Thursday, 21 March 2013

Canada's First Nations – Pipelines and Resource Development


Few Canadians and even fewer international investors have any appreciation of the fact that treaty rights of First Nations are enshrined in Canada's Constitution Act of 1982, section 35.


35. (1) The existing aboriginal and treaty rights of the aboriginal peoples of Canada are hereby recognized and affirmed.
(2) In this Act, "Aboriginal Peoples of Canada" includes the Indian, Inuit and Métis peoples of Canada.
(3) For greater certainty, in subsection (1) "treaty rights" includes rights that now exist by way of land claims agreements or may be so acquired.
(4) Notwithstanding any other provision of this Act, the aboriginal and treaty rights referred to in subsection (1) are guaranteed equally to male and female persons.

The Supreme Court of Canada has reaffirmed these provisions. In various decisions since 1982, the Court has noted that the Crown has both a moral and legal obligation to uphold treaty rights. Further, it has reaffirmed the term “existing aboriginal and treaty rights” by noting they are extant in areas not covered by existing treaties viz most of British Columbia. Further, it has stated that the “honour of the Crown” obligates governments to consult with First Nations in matters of land use whether it takes place in non-treaty areas or in treaty areas outside of reserves.

A more detailed treatise on the evolution of the relationship between the Crown and First Nations is presented here:

It is a very dynamic area of law and opinion varies greatly within and outside First Nations. 

A trans-mountain pipeline to move bitumen to Canada's west coast will not happen any time soon. In a very real sense, I can sympathize with the misgivings of First Nations – the people with the most to lose if an environmental catastrophe takes place either through a rupture of pipelines and storage facilities or leakage from tankers. Further, BC has a record of major earthquakes and many seismologists feel that the next “big one” is due reasonably soon on the basis of geological evidence.

The implications are horrendous. While the damage to infrastructure from initial shockwaves can be very significant, the follow-on impacts are even more devastating:

Low-lying land masses are at highest risk for extensive flooding in the event of a tsunami. Damage to coastal British Columbia would be great. A final concerning consequence of a major earthquake is that of landslides. Although surface soil is mainly made of compact layers of silt or clay, the less compact layer below is composed of sand and highly susceptible to liquefaction. Sandy soils that are water-saturated can behave more like a liquid than a solid during an earthquake (7). Movement of the more solid surface layer over liquefied sand can destabilize building foundations and damage bridges, roads, and pipelines.

In the debate about the future of the pipeline(s), First Nations may well be the only interests who will be effective in forcing governments to address the environmental and cultural implications of pipelines. Speaking personally, I have far more respect for the right of First Nations to question the pipelines than I do for many environmentalist groups, a few of which will be easy for governments to dismiss in the court of public opinion due to their unbending ideological opposition to fossil fuel based energy. As one who has invested significantly in oil sands companies, I am inclined to respect the right of First Nations to have a major say in determining the future of the pipelines. And if the final decision inconveniences me as an investor, I am more than willing to accept it as there are more important considerations at play than my personal financial interests.

“Only in Canada” you say? I say, “Thank God for that.”  It is to be celebrated. 

As the Report of the Royal Commission on Aboriginal Peoples 1996 states:

Canada is a test case for a grand notion - the notion that dissimilar peoples can share lands, resources, power and dreams while respecting and sustaining their differences. The story of Canada is the story of many such peoples, trying and failing and trying again, to live together in peace and harmony.
But there cannot be peace or harmony unless there is justice.

...Canadians need to understand that Aboriginal peoples are nations. That is, they are political and cultural groups with values and lifeways distinct from those of other Canadians. They lived as nations - highly centralized, loosely federated, or small and clan-based - for thousands of years before the arrival of Europeans. As nations, they forged trade and military alliances among themselves and with the new arrivals. To this day, Aboriginal people's sense of confidence and well-being as individuals remains tied to the strength of their nations. Only as members of restored nations can they reach their potential in the twenty-first century.
Let us be clear, however. To say that Aboriginal peoples are nations is not to say that they are nation-states seeking independence from Canada. They are collectivities with a long shared history, a right to govern themselves and, in general, a strong desire to do so in partnership with Canada.



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