This is page numbers 1699 – 1740 of the Hansard for the 18th Assembly, 2nd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was going.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Michael Nadli

Michael Nadli Deh Cho

Thank you, Mr. Chair. Mr. Chair, I had some questions in regard to the petroleum industry in terms of I think it's been stated that in terms of the potential outlook for this industry to exist and operate in the NWT, you know there's no prospect of, or likely any form, activity in this economic sector for the next 10 years. So understanding that, over the course of at least the past three years or so we've seen a fairly consistent decline in terms of petroleum resources in terms of how this department engages oil and gas companies in terms of their activity in the NWT plus communities as well. So significantly over the past year the resources and funding for this area has been dramatically reduced.

So I'm just trying to understand, you know, if it is indeed during a period of lull where there is no activity. It begs to question of what's the focus of this department in terms of ensuring, and at the very minimum we have at least maybe a unit that could be mobilized quickly if the markets reach their ideal prices where it's economical for companies to start exploring and working the oil and gas industry in the Mackenzie Valley, or the NWT for that matter.

So I understand the Minister has stated that there is going to be an Oil and Gas Development Strategy. I mean, how much attention and focus should be of this government to ensure that we also explore the idea of developing alternative energies? You know, we just had a dilemma of transporting goods down the Mackenzie Valley and, because of climate change, the water levels have affected the operations of a barging company that brings goods to northern remote communities.

The point is that, you know, our community is very reliant on diesel energy and diesel as a source of fuel. At the same time, should we be looking at maybe putting efforts to remediate abandoned wells in terms of our obligations of taking on more responsibility through the devolution agreement? Mahsi. If the Minister could maybe provide some insight into that. Mahsi.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Nadli. Minister Schumann.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Wally Schumann

Wally Schumann Hay River South

Thank you, Mr. Chair. First of all, I guess the comment about going to more renewable energy, we'll be speaking to that when I'm up here with the Department of Public Works and Services on where we're going with that. As the Member knows, we're out there doing our energy strategy presently and getting input from all the stakeholders in the Northwest Territories and public sessions for public input. When I'm up here as the Minister of Public Works and Services, I'll be glad to discuss that.

As far as reclamation of abandoned wells in the Northwest Territories, that falls under the OROGO regulator, so that's not part of our portfolio. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

February 15th, 2017

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister Schumann. Mr. Nadli.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Michael Nadli

Michael Nadli Deh Cho

Thank you, Mr. Chair. The other part of this question is on page 127. It makes reference to the Mackenzie Valley development contribution, which is essentially non-existent anymore, but it also makes reference to the Aboriginal Pipeline Group. Does this department or this government have an obligation in terms of ensuring that the APG in terms of their relationship with the GNWT is maintained, if there is a relationship? Mahsi.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Nadli. Minister Schumann.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Wally Schumann

Wally Schumann Hay River South

Thank you, Mr. Chair. As we've said, we've taken that funding out, as the Mackenzie Valley Gas Project right now is kind of in a moratorium stage, to figure out what the industry is going to do moving forward. As far as the Aboriginal Pipeline Working Group goes, they're well aware of this reduction, and I believe everything is just on pause until things to decide to move forward. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister Schumann. Mr. Nadli.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Michael Nadli

Michael Nadli Deh Cho

Thank you, Mr. Chair. I think the scope of possibilities has widened in terms of how perhaps this department can maybe refocus its energy if the oil and gas industry is non-existent. So I'm just trying to understand whether this department would be perhaps a lead agency in terms of engaging. You know, there may be some consideration of developing at least the infrastructure so that in eventually, maybe 10 years, 20 years down the road, there's a need to access the oil fields and the gas fields that more likely haven't been found yet.

Is there perhaps some consideration of examining the pipeline infrastructure perhaps down the road that could be in parallel to this great propensity that we have of highway infrastructure? Is there some idea of a strategy that could be part of this oil and gas, at least discussion paper or strategy that might be developed? Mahsi.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Nadli. Minister Schumann.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Wally Schumann

Wally Schumann Hay River South

Thank you, Mr. Chair. The oil and gas strategy as we move forward is going to have a component on infrastructure. With the pause, as I've said, in the oil and gas industry this department has taken the initiative to downsize our wants and needs around the oil and gas industry to at least meet our obligation and the mandate commitments as well as developing oil and gas strategy legislation moving forward and have enough people in place in case there is a rebound and the market indicates there will be.

I want to make the comment around what the Member is stating, around infrastructure needs, and that is a cross-departmental issue with this whole government. How do we bring interest back into the oil fields, and particularly in the Sahtu? I believe, as in my other role as Minister of Transportation, that it is vital that we try to get the Mackenzie Valley Highway approved and get that built to help access all the millions and billions of dollars' worth of oil and gas that we have in the territory. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister Schumann. Mr. Nadli.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Michael Nadli

Michael Nadli Deh Cho

Thank you, Mr. Chair. No further questions.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Nadli. Next we have Mr. Beaulieu.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Thank you, Mr. Chairman. Mr. Chairman, I was looking for a bit of clarification on an item here on page 206 on the expenditure category on compensation and benefits over the past two fiscal years, gone down slightly from almost $10 million down to $9.6 million down to $8.3 million, but the positions are exactly the same. I was wondering what the difference is? If we are still paying 58 people benefits and compensation, why is there such a big drop in the amount? Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Beaulieu. Minister Schumann.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Wally Schumann

Wally Schumann Hay River South

Thank you, Mr. Chair. I will redirect that to the director of finance. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister Schumann. Ms. Mujcin.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Mujcin

Thank you, Mr. Chair. The reduction you see here is the second year of the reductions that were made in 2016-17. There were a number of position reductions made in the 2016-17 Main Estimates and they were cash-flowed over two fiscal years. That is what you are seeing in 2017-18. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Ms. Mujcin. Mr. Beaulieu.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Thank you, Mr. Chairman. Mr. Chairman, can the Minister tell me how many positions existed in mineral petroleum resources, active positions, in 2015-16, so that I get a better picture of what the director is referring to?

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Beaulieu. Minister Schumann.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Wally Schumann

Wally Schumann Hay River South

Thank you, Mr. Chair. From the 2015-16 that the Member is asking for, there were 14 positions. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister Schumann. Mr. Beaulieu.

Consideration in Committee of the Whole of Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters

Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Thank you, Mr. Chairman. This has got me confused. Did the Minister say there were 14 positions in -- okay. According to this there was a huge increase in the amount of positions. I wonder if the Minister would like to clarify what he means by 14 positions? Thank you, Mr. Chair.