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
October 27, 2005
After months of pressure from the Lubicon Nation and their supporters, Surge Global Energy has signed a letter of agreement with the Lubicon Nation establishing the procedure they must follow in order to proceed with any oil exploitation operations within Lubicon Traditional Territory. The letter of agreement has also been signed by Pan Orient Energy and 1132559 Alberta Ltd., two of the other companies with a stake in the Sawn Lake heavy oil project.
Recognizing that the Lubicon Nation has an unresolved land rights dispute and that the Lubicon Nation opposes resource extraction in their Traditional Territory prior to resolution of that dispute, the companies have agreed to a process which respects the Lubicon Nation’s right to stop activities which threaten vital Lubicon wildlife, environmental, cultural and historical interests.
In the absence of a Lubicon land rights settlement which establishes the rights and responsibilities of the various parties in the area, this kind of ad-hoc agreement, enforced by Lubicon action on the ground and pressure from Lubicon supporters around the world, is the only method of ensuring that vital Lubicon interests are protected while not shutting down every company in the area.
The procedure established by the letter of agreement is simple.
Prior to applying to the provincial regulatory authorities for approvals, permits or licenses to proceed with any project elements (wells, pipelines, etc), Surge Global Energy will present a detailed plan for the proposed activity to the Lubicon Nation and seek Lubicon agreement not to oppose the particular project element. Only after the company has obtained Lubicon agreement not to oppose the project element will they go forward to the provincial regulatory agencies for permits or licenses.
The company has also agreed that they will not use any surface water or potable water in their oil exploitation operations. Further, the company has agreed that no steam or hot water operations will be conducted without the Lubicon Nation agreeing not to oppose those operations. Damage to the surface lakes and creeks and the general hydrological system in the area from steam or other thermal operations is a key Lubicon concern.
Any drilling sites or pipeline routes will be altered if necessary to address Lubicon wildlife, environmental, cultural or historical concerns.
Lastly, the company has agreed that any exploitation beyond the initial phase of the project will require consideration of the cumulative environmental effects of the project as a whole, rather than only evaluating the effects of each project element in isolation.
Media coverage of this agreement is attached below. Details of discussions and the public campaign leading up to this agreement are well covered on this web site.
Although this letter of agreement represents a positive step towards protecting vital Lubicon wildlife and environmental interests in this area, it remains to be seen how well the agreement is respected in practice. The Lubicon Nation will continue to monitor the implementation of the agreement and ensure that their continuing environmental concerns are respected by the company.
One other development may impact the implementation of this agreement and will need to be monitored closely by Lubicon supporters.
Surge Global Energy is currently the official Operator on behalf of all of the companies who have an interest in the Sawn Lake project on Lubicon Traditional Territory and is therefore responsible for the ongoing development of the project. For that reason, the agreement with Surge determines how the project as a whole will be carried out.
However there is an ongoing battle between Surge Global Energy and Deep Well Oil and Gas over ownership of the project.
Surge Global Energy was brought in to the Sawn Lake project when Deep Well ran out of operating funds last spring (partly as a result of investors shying away from the obviously controversial nature of the proposed project on unceded Lubicon Territory). The companies signed a "farm-in" agreement whereby Surge, at its own expense, is obliged to drill a number of wells within certain timelines in order to "earn" a 40% stake in the project. Deep Well would retain a 40% stake, with the remaining 20% being divided amongst other companies.
Arguing that Deep Well should regain its original 80% stake in the project, Deep Well Oil and Gas has launched a legal action claiming that Surge did not complete the conditions of its farm-in agreement within the time limits, and is therefore ineligible for its 40% interest in the project. Surge maintains that it did meet the conditions of its farm-in agreement within the agreed time limits and, for its part, is challenging the legitimacy of the current Deep Well Board of Directors in a separate action.
While it is always preferable to watch oil companies fight each other rather than the Lubicon Nation, it is critical that whoever maintains a share in the Sawn Lake project respects the terms of the letter of agreement signed by Surge Global Energy and Pan Orient if they expect to proceed with any operations within Lubicon Traditional Territory.
October 25, 2005
Canadian Press
By John Cotter
EDMONTON (CP) - Two energy companies have signed an agreement with the Alberta Lubicon that gives the Cree band a veto over some oil and gas drilling on disputed land.
Key parts of the deal signed by Surge Global Energy and Pan Orient Energy give the Lubicon the power to say no to the use of surface or potable water in the drilling or operation of wells.
The band will also have a say in where wells or pipelines will be located on Crown land the Lubicon claim about 100 kilometres east of Peace River.
"Proposed drilling locations will be altered to take into account areas which have historical, cultural, wildlife or ecological significance to the Lubicon Nation," says a signed copy of the deal obtained by The Canadian Press.
"Significant changes by Surge to the plan may only be made by written consent of an authorized representative of the Lubicon Nation."
The Lubicon were missed when a federal commission negotiated Treaty 8 in Alberta in 1899. They were largely ignored until the land they inhabit - and never surrendered via a treaty - became valuable for its oil, gas and forest resources.
The 500-member band has been fighting for a reserve since 1939. Over the last two decades the Lubicon have also been pushing for millions of dollars in compensation and for self government.
A delegation from the band appeared last week before a United Nations human rights committee in Geneva to put pressure on the federal government to settle their land claim.
The agreement signed by the two companies Oct. 14 was reached despite the objections of the Alberta government, which urged the firms not to negotiate with the band, Lubicon spokesman Kevin Thomas said Tuesday.
"The Alberta government told them not to negotiate with us but they went ahead and did it anyway," Thomas said.
"If the companies and the Lubicon can come to terms, then that makes it a lot easier for everybody."
There is a clause in the agreement, however, that says the deal should not be interpreted as evidence that Surge supports "any conflict the Lubicon has or may have with any governmental body in Canada." The band made international headlines in 1988 when it blockaded roads to keep out energy developers. The protests ended after RCMP raided a blockade and arrested band members.
Last week, the Alberta Energy and Utilities Board granted Surge an operating licence for one well in the area. If the project is successful, the band expects to see applications for hundreds more.
Officials with Surge, Pan Orient, Alberta Energy and Alberta Aboriginal Affairs were not immediately available for comment.
Bob Curren of the energy board, an independent agency, said the deal between the two companies and the Lubicon is more of a "best practices" operating agreement.
Curren said it is not clear how much legal weight it will have because the territory in question is Crown land.
"The companies have agreed to do something that is not required by regulations in Alberta," Curren said from Calgary.
"Other companies could come into that area, theoretically, and apply to drill wells, and they would not be bound by that agreement."
Thomas said the band will monitor activity on the disputed land to ensure the two firms comply with the deal.
October 25, 2005
Edmonton Sun
By Kristen Vernon
Lubicon leaders and oil company executives have signed an agreement giving the Lubicon Lake First Nation a say in oil drilling on lands it claims as its own.
Surge Global Energy (Canada) Ltd. has agreed to review the company's plans to drill for heavy oil with Lubicon leaders, and consult them before applying for provincial permits.
"That gives Lubicon (leaders) the power to say no to parts of development they think are particularly harmful to the environment," said Lubicon spokesman Kevin Thomas.
"We are really pleased to be able to co-operate with them and advise them before we go out and apply for any permits," said David Perez, chairman of Surge Global.
Surge Global has been given Alberta Energy and Utilities Board approval to drill an exploratory well near Peace River, about 300 km northeast of Edmonton, on land the band considers unceded traditional territory.
If successful, the area could house more than 500 wells.
Meanwhile, a two-member Lubicon delegation is due back tomorrow after an appearance before the United Nations human rights committee in Geneva earlier this month and meetings with supporters in Munich, Zurich and Italy.
The delegates appealed to the UN committee to press Canada to resolve the long-standing land claim and to again find Canada in violation of the Lubicon's human rights.
The Lubicon land claim has been dragging on since 1939, and they're demanding it be solved by the end of the year.
"I think it's possible if the government was serious about settling," Thomas said. "The technical work is all done - it's just a question of political will."
An Indian and Northern Affairs Canada spokesman said the government invited the Lubicon back to the negotiating table in June, but they refused without a change to the government's mandate.
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