Mackenzie Gas PipelineMackenzie Gas Pipeline

The Policy Landscape

and the Road Forward

Tind Shepper Ryen

The Policy Landscape

and the Road Forward

Tind Shepper Ryen

An OverviewAn Overview

Day 1– Grab food and drink…– Introduction– The Berger Report– Today’s climate

Day 2– Where to? Hurdles to the MGP.

Scandal, cooperation, regulation, and oversight.

Day 1– Grab food and drink…– Introduction– The Berger Report– Today’s climate

Day 2– Where to? Hurdles to the MGP.

Scandal, cooperation, regulation, and oversight.

EarthEarth

WaterWater

AirAir

PlantsPlants

AnimalsAnimals

PeoplePeople

PipelinePipeline

Oil and Gas in the ArcticOil and Gas in the Arctic

Artic oil, gas, and pipelines all the rage:– First well in 1922, at Norman Wells.– WWII Canol pipeline:

Norman Wells to Whitehorse, Yukon. Dismantled at end of war, but ROW still exists.

– First Arctic Island oil well in 1961, Melville Island.

The Pace QuickensThe Pace Quickens

Mackenzie Delta oil rig drilled in 1969.– Gas rig followed, 1970 at Parson’s Lake.

Large reserves in Prudhoe Bay found in 1967. 1973, OPEC begins oil embargo. March 21, 1974, Mackenzie Valley Pipeline

Inquiry (Berger) established by act of Parliament.

Mackenzie Delta oil rig drilled in 1969.– Gas rig followed, 1970 at Parson’s Lake.

Large reserves in Prudhoe Bay found in 1967. 1973, OPEC begins oil embargo. March 21, 1974, Mackenzie Valley Pipeline

Inquiry (Berger) established by act of Parliament.

An Exuberant CalmAn Exuberant Calm

1977, Berger Inquiry ends.– Moratorium on Valley pipeline for 10 years.

1980, National Energy Program– Write off >100% exploration costs.

1984, Inuvialuit land claim settlement. August 2000, Canadian government opens new lands

for exploration, netting $400,000,000 in bids and $1 billion in work commitments.

Now over 1900 wells above 60° latitude.

1977, Berger Inquiry ends.– Moratorium on Valley pipeline for 10 years.

1980, National Energy Program– Write off >100% exploration costs.

1984, Inuvialuit land claim settlement. August 2000, Canadian government opens new lands

for exploration, netting $400,000,000 in bids and $1 billion in work commitments.

Now over 1900 wells above 60° latitude.

Doomed to Repeat…Doomed to Repeat…

October, 2001, Memorandum of Understanding signed.

June 2003, Preliminary Information Package submitted to National Energy Board (NEB).

October, 2001, Memorandum of Understanding signed.

June 2003, Preliminary Information Package submitted to National Energy Board (NEB).

Berger InquiryBerger Inquiry

Mackenzie Valley lands held by Crown, under Ministry of Indian Affairs and Northern Development.– Canadian government had a controlling interest in

pipeline development. Justice Thomas R. Berger appointed to lead

inquiry. Inquiry granted ability to compel testimony and

documents. 283 volumes, >40,000 pages, $5.3 million.

Mackenzie Valley lands held by Crown, under Ministry of Indian Affairs and Northern Development.– Canadian government had a controlling interest in

pipeline development. Justice Thomas R. Berger appointed to lead

inquiry. Inquiry granted ability to compel testimony and

documents. 283 volumes, >40,000 pages, $5.3 million.

ParticipantsParticipants

Canadian Arctic Gas Pipeline Limited Foothills Pipe Lines Ltd. Canadian Arctic Resources Committee Environment Protection Board Indian Brotherhood of the Northwest Territories Metis Association of the Northwest Territories Inuit Tapirisat of Canada Committee for Original Peoples Entitlement Yukon Native Brotherhood Northwest Territories Association of Municipalities Commission Counsel

Canadian Arctic Gas Pipeline Limited Foothills Pipe Lines Ltd. Canadian Arctic Resources Committee Environment Protection Board Indian Brotherhood of the Northwest Territories Metis Association of the Northwest Territories Inuit Tapirisat of Canada Committee for Original Peoples Entitlement Yukon Native Brotherhood Northwest Territories Association of Municipalities Commission Counsel

I discovered that people in the North have strong feelings about the pipeline and large-scale frontier development. I listened to a brief by northern businessmen in Yellowknife who favour a pipeline through the North. Later, in a native village far away, I heard virtually the whole community express vehement opposition to such a pipeline. Both were talking about the same pipeline; both were talking about the same region - but for one group it is a frontier, for the other a homeland.

-- Thomas Berger, V1 Mackenzie Valley Pipeline Commission Report.

I discovered that people in the North have strong feelings about the pipeline and large-scale frontier development. I listened to a brief by northern businessmen in Yellowknife who favour a pipeline through the North. Later, in a native village far away, I heard virtually the whole community express vehement opposition to such a pipeline. Both were talking about the same pipeline; both were talking about the same region - but for one group it is a frontier, for the other a homeland.

-- Thomas Berger, V1 Mackenzie Valley Pipeline Commission Report.

Why Berger?Why Berger?

Stakeholder participation.– Citizens, businessmen, etc.– Visited all 35 communities in the Mackenzie Valley.

Broad scope.– Investigated environmental, technical, social, cultural,

and economic implications of pipelines. Discovery process, and free flow of information. Provides snapshot of conditions surrounding

pipeline in the 70’s.

Stakeholder participation.– Citizens, businessmen, etc.– Visited all 35 communities in the Mackenzie Valley.

Broad scope.– Investigated environmental, technical, social, cultural,

and economic implications of pipelines. Discovery process, and free flow of information. Provides snapshot of conditions surrounding

pipeline in the 70’s.

Sights and sounds

Main Conclusions: EnvironmentMain Conclusions: Environment A pipeline would threaten Northern Yukon. No energy corridor should be created in the Delta. There were no major concerns in the Mackenzie

Valley. A number of parks and reserves should be created:

– Northern Yukon, Porcupine Caribou.– Mackenzie Bay, White Whales.– Mackenzie Valley, bird sanctuaries.– ANWR

A pipeline would threaten Northern Yukon. No energy corridor should be created in the Delta. There were no major concerns in the Mackenzie

Valley. A number of parks and reserves should be created:

– Northern Yukon, Porcupine Caribou.– Mackenzie Bay, White Whales.– Mackenzie Valley, bird sanctuaries.– ANWR

Main Conclusions: EconomicMain Conclusions: Economic Large-scale projects based on non-renewables

rarely provide long-term employment. Natives will fill only unskilled and semi-skilled

jobs during construction. Development undermines self-employment

through hunting, fishing, and trapping. A pipeline may accentuate economic problems in

the North. The Northern economy will not decline if a

pipeline is not built.

Large-scale projects based on non-renewables rarely provide long-term employment.

Natives will fill only unskilled and semi-skilled jobs during construction.

Development undermines self-employment through hunting, fishing, and trapping.

A pipeline may accentuate economic problems in the North.

The Northern economy will not decline if a pipeline is not built.

Main Conclusions: Social and Cultural

Main Conclusions: Social and Cultural

Native culture not taken seriously. “…[S]ocial consequences of the pipeline will not

only be serious- they will be devastating.” Development must conform to the wishes of

those who live there.

Native culture not taken seriously. “…[S]ocial consequences of the pipeline will not

only be serious- they will be devastating.” Development must conform to the wishes of

those who live there.

Main Conclusions: Land ClaimsMain Conclusions: Land Claims

Land claims part of desire for self-determination and broader native rights.

Rapid industrialization will block settlement of native rights issues.

Special status should be granted native peoples.

Land claims part of desire for self-determination and broader native rights.

Rapid industrialization will block settlement of native rights issues.

Special status should be granted native peoples.

Land ClaimsLand Claims

Deh Cho– 40% of MGP runs through Deh Cho land.– A settlement in principal has been achieved.– Deh Cho are not part of the APG.

6 other ongoing negotiations.

Deh Cho– 40% of MGP runs through Deh Cho land.– A settlement in principal has been achieved.– Deh Cho are not part of the APG.

6 other ongoing negotiations.

Lysyk In BriefLysyk In Brief

Highway Pipeline benefits will largely go outside of Yukon.

Large conditional support for pipeline if:– Native land claims are settled.– Pipeline company pays to mitigate negative

consequences.

A planning and regulatory agency is needed. The pipeline should be delayed four years. Video Part 1

Next TimeNext Time

Role of the Canadian government today. Natural Gas Market. Deh Cho obstacles. Blanken Inquiry

– Consensus building on MGP. Be prepared to talk!– The MPG will have what…

Environmental consequences? Economic consequences? Social consequences?

Role of the Canadian government today. Natural Gas Market. Deh Cho obstacles. Blanken Inquiry

– Consensus building on MGP. Be prepared to talk!– The MPG will have what…

Environmental consequences? Economic consequences? Social consequences?

EndEnd

Tind Shepper Ryen

Doctoral Candidate, Environmental Studies

University of Colorado, Boulder

ryen@colorado.edu

Tind Shepper Ryen

Doctoral Candidate, Environmental Studies

University of Colorado, Boulder

ryen@colorado.edu