Public call for full Federal Environmental Assessment of Sawn Lake Heavy Oil Project

Friends of the Lubicon PO Box 444 Stn D, Etobicoke ON M9A 4X4 Tel: (416) 763-7500 Email: fol (at) tao (dot) ca www.lubicon.ca

June 13, 2005

Alberta Energy Minister Greg Melchin wrote to Alberta Liberal MLA Bill Bonko at the beginning of the month responding to questions Mr. Bonko had asked in the Alberta Legislature about Deep Well Oil and Gas and the Lubicon Nation.

The text of Mr. Melchin’s letter is included below.

Mr. Melchin confirms that Deep Well Oil and Gas began construction of their well site without the proper approvals in place and is liable for reclamation.

Mr. Melchin also told Mr. Bonko that "the drilling, construction and reclamation of an oil or gas well is specifically exempted from requiring an Environmental Impact Assessment."

"[Alberta Energy and Utilities Board] standards do not require the company to consult with the Lubicon Lake Band for its well license" he adds.

The fact that Alberta law does not require an Environmental Impact Assessment of what Deep Well, Surge Global Energy, Pan Orient Energy and Paradigm Oil and Gas all say is a major oil sands project in the heart of Lubicon Traditional Territory is exactly why Lubicon Chief Bernard Ominayak, along with Greenpeace, the Sierra Club and Dr. David Suzuki, has asked federal Environment Minister Stéphane Dion to begin a full-panel Environmental Assessment of the project under federal law.

People who share the Lubicon Nation’s concern about this state of affairs should write to Canadian Environment Minister Stéphane Dion asking him to begin a full federal environmental assessment panel review of the Sawn Lake heavy oil project as soon as possible. Letters should also be copied to the President of the Canadian Environmental Assessment Agency and to the Friends of the Lubicon. The addresses are below.

Points you should make in your letters are:

• The Lubicon Nation retains unceded aboriginal title to the lands and resources in the Sawn Lake area. These lands and resources have been the subject of a long-standing internationally-recognized dispute and negotiations to resolve this matter are still being pursued with both levels of government. Further, the project is immediately adjacent to proposed reserve lands to be set aside for the Lubicon people.
  
  
• The Alberta government issued oil sands leases to the area without any consultation with the Lubicon people. The companies involved have also failed to consult with the Lubicon people.
  
  
• The project proponents say they may drill up to 512 wells in the immediate area starting this month. The leased lands include the shores and bed of Sawn Lake, a lake used for fishing by the aboriginal people in the area. Chief Ominayak has expressed his peoples concerns about impacts on air, water, lands, wildlife and future reserve lands.
  
  
• The Alberta government has confirmed in writing that there is no provincial requirement for either an environmental assessment of the project or consultation with the aboriginal people in the area. Any approvals granted by the Alberta Energy and Utilities Board will be done on a well-by-well basis without consideration of the cumulative environmental impacts nor the project’s social and economic impacts on the Lubicon people.
  
  
• We are asking that the federal Minister of the Environment conduct full federal environmental assessment panel review of the Sawn Lake project before the project proponents begin drilling.

Send your letters to:

The Hon. Stéphane Dion
Minister of the Environment   
House of Commons
Ottawa, ON K1A 0A6
Fax: (613) 996-6562
E-mail: Dion.S@parl.gc.ca

Jean-Claude Bouchard, President
Canadian Environmental Assessment Agency
22nd Floor, Place Bell
160 Elgin Street
Ottawa ON K1A 0H3
Fax: (613) 957-0935
jean-claude.bouchard@ceaa-acee.gc.ca

Friends of the Lubicon (Toronto) PO BOX 444 STN D, ETOBICOKE ON M9A 4X4 Canada

E-mail : fol (at) tao.ca

Letter of Alberta Energy Minister Greg Melchin to Alberta MLA Bill Bonko (also available here in pdf format.)

Alberta Energy
Office of the Minister
Responsible for Alberta Energy and Utilities Board

June 1, 2005

Mr. Bill Bonko, MLA
Edmonton-Decore Constituency
201 Legislature Annex
9718 107 Street
Edmonton, AB T5K 1E4

Dear Mr. Bonko:

I want to take this opportunity to provide you with further information in response to your questions in the Legislature on oil well drilling on Crown land.

Alberta Sustainable Resource Development is responsible for issuing Mineral Surface Leases (MSL) to access Crown land, while the Department of Energy administers petroleum and natural gas (P&NG) rights owned by the Province of Alberta (the Crown) in the form of licences or leases. The Alberta Energy and Utilities Board (EUB) approves well licenses.

The work in question at Sawn Lake was in accordance with the Public Lands Act. However, the preparatory work done on the lease site was not in accordance with Section 11 of the Oil and Gas Conservation Act. This section prohibits any preparatory work or incidental operations, other than surveying, at a well site before a well license is issued by the EUB.

A thorough review of the matter shows that on March 3^rd the EUB became aware of the company's unauthorized activities and the Board immediately instructed the company to halt work on the site. No further work has been conducted. The company is currently under a suspension order, and will have to apply for a well license under the "Non Routine" process if they intend to move forward with development.

The company has acknowledged it was at fault and responsible for ensuring all approvals are in place. The EUB has a commitment from the company for full reclamation of the site if a well license is not approved.

The drilling, construction and reclamation of an oil or gas well is specifically exempted from requiring an Environmental Impact Assessment. With respect to oil and gas wells, the EUB has full authority, regulations and programs to properly regulate these activities. The EUB can halt activities that contravene Alberta legislation and EUB regulations pertaining to oil and gas development. Their authority includes consideration of environmental matters, broad public interest and other matters.

In this case, regarding consultation, EUB standards do not require the company to consult the Lubicon Lake Band for its well license, but the company is required to notify Alberta Crown disposition holders, including local trappers, as their interests may be directly or adversely affected, The interests of all Albertans are considered by the EUB as part of its assessment of any development being in the public interest.

Thank you for the opportunity to respond.

Sincerely yours,

Original signed by

Greg Melchin, FCA
Minister of Energy

Cc : Honourable David Coutts, Minister of Sustainable Resource Development
Honourable Guy Boutilier, Minister of Environment
Neil McCrank, Chair, Alberta Energy and Utilities Board

404 Legislature Building, Edmonton, Alberta, Canada T5K 2B6 Telephone 780/427-3740, Fax 780/422-0195

To receive timely e-mail updates on the Lubicon situation, please send an e-mail with the word subscribe in the subject line to
fol-request at masses.tao.ca