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Treaty 8 First Nations of Alberta Regional Session November 28, 2011 Grande Prairie, Alberta

Treaty 8 First Nations of Alberta Regional Session November 28, 2011 Grande Prairie, Alberta. A Non-Conventional Approach to Oil & Gas Regulation in Alberta Aboriginal Relationship Building at the Energy Resources Conservation Board (ERCB). Introduction. Presentation themes :

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Treaty 8 First Nations of Alberta Regional Session November 28, 2011 Grande Prairie, Alberta

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  1. Treaty 8 First Nations of Alberta Regional SessionNovember 28, 2011Grande Prairie, Alberta A Non-Conventional Approach to Oil & Gas Regulation in Alberta Aboriginal Relationship Building at the Energy Resources Conservation Board (ERCB)

  2. Introduction Presentation themes: • The ERCB Today - regulatory ways we talk to each other • Applications and Participant Involvement as ways of talking to each other

  3. Outline • The Oil & Gas Story • The ERCB Story • The Regulatory Story • ERCB Aboriginal Relations Story • Alberta’s Consultation Story • ERCB Objection Management Story

  4. The Oil & Gas Story

  5. How is oil & gas formed?RECIPE FOR A SEDEMENTARY SANDWICH • Ingredients • millions of years • body of water • prehistoric creatures • sand and mud • pressure and heat • Directions • The oceanic creatures and dinosaurs die and get buried under lots of sand and mud where they decompose • Apply the earths heat and pressure for millions of years • The fossils turn into oil & gas, the Sedimentary Sandwich is complete!

  6. How do we know where to find oil & gas? SEISMIC EXPLORATION • A special tool drills holes into the ground and puts explosives in them • After it explodes the sound waves hit the different layers in the ground and bounce back to special jugs which are connected to wires on a recording truck.

  7. What kinds of oil & gas do we have in Alberta? Crude Oil Natural Gas CBM Oil Sands

  8. How does the oil & gas get out of the ground? Drilling Rig Drill Pipes Drill Bits

  9. Drilling Animation Drilling Surface Hole Running Surface Casing Cementing Surface Casing Drilling Main Hole Running Production Casing Cementing Production Casing

  10. Perf & FracAnimation Perforating the Formation Fracturing the Formation

  11. What happens after the well is drilled? Gas well with compressor station Sour gas well with flare stack Pumpjack

  12. How do they get oil out of the oil sands? • Mining • SAGD • THAI

  13. WHERE DOES THE OIL & GAS GO?Transportation Pipelines Oil Tanks O T H E R

  14. WHERE DOES THE OIL & GAS GO?Refinery Once the oil & gas is treated (refined), it is ready to be sold to and used by us.

  15. What do we use oil & gas for?

  16. The ERCB Story

  17. Why was the ERCB formed? • 1940s minimal rules • Competitive exploration • Industry wanted regulation

  18. ERCB History Over 70 years experience… • 2007 • 1995 • 1971 • 1957 • 1938

  19. Who We Are The ERCB is: • An independent & quasi-judicial regulator • Responsible for regulating Alberta’s upstream oil & gas resources • Lead by a Board consisting of 8 members

  20. What We Do The ERCB: • Serves all Albertans – citizens, industry & government • Ensures that the discovery, development and delivery of Alberta’s energy resources take place in a manner that is fair, responsible and in the public interest

  21. The ERCB Today • Chairman: Dan McFayden • Same Mission • New Vision “Our new vision is about embracing change, responsible and informed risk taking, taking accountability and promoting innovation to consistently find ways to evolve our regulatory strategy, regulations and processes.”

  22. The Regulatory Story

  23. Oil & Gas Regulatory Interfaces • AE • Mineral leases • SRD • Seismic • Crown land • FN consultation • AENV • Water, air quality, waste • Reclamation, remediation • Municipal Gov • & Counties • Weeds, roads • Emergency response • NEB • Big pipe • Nuclear Energy Industry • SRB • Compensation • Right-of-entry orders • E&I • Land agent license • Public • Social license to operate • Enables government • FAO • Rural gas • Education • ERCB • Regulates oil, gas, coal

  24. LIFE CYCLE OF OIL & GAS AGREEMENTS ON FIRST NATION RESERVE LANDSIndian Oil & Gas Act

  25. Life Cycle of Oil & Gas Agreements Off-Reserve and on First Nation Reserve Lands Post FNOGMMA

  26. OUR ENERGY DEVELOPMENTFirst Nation Reserves

  27. Current Legislation Governing the ERCB Eight pieces: • Energy Resource Conservation Act • Oil & Gas Conservation Act • Coal Conservation Act • Oil Sands Conservation Act • Gas Resource Preservation Act • Pipeline Act • Turner Valley Unit Operations Act • Administrative Procedures and Jurisdiction Act

  28. ERCB Governing Legislation and Regulations • ERCB’s administrative obligations are defined by legislation: • Section 26 of ERC Act – basic administrative law rights for ERCB hearings • Administrative Procedures and Jurisdiction Act – for all other ERCB decisions that affect the rights of a person (including a corporation) • Specific rules in the ERCB Rules of Practice

  29. ERCB Role in the Energy Industry Government Sets Policy LEGISLATION Other Government Departments Regulators Administer Policy Public REGULATIONS Industry Develops Projects

  30. ERCB Major Functions • Regulation Development • Licensing • Quasi-judicial

  31. Regulation Development • Energy Resource Conservation Regulations • Oil & Gas Conservation Regulations • Coal Conservation Regulations • Oil Sands Conservation Regulations • Gas Resource Preservation Regulations • Pipeline Regulations • Administrative Procedures and Jurisdiction Regulations

  32. ERCB MAJOR FUNCTIONSLicensing • Applications • Compliance Surveillance & Enforcement • Information & Knowledge

  33. Quasi-Judicial • Hearings • Opportunity to be heard • Factual • Subject to Judicial Review • Jurisdiction • Error in Law

  34. ERCB Aboriginal Relations Story

  35. ERCB Aboriginal Relations ProcessHow we plan, learn & grow ERCB Aboriginal Working Group (AWG) • Consists of Board Member, Management and staff from across the organization • Sets ERCB Aboriginal Relations Strategy • Goal: Aboriginal relationship building through education and awareness (external & internal) • ERCB Aboriginal Relations Team (ART) • 8 of dedicated staff located across the province • ERCB ART Work Plan Stakeholders (External / Internal)

  36. Aboriginal Relations Team (ART) Activities External • Initiate proactive meetings • Respond to concerns • Liaise between stakeholders • Participate in provincial initiatives • Provide resources: • Maps, data, IAR tutorial Internal • Key messages • Aboriginal Awareness Sessions • Aboriginal Relations resource to the organization

  37. How are public inquiries addressed?FIELD OPERATIONS PARTICIPANT INVOLVEMENT, REACTIVE FS Complaints about operational issues FC receives inquiry from any stakeholder CAR Public issues / inquiries, education / information ADR new development / R&V mediation

  38. How is Field Surveillance involved in Aboriginal Relations? • Each Field Center is on call 24 / 7 • Complaints • Air Monitoring • Incident response • Inspections • The ERCB works towards prompt, • effective resolution.

  39. Field SurveillanceINCIDENT RESPONSE

  40. ERCB MAJOR FUNCTIONSFN Notifications • Notification protocols for: • Inspections • Spills • Incident Response • The ERCB will notify the First Nation & IOGC prior to any of the above. Resulting reports are made available to the First Nation & IOGC.

  41. Alberta’s Consultation Story

  42. Alberta Aboriginal Consultation • ERCB Directive 056: Energy Development Applications & Schedules • Consultation Initiative Alberta’s commitment • Consultation Policy Guiding principle • Consultation Guidelines Implementation direction

  43. ERCB Directive 056 • What is the purpose of Directive 056? • What are “regulatory requirements”? • What are applicants required to do? • What are applicants expected to do? • Who to include in participant involvement?

  44. What is participant involvement? • Definition of Participant Involvement (PI) • Participants in involvement • Why we are all involved participants • PI results, principles & values

  45. Participant Involvement Process • Stage 1: Planning oil and gas development proposal • Stage 2: Identifying and engaging potentially directly and adversely affected parties • Stage 3: Addressing concerns/objections • Stage 4: Addressing unresolved concerns/objections • Stage 5: Obtaining ERCB disposition

  46. Implementing the PI Program Participant involvement is intended to continue throughout the life of the project to continually address stakeholder questions and concerns. • PI Efforts (Directive 056 2.3.1) • Consultation & notification • Participant response • Note on compensation

  47. Routine vs Nonroutine Applications • Routine – company has met all Participant Involvement and Technical requirements • Nonroutine – company has identified there are unresolved objections/concerns or consultation/notification requirements are not met and/or where technical requirements are not met

  48. First Nations Consultation • SRD has requirements regarding the duty to consult • Industry must have met SRD’s requirements regarding consultation prior to submission of an application to the ERCB • This is in addition to the ERCB’s Directive 056 Participant Involvement Requirements

  49. What is Objections Management? • Evaluation • Registration • Non-Routine Coordinator Assignment • Board/Delegate Decision • Response letter issued • Two-way communication with Field Center

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