First Nations can lead in energy development, says CEO

February 11, 2016

First Nations play an important role in the oil and gas industry and need to consolidate their position as leaders. That is the message Joe Dion, chairman and CEO of Frog Lake Energy Resources Corp., will be delivering on the second day of the Assembly of First Nations forum on energy.

“We need to look at how we can be a part of building this nation,” said Dion. “We are being looked at as true partners of this confederation. So now as leaders we need to be responsible in leadership and in how we can drive this new development in a responsible manner.”

First Nations are playing an ever-increasing role in resource development, he says. Federal and provincial governments are beginning to understand – thanks to rulings from the Supreme Court of Canada - that they need Indigenous consent to allow resource development to happen.

“Our role is important enough that we can stop these projects or we can delay them forever. That’s how important we are as First Nations now,” said Dion.

That importance was underscored by remarks delivered by federal minister of natural resources Jim Carr on Wednesday, the opening day of the two-day forum in Vancouver.

Carr stressed that Indigenous peoples will be consulted on resource projects and decisions will be based on science. He also highlighted the government’s introduction of new environmental assessment rules for major resource projects including Kinder Morgan’s Trans Mountain pipeline expansion and Enbridge’s Northern Gateway project.

Dion says beyond giving approval for projects, First Nations need to benefit financially.

“We need to get revenues going to the communities as it has been going to governments and to industries. First Nations have not had that opportunity to see those revenues come to their communities,” he said.

But First Nations are struggling with capacity – financial, along with legal and business expertise - in becoming effective players in the resource industry.

“We don’t have the capacity to work with these bigger projects that are coming down the pike or that have been planned,” he said.

Expertise can be bought, but like most resource development companies in the country, cash flow is an issue.

Dion says Frog Lake Energy Resources Corp., which is wholly owned by the First Nation, has been impacted by the drop in oil prices.

“It’s certainly hurt us from the point of view we don’t have the production and revenues that we’ve had for some time. But we’re hanging in there. We’re trying to keep our costs down and we’re hoping to survive this downturn,” he said.

It has also resulted in a loss of jobs on the reserve.

When prices turn around, Dion says FLERC will begin drilling new wells.

FLERC, which has been operating for 15 years, leases and subleases lands on the Frog Lake First Nation, working with partners both on and off the reserve. Primarily an oil company, it has grown from 24 barrels a day to almost 3,500 barrels a day.

“Our priorities are inclusion, balance and diversity,” said Assembly of First Nations National Chief Perry Bellegarde, at the first day of the energy forum. “Inclusion means embracing First Nations’ role in shaping Canada’s energy future, as governments, as business partners and as environmental stewards and experts. Balance means that when we create economic opportunities we do so while carrying out our responsibilities to protect the lands and waters. Diversity means recognizing and respecting the range of opinions and involvement of First Nations in the energy sector. Our inherent right to self-determination means the ability to say yes to a development process, or no to a development project.”

The AFN facilitated the forum.