This is page numbers 5945 - 5992 of the Hansard for the 18th Assembly, 3rd 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 public.

Topics

The Chair

The Chair R.J. Simpson

Thank you. Minister.

Wally Schumann

Wally Schumann Hay River South

Well, we are figuring that out. I have the information here for Members on SDLs. Northwest Territories onshore, we have 90 SDLs, 90, nine-zero, covering 460,077 hectares. Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you, Minister. We are still awaiting answer, I believe, on Mr. O'Reilly's question, as this is his time. Minister.

Wally Schumann

Wally Schumann Hay River South

Thank you, Mr. Chair. We will recommend to the 19th Legislative Assembly to review regulations under the PRA and the Oil and Gas Operations Act. Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. Mr. O'Reilly.

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Mr. Chair. When do the Minister and the department anticipate actually looking at the royalty regime? Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. Minister.

Wally Schumann

Wally Schumann Hay River South

Thank you, Mr. Chair. As this has come up with the mineral side of things, too, my answer is exactly the same. Our fiscal regimes needs to be looked at carefully and holistically, not through the lens of just royalties. It's our opinion that there is insufficient time to put in the attention that this process deserves in the life of this Assembly, and it is our opinion the responsible thing to do was to get through these first-step amendments right and set the stage for the review of our government's fiscal regime for the mineral and petroleum resources for the next Assembly. Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. Mr. O'Reilly.

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Mr. Chair. Yes, and I hope to be here in the next Assembly to have some say in how that rolls out, but I think that is all the questions I had. I want to put the law clerk on the spot here, if I may, Mr. Chair. I would like to ask the law clerk: any of the motions to amend the bill in committee, did any of those motions -- I guess I can only really ask about Bill 36. Did any of those motions have any effect on the jurisdiction of the National Energy Board with regard to the ISR? Thanks, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. One minute. Madam Law Clerk.

Brownlee

Thank you, Mr. Chairman. We had understood that the definition of "hydraulic fracturing fluid" had to certainly be reviewed by the NEB and that that may require federal concurrence. I do understand that officials consulted with the National Energy Board on the change to the definition of "hydraulic fracturing fluid" that was inserted into Bill 36. Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. Mr. O'Reilly.

Kevin O'Reilly

Kevin O'Reilly Frame Lake

Thanks, Mr. Chair. So can the Minister or his staff confirm, then, that definition of "hydraulic fracturing fluid" that we changed in the bill, does that require federal concurrence, and, if so, has it already been secured? Thanks, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you, Mr. O'Reilly. I was going to keep everyone at a tight 10 minutes, but I will allow the department to answer very briefly as Mr. O'Reilly's time is up. Mr. Marion.

Marion

Yes. We worked with the law clerk and her staff as well as OROGO and the National Energy Board on this motion, on what would be an acceptable addition to the hydraulic fracturing fluid information, and then, from there, we talked to CIRNAC, the division of the federal government, and confirmed that it would not actually trigger the need for additional federal consent pursuant to subsection 22(2) of the Northwest Territories Act.

The Chair

The Chair R.J. Simpson

Thank you for the answer. Next, we have Mr. McNeely. General comments on the bill, Mr. McNeely.

Daniel McNeely

Daniel McNeely Sahtu

Thank you, Mr. Chair. Yes, in general comments to the bill here, my colleague here from Kam Lake had mentioned what the government can do here. What we have been suggested by various reports is to reform our regulatory system to make it more certain and more flexible. However, that is our job, to legislate the balance of what is certain. Keeping this community or this territory to move up into the attractive world of a climate for investment is exactly what we are doing. When I ask, when I see revenues outside of our TFF, I look at industry's presence for that shortfall, and the longer we can keep industry here, the more sales or the more revenues can be realized, aside from the commerce of jobs and opportunities that industry brings. On the issue of SDLs, there was an SDL issued back in 1985 to Petro-Canada just outside of Colville Lake and later inherited to this government, and as well as a different oil company, called Suncor, that acquired that asset. I think, if anybody would give it some thought here, when they're having discussions with the Canadian Association for Petroleum Producers in Calgary they would realize that it only makes sense on returns on costs through the infrastructure that is available. Because of a lack of infrastructure, the Colville Lake gas field sits idle like many others, other SDLs that have been issued since.

We can't force industry to come back. It would just not be economical for the stockholders to realize that. Using this idle time in industry's absence, I think it's very productive as to what we are doing right now on regulatory reform. I am confident that the department is and has done that, and has consulted with the Canadian Association of Petroleum Producers that represents multiple membership in the industry.

I am quite satisfied on this made-in-the-North with our resource development legislation that we are doing now and will be doing, and keeping in mind, we are not going to agree on all the motions or legislation; however, I do respect everybody's position, and I do respect, more so, if others could respect mine. Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you, Mr. McNeely. Any further general comments on the bill? Mr. Nakimayak.

Herbert Nakimayak

Herbert Nakimayak Nunakput

Thank you, Mr. Chair. I am looking at the second page, and I am just going to read this sentence here, this paragraph: "This bill was developed through an extensive policy development effort, including significant legislative research. Two months of open multi-platform engagement with the public industry. Indigenous governments and NGOs, not as stakeholders, feedback, and also the Intergovernmental Council." I'm just wondering if the Minister can elaborate on that? Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. Mr. Marion.

Marion

Yes. We had a fairly extensive public engagement period. We produced an engagement paper which identified issues and recommended options to address those issues. They looked at transparency and public accountability, administrative and technical issues, and significant discovery licenses. From that, we engaged. I believe we went to six regional centres, and at each regional centre we met with Indigenous governments and organizations. We had public meetings. We also had technical stakeholder meetings with the regulator, industry, NGOs, environmental, non-government organizations, and then that culminated in a "what we heard" report. Then we developed the legislative proposal and onwards.

Throughout that entire process, we had regular meetings with the intergovernmental council and worked with them to develop policy, and eventually the bills. Thank you, Chair.

The Chair

The Chair R.J. Simpson

Thank you. Mr. Nakimayak.

Herbert Nakimayak

Herbert Nakimayak Nunakput

Thank you, Mr. Chair. Coming from the Inuvialuit Regional ISR, there are definitely some, the industry there is obviously slow, and I am sure that the government is well aware of all the issues they are having in the region with their licences and with all the natural gas. I am just wondering what role the IRC had to play in this? Thank you, Mr. Chair.

The Chair

The Chair R.J. Simpson

Thank you. Mr. McEachern.