Canada's energy industry gets concerned over native unrests

Nervousness is spreading throughout Canada's energy industry in a widening dispute between Indian bands in north-eastern British Columbia and governments over oil and gas development. It is said that Anadarko Petroleum of Houston confirmed that it shut down two projects in Halfway River First Nation territory after staff and contract workers were asked by the band to leave.
And Westcoast Energy of Vancouver said the band had also made certain demands about two of its planned projects. Westcoast, which is planning a natural gas pre-treatment facility and an additional pipeline in the region, would not elaborate on what it was asked to do, and said it has not yet responded.
Concern is growing that native unrest will throw a wrench into expensive future projects in what has become one of Canada's hottest areas for natural gas exploration while governments, eager to increase oil and gas production and revenue, refuse to deal with long-standing native issues.

The protest started when the bandblockaded a PetroCanada pipeline site to draw attention to its concerns about too much oil and gas development and unresolved treaty issues with the federal and provincial governments. Construction of the pipeline has been put on hold until native concerns are met, said Chris Dawson, a spokesman for PetroCanada.
Nadine Barber, a spokeswoman for Anadarko, said her company was surprised by the band's request to pack up and leave, because it had obtained all the necessary permits and had consulted with the band. She said her company does not know what the band is looking for and hopes to find out at a meeting. "We've always actually had a very good, long-standing relationship with Halfway, and everything was very peaceful.
"This winter is obviously a concern for a lot of people because it's approaching quickly. We are very active in the area, so we want to make this work and we want the relationship to continue." Spokesmen for the band said they are targeting more companies because governments did not respond to their requests for talks after the PetroCanada blockade went up.

The Halfway are among a number of bands in the Treaty 8 area. They say the British Columbia government is ignoring a century-old treaty with Canada that guarantees them the right to live off the land. They are also overwhelmed with energy industry activity and want an environmental impact assessment before there is any new development. "They [the natives] want to sit down and deal in good faith and look at the impact on the territory," said a spokesman for the Halfway.
Some of the bands are attempting to reach deals of their own directly with the oil and gas industry so they get a share of the benefits, such as jobs, scholarships and funding for community programs. Industry is taking the demands seriously and wants the British Columbia and federal governments to get involved.
"The overall question about First Nations, treaty claims, land claims, unresolved treaty disputes, are issues between the bands and governments, federal and provincial, and we have been urging the federal government and the provinces to get those problems resolved," said Pierre Alvarez, president of the Canadian Association of Petroleum Producers.

There's an urgency to get matters resolved in north-eastern British Columbia because it has a limited activity season of only 90 days a year -- starting after Christmas and running until March -- because most activities can only be carried out when the land is fully frozen, he said. Meanwhile, some bands are contemplating legal action against the government of British Columbia and the B.C. Oil and Gas Commission, which regulates energy industry activity in the province.
Jeff Rath, a lawyer for one of the bands, said a lawsuit could be filed in the next few weeks. "It's something that's being actively considered by all the First Nations. The bottom line is the government just doesn't want to deal with this stuff. It seems to be sticking its head in the sand and taking an approach that is going to guarantee more blockades and is going to guarantee lawsuits," he said.
Diane Gielis, a spokeswoman for the federal department of Indian and Northern Affairs, said Ottawa regards the dispute as a provincial issue. "We understand that the Halfway River First Nation and PetroCanada have met and are working to address their respective concerns. We are encouraging these parties along with the government of B.C. to continue these discussions."