Thank you, Mr. Speaker. The Government of the Northwest Territories, as well as Aboriginal governments with settled land claims, have authority in areas such as air quality and wildlife. The Government of the Northwest

Territories is currently negotiating increased management authority for land and water. The committee recognizes the current Mackenzie Valley Resources Management Act as a strong federal law, designed by Northerners, that allows for control of the pace and scale of development. A policy on hydraulic fracturing is needed to supplement provisions in the Mackenzie Valley Resources Management Act that respect cultural and ecological values.

Until a Devolution Agreement is reached, the National Energy Board and federally legislated land and water boards will continue to regulate the Northwest Territories’ oil and gas industry. Prior to devolution, it is important that the Government of the Northwest Territories has input into this process based on sound, publicly supported policy. There are strong signals that, post-devolution, the Northwest Territories will continue regulatory activities through a service agreement with the National Energy Board.

The future of the shale industry in the Northwest Territories largely depends on the regulatory system. The Northwest Territories’ current regulatory process is frequently criticized for various reasons. Through meetings with the National Resource Conservation Board of Alberta and the British Columbia Oil and Gas Commission, Members learned how industry activities can be effectively managed under robust regulations. Both British Columbia and Alberta demonstrated how single-window permitting accelerates regulatory time frames without totally compromising thorough review, industry oversight, consultation with First Nations, and respect for cultural values. The committee recognizes the importance of requiring industry to disclose its activities, establishing regulations for each step of a drilling operation, and the benefits of developing a lifetime regulatory system, from the time land tracts are granted to the time the last well is capped and abandoned.

Recommendation 1

The Standing Committee on Economic Development and Infrastructure recommends that the Government of the Northwest Territories develop a policy framework on hydraulic fracturing that will guide interim input into regulatory processes and form the basis of a future regulatory system post-devolution, and further that the Government of the Northwest Territories consider the examples of other jurisdictions and adopt best practices where applicable.

I will now turn the floor over to my colleague Mr. Blake.