Mahsi cho, Mr. Speaker. [English translation not provided.]

…who have passed away in the past month; although one was in June, I’ve waited.

Mr. Speaker, George Fabien was born July 15, 1926, and passed away at age 86 on June 23, 2013. The late George Fabien was born and raised in Fort Resolution from a large family. Today Elizabeth Beck of Yellowknife is the only living sibling in his family.

Elder Rosa Fabien was born February 23, 1921. She passed away at the age of 92 on October 10, 2013. The late Rosa was born Mariane Rosa

Lafferty in Fort Rae, daughter to Jean Baptiste-Seehe Lafferty and Adeline Ekfwitcho.

Rosa and George were married in Fort Resolution April 12, 1951, and were married for over 61 years. They lived a long and happy life; however, they had no children of their own. They had many nieces and nephews, great-nieces, great-nephews and great-great-nieces and nephews. They were loved by their families and they dearly loved their family members.

John Bjornson was born on January 26, 1948, and passed away at age 65 on October 28, 2013. John was originally from Estevan, Saskatchewan, and moved to Fort Resolution in 1972 where he decided to make his home permanent. John was a carpenter/contractor as well as a business owner of a building supplies store in Fort Resolution. John is responsible for providing homes for 50 percent of the community through his contracting business. John is survived by his wife and daughters, Rosie, Natasha, and step-daughter Pamela, son Rowen, along with seven grandchildren.

Elder Marcel Norn was born on May 8, 1932, and passed away at age 81 on November 1, 2013. Marcel was born and raised in Fort Resolution. Marcel is survived by his children George Lafferty, Dwight Norn, Raymond Norn, Marcella Fabien and Trina Balsillie; his sisters, Nora Rhinlander and Joan Delorme; and his brothers, Bill Norn, Joe Norn and Stanley Norn. Marcel is also survived by many grandchildren, great-grandchildren and great-great-grandchildren, and many nieces and nephews.

The community of Fort Resolution mourns the loss of this respected elder. Marcel always made the point of participating in community meetings, events, and kept himself aware of what was happening in the community. Mr. Speaker, I’d like to pass my condolences on to the family and friends of George and Rosa Fabien – Rosa was originally from Behchoko – John Bjornson and elder Marcel Norn. Thank you, Mr. Speaker.

Thank you, Mr. Beaulieu. Member for Inuvik Twin Lakes, Mr. McLeod.

Thank you, Mr. Speaker. I was glad to hear our colleague from Hay River South talk about Remembrance Day and remembering those who have gone off to battle to give us the freedom that we enjoy today. We have a lot of holidays during the year. Christmas and Easter I always thought as two of the most important ones, but I always thought Remembrance Day was another day that we should always make sure that we pay respect to those that have given their lives so we can enjoy the lifestyle that we have today.

I spoke to students in Inuvik a number of years ago and I talked about the fact that we look up to hockey players and actors and songwriters and rap stars and I think sometimes we have our priorities mixed up. My heroes are those that went to war and sacrificed their lives so we can enjoy the life that we live today. When you’re younger, you don’t pay much mind to it, but as you get older and you have children of your own, grandchildren of your own, you realize that this is an opportunity that so many of these young gentlemen were not able to have, men and women.

I was reading an interesting article called Letters from the Front and it was excerpts of letters that they had written to their families back home. One line always got me, and that was a 28-year-old private sent a letter home saying, “I give my life willingly for my country, knowing that it was given in a righteous cause.” That was the attitude that so many of them went with. They were scared, the letters talked about the fear that they had, but they still went because they felt it was still the right thing to do.

I think, not only today but as we go on and the memories get older and older, we should teach our children and grandchildren, those who come behind us, to never forget the sacrifice they made. They even made the sacrifice so that people can go out and give white poppies, which a lot of Veterans don’t agree with, but we have that type of freedom because of the sacrifices these gentlemen and ladies made, so let’s never forget that. Thank you, Mr. Speaker.

Thank you, Mr. McLeod. Item 4, reports of standing and special committees. Mr. Hawkins.

As part of developing the Northwest Territories’ policy approach to hydraulic fracturing, representatives of the Standing Committee on Economic Development and Infrastructure joined a delegation led by the Minister of Industry, Tourism and Investment on a tour of the Bakken shale formation in Saskatchewan and North Dakota, between September 29

and October 4,

2013.

The delegation, made up of the Minister; Members of the Legislative Assembly; staff from the departments of Environment and Natural

Resources, and Industry Tourism and Investment; the Northwest Territories Geoscience Office; the National Energy Board; and leadership from Sahtu communities, travelled to Regina, Stoughton and Estevan, Saskatchewan; and Williston, New Town and Mandaree, North Dakota. The group met with a large number of people representing the Saskatchewan Ministry of the Economy, including Minister of the Economy, the Honourable Tim McMillan; the Saskatchewan Geological Survey; Cenovus Energy Incorporated; Crescent Point Energy Corporation; Statoil; the City of Williston; the State of North Dakota; the Consul General for North Dakota; members of the Three Affiliated Tribes Mandaree, Hidatsa and Arikara Nation; ONEOK Incorporated; and Cheveyo Energy Incorporated. The standing committee thanks all presenters for their time in meeting with the delegation and their thoughtful responses to questions and comments. Committee members also thank the Minister and the Department of Industry, Tourism and Investment for coordinating the tour and making it possible for the entire delegation to participate.

Existing land use plans, the devolution of land and resource management, and self-government agreements place the Northwest Territories in a much different position than jurisdictions in the Bakken. Our situation also differs widely in terms of volume of activity, infrastructure, workforce and regulatory regime, but valuable lessons can still be drawn from the delegation’s experience. The committee’s observations may be summarized under three broad themes highlighted in a presentation by City of Williston Commissioner Brad Bekkedahl: planning, people and partnerships. Members would also like to take this opportunity to comment on the tour’s scope and further committee direction on this important issue.

A resounding message, by far the most emphasized to the delegation, is the need for effective planning and preparation for development. Presentations at provincial, state and community levels highlighted infrastructure, regulatory, environmental and social needs.

Mr. Speaker, this being a lengthy report, I now would like to pass a portion of it over to my colleague Mr. Bromley, Member for Weledeh, to continue.

Thank you, Mr. Hawkins. Mr. Bromley.

Thank you, Mr. Speaker. Shale oil development in the Bakken area has placed immediate and unrelenting strain on all types of infrastructure. Transportation infrastructure is a primary concern. There are currently 9,322

producing wells in North Dakota, and the state expects that an additional 2,000 will be drilled this year. The average drilling rig requires at least 2,000 truckloads of materials and supplies, which has an equivalent impact of 25,000 light vehicles on roadways. A single loaded truck raises approximately 100 pounds of dust per mile on gravel roads, coating vegetation and reducing air quality and visibility. The state has enforced seasonal load restrictions, but allocates millions annually to new road infrastructure, maintenance and dust control to meet industry-related traffic demands.

The increased number of trucks has resulted in hazardous driving conditions and serious accidents. Emergency services continue to be delivered largely by local volunteers, resulting in post-traumatic stress disorders and burnout among their ranks. Presenters in North Dakota strongly recommended identifying main arteries, bolstering existing corridors and working with industry to plan service roads and access needs.

Two exploratory wells will be drilled in the Northwest Territories this season. The impacts on roads highlight the need for responsive planning and maintenance for our comparatively fragile seasonal and all-weather roads.

The committee heard that although it requires more time to develop and incurs greater capital costs, pipeline infrastructure can reduce the amount of truck traffic and mitigate the hazards associated with transporting large volumes of water, wastewater and oil via road and rail. Natural gas pipelines can also reduce the amount of flaring and associated greenhouse gas emissions. It is estimated that a billion dollars’ worth of natural gas is flared annually from the Bakken shale.

Municipal infrastructure is another area that requires well-thought-out planning. State of North Dakota officials highlighted significant demands and need for preparation in the areas of:

zoning and land use planning;

water and sewer services;

electrical

supply;

road

infrastructure;

airports;

housing;

public safety services, including emergency

service providers and law enforcement;

schools;

hospitals;

and

recreational

facilities.

The committee encourages Sahtu leadership and Government of the Northwest Territories

departments to work with industry to determine community needs and plan accordingly.

Extensive sampling and geological mapping has allowed the Province of Saskatchewan to collect comprehensive information and three-dimensional imaging of the province’s subsurface. This baseline information can play a key role in industry, research and regulatory decision-making and the protection of water resources. While the Northwest Territories may not have the resources required to offer similar services at the present time, the tour of the Saskatchewan Geological Laboratory highlighted the value of gathering and archiving accurate information and making it accessible, at least on a partly cost-recovery basis.

The devolution of land and resource management affords the Northwest Territories a significant opportunity to design and implement a responsible regulatory regime. Representatives of the Saskatchewan Ministry of the Economy recommended enacting legislative and regulatory instruments that establish and enforce meaningful consequences for industry. Saskatchewan has looked to Alberta for many of its regulations.

Some features of the Saskatchewan self-disclosure-based regulatory approach include:

comprehensive baseline water and geological

information;

disclosure of the chemical composition of

fracturing fluid and, more importantly, in their view, identifying and monitoring transformed chemicals in well flowback;

explicit guidelines for the management and

disposal of contaminated water; and

environmental protection, remediation and

enforcement provisions.

The province has scheduled Crown land sales six times a year, and makes land available through leases, exploration licences and special exploratory permits. A liability management program includes a requirement for operators to pay a monthly security deposit to fund environmental protection and remediation programs.

The committee heard that despite ever-increasing permit applications and oil and gas revenues reaching over 1.5 billion annually, Saskatchewan regulatory staff and program funding has remained stable. The division experiences greater position vacancies than before, and few positions are dedicated to fieldwork.

Both Saskatchewan and North Dakota had established regulatory regimes, royalty and taxation structures before intense development of the Bakken began. The establishment of an effective

royalty regime is a significant area of planning for the Northwest Territories to address.

The committee heard the view that a key to successful development is to implement taxation that balances economic viability for industry and a jurisdiction’s revenue needs. The Saskatchewan Ministry of the Economy felt it had reached a competitive level of taxation, while still being able to collect resources for government priorities. The committee members noted, however, that Saskatchewan royalty rates had decreased while the amount of drilling activity increased. Unlike either the Northwest Territories or North Dakota, the province has not established a heritage fund.

North Dakota collects a combined production and extraction tax, with revenues divided between the state and municipalities. Thirty percent of all royalty revenues are directed to the state’s Legacy Fund. The fund is established under legislation that does not allow any portion to be accessed until 2017, and then, only with the consent of two-thirds of the state legislature. In addition to the Legacy Fund, North Dakota allocates royalty revenues to six other trusts established to fund infrastructure projects and community needs related to intense development. Unlike the Northwest Territories, North Dakota also has the ability to tax its non-resident workforce based on earnings within their jurisdiction.

Large oil revenues have resulted in disparities between oil-producing and non-oil-producing counties. The state notes that it is a challenge to mitigate regional disparities since infrastructure and programming pressures are greater in areas with more industrial activity.

A significant concern for members of the delegation was the lack of a clear plan to address wildlife. The tour did not include a presentation from the Saskatchewan Ministry of the Environment, and in North Dakota, members heard that a plan to address wildlife and habitat issues had been delayed due to the rapid pace and scale of development. When questioned about wildlife concerns, a state legislator noted his view that wildlife could move and take care of itself! This situation demonstrates to the committee that if adequate planning to address wildlife and other environmental concerns does not take place in advance of, and alongside, development, it will likely be neglected. Wildlife is highly valued in the Northwest Territories and the Department of Environment and Natural Resources and Sahtu leadership have significant roles in ensuring continued wildlife and habitat protection.

Workforce development has been identified as a key piece of Sahtu exploration readiness.

Presentations highlighted the need to enhance and establish training facilities and opportunities for workers, both in the oil industry and related service fields.

Shale oil development has significant socio-economic impacts associated with the creation of many permanent and temporary high-paying jobs. The Northwest Territories should anticipate that a large number of non-resident workers will be housed in industry camps. Presenters described crew camps as a “necessary evil.” They provide an appropriate solution to the accommodation needs of non-resident workers, but have resulted in many negative social impacts, and increased pressure on municipal services. The Three Affiliated Tribes put a moratorium on crew camps on their land, due to disruptive behaviour in their communities. The City of Williston is making significant investments in housing, schools, health care and recreational facilities to encourage workers and their families to relocate to the area more permanently.

The Three Affiliated Tribes offered a lot of comment on the impact of development on their people. Benefits include 99 percent employment, unparalleled opportunities for Aboriginal entrepreneurs and businesses, improved community programming, and profits from royalties that, with proper planning, will secure the financial future of tribal beneficiaries for generations. Drawbacks include increased crime and substance abuse, disorganized road construction and heavy truck traffic throughout traditional territory, flaring, spills, impacts on wildlife and housing shortages. People who lack financial responsibility and life skills have suffered rather than benefited from increased activity and resource royalty collection.

Presenters recommended the Northwest Territories promote cultural awareness and understanding between communities, industry, and new residents, as well as education in healthy lifestyles and financial management. They also see that right now, the Northwest Territories has the opportunity to take control of the pace and scale of development.

Thank you, Mr. Speaker. I would ask that you have Mr. Hawkins continue with the report. Mahsi.

Thank you, Mr. Bromley. Mr. Hawkins.

Thank you, Mr. Speaker. Thank you, Mr. Bromley. The North Dakota Association of Oil and Gas Producing Counties noted its generally positive experiences with its industry partners. A representative of the Three Affiliated Tribes Tribal Economic Development Office, or TERO, shared his experience that oil companies’ priority is to make a profit, but they are generally willing to work

with communities and governments. Statoil emphasized its commitment to collaboration and open communication with stakeholders. North Dakota officials recommended that governments work closely with industry to determine needs and priorities.

The Three Affiliated Tribes deal directly with industry as a self-government. Through TERO, it implements a priority procurement policy and, like Saskatchewan, has developed a database of Aboriginal-owned businesses that industry can access to source goods and services. The TERO database also verifies the capacity of a company to perform the work a potential contractor is seeking.

The Saskatchewan Ministry of the Economy discussed a number of other initiatives designed to encourage partnerships and business development:

The Empower Program provides coaching,

mentoring and training for entrepreneurs and established small business, through a funding partnership with industry.

The annual Aboriginal Business Match provides

an opportunity for businesses and industry to form partnerships through an e-profiling system that connects potential business partners on-line before they meet in person at this increasingly popular event.

The Saskatchewan government is currently

working on a northern opportunities forum to further support the Aboriginal Business Match.

As groups cooperate on creative solutions to challenges, and identify and work toward common goals, we share the risks, but also the benefits, which may be far greater than we could realize on our own. The committee recommends that, as much as possible, the Government of the Northwest Territories look for opportunities to form and foster strong partnerships between industry, communities and Aboriginal governments.

As committee members reflect on their experience of the Bakken tour, they identify elements of shale oil development that were not included on the agenda, such as water withdrawal and permitting processes, waste confinement and disposal, pipeline infrastructure, and in-depth discussion of the social and environmental impacts of the resource boom.

The tour did not include the opportunity to view any of North Dakota’s open waste pits, nor was there any formal discussion of the impacts of flooding in the area earlier this year. While many presenters spoke candidly, there was limited discussion about how jurisdictions quantify environmental liabilities or how communities cope with homelessness and addictions.

Through committee initiative, the tour group heard from a regional wildlife manager and local resident who shared observations that taxes and cost of living have increased substantially while, for many people, quality of life has declined overall, especially for those who have not been able to take advantage of the activity. The same individual commented that effects on wildlife and habitat were not being addressed in mitigation activities and encouraged tour participants to ask further questions in this area.

After the tour’s conclusion, members learned that a large oil spill, linked to inadequate monitoring, occurred in the area during the time the committee was there. This significant event was not mentioned to participants, and only appeared in the media two weeks after the spill began.

The committee recognizes that in order to accommodate some of these issues, other components of the tour would have been missed. The exclusion of these elements highlights areas where the committee might focus in the future. Members raise these issues to draw awareness to impacts that cannot be overlooked as the Northwest Territories develops policy on the use of hydraulic fracturing.

Hydraulic fracturing continues to gain public attention in the Northwest Territories. It is to our immediate and long-term advantage to develop a responsible, well-informed policy on the use of this technology and ensure that all voices are heard on this important issue. The tour of the Bakken formation increased participants’ awareness of the impacts of shale development, and the need for planning and action. While the Northwest Territories is in a very different position than either North Dakota or Saskatchewan in terms of its level of development, to the degree that lessons learned in the development of the Bakken are accurately shared, they are valuable to future development in the Northwest Territories.

The standing committee would like to embark on further fact-finding and explore areas that were overlooked on its Calgary and Bakken tours, and hear from the public and interested organizations on the use of hydraulic fracturing in our jurisdiction. As leaders and decision-makers, the committee wants to ensure we act in the best interest of the Northwest Territories, our land, our people and our resources.

Mr. Speaker, that concludes the report of the Standing Committee on Economic Development and Infrastructure on the Bakken shale formation tour.

I move, seconded by the honourable Member for Hay River North, that Committee Report 1-17(5) be received by the Assembly and adopted. Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. The motion is in order. To the motion.

Question has been called.

---Carried

Committee Report 1-17(5) is received and adopted. Thank you, Mr. Hawkins. Item 5, returns to oral questions. Item 6, recognition of visitors in the gallery. Mr. Premier.

Thank you, Mr. Speaker. I’d like to recognize all the Pages that work in this session and specifically two Pages from Yellowknife South, Kaitlyn Hayward and Matt Walker. Thank you, Mr. Speaker.

Thank you, Mr. McLeod. Mr. McLeod.

Thank you, Mr. Speaker. I, too, would like to recognize a couple of Pages from Inuvik Twin Lakes. We have Mr. Cameron Wolki-Jacobson and Mr. Andrew Clark. We appreciate the work that all the Pages have done this past session. Thank you.

Thank you, Mr. McLeod. Mr. Bromley.