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1. Roles and Responsibilities of Governmentstop
The Yukon is a territory within the Canadian confederation and has powers similar to those of a province. It has been a separate geographical and political entity within Canada since 1898. The Yukon obtained administration and control over its land and resources through a process of negotiated devolution. Responsibility for onshore oil and gas resources was transferred to the Yukon government on November 1998. Federal and Yukon legislation implemented the transfer of responsibility for public lands, forests, water and minerals, and gas from coal from the federal government to the Yukon, as provided for in the April 1, 2003 Devolution Transfer Agreement. With these transfers, the Yukon obtained the resource management powers and responsibilities similar to a province. Nevertheless, the Government of Canada continues to have a regulatory role with respect to international and interprovincial pipelines, and offshore management. In addition, First Nations which have concluded land claims agreements own the resources on the surface of their lands, and on specific parcels, subsurface resources.
Roles and Responsibilities of Governments
A. Government of the Yukon The transfer of the administration and control of oil and gas resources to the Yukon, which came into affect on November 19, 1998, has had a number of implications for managing those resources. First, local resources are now under local control and management. The Yukon’s resources can be developed in a way that reflects Yukon’s interests and in a manner that is responsive to industry needs. Prior to the transfer, most oil and gas projects required a land use permit from the federal government and an oil and gas licence from the Yukon government. Now, both the land use permit and the licence are issued by the Department of Energy, Mines and Resources. Second, the Yukon government restructured and changed the mandates of many departments. A new department of Energy, Mines and Resources (EMR) was created to manage the natural resources and regulate development within the territory. It largely replaced the Department of Economic Development under which oil and gas was formerly administered. Two branches in EMR deal with oil and gas matters: the Oil and Gas Management Branch, and the Oil and Gas Business Development and Pipeline Branch.
Oil and Gas Management Branch The Oil and Gas Management Branch is responsible for managing oil and gas resources and regulating oil and gas activity. In carrying out its responsibilities, the branch is engaged in:
John Masterson - Director Oil and Gas Business Development and Pipeline Branch The mandate of the Oil and Gas Business Development and Pipeline Branch is to encourage the development of Yukon's resource potential and emerging oil and gas industry. It is responsible for:
Brian Love - Director B. Yukon First Nations Yukon First Nations play a very important role in resource development in three significant ways. First, as a result of land claims settlements, they own surface and/or subsurface rights as follows:
Second, as owners of oil and gas resources, Yukon First Nations are working with the Yukon Government in developing a common oil and gas regime. Third, Yukon First Nations are involved in or are consulted through various oil and gas related processes, notably the disposition and licensing process. In addition, they are entitled to be parties to benefits agreements for oil and gas activities planned within their traditional territories.
Land Claims Negotiations Land claims is the term used to describe the process of negotiating final and self-government agreements respecting aboriginal rights and title to land. Historically, the Government of Canada negotiated treaties with aboriginal peoples to establish aboriginal rights. As treaties were never concluded in the Yukon, the Governments of Canada and Yukon are now completing the negotiation and implementation of modern-day treaties with Yukon First Nations through the land claims process. Settlement of land claims provides Yukon First Nations with rights and obligations to land and resources, and the ability to govern their own affairs. It also provides certainty with respect to land management and resource development, and charts a stable future for social and political development of the territory. The Umbrella Final Agreement (UFA) is the framework agreement for all Yukon land claims negotiations and settlement agreements. As outlined in the UFA, settlement lands will collectively total approximately 41,500 square kilometres or about nine per cent of the total land area of the Yukon once all Final Agreements are in place. A portion of these settlement lands include subsurface oil and gas rights which will encompass approximately six per cent of the Yukon. Yukon First Nations acquire ownership of their own oil and gas lands as each Final Agreement comes into effect.
Status of Land Claims Negotiations There are a total of 14 Yukon First Nations. The following 10 Yukon First Nations have concluded and are implementing final and self government agreements. The year in which each agreement came into effect is in brackets.
The Carcross Tagish First Nation has concluded negotiations and ratified its land claims agreement. At the time of publication, White River First Nation, Ross River Dena Council and the Liard First Nation had not yet concluded land claims agreements.
Transboundary Agreements Some Yukon First Nations share traditional use and occupancy of Yukon land with First Nations in both British Columbia and the Northwest Territories. In B.C., those First Nations are within the Kaska Dena Council, the Tahltan Tribal Council and Taku River Tlingit First Nation. In the N.W.T., they are the Tetlit Gwich’in, the Inuvialuit and First Nations of the Dene/Metis. The Tetlit Gwich’in and the Inuvialuit have Transboundary Agreements which are in effect, while discussions with other Transboundary First Nations are still at an early stage.
First Nations Powers to Create and Enforce Laws on Settlement Lands The self-government agreements of Yukon First Nations provide them with law-making authority over their citizens and lands. Of importance to oil and gas companies interested in investing in Yukon are the following law-making powers of First Nations:
Land Claims and Implementation Secretariat, Executive Council Office C. Federal Government Offshore Areas The federal government retains responsibility and authority in the offshore area where there are significant oil and gas resources. A report by Dixon et al (Petroleum Resources of the Mackenzie Delta and Beaufort Sea-1994) estimates 12 Tcf of discovered conventional natural gas plus 54 Tcf of potential, for an ultimate potential of 66 Tcf for conventional natural gas; and 1.7 billion barrels discovered crude oil and 5.4 billion barrels potential, for an ultimate potential of 7.1 billion barrels of crude oil. Oil and gas resource management in the Beaufort Sea region is regulated under two federal statutes: the Canada Petroleum Resources Act (CPRA); and the Canada Oil and Gas Operations Act (COGOA). The Department of Indian Affairs and Northern Development governs the allocation of oil and gas rights to the private sector and all related conditions under CPRA. The National Energy Board regulates the industrial activities regarding resource conservation, protecting the environment and workers’ safety primairly under COGOA. Under the 1993 Canada Yukon Oil and Gas Accord, the federal government made a commitment to complete a shared offshore management regime and revenue sharing arrangement in the Beaufort Sea with the Yukon. To ensure Yukon’s interests are met and regulatory certainty is provided to the oil and gas industry, concluding shared offshore arrangements is a priority for Yukon. Until such arrangements are finalized, an interim joint Federal/ Territorial Offshore Committee has been established pursuant to the Accord. It ensures Yukon’s input into the decision making process of the federal government pursuant to the CPRA. Industry interests in oil and gas exploration and development in the Beaufort Sea - Mackenzie Delta region have increased significantly in the past few years, driven mainly by the proposed Mackenzie Gas Project. A new offshore well is being planned by Devon Canada, which is expected to be drilled during the winter of 2005/2006. Yukon continues to participate in and monitor a number of national and international initiatives and issues related to the Beaufort Sea region. Some of these include: the Beaufort Sea Integrated Management Planning Initiative; the Oceans Action Plan; the Arctic Council’s Arctic Marine Strategic Plan; and the Canada/U.S. boundary dispute.
Contact information: For more information on Yukon’s offshore interests contact: Interprovincial and International Pipelines Under the Canadian constitution the federal government is responsible for interprovincial and international trade and commerce. As such, the National Energy Board regulates and is responsible for international and interprovincial pipelines. The federal minister of Natural Resources Canada is responsible for the Northern Pipeline Agency. See section on pipelines.
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Last Updated 07-09-2005