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
Attached below for your information are copies of correspondence between Lubicon Chief Ominayak and the Alberta Energy and Utilities Board (AEUB) regarding the July 14, 2005 application of Deep Well/Surge Global Energy to commence a large-scale heavy oil exploitation project in unceded Lubicon Territory one small, seemingly innocuous piece at a time. Also attached below is a copy of a 4-page submission to the AEUB in support of the application made by John Brown on behalf of Surge Global Energy.
The correspondence between Chief Ominayak and the AEUB is self-explanatory. Mr. Brown’s artfully crafted August 7th submission requires both context and comment.
In a cover letter to the AEUB Mr. Brown says that he is attaching "copies of notes and paperwork arising from recent attempts to meet with the Lubicon Indians with a view to addressing those concerns which they have that are relevant to the proposed drilling license". The truth about "recent attempts to meet with the Lubicon Indians" is as follows.
The Lubicon people first heard about this proposed oil sands project when they read about it in a newspaper article on August 21, 2004. Lubicon legal council Richard Gariepy wrote to Deep Well Oil and Gas -- the company identified in the article as the proponent of the project -- requesting a meeting to discuss the proposed project. Deep Well officials never responded to Mr. Gariepy’s letter.
On March 2, 2005 Lubicon members discovered contractors clear cutting a large area in a key part of Lubicon Territory near Fish (Haig) Lake on behalf of Deep Well. Lubicon members asked the contractors to stop clearing until a meeting could be arranged with officials of Deep Well to discuss the proposed project.
Lubicon representatives then again attempted to contact Deep Well officials about meeting. Again Deep Well officials didn’t respond.
On March 3rd, Lubicon lawyer Gariepy received a phone call from Deep Well lawyer Robert Hladun alleging falsely that Lubicon members were "blockading" the work site and claiming that this blockade was costing Deep Well "$100,000 a day". Mr. Hladun gave Mr. Gariepy a cell phone number where Mr. Gariepy could reach "a very senior Deep Well official named John Brown".
After a number of attempts Lubicon representatives reached Mr. Brown and a meeting was arranged for later that afternoon. The reason Lubicon representatives were unable to reach Mr. Brown earlier was because Mr. Brown was meeting with local RCMP charging falsely that the Lubicons had blockaded the road and shut down the Deep Well clearing operation.
At the meeting with Lubicon representatives Mr. Brown claimed that he was only a consultant hired by Deep Well with no authority to make agreements or commitments. Mr. Brown did agree, however, to set up a meeting the following week with senior officials of Deep Well. (The Lubicons later learned that Mr. Brown was in fact the former Chief Operating Officer of Deep Well and a major investor in Deep Well through a numbered company nominally owned by his daughters. Although Mr. Brown continues to try and hide his light under a rock -- and doesn’t identify his current position with Surge in his submission to the AEUB or in the materials attached to that submission, the ubiquitous Mr. Brown is in fact now Vice President of Operations at Surge Global Energy.)
Mr. Brown promised to phone the Lubicons back with a date and time for the meeting with senior officials of Deep Well. He never phoned back.
The Lubicons consequently made a number of more attempts to reach senior officials of Deep Well to request a meeting. Deep Well officials continued to ignore repeated efforts on the part of Lubicon representatives to arrange for a meeting.
On March 11, Lubicon lawyer Gariepy wrote to Surge Global Energy — who had recently become a key partner of Deep Well in the proposed project -- indicating Lubicon concerns with the proposed project and advising Surge officials of the continuing lack of response by Deep Well officials regarding repeated Lubicon requests for a meeting. Officials of Surge didn’t respond to Mr. Gariepy’s letter.
Lubicon representatives also made it publicly known through the media that the Lubicon people have serious concerns about the proposed Deep Well/Surge project and were seeking a meeting with Deep Well and Surge officials. Neither company responded to public notification of Lubicon efforts to try and arrange a meeting.
On March 30th Lubicon Councilor Walter Whitehead, on whose traditional family trapline the Deep Well/Surge project is proposed, wrote to then Deep Well President Steven Gawne advising Mr. Gawne that Walter Whitehead had never been consulted about the proposed project -- as required by law-- and expressing Walter Whitehead’s concerns about the proposed project. A noted copy of Walter Whitehead’s letter was sent to Surge President Frederick Kelly. Neither Mr. Gawne nor Mr. Kelly ever responded to Walter Whitehead’s letter.
On March 31st a wholly owned subsidiary of Deep Well named Northern Alberta Oil Ltd. issued a press release claiming that "all (provincial) regulations and legal requirements with respect to drilling and recovery of heavy oil (underlining added) have been complied with". In fact Deep Well had not only failed to consult the Lubicons as the original aboriginal inhabitants of the area, or with Walter Whitehead as the owner of the involved trapline, but they had also failed to obtain the required provincial drilling license, had failed to obtain rights to use the Husky Oil road they’d been using and are not even licensed to operate in the province of Alberta. (AEUB officials speculated that Deep Well’s lack of license to operate in Alberta is the reason that the AEUB application was made under the name of Surge Global Energy rather than under the name of Deep Well Oil and Gas.)
On July 8th Walter Whitehead received a letter from Surge President Frederick Kelly. The letter was dated June 22nd or 17 days after the date of the letter. As required by Alberta Environmental Protection the letter gave Walter Whitehead "10 day notice (from the July 8th date of the letter) that Surge has "recently applied to Alberta Environment for access onto the lands covered...on the attached survey plan". The letter advises Walter Whitehead that "Traps and trap lines affected by this disposition should be removed/relocated at this time to prevent accidental damage".
Walter Whitehead faxed a reply to Mr. Kelly on July 11th telling Mr. Kelly that "it’s a little late to warn me about potential damage to traps and trap lines when your contractors already cleared a large site on my trap line without any notification of consultation whatsoever". Walter Whitehead reminded Mr. Kelly that "the lands you are proposing to tear apart are at the heart of the Lubicon Lake Indian Nation’s unceded traditional Territory". Walter Whitehead advised Mr. Kelly that "your project will not be allowed to go ahead while you continue to ignore the Lubicon Nation’s request to meet and discuss the proposed project".
Mr. Kelly replied to Walter Whitehead’s July 11th letter in a letter dated July 12th although Mr. Kelly’s reply was again not received until some time later. Mr. Kelly’s letter said:
"I understand you claim the right to control access to the area, rather than the Alberta Government. As Surge, and other interest holders in the area, are advised by the Alberta government that the Government is the legitimate steward of the area, I suggest you pursue your claims with them, as the Government is the only appropriate body to discuss any land claims you may feel you have.
"With regard to legitimate concerns over projects of any sort, or any size, please understand the AEUB has a well defined process to allow interest holders opportunity for input into the direction, if any, that may come of resource exploration and any subsequent plans for development. Such due process will be conducted at the appropriate time, and we welcome your input at that time."
On July 14th Surge made application to the AEUB for the required drilling license.
On July 18th the Lubicons filed the attached official objection to the granting of the license.
On July 28th Surge Board Chairman David Perez phoned Lubicon advisor Kevin Thomas and proposed a meeting with Kevin Thomas in Toronto the following week. Kevin Thomas told Mr. Perez that Mr. Perez would have to meet directly with the Lubicons if he wanted to discuss a project proposed on unceded Lubicon land. A meeting was agreed with Lubicon Chief and Council in Little Buffalo Lake for July 31st.
Detailed notes on the July 31st meeting with Messrs. Perez. Gawne and Brown are attached below. Not surprisingly the detailed meeting notes describe a much different meeting than is described by Mr. Brown in the summary of the July 31st meeting included in Mr. Brown’s artfully worded August 7th submission to the AEUB.
In his cover letter to the AEUB Mr. Brown says "the position put forward by the negotiators Kevin Thomas and Fred Lennarson, purported to be those (sic) of the Lubicon Indians (underlining added), is that all activity within the ‘Traditional Land’ map as presented by them, will be opposed until a land claims settlement is achieved". Mr. Brown goes on to claim that Surge representatives were told that "Individual operators who negotiate terms with (the Lubicons) will proceed on some basis, but objections will continue to any activity on the grounds of this being their land for both surface and mineral rights".
Not only are these statements by Mr. Brown a gross oversimplification and misrepresentation of the position taken by Lubicon representatives at the July 31st meeting, they are a purposeful misrepresentation of the role played by Messrs. Thomas and Lennarson. The meeting was in fact with Lubicon Chief and Council, with Messrs. Thomas and Lennarson in attendance only in support, and Chief Ominayak personally made the Lubicon position perfectly clear throughout the meeting. (For details see for the July 31st meeting notes attached below.)
In his cover letter Mr. Brown says there are "Points I wish to make with regard to the above captioned application". He says "Four other wells have been licensed in the area for the purposes of evaluating Bluesky potential bitumen production". He says "None of these wells have obtained any volume of bitumen production to date" (begging the obvious question of why Deep Well/Surge would want to drill an expensive well in such an unpromising location).
Mr. Brown continues "It is (therefore) premature to label the Surge well as anything other than an evaluation of oil sands, with the possibility of a production test". (Here Mr. Brown is of course implying that there’s no need to be concerned about the implications of a major oil sands exploitation project because, supposedly, there’s not likely to be one. However Mr. Brown’s "points" as to why the Deep Well/Surge application should be approved without an assessment of Deep Well/Surge overall project plans dramatically contradict the description of overall project prospects and plans contained in the literature Deep Well/Surge distribute to potential investors).
Needless to say this is the sum of Mr. Brown’s argument to the AEUB, such as it is, that only one well is involved and the potential for more is slim at best. Therefore, Mr. Brown suggests, there is no need to worry about the potential impact of up to 512 wells, pipelines, roads, oil sands upgrader and thermal extraction methods glowingly described in company materials to entice investors.
The problem is that the crafty Mr. Brown can’t have it both ways. Either Deep Well/Surge is proposing a major oil sands exploitation project with potentially significant environmental effects (with this one well being only a first step) -- as described in company promotional materials designed for the purpose of enticing investors -- or Deep Well/Surge is only proposing one test well with little chance of success, as suggested by Mr. Brown in his submission to the AEUB for the purpose of getting approval of one well without having to speak to the potentially significant implications of a planned major oil sands exploitation project.
In his summary of the July 31st meeting Mr. Brown gives Kevin Thomas and Fred Lennarson both the title of "Activist/lobbyist". In fact neither Kevin Thomas nor Fred Lennarson have or have ever had such a title. Mr. Brown’s purposeful characterization of Messrs. Thomas and Lennarson’s role is just another of Mr. Brown’s little political games, like his false claim that Thomas and Lennarson put forward a position at the meeting "purported to be those (sic) of the Lubicon Indians". (One can imagine the descriptive characterization one might accurately give Mr. Brown.)
Mr. Brown says the July 31st meeting included an "Apology to the Lubicon Nation, on behalf of Deep Well, regarding the events and the lapse of paperwork (underlining added), in the entry on the lease at Sawn Lake". "Lapse of paperwork" is what the ever creative Mr. Brown calls failure to consult the Lubicons as required by law, failure to consult Walter Whitehead as required by law, failure to obtain a provincial drilling license as required by law, failure to obtain rights to use the Husky road as required by law and failure to have a license to operate in Alberta as required by law.
Mr. Brown attaches a memo to Arlene Charles to his August 7th AEUB submission, presumably sent by him but again Mr. Brown carefully hides his light under a rock, which essentially suggests that the Lubicons agreed at the July 31st meeting to withdraw their objection to the proposed project "subject to the following conditions:
"The well is to be drilled from the abandoned well site 1-36-91-13 W5.
"That the well is a test well of the Bluesky oil sands.
"That the well is not meant to be a productive oil well, but is subject to an amendment to a horizontal well, drilled from the original well bore, on the same location as the test well, as a result of analysis of the core of the vertical well.
"That the issuance of this license does not obligate the AEUB to issue any subsequent license."
In fact the Lubicons agreed to no such thing. All the Lubicons agreed at the meeting was to reconsider their position on the proposed project based on detailed project information which Deep Well/Surge officials promised to provide the next week but never provided.
On August 3rd Chief Ominayak wrote Surge Board Chairman and Chief Operating Officer David Perez -- who played the lead role for the companies in the July 31st meeting -- setting out the agreements made in the July 31st meeting. Chief Ominayak wrote, in part:
"We appreciate the verbal commitments made by Surge Global Energy and Deep Well Oil and Gas at our meeting on July 31. In order that all parties are clear on what was discussed, we would like to express this initial agreement between Surge Global Energy and the Lubicon Lake Indian Nation in a letter between the two parties. Our understanding of these commitments is as follows:
-Surge Global Energy will treat the Lubicon Lake Indian Nation in the same manner as it treats the Alberta Provincial Government with respect to regulating its oil and gas exploitation activities within Lubicon Traditional Territory, and particularly with respect to the proposed Sawn Lake heavy oil project. Specifically, Surge Global Energy and its partners will submit all plans and proposals for activities within Lubicon Traditional Territory to the Lubicon Chief and Council for approval prior to applying to provincial regulatory bodies for permits and licenses. Surge and its partners will provide the Lubicon Chief and Council with documentation, upon request, concerning such environmental and operational details as are necessary for a full assessment of the project’s potential impacts.
-Surge Global Energy and its partners will not proceed with applications for provincial permits or licenses or with operations on the ground until it has obtained the explicit written consent of the Lubicon Lake Indian Nation not to oppose the project elements being proposed (underlining added).
-Agreement by the Lubicon Lake Indian Nation not to oppose any specific application or project element will not constitute agreement not to oppose any other elements of the proposed project.
-Should the Lubicon Lake Indian Nation agree not to oppose the proposed activity, Surge Global Energy and its partners will identify employment opportunities for Lubicon Nation members where the Lubicon Nation has the capacity to carry out the work.
-In relation to the application for a single well license at 1-36-91-13 W5M currently being proposed, the Lubicon Nation has requested further information from Surge Global Energy regarding water use and disposal, water flooding and the proposed Genoil heavy oil upgrading process. Further, we have requested additional assurances that Surge Global Energy will not pursue exploitation near or beneath Sawn and Haig Lakes.
-Surge Global Energy and its partners will not pursue any projects within a one-mile buffer zone surrounding the proposed Lubicon reserve at Haig Lake pending settlement of Lubicon land rights. This includes one Section of the oil sands leases held by Deep Well Oil and Gas at 27-91-13 W5M. (A map of the proposed reserve area at Haig Lake is attached for your information.)
-These commitments will be binding on Surge Global Energy and its successors and will be included as a condition on any sale of assets within Lubicon Territory by Surge Global Energy, its partners or their successors.
-We agree that there will be ongoing communications between Surge Global Energy and the Lubicon Nation on operational and environmental issues."
On August 7th -- in clear and deliberate contravention of the July 31st agreement -- Mr. Brown made the attached submission to the AEUB in support of the Surge drilling application. He cites the July 31st meeting and the attached August 2nd memo to Arlene Charles instructing her to continue "liaising" with the Lubicons as supposed proof that Surge is meeting the legal requirement to "consult" with the aboriginal population in the area of the proposed project. (The Lubicons did not receive a copy of Mr. Brown’s submission until a couple of weeks ago from the AUEB web site.)
On August 9th Kevin Thomas phoned David Perez asking why Surge had not responded to Chief Ominayak’s August 3rd letter.
David Perez said "John Brown is dealing with Arlene Charles (of Scott Land and Lease). He said "She’s been trying to reach the Chief".
Kevin Thomas told Mr. Perez that he’d spoken to Arlene Charles about a follow-up meeting but at that moment the Lubicons were looking for reaction to the Chief’s August 3rd letter.
David Perez said "Our attorney gave us some issues with it". He said "We cannot sign it as is". "As a public company", he said "I can’t put that in writing".
David Perez said "We’ll release a position statement or a press release". He said "We’ll write to the Indian Department about resolving your issues". "But", he said, "your letter was a little bit consigning".
Kevin Thomas pointed out "The Chief’s August 3rd letter accurately reflected the commitments made at the July 31st meeting".
David Perez said "Based on our discussions, we prepared a two page letter which we gave to Arlene Charles to review with the Chief". He said "You should call her". He said "You need to be dealing with her".
David Perez said "We’re not entering into an agreement in writing with the Chief or yourself". He said "We committed to treat you like the AEUB, give you the documents before we go to them, and if there’s production in this well, we said we’d apply for a second well".
Mr. Perez said "We said we’re not going to use ground water". He said "Ed Howard, John Brown and Fred Kelly are prepared to sit down with you and talk about that".
Kevin Thomas said that he’d have to take a look at Arlene Charles letter but that the agreement was with Surge, not Scott Land and Lease. He said Chief Ominayak had asked him to phone Mr. Perez to ask for Surge’s reaction to the Chief’s August 3rd letter.
Shortly thereafter Arlene Charles faxed Kevin Thomas her two-page letter supposedly regarding agreements made at the July 31st meeting. It did not commit the company to obtaining Lubicon agreement not to oppose before applying to provincial regulatory agencies, not using steam injection, not drilling beneath Sawn and Haig Lakes, not drilling in the buffer zone and it didn’t provide provision that these commitments would be included as conditions in any sale of the company or its Sawn Lake interests. It only committed the company to providing the Lubicons with information about their operations, lobbying both levels of Canadian government regarding settlement of Lubicon land rights, providing additional information on water use, identifying employment opportunities and compensating affected trappers. On the basis of these commitments, it asked the Lubicons to write the AEUB a letter withdrawing the Lubicon objection to the July 14th Surge drilling license application to the AEUB.
Chief Ominayak wrote to David Perez the same day asking that Mr. Perez confirm that Surge stands by the commitments made in the meeting on July 31st and expressed in the Chief’s August 3rd letter to Mr. Perez. "With respect to a further meeting between the Lubicon Nation and Surge Global Energy (proposed by Ms. Charles in her August 9th letter)", the Chief wrote, "we would like to meet once it is clear to us that Surge Global Energy is willing to stand by the commitments made in our meeting".
On August 10th David Perez phoned Kevin Thomas and asked if Kevin Thomas had seen Arlene Charles’ August 9th letter and what Kevin Thomas thought about it.
Kevin Thomas told Mr. Perez that the Charles letter didn’t contain the commitments Mr. Perez made in the July 31st meeting.
David Perez asked Kevin Thomas what commitments Kevin Thomas was talking about.
Kevin Thomas said "The commitment to obtain Lubicon agreement not to oppose prior to making application to any of the provincial regulatory bodies".
David Perez said "I don’t have a problem with that." He said "I have in my notes that before we go the AEUB, we go to the Lubicon". He said "I’m fine with that".
Kevin Thomas said "The commitment to obtain Lubicon agreement not to oppose prior to making application to provincial regulatory agencies has to be in the letter".
David Perez asked Kevin Thomas "What else?"
Kevin Thomas said "One of the key commitments is the requirement that any of these agreements are binding on Surge’s successors".
David Perez said "The attorneys say that’s not possible". He said "The letter we provided you, we’re willing to make that a statement, issue it to the press, but no officer is going to sign off on it". "At the end of the day", he said, "it’s not enforceable".
Kevin Thomas said "Having Surge’s officers agreeing in writing to conduct their business in a certain way is essential before anything proceeds". He said "The Lubicons don’t want to be in a position years from now, where they’re dealing with a new set of people -- even within Surge -- who have no memory of what was agreed." He said the Lubicons are right now dealing with a forestry company which is trying to break an agreement and it’s a lot easier to deal with the terms of an agreement when it's in writing.
David Perez said "I understand". He said "What Arlene sent you was what the attorneys and my board would allow me to send".
Kevin Thomas told Mr. Perez that Surge would have to spell out more than what was contained in the Charles’ letter if Surge wants to proceed.
David Perez asked "What else?"
Kevin Thomas said Mr. Perez had agreed not to use potable water.
David Perez said "Yeah, that’s fine".
Kevin Thomas said Mr. Perez had agreed not to use steam because it’s not safe in that area.
David Perez said "That’s right". He said "Ed Howard was going to come up to talk to you about that".
Kevin Thomas said "It should be spelled out in the letter". He told Mr. Perez that Mr. Perez should look at Chief Ominayak’s August 3rd letter and, if Mr. Perez is not satisfied with the Chief’s wording, that Mr. Perez should propose alternate wording. He told Mr. Perez that Surge doesn’t necessarily have to sign off on the Chief’s letter but that the agreements made at the July 31st meeting have to be included in a letter on what was agreed.
David Perez said "I’ll try to get you something by the end of the day". "If I do that", he asked, "can we get a letter from the Chief (withdrawing the Lubicon objection to the Surge application)?"
Kevin Thomas said the Lubicons are not going to consider withdrawing their objection until they’d received and reviewed the project information promised at the July 31st meeting.
"So you won’t approve the well until we’ve met", Mr. Perez asked?
Kevin Thomas told him the Lubicons won’t consider withdrawing their objection until they’ve received and reviewed the project information promised at the July 31st meeting, and they won’t meet until the terms of the July 31st agreement are agreed in writing.
On August 11th Mr. Perez sent Chief Ominayak a letter requesting that the Lubicons withdraw their objection to the Surge application to the AEUB based on the following commitments:
"The Peace River formation overlying the Bluesky Formation is known to be wet, and would be the likely source of any water used for injection into the Bluesky."
"Surge will discuss (the location for up to ten wells) with the Lubicon, prior to making application to the AEUB for any licenses. Any concerns expressed by the Lubicons will be taken into consideration prior to application submission to the AEUB.)
"Surge will discuss options regarding ongoing production with the Lubicons, prior to moving forward with such plans."
"Existing wells throughout the area were not required to be cemented with thermal cement, if they were drilled prior to 1990. Such wells pose an unacceptable risk to a steam injection program. More importantly, Surge believes at this time the high cost of steam generation and injection would not be justified in this area. Thus, no steam project is currently contemplated or proposed for this area."
"Surge will make every effort to ensure a proper working protocol is established with the Lubicon, and expects that any change in management/successor of Surge, or title to leases held by Surge will maintain and adhere to an effective working protocol".
On August 12th Chief Ominayak responded to Mr. Perez’s August 11th letter as follows:
"Obviously your letter still does not accurately reflect the unequivocal commitments made by yourself and Surge Vice President John Brown in our July 31, 2005 meeting.
"My letter of August 3, 2005 accurately reflects the unequivocal commitments made by Surge Global Energy representatives during that meeting, including the commitment to seek Lubicon consent not to oppose Surge operations prior to applying for provincial permits or licenses.
"Lubicon representatives are always prepared to hear presentations from companies about their plans for projects within unceded Lubicon Traditional Territory and we will consider our position with regard to each project based on the information provided.
"However the Lubicon Nation is not prepared to withdraw our objection to your current AEUB application based on the highly qualified series of statements in your letter which essentially promise only to tell us what you’re going to do before you proceed.
"We would like to be able to make an informed decision about this project but it is increasingly difficult to do so when we can’t rely on the statements made by Surge representatives from one day to the next."
On August 17th the AEUB sent Chief Ominayak a letter clearly designed to set the stage for denying the Lubicons status in the matter of the Surge application and thus rejecting the Lubicon objection. A copy of the AEUB letter and the Chief’s self-explanatory response is attached.
Not having heard back from Mr. Perez by August 26th, Kevin Thomas phoned Mr. Perez and asked if Mr. Perez intends to respond to the Chief’s letters. (By this point it was becoming increasingly likely that Mr. Perez was dissembling and that Surge was already proceeding with their application for a drilling license contrary to the agreement with the Lubicons.)
Mr. Perez said "Your letter...we’re not asking for approval". He said "You’re not a governing body to ask for approval". He said "We were going to inform you before we make any application to the AEUB". He said "We’re not going to require written approval from the Chief".
Mr. Perez said "The dynamics of the project is (sic) cold pumping". He said "Before we apply for a permit, we’ll be up front, we’ll communicate on a basis that’s way more frequent than most companies, but it’s a single well program right now".
Mr. Perez said "We’ll pay the trapper his fees". He said "Just give us an amount and we’ll pay it". He said "We’ll make sure there’s economic benefits for the Chief and his people". "But", he said, "you’re asking us to commit to full approval from the Lubicons in writing". He said "My attorneys say I can’t do that".
David Perez said, revealingly, "We talked to the provincial guys and they said do not negotiate with the Lubicons". He said "They (the "provincial guys") told us "Let us deal with it".
David Perez said he told the province "If it’s your problem, why don’t we have a permit already?" He said "They’re telling us not to even meet with you guys but then they don’t give us a permit". He said "We’re in a catch 22".
David Perez said "I’m absolutely committed to communicating everything with you". He said "This is not a production well". He said "This is just a test well to see if it (heavy oil) will cold pump". "If this won’t cold pump", he said, there’s a good chance we’ll pull out completely".
Mr. Perez said "I suggest to you that we get the economic benefits of this one well in the short term and then we’ll have plenty of time to talk about the rest later". (Basically Mr. Perez’s position is that the Lubicons should just trust him to do the right and honorable thing despite his worrisome waffling, his lack of willingness to put the July 31st agreement in writing, and, as it turned out, his proceeding with the AEUB application contrary to the July 31st agreement.)
Kevin Thomas pointed out to Mr. Perez that Mr. Perez had committed to obtaining Lubicon agreement not to oppose before making application to provincial regulatory authorities.
David Perez denied that he’d ever agreed to obtain Lubicon agreement not to oppose before making application to the provincial regulatory authorities. He said "No, I was there". He said "I was there with two other guys".
Kevin Thomas said "I was there too". He said "There were a number of people there and they all know what you agreed at the meeting". He said "You said you would obtain Lubicon agreement not to oppose before proceeding".
David Perez said "No, we were going to inform". "If there are problems", he said, we’ll work around them".
David Perez repeated "The Chief is not a governing body". Mr. Perez said "He (Chief Ominayak) has no authority".
Kevin Thomas said "The Chief and Council do have authority and they are the governing body in the traditional Lubicon Territory". He said "That’s one of the key issues we discussed at the July 31st meeting". "By choosing to only go to the province", Kevin Thomas said, "you’re taking sides in a jurisdictional dispute between two parties".
Kevin Thomas asked who Surge is dealing with in the province.
David Perez said "They asked not to be identified". He said "There were three individuals, one who is a high up official". He said "They said that the fact that we’re paying the leases to them is proof that they’re the only governing body". He said "Their whole assumption is that this is their problem and we should stay out of it".
Kevin Thomas told Mr. Perez that the only way to stay out of the jurisdictional dispute between the Lubicons and Canadian government is to either abide by the July 31st agreement or to stay out of the contested area altogether. He asked if the provincial people Surge is dealing with are with the provincial Energy Department or the provincial department of Sustainable Resources Development.
David Perez said "I have no idea". He said "I’m going through some reps we hired". He said "We have people lobbying for us". (The Chairman of Deep Well is of course an ex-provincial cabinet Minister; one of the members of the Deep Well Board heads up two provincially funded energy related organizations that work closely with the provincial Energy Department; and at least one project investor is a close friend and business associate of the Provincial Premier.)
David Perez said "We have to find some middle ground".
Kevin Thomas told Mr. Perez that the agreements made on July 31st were an attempt to find middle ground He said "The only way to resolve this is for Surge to either stay out of the contested area or to obtain Lubicon agreement not to oppose before applying to provincial regulatory authorities". He said "That’s what we discussed and agreed on July 31st".
David Perez said "I don’t want a fight". He said "I can say it verbally". He said "I just can’t put it in writing".
Kevin Thomas said the Lubicons need an agreement in writing. He said "We can make an agreement now verbally but what happens a few years from now when the individuals who are party to the agreement aren’t around".
David Perez said "That’s right". He said "You’re looking ahead". "But", he said, "I’m prohibited from signing that letter by my Board and legally".
David Perez said "The province said that they made an offer to the Lubicons, to set some land aside, but the Lubicons didn’t take it". He asked "Is that true?"
Kevin Thomas said that’s not true. He said there are some agreements on reserve lands as part of an overall settlement of Lubicon land rights but reserve land boundaries haven’t been finalized, the issue of reserve lands is only one of a number of issues involved in settling Lubicon land rights and there is no settlement of Lubicon land rights. At the moment, Kevin Thomas said, there aren’t even any negotiations.
On September 19th the AEUB predictably wrote the Lubicons a letter advising that "The Board finds that you have not demonstrated that you may be directly and adversely affected by the Board’s decision (on the Surge application)". "As a result", the letter continues, "the Board has dismissed your objection and will issue the license to the applicant in due course".
On September 21st the AEUB predictably rubber-stamped the Surge application to drill a well in unceded Lubicon Territory. Deep Well/Surge may therefore be proceeding with the first initial step in their major heavy oil extraction project at any time.
The situation is consequently tense and potentially dangerous.
Officials of Deep Well/Surge are apparently prepared to say or do anything in order to get at the heavy oil resources under unceded Lubicon Territory just as long as they don’t have to do in a form which might hinder their ability to proceed however they please.
The provincial answer to the problem is to take advantage of oil company greed to simply impose provincial jurisdiction over the contested lands. (As Premier Klein once poetically put his views on use of government power, "our gang is bigger than theirs")
The federal government, with exclusive constitutional responsibility for dealing with Indian land rights, isn’t even prepared to give federal negotiators a mandate to negotiate outstanding settlement issues in good faith.
And the embattled Lubicons are firmly resolved to do everything they can to protect the environment in their unceded traditional Territory, and, specifically in this case, potentially endangered water resources in a key part of their unceded traditional Territory.
Lubicon supporters are asked to write, email, phone and/or fax Surge Chairman David Perez demanding that Deep Well/Surge honor the agreements made with Lubicon Chief and Council on July 31st and obtain Lubicon agreement not to oppose before applying to provincial regulatory agencies for permits and licenses.
Mr. Perez can be reached at:
David Perez
COO and Chair,
Surge Global Energy
Suite 410
12220 El Camino Real
San Diego, California 92130
USA
Phone: 858-704-5010
Fax: 858-704-5011
Email: david@surgeglobalenergy.com
Copies of all correspondence, notes and media coverage are also available at www.tao.ca/~fol
Correspondence between Lubicon Chief Ominayak and the Alberta Energy and Utilities Board (AEUB) regarding the July 14, 2005 application of Deep Well / Surge Global Energy to commence a large-scale heavy oil exploitation project in unceded Lubicon Territory one small, seemingly innocuous piece at a time. July 17, 2005 letter from Lubicon Chief Bernard Ominayak to AEUB stating concerns and strong objections to commencement of large-scale heavy oil project on Lubicon land. August 17 letter from AEUB to Chief Ominayak asking for more information about Lubicon concerns of the drilling of one oil well. August 30 letter from Chief Ominayak to AEUB reiterating the concerns that the proposed large-scale heavy oil exploitation project will have disastrous affects on the health, safety, environment and property rights of the Lubicon people. September19 letter from AEUB to Chief Ominayak dismissing Lubicon objections about the commencement of a large-scale heavy oil project on Lubicon land.and informing the Lubicons that the board will issue a licence to commence drilling for oil to Surge Global Energy. July 31, 2005 Meeting Minutes of meeting between Chief and Council of Lubicon Nation and representatives of Surge Global Energy. -- produced by Lubicon Nation. Aug 7, 2005 4-page submission to the AEUB made by John Brown on behalf of Surge Global Energy -- Includes Meeting Summary of July 31 meeting between representatives of Lubicon Nation and Surge Global Energy produced by John Brown. After the 4 page submission there is correspondence between Chief Ominayak and Surge regarding the commitments made at the July 31, 2005 meeting. Correspondence between Lubicon Naton Council member Walter Whitehead and Deep Well / Surge Global Energy regarding unannounced and unauthorized clearcutting of Whitehead's trapline in preparation for heavy oil extraction.
John Cotter
Canadian Press
September 21, 2005
EDMONTON (CP) - The Lubicon say they are considering their options after Alberta regulators ignored their protests and gave an oil company permission Tuesday to drill a well on part of the band's land claim.
Surge Global Energy (Canada) Ltd. wants to drill a single oilsands exploration well in the area. Lubicon Chief Bernard Ominayak had written to the Alberta Energy and Utilities Board against the application, which the band considers to be only the first stage of a 500-well project.
He argued the exploratory well shouldn't be granted without an assessment of the overall impact of the entire plan.
The utilities board sent a letter to the band Tuesday rejecting the band concerns.
"The board finds that you have not demonstrated that you have been directly and adversely affected by the board's decision," wrote board lawyer Giuseppa Bentivegna.
"As a result, the board has dismissed your objection and will issue the licence to the applicant."
Surge Global chairman David Perez could not be reached for comment.
The Lubicon made international headlines in 1988 when they blockaded roads near their community of Little Buffalo in north central Alberta to keep out energy developers.
The small, impoverished band has been pressing for 66 years to resolve a land claim that would provide the community with a reserve, compensation and self-government.
Lubicon spokesman Kevin Thomas said the band is disappointed by the board's decision.
"They've narrowed the scope of the project down to one well when everyone knows that that isn't what the company is talking about," he said.
"We are considering our options. We have to find a way to respond effectively."
Earlier this year environment groups such as the Sierra Club of Canada and Greenpeace met with the Lubicon to express support for the band.
Sierra Club spokesman John Bennett also expressed disappointment with Tuesday's ruling and said the organization will do what it can for the Lubicon.
"We don't believe the Alberta government has any right to give oil companies permission to utilize aboriginal lands without their permission," Bennett said from Ottawa.
"We certainly morally support them and will look for ways to make that support more substantial."
In its letter to the board, the Lubicon said the band is concerned about how energy development on their traditional land would affect wildlife, the environment, groundwater, fisheries and traplines.
EUB spokesman Bob Curran said Alberta considers the territory to be Crown land.
He said the exploratory well can only operate for 30 days and there is no application before the board for a larger project.
"At this point in time we don't know if the company does intend to engage in a large development program," Curran said.
"This is a standard thing a company would do to assess if commercial development is feasible."
© The Canadian Press 2005
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