled this year. The average drilling rig requires at least 2,000 truckloads of materials and supplies, which has an equivalent impact of 25,000 light vehicles on roadways. A single loaded truck raises approximately 100 pounds of dust per mile on gravel roads, coating vegetation and reducing air quality and visibility. The state has enforced seasonal load restrictions, but allocates millions annually to new road infrastructure, maintenance and dust control to meet industry-related traffic demands.
The increased number of trucks has resulted in hazardous driving conditions and serious accidents. Emergency services continue to be delivered largely by local volunteers, resulting in post-traumatic stress disorders and burnout among their ranks. Presenters in North Dakota strongly recommended identifying main arteries, bolstering existing corridors and working with industry to plan service roads and access needs.
Two exploratory wells will be drilled in the Northwest Territories this season. The impacts on roads highlight the need for responsive planning and maintenance for our comparatively fragile seasonal and all-weather roads.
The committee heard that although it requires more time to develop and incurs greater capital costs, pipeline infrastructure can reduce the amount of truck traffic and mitigate the hazards associated with transporting large volumes of water, wastewater and oil via road and rail. Natural gas pipelines can also reduce the amount of flaring and associated greenhouse gas emissions. It is estimated that a billion dollars’ worth of natural gas is flared annually from the Bakken shale.
Municipal infrastructure is another area that requires well-thought-out planning. State of North Dakota officials highlighted significant demands and need for preparation in the areas of:
zoning and land use planning;
water and sewer services;
electrical supply;
road infrastructure;
airports;
housing;
public safety services, including emergency service providers and law enforcement;
schools;
hospitals; and
recreational facilities.
The committee encourages Sahtu leadership and Government of the Northwest Territories departments to work with industry to determine community needs and plan accordingly.
Extensive sampling and geological mapping has allowed the Province of Saskatchewan to collect comprehensive information and three-dimensional imaging of the province’s subsurface. This baseline information can play a key role in industry, research and regulatory decision-making and the protection of water resources. While the Northwest Territories may not have the resources required to offer similar services at the present time, the tour of the Saskatchewan Geological Laboratory highlighted the value of gathering and archiving accurate information and making it accessible, at least on a partly cost-recovery basis.
The devolution of land and resource management affords the Northwest Territories a significant opportunity to design and implement a responsible regulatory regime. Representatives of the Saskatchewan Ministry of the Economy recommended enacting legislative and regulatory instruments that establish and enforce meaningful consequences for industry. Saskatchewan has looked to Alberta for many of its regulations.
Some features of the Saskatchewan self-disclosure-based regulatory approach include:
comprehensive baseline water and geological information;
disclosure of the chemical composition of fracturing fluid and, more importantly, in their view, identifying and monitoring transformed chemicals in well flowback;
explicit guidelines for the management and disposal of contaminated water; and
environmental protection, remediation and enforcement provisions.
The province has scheduled Crown land sales six times a year, and makes land available through leases, exploration licences and special exploratory permits. A liability management program includes a requirement for operators to pay a monthly security deposit to fund environmental protection and remediation programs.
The committee heard that despite ever-increasing permit applications and oil and gas revenues reaching over 1.5 billion annually, Saskatchewan regulatory staff and program funding has remained stable. The division experiences greater position vacancies than before, and few positions are dedicated to fieldwork.
Both Saskatchewan and North Dakota had established regulatory regimes, royalty and taxation structures before intense development of the Bakken began. The establishment of an effective royalty regime is a significant area of planning for the Northwest Territories to address.
The committee heard the view that a key to successful development is to implement taxation that balances economic viability for industry and a jurisdiction’s revenue needs. The Saskatchewan Ministry of the Economy felt it had reached a competitive level of taxation, while still being able to collect resources for government priorities. The committee members noted, however, that Saskatchewan royalty rates had decreased while the amount of drilling activity increased. Unlike either the Northwest Territories or North Dakota, the province has not established a heritage fund.
North Dakota collects a combined production and extraction tax, with revenues divided between the state and municipalities. Thirty percent of all royalty revenues are directed to the state’s Legacy Fund. The fund is established under legislation that does not allow any portion to be accessed until 2017, and then, only with the consent of two-thirds of the state legislature. In addition to the Legacy Fund, North Dakota allocates royalty revenues to six other trusts established to fund infrastructure projects and community needs related to intense development. Unlike the Northwest Territories, North Dakota also has the ability to tax its non-resident workforce based on earnings within their jurisdiction.
Large oil revenues have resulted in disparities between oil-producing and non-oil-producing counties. The state notes that it is a challenge to mitigate regional disparities since infrastructure and programming pressures are greater in areas with more industrial activity.
A significant concern for members of the delegation was the lack of a clear plan to address wildlife. The tour did not include a presentation from the Saskatchewan Ministry of the Environment, and in North Dakota, members heard that a plan to address wildlife and habitat issues had been delayed due to the rapid pace and scale of development. When questioned about wildlife concerns, a state legislator noted his view that wildlife could move and take care of itself! This situation demonstrates to the committee that if adequate planning to address wildlife and other environmental concerns does not take place in advance of, and alongside, development, it will likely be neglected. Wildlife is highly valued in the Northwest Territories and the Department of Environment and Natural Resources and Sahtu leadership have significant roles in ensuring continued wildlife and habitat protection.
Workforce development has been identified as a key piece of Sahtu exploration readiness. Presentations highlighted the need to enhance and establish training facilities and opportunities for workers, both in the oil industry and related service fields.
Shale oil development has significant socio-economic impacts associated with the creation of many permanent and temporary high-paying jobs. The Northwest Territories should anticipate that a large number of non-resident workers will be housed in industry camps. Presenters described crew camps as a “necessary evil.” They provide an appropriate solution to the accommodation needs of non-resident workers, but have resulted in many negative social impacts, and increased pressure on municipal services. The Three Affiliated Tribes put a moratorium on crew camps on their land, due to disruptive behaviour in their communities. The City of Williston is making significant investments in housing, schools, health care and recreational facilities to encourage workers and their families to relocate to the area more permanently.
The Three Affiliated Tribes offered a lot of comment on the impact of development on their people. Benefits include 99 percent employment, unparalleled opportunities for Aboriginal entrepreneurs and businesses, improved community programming, and profits from royalties that, with proper planning, will secure the financial future of tribal beneficiaries for generations. Drawbacks include increased crime and substance abuse, disorganized road construction and heavy truck traffic throughout traditional territory, flaring, spills, impacts on wildlife and housing shortages. People who lack financial responsibility and life skills have suffered rather than benefited from increased activity and resource royalty collection.
Presenters recommended the Northwest Territories promote cultural awareness and understanding between communities, industry, and new residents, as well as education in healthy lifestyles and financial management. They also see that right now, the Northwest Territories has the opportunity to take control of the pace and scale of development.
Thank you, Mr. Speaker. I would ask that you have Mr. Hawkins continue with the report. Mahsi.
Thank you, Mr. Bromley. Mr. Hawkins.
Thank you, Mr. Speaker. Thank you, Mr. Bromley. The North Dakota Association of Oil and Gas Producing Counties noted its generally positive experiences with its industry partners. A representative of the Three Affiliated Tribes Tribal Economic Development Office, or TERO, shared his experience that oil companies’ priority is to make a profit, but they are generally willing to work with communities and governments. Statoil emphasized its commitment to collaboration and open communication with stakeholders. North Dakota officials recommended that governments work closely with industry to determine needs and priorities.
The Three Affiliated Tribes deal directly with industry as a self-government. Through TERO, it implements a priority procurement policy and, like Saskatchewan, has developed a database of Aboriginal-owned businesses that industry can access to source goods and services. The TERO database also verifies the capacity of a company to perform the work a potential contractor is seeking.
The Saskatchewan Ministry of the Economy discussed a number of other initiatives designed to encourage partnerships and business development:
The Empower Program provides coaching, mentoring and training for entrepreneurs and established small business, through a funding partnership with industry.
The annual Aboriginal Business Match provides an opportunity for businesses and industry to form partnerships through an e-profiling system that connects potential business partners on-line before they meet in person at this increasingly popular event.
The Saskatchewan government is currently working on a northern opportunities forum to further support the Aboriginal Business Match.
As groups cooperate on creative solutions to challenges, and identify and work toward common goals, we share the risks, but also the benefits, which may be far greater than we could realize on our own. The committee recommends that, as much as possible, the Government of the Northwest Territories look for opportunities to form and foster strong partnerships between industry, communities and Aboriginal governments.
As committee members reflect on their experience of the Bakken tour, they identify elements of shale oil development that were not included on the agenda, such as water withdrawal and permitting processes, waste confinement and disposal, pipeline infrastructure, and in-depth discussion of the social and environmental impacts of the resource boom.
The tour did not include the opportunity to view any of North Dakota’s open waste pits, nor was there any formal discussion of the impacts of flooding in the area earlier this year. While many presenters spoke candidly, there was limited discussion about how jurisdictions quantify environmental liabilities or how communities cope with homelessness and addictions.
Through committee initiative, the tour group heard from a regional wildlife manager and local resident who shared observations that taxes and cost of living have increased substantially while, for many people, quality of life has declined overall, especially for those who have not been able to take advantage of the activity. The same individual commented that effects on wildlife and habitat were not being addressed in mitigation activities and encouraged tour participants to ask further questions in this area.
After the tour’s conclusion, members learned that a large oil spill, linked to inadequate monitoring, occurred in the area during the time the committee was there. This significant event was not mentioned to participants, and only appeared in the media two weeks after the spill began.
The committee recognizes that in order to accommodate some of these issues, other components of the tour would have been missed. The exclusion of these elements highlights areas where the committee might focus in the future. Members raise these issues to draw awareness to impacts that cannot be overlooked as the Northwest Territories develops policy on the use of hydraulic fracturing.
Hydraulic fracturing continues to gain public attention in the Northwest Territories. It is to our immediate and long-term advantage to develop a responsible, well-informed policy on the use of this technology and ensure that all voices are heard on this important issue. The tour of the Bakken formation increased participants’ awareness of the impacts of shale development, and the need for planning and action. While the Northwest Territories is in a very different position than either North Dakota or Saskatchewan in terms of its level of development, to the degree that lessons learned in the development of the Bakken are accurately shared, they are valuable to future development in the Northwest Territories.
The standing committee would like to embark on further fact-finding and explore areas that were overlooked on its Calgary and Bakken tours, and hear from the public and interested organizations on the use of hydraulic fracturing in our jurisdiction. As leaders and decision-makers, the committee wants to ensure we act in the best interest of the Northwest Territories, our land, our people and our resources.
Mr. Speaker, that concludes the report of the Standing Committee on Economic Development and Infrastructure on the Bakken shale formation tour.
