Mr. Speaker, on January 6, the Government of the Northwest Territories, the Government of Canada and BHP Minerals Canada Ltd., signed an Environmental Agreement for the NWT Diamonds Project. Representatives of the affected Aboriginal communities were active participants in the development of this agreement, which is the first of its kind in the Northwest Territories. It is legally binding and addresses environmental issues raised during the public hearings held in Yellowknife last winter, which are not addressed by the water licence, land leases and other regulatory instruments.

I would like to highlight some of the important aspects of this Environmental Agreement. It establishes an independent monitoring agency to monitor the environmental effects of the NWT diamonds project and the regulatory performance of both governments. The monitoring agency includes four members appointed by the Dogrib Treaty 11 Council, Yellowknives Dene First Nation and Lutselk'e First Nation, Metis Nation and Kitikmeot Inuit Association and three members jointly appointed by the GNWT, federal government and BHP.

The agreement provides for the development of environmental management plans, both during the construction and operational phases of the project. These plans will deal with air quality, wildlife management, traffic management, waste management, reclamation and closure, and environmental monitoring.

These environmental management plans and monitoring programs will be reviewed and approved by government, as well as the monitoring agency. They will ensure that there are no adverse effects to the environment through the life of this project.

The agreement also provides for the protection of archaeological sites and ensures that the traditional knowledge of Aboriginal people will be incorporated into all environmental plans and programs.

The Environmental Agreement requires that BHP provide security deposits totalling $11 million for non-water-related obligations. In addition, there is a financial guarantee of $20 million from the parent company. Furthermore, the water licence requires a security deposit of $21 million. These deposits, which total $52 million, can be used by government if BHP fails to meet its obligations under the Environmental Agreement or water licence.

Mr. Speaker, this agreement, along with the Socio-Economic Agreement signed by this government in October and the Impact Benefits Agreements with the Dogrib Treaty 11 Council, Yellowknives Dene First Nation and Lutselk'e First Nation, set a precedent for future development projects in the

Northwest Territories. They demonstrate this government's commitment to providing economic opportunities for northern residents, while maintaining the environmental quality of our land and waters. Later today, at the appropriate time, I will be tabling the Environmental Agreement. Thank you.