Debates of October 25, 2006 (day 15)

Thank you, Mr. Speaker. Mr. Speaker, I want to continue on with my questions to the Premier in terms of the human resource revenue sharing and devolution agreements. I want to talk about some of the outstanding issues that are still on the table. I want to specifically make reference to the Norman Wells oilfield revenue and the position of this government that is given to our negotiators in terms of what is the status and what is our position in regards to the Norman Wells oilfield. Thank you.

Thank you, Mr. Yakeleya. The honourable Premier, Mr. Handley.

Return To Question 191-15(5): Norman Wells Oilfield Revenues

Thank you, Mr. Speaker. The GNWT position is that the federal ownership and a share of that oilfield is in lieu of resource royalties. Therefore, the profits they make from that ownership should be subject to the same rules as any other resource revenue sharing arrangement. The federal government is of the view that they should be able to take the profits out of their equity share and not have to pay royalties on it. We don’t agree with that. Mr. Speaker, we are firm on that position. The revenues need to be shared with us as a government as part of the resource revenue sharing deal. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Supplementary, Mr. Yakeleya.

Supplementary To Question 191-15(5): Norman Wells Oilfield Revenues

Thank you, Mr. Speaker. Given that the federal government has some ownership in the Norman Wells oilfield along with some pure oil, in 1920 they struck a deal, so I don’t think they really want to give up their golden pot here to say we are going to share with our own people in the Northwest Territories. So that position, I am not too sure how strong our argument is, Mr. Premier, in terms of how we negotiate something like that. I think it is over 86 years that they have been retracting royalties from the Norman Wells oilfield. I think they own a considerable amount of dollars. I want to ask the Premier, without giving any type of indication as to our strategy in terms of negotiating this specific area, what type of discussions are happening with the leadership in the Sahtu and also with the North in terms of coming to a resolution to sign off on these other five outstanding issues to come home with a package that will be satisfactory to people of the Northwest Territories? Thank you.

Thank you, Mr. Yakeleya. Mr. Handley.

Further Return To Question 191-15(5): Norman Wells Oilfield Revenues

Thank you, Mr. Speaker. Yes, the Norman Wells oilfield issue of where the royalties are going to be paid, whether they should be paid at all and so on, how we treat the federal ownership, is one of the six issues that are outstanding. Mr. Speaker, I won't get into all of them, but in the last meeting of the leaders I outlined that we, as a territorial government, wanted to come to an agreement with the federal government. The aboriginal leaders' negotiator in the summer of 2005 had said this is not an issue for the aboriginal leaders, it's only between the GNWT and the federal government, but they were ready to initial off on a draft devolution agreement. We said we weren't until this was settled, and I believe the aboriginal leaders understand our position and, in fact, agree with us because this some day could be part of their resource revenues as they take over self-government. But, Mr. Speaker, it's one of the issues I want to talk to aboriginal leaders about, following the November 9th meeting.

I've also written a letter to Minister Prentice saying let's start devolution by resolving these six issues. The Secretary to Cabinet has also written to Harvie Andre with the same message. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Supplementary, Mr. Yakeleya.

Supplementary To Question 191-15(5): Norman Wells Oilfield Revenues

Thank you, Mr. Speaker. Mr. Speaker, the issue of the Norman Wells oilfield is an issue where the federal government has their cake and they're eating it too, and they're just throwing us the crumbs.

The crumbs.

Mr. Speaker, I want to ask the Premier what is his position from the government in terms of Imperial Oil or if the federal government ever decides to sell their share of the oilfield. What are the chances of the Government of the Northwest Territories to have some ownership in an oilfield, because if the Norman Wells oilfield is being sold by Imperial Oil, the first agreement says in here under the Norman Wells Imperial Oil Agreement, Imperial Oil shall give the U.S. government the option to buy half of the recoverable reserves in the proven area. So I want to ask the position of this government here. Thank you.

Thank you, Mr. Yakeleya. Mr. Handley.

Further Return To Question 191-15(5): Norman Wells Oilfield Revenues

Thank you, Mr. Speaker. First of all, let me say that it's our view that if the ownership of the federal government's share of that oilfield were to change hands we should not have to buy it. That should be part of the devolution deal. If they don't want to agree to that, then let us get a share of the royalties off their equity piece as well. It doesn't matter to us whether it's Imperial who owns it or the federal government or Petro-Canada or who it is, we should be collecting royalties from it. But if it is to be transferred, then it should be transferred but we shouldn't have to pay market dollars for that. That wouldn't make any sense, from our position. Thank you.

Thank you, Mr. Handley. Final, short supplementary, Mr. Yakeleya.

Supplementary To Question 191-15(5): Norman Wells Oilfield Revenues

Thank you, Mr. Speaker. I agree with Mr. Premier that it should be ours, rightfully ours. When does this government give anything away for free? The U.S. government said they were addicted to oil, so I don't think they're going to give anything away either. Again, Mr. Speaker, I want to ask the Premier in terms of the Norman Wells oilfield in terms of the issue of staying on the table. Would the transfers and the resource royalties coming from that field, would the Premier again sit down with the negotiators, sit down with the leaders and get us the oilfields back and not have it back into the U.S. government as it says in the Norman Wells agreement here? Thank you.

Thank you, Mr. Yakeleya. Mr. Handley.

Further Return To Question 191-15(5): Norman Wells Oilfield Revenues

Thank you, Mr. Speaker. We will do. In fact, we're going to meet following their November 9th meeting, then I want to sit down on all of the six outstanding items and refresh everybody's memory of where we're at with it, why we're holding the positions we do, and then get on with negotiating with the federal government hopefully with the aboriginal leaders' support. Thank you, Mr. Speaker.