Offshore Oil and Gas Approvals

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					        Oil and Gas Approvals
    in the Northwest Territories
         - Inuvialuit Settlement Region -




     A guide to regulatory approval processes
for oil and natural gas exploration and production
        in the Inuvialuit Settlement Region




                    June 2001




          The Regulatory Roadmaps Project
Cover photos courtesy of:
      Peggy Jay, Inuvialuit Regional Corporation, Inuvik
      Petro-Canada




This Guide was prepared by Jessie Sloan, Alvarez Sloan & Associates, Calgary with the much appreciated help of
Gordon Erlandson, Erlandson & Associates, Victoria and Louise Beinhauer, Word Works, Victoria.

Copies of this Guide may be obtained from the Northern Oil and Gas Directorate in Ottawa and the Canadian
Association of Petroleum Producers in Calgary. An electronic version will be available at:
oilandgasguides.com

Other Guides in the Regulatory Roadmaps series:
    Oil and Gas Approvals in the Northwest Territories – Southern Mackenzie Valley;
    Oil and Gas Approvals in Atlantic Canada – Nova Scotia Offshore Area;
    Oil and Gas Approvals in Atlantic Canada – Newfoundland Offshore Area;
    Oil and Gas Approvals in the Northwest Territories – Gwich’in Settlement Area (in progress); and
    Oil and Gas Approvals in the Northwest Territories – Sahtu Settlement Area (in progress).
                                                                                                              Foreword


FOREWORD
The objective of this Guide is to outline the regulatory framework for authorizing oil and gas exploration and
production activities in the Inuvialuit Settlement Region of the Northwest Territories. This Guide is intended to be
descriptive only: the legislation and regulation remain the final authorities. For any particular project, the Operator
will have to refer to the appropriate legislation and regulatory authorities for clarification and interpretation of
requirements.

This Guide deals strictly with authorization processes. Once a development is approved, the Operator must
comply with not only the terms of the authorizations but also with post-licensing regulation. These latter
requirements are not covered in this Guide.


READER’S CAUTION
This Guide describes processes for authorization of oil and gas activities in the Inuvialuit Settlement Region as
they appear at time of writing (June 2001). These are in fact early days: applications for exploration activities are
just beginning and both the authorities and processes for regulation of such activities are relatively new. It is likely
that, as regulators, Inuvialuit institutions and Operators gain experience with assessment, review and regulation of
northern oil and gas activities, the arrangements as described in this Guide may change. As well, legislative
initiatives and amendments now in Parliament will change the arrangements described in this Guide if passed.

Finally, the federal Inter-Departmental Task Force on Northern Oil and Gas Development (Environmental
Assessment and Regulatory Working Group) is examining processes related to authorization of a major northern
pipeline. The Task Force initiative may lead to agreement on a project specific process that differs from those
described here.




June 2001                                                                                                                  i
Acknowledgements


ACKNOWLEDGEMENTS
Preparation of this Guide is a joint initiative of:
         Northern Oil and Gas Directorate, Indian and Northern Affairs Canada, Ottawa
         Inuvialuit Regional Corporation, Inuvik
         Canadian Association of Petroleum Producers, Calgary.

with further assistance from:
         Canadian Coast Guard, Department of Fisheries and Oceans, Sarnia
         Canadian Environmental Assessment Agency, Vancouver and Ottawa
         Department of Economic Development, Yukon Government, Whitehorse
         Fisheries and Oceans Canada, Yellowknife
         Environment and Conservation, Indian and Northern Affairs Canada, Yellowknife
         Environment Canada, Yellowknife
         Environmental Impact Review Board, Inuvik
         Environmental Impact Screening Committee, Inuvik
         Inuvialuit Land Administration, Tuktoyaktuk
         Land Administration, Indian and Northern Affairs Canada, Yellowknife
         Mineral and Petroleum Resources, Indian and Northern Affairs, Yellowknife
         National Energy Board, Calgary
         Natural Resources Canada, Ottawa
         Prince of Wales Northern Heritage Centre, Yellowknife
         Regional Office, Indian and Northern Affairs Canada, Inuvik
         Resources, Wildlife and Economic Development, Government of NWT, Yellowknife and Inuvik
         Water Resources, Indian and Northern Affairs Canada, Yellowknife

The text has been reviewed by the agencies listed above, however the agencies remain the authorities for processes
described. Opinions expressed are those of the author, not the organizations listed.




ii                                                                                                     June 2001
                                                                                                                                    Table of Contents


                                                      TABLE OF CONTENTS
                  PART I – INTRODUCTION TO THE INUVIALUIT SETTLEMENT REGION

1.0     THE INUVIALUIT SETTLEMENT REGION (ISR)............................................................................. 1-1
         1.1      THE INUVIALUIT FINAL AGREEMENT (IFA)................................................................................... 1-1
         1.2      IMPLEMENTATION OF THE INUVIALUIT FINAL AGREEMENT (IFA) ................................................. 1-1
         1.3      SIGNIFICANCE OF DIFFERENT TYPES OF LAND IN THE ISR............................................................. 1-2
         1.4      RELATIONSHIP TO COMMUNITIES .................................................................................................. 1-2
         1.5      ENVIRONMENTALLY SENSITIVE AND PROTECTED AREAS .............................................................. 1-2
2.0     THE INUVIALUIT FINAL AGREEMENT (IFA) ................................................................................. 2-1
         2.1      GOALS (IFA SECTION 1)................................................................................................................ 2-1
         2.2      BENEFICIARY AND INUVIALUIT CORPORATIONS (IFA SECTIONS 5 AND 6) .................................... 2-1
         2.3      INUVIALUIT-OWNED LANDS (IFA SECTION 7).............................................................................. 2-2
         2.4      CROWN-OWNED LANDS ................................................................................................................ 2-2
         2.5      ACCESS TO AND ACROSS INUVIALUIT-OWNED LANDS (IFA SECTION 7) ...................................... 2-3
         2.6      WILDLIFE COMPENSATION (IFA SECTION 13) .............................................................................. 2-3
         2.7      WATER MANAGEMENT (IFA SECTION 7) ...................................................................................... 2-4
         2.8      SAND AND GRAVEL (IFA SECTION 7) ............................................................................................ 2-4
         2.9      PARTICIPATION AGREEMENTS (IFA SECTION 10) ......................................................................... 2-5
         2.10     ARBITRATION PROCESS (IFA SECTION 18) ................................................................................... 2-5
         2.11     LAWS OF GENERAL APPLICATION (IFA SECTION 7) ..................................................................... 2-5
         2.12     IFA ENVIRONMENTAL IMPACT SCREENING AND REVIEW PROCESS............................................... 2-5
         2.13     ECONOMIC PROVISIONS (IFA SECTIONS 10 AND 16) .................................................................... 2-6
         2.14     LAND USE PLANNING (IFA SECTION 7)......................................................................................... 2-6
3.0     INSTITUTIONS UNDER THE INUVIALUIT FINAL AGREEMENT ............................................... 3-1
         3.1      IFA INSTITUTIONS FOR CO-MANAGEMENT AND ENVIRONMENTAL ASSESSMENT ......................... 3-1
                  3.1.1   Institutions for Co-Management of Wildlife ................................................................... 3-1
                  3.1.2   Institutions of IFA Environmental Impact Screening and Review .................................. 3-3
         3.2      INUVIALUIT INSTITUTIONS ............................................................................................................. 3-4
                  3.2.1   Inuvialuit Regional Corporation (IRC) .......................................................................... 3-4
                  3.2.2   Inuvialuit Land Administration (ILA) ............................................................................. 3-4
                  3.2.3   Inuvialuit Game Council (IGC) ...................................................................................... 3-5
         3.3      COMMUNITY INSTITUTIONS ........................................................................................................... 3-5
                  3.3.1   Community Corporations (CC)....................................................................................... 3-5
                  3.3.2   Community Hunters and Trappers Committees (HTC) .................................................. 3-6
4.0     IFA ENVIRONMENTAL IMPACT SCREENING AND REVIEW PROCESS.................................. 4-1
         4.1      APPLICATION OF THE PROCESS: TO WHICH PROJECTS? ................................................................. 4-1
         4.2      DEVELOPMENTS THAT REQUIRE SCREENING ................................................................................. 4-1
         4.3      EXEMPTION FROM SCREENING ....................................................................................................... 4-2
         4.4      ENVIRONMENTAL IMPACT REVIEW BOARD ................................................................................... 4-7
         4.5      RELATIONSHIP TO THE CANADIAN ENVIRONMENTAL ASSESSMENT ACT .......................................... 4-15
5.0     THE IMPORTANCE OF CONSULTATION IN IFA PROCESSES.................................................... 5-1
         5.1      THE INUVIALUIT INTERESTS .......................................................................................................... 5-1
         5.2      THE DEVELOPER’S INTERESTS ....................................................................................................... 5-1
         5.3      EFFECTIVE CONSULTATION ........................................................................................................... 5-2
         5.4      START EARLY ................................................................................................................................ 5-3
                  5.4.1   Designing Consultation Efforts ...................................................................................... 5-4




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Table of Contents


                        PART II – LANDS IN THE INUVIALUIT SETTLEMENT REGION

6.0    SIGNIFICANCE OF DIFFERENT TYPES OF LAND IN THE ISR ................................................... 6-1
       6.1         SUMMARY OF AUTHORITIES AND PROCESSES ................................................................................ 6-1
       6.2         LAWS OF GENERAL APPLICATION .................................................................................................. 6-1
       6.3         ENVIRONMENTAL LAWS AND REGULATION ................................................................................... 6-2
7.0    WORKING ON INUVIALUIT-OWNED LANDS .................................................................................. 7-1
       7.1         INUVIALUIT-OWNED LANDS .......................................................................................................... 7-1
       7.2         INUVIALUIT 7(1)(A) LANDS ........................................................................................................... 7-1
       7.3         INUVIALUIT 7(1)(B) LANDS ........................................................................................................... 7-2
       7.4         INUVIALUIT 7(2) LANDS: BEDS OF WATER BODIES ...................................................................... 7-4
       7.5         WILDLIFE COMPENSATION ............................................................................................................ 7-4
8.0    FEDERAL CROWN LAND IN NWT ONSHORE ................................................................................. 8-1
       8.1         ROLE FOR THE INUVIALUIT ON FEDERAL CROWN LANDS .............................................................. 8-1
       8.2         AUTHORIZATIONS ON FEDERAL CROWN LANDS (ONSHORE) ......................................................... 8-2
9.0    FEDERAL CROWN LANDS IN THE OFFSHORE ISR....................................................................... 9-1
       9.1         FURTHER LEGISLATION APPLICABLE TO OFFSHORE OIL AND GAS ACTIVITIES ............................. 9-2
10.0   NORTHWEST TERRITORIES COMMISSIONER’S LANDS.......................................................... 10-1
       10.1        AUTHORIZATIONS ON COMMISSIONER’S LANDS .......................................................................... 10-1
11.0   THE YUKON NORTH SLOPE IN THE ISR........................................................................................ 11-1
       11.1        YUKON NORTH SLOPE IN THE IFA............................................................................................... 11-1
       11.2        EAST OF THE BABBAGE RIVER ..................................................................................................... 11-1
       11.3        AUTHORIZATIONS ON THE YUKON NORTH SLOPE........................................................................ 11-2
12.0   PROTECTED AREAS IN THE ISR ...................................................................................................... 12-1
       12.1        FORMALIZED PROTECTED AREA STATUS ..................................................................................... 12-1
                   12.1.1 National Parks: Highest Level of Conservation Protection ........................................ 12-1
                   12.1.2 Territorial Parks and Sites ........................................................................................... 12-2
                   12.1.3 Protection under the Inuvialuit Final Agreement (IFA) ............................................... 12-2
                   12.1.4 Migratory Bird Sanctuaries .......................................................................................... 12-2
                   12.1.5 Protection for Archaeological Sites.............................................................................. 12-2
                   12.1.6 Marine Protected Area Planning under the Oceans Act .............................................. 12-4
       12.2        INFORMAL PROTECTION............................................................................................................... 12-4
                   12.2.1 Community Conservation Plans ................................................................................... 12-5
                   12.2.2 Key Habitat Sites for Birds ........................................................................................... 12-7
                   12.2.3 Critical Habitat Areas for Fish..................................................................................... 12-7
                   12.2.4 Beaufort Sea Beluga Management Plan ....................................................................... 12-7
                   12.2.5 Wildlife Management and Protection ........................................................................... 12-8
       12.3        PROTECTED AREA PLANNING: NWT PROTECTED AREAS STRATEGY ......................................... 12-9




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                                                                                                                                         Table of Contents


                                 PART III – REGULATORY AGENCIES AND PROCESSES

13.0     CANADIAN ENVIRONMENTAL ASSESSMENT AGENCY (CEAA)............................................. 13-1
          13.1         CANADIAN ENVIRONMENTAL ASSESSMENT ACT (CEAA) ................................................................. 13-1
          13.2         REQUIREMENTS FOR ENVIRONMENTAL ASSESSMENT UNDER CEAA ........................................... 13-1
          13.3         APPLICATION OF CEAA TO OIL AND GAS PROJECTS .................................................................... 13-3
          13.4         COORDINATION AMONG FEDERAL DEPARTMENTS ...................................................................... 13-4
          13.5         COORDINATION BETWEEN IFA AND CEAA ................................................................................. 13-6
14.0     NATIONAL ENERGY BOARD (NEB) ................................................................................................. 14-1
          14.1         FRONTIER INFORMATION OFFICE (FIO) ....................................................................................... 14-2
          14.2         NATIONAL ENERGY BOARD ACT (NEB ACT)................................................................................... 14-2
          14.3         CANADA OIL AND GAS OPERATIONS ACT (COGOA) ...................................................................... 14-3
          14.4         PROTECTION OF THE ENVIRONMENT ............................................................................................ 14-4
          14.5         NEB RESPONSIBILITIES UNDER THE CANADA PETROLEUM RESOURCES ACT (CPRA).................... 14-5
15.0     INUVIALUIT LAND ADMINISTRATION (ILA) ............................................................................... 15-1
          15.1         INUVIALUIT LAND ADMINISTRATION (ILA) RULES AND PROCEDURES ....................................... 15-1
          15.2         NEGOTIATION OF AGREEMENTS WITH THE ILA ........................................................................... 15-1
          15.3         PETROLEUM RIGHTS ISSUANCE ON 7(1)(A) LANDS ...................................................................... 15-2
          15.4         COMMERCIAL ACCESS ................................................................................................................. 15-3
          15.5         LAND USE AUTHORIZATIONS ...................................................................................................... 15-3
          15.6         WILDLIFE COMPENSATION .......................................................................................................... 15-3
          15.7         LIABILITY FOR DAMAGE .............................................................................................................. 15-3
16.0     INDIAN AND NORTHERN AFFAIRS (DIAND): LAND USE, SURFACE TENURE AND
          BENEFITS ............................................................................................................................................... 16-1
          16.1         CANADA PETROLEUM RESOURCES ACT (CPRA) ............................................................................ 16-1
          16.2         LAND USE AUTHORIZATIONS UNDER THE TERRITORIAL LANDS ACT............................................. 16-3
          16.3         LAND DISPOSITIONS .................................................................................................................... 16-8
          16.4         FEDERAL REAL PROPERTIES ACT................................................................................................... 16-8
          16.5         ARCTIC WATERS POLLUTION PREVENTION ACT .............................................................................. 16-9
          16.6         IFA ENVIRONMENTAL IMPACT SCREENING AND REVIEW REQUIREMENT.................................... 16-9
          16.7         REQUIREMENTS OF THE CANADIAN ENVIRONMENTAL ASSESSMENT ACT ....................................... 16-10
          16.8         FEDERAL REQUIREMENTS FOR BENEFITS PLANS ....................................................................... 16-10
17.0     NORTHWEST TERRITORIES WATER BOARD .............................................................................. 17-1
          17.1         NWT WATERS ACT AND REGULATIONS ........................................................................................ 17-1
          17.2         RELATED LEGISLATION ............................................................................................................... 17-2
18.0     DEPARTMENT OF FISHERIES AND OCEANS................................................................................ 18-1
          18.1         FISHERIES ACT ............................................................................................................................. 18-1
          18.2         AUTHORIZATION UNDER FISHERIES ACT SUBSECTION 35(2) ........................................................ 18-3
          18.3         AUTHORIZATIONS UNDER FISHERIES ACT SECTION 32 (FOR DESTRUCTION OF FISH BY ANY MEANS
                       OTHER THAN FISHING) ................................................................................................................ 18-4
          18.4         NAVIGABLE WATERS PROTECTION ACT .......................................................................................... 18-5




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19.0      ENVIRONMENT CANADA ................................................................................................................... 19-1
           19.1        RESPONSIBILITIES UNDER THE FISHERIES ACT (1985) .................................................................. 19-3
           19.2        MIGRATORY BIRDS CONVENTION ACT (MBCA).............................................................................. 19-3
           19.3        CANADA WILDLIFE ACT .............................................................................................................. 19-4
           19.4        PROPOSED SPECIES AT RISK BILL (SARA) .................................................................................. 19-4
           19.5        RESPONSIBILITIES UNDER CANADIAN ENVIRONMENTAL ASSESSMENT ACT ..................................... 19-5
           19.6        CANADIAN ENVIRONMENTAL PROTECTION ACT .............................................................................. 19-6
           19.7        DISPOSAL AT SEA PERMITS UNDER CEPA................................................................................... 19-6
20.0      GOVERNMENT OF THE NORTHWEST TERRITORIES ............................................................... 20-1
           20.1        OWNERSHIP OF NON-RENEWABLE RESOURCES ........................................................................... 20-1
           20.2        ROLE OF THE GNWT IN OIL AND GAS ACTIVITIES ...................................................................... 20-1
           20.3        DEPARTMENTAL RESPONSIBILITIES RELATED TO OIL AND GAS .................................................. 20-2

                                  PART IV – AUTHORIZATIONS BY STAGE OF ACTIVITY

21.0      RIGHTS TO EXPLORE AND TEST..................................................................................................... 21-1

22.0      AUTHORIZATIONS FOR EXPLORATION ....................................................................................... 22-1

23.0      RIGHTS TO THE RESOURCE ............................................................................................................. 23-1

24.0      DEVELOPMENT PLAN APPROVALS................................................................................................ 24-1

25.0      OIL AND GAS PRODUCTION.............................................................................................................. 25-1

26.0      TRANSBOUNDARY PIPELINE APPROVALS IN THE ISR ............................................................ 26-1

27.0      COORDINATION.................................................................................................................................... 27-1
           27.1        COORDINATION OF EA WITH ADJACENT SETTLEMENT AREAS ................................................... 27-1
                       27.1.1 Transboundary Considerations in the Inuvialuit Final Agreement .............................. 27-2
                       27.1.2 Gwich’in Private Lands within the ISR ......................................................................... 27-2
                       27.1.3 Nunavut Territory ......................................................................................................... 27-2
                       27.1.4 Mackenzie Valley Resource Management Act (MVRMA)............................................. 27-3
           27.2        COORDINATION OF ENVIRONMENTAL ASSESSMENT .................................................................... 27-3
           27.3        COORDINATION OF EA WITH REGULATORY PROCESSES .............................................................. 27-5
           27.4        COORDINATION OF EA PROCESSES FOR AN INTER-JURISDICTIONAL PIPELINE............................. 27-5
           27.5        COORDINATION OF EA PROCESSES FOR FIELD DEVELOPMENT .................................................... 27-6

APPENDICES

APPENDIX A – LIST OF MAPS.......................................................................................................................... A-1
APPENDIX B – SUMMARY OF CHARTS..........................................................................................................B-1
APPENDIX C – REFERENCES ........................................................................................................................... C-1
APPENDIX D – CONTACTS................................................................................................................................ D-1
APPENDIX E – CHECKLISTS .............................................................................................................................E-1




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                                                                                                                                  Table of Contents


LIST OF FIGURES

FIGURE 1-1:      MAP 1 - INUVIALUIT SETTLEMENT REGION:..................................................................... 1-3
FIGURE 3-1:      RENEWABLE RESOURCE MANAGEMENT UNDER THE IFA............................................ 3-7
FIGURE 3-2:      INUVIALUIT CORPORATE GROUP STRUCTURE ................................................................ 3-8
FIGURE 12-1      PROPOSED LAND USE DECISION PROCESS IN THE ISR................................................. 12-6

LIST OF TABLES

TABLE 6-1:    LEGISLATION AND AUTHORITIES FOR DIFFERENT TYPES OF LAND – RIGHTS
              ISSUANCE, LAND USE AND TENURE, WATER USE AND ENVIRONMENTAL
              ASSESSMENT................................................................................................................................. 6-4
TABLE 6-2:    FEDERAL ACTS ON OIL AND GAS RIGHTS, OPERATIONS, LAND AND WATER USE.... 6-6
TABLE 6-3:    FEDERAL ACTS AND REGULATIONS....................................................................................... 6-8
TABLE 9-1:    AUTHORITIES FOR NORTHERN OFFSHORE ACTIVITIES .................................................... 9-3
TABLE 9-2:    LEGISLATION AND AUTHORIZATIONS BY TYPE OF OFFSHORE ACTIVITY .................. 9-5
TABLE 12-1:   ACTS AND REGULATIONS FOR PROTECTED AREAS AND PROTECTION OF
              WILDLIFE ................................................................................................................................... 12-10
TABLE 12-2:   PROTECTED AREAS IN THE INUVIALUIT SETTLEMENT REGION – FORMALLY
              LEGISLATED PROTECTION .................................................................................................... 12-12
TABLE 12-3:   PROTECTED AREAS IN THE INUVIALUIT SETTLEMENT REGION – INFORMAL
              TYPES OF PROTECTION: NOT LEGISLATED, BUT TAKEN INTO ACCOUNT IN
              SCREENING AND ISSUANCE OF AUTHORIZATIONS........................................................ 12-14
TABLE 14-1:   NATIONAL ENERGY BOARD – ACTS AND REGULATIONS ................................................14-1
TABLE 15-1:   AGREEMENTS NEGOTIATED WITH THE ILA ........................................................................15-8
TABLE 15-2:   RIGHTS AND AUTHORIZATIONS ISSUED BY THE INUVIALUIT LAND
                ADMINISTRATION ON INUVIALUIT-OWNED
                LANDS – SECTION 7(1)(A) AND 7(1)(B)................................................................................15-8
TABLE 15-3:   REQUIREMENTS FOR COMMERCIAL ACCESS TO INUVIALUIT-OWNED LANDS .......15-12
TABLE 16-1:   INDIAN AND NORTHERN AFFAIRS (DIAND): ACTS AND REGULATIONS .....................16-2
TABLE 16-2:   THRESHOLDS FOR LAND USE PERMITS ON FEDERAL CROWN LANDS.........................16-3
TABLE 17-1:   LEGISLATION RELATED TO PROTECTION OF INLAND WATERS ....................................17-2
TABLE 18-1:   DEPARTMENT OF FISHERIES AND OCEANS LEGISLATION ..............................................18-2
TABLE 19-1:   ENVIRONMENT CANADA: ACTS AND REGULATIONS ......................................................19-2
TABLE 20-1:   GOVERNMENT OF THE NORTHWEST TERRITORIES: LEGISLATION .............................20-5

LIST OF CHARTS

CHART EISC:      ENVIRONMENTAL IMPACT SCREENING COMMITTEE PROCESS ...................................4-3
CHART EIRB:      ENVIRONMENTAL IMPACT REVIEW BOARD PROCESS ...................................................4-8
CHART SSD:       EIRB SMALL SCALE DEVELOPMENT (SSD) PROCEDURE...............................................4-10
CHART SP:        EIRB STANDARD PUBLIC REVIEW (SPR) PROCEDURE ...................................................4-12
CHART CEAA:      CANADIAN ENVIRONMENTAL ASSESSMENT ACT PROCESS ..............................................13-7
CHART NEB:       NEB COGOA AUTHORIZATION PROCESS IN THE ISR......................................................14-5
CHART ILA:       ILA APPLICATION REVIEW PROCESS .................................................................................15-4
CHART LUP:       DIAND APPROVAL PROCESS FOR CLASS A AND B LAND USE PERMITS ...................16-4
CHART BEN :      DIAND APPROVAL PROCESS FOR BENEFITS PLANS.....................................................16-11
CHART WA:        APPLICATION FOR TYPE A WATER LICENCE ...................................................................17-3
CHART WB:        APPLICATION FOR TYPE B WATER LICENCE: FOR SMALLER PROJECTS ..................17-7
CHART DFO:       FISHERIES ACT AUTHORIZATIONS ......................................................................................18-6
CHART EC:        DISPOSAL AT SEA PERMIT ....................................................................................................19-7




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CHART 1:      RIGHTS TO EXPLORE AND TEST ON FEDERAL CROWN LANDS AND INUVIALUIT
              7(1)(B) LANDS IN THE ISR ......................................................................................................21-1
CHART 2:      RIGHTS TO EXPLORE AND TEST ON INUVIALUIT 7(1)(A) LANDS................................21-5
CHART 3:      GEOPHYSICAL OR DRILLING AUTHORIZATIONS ON FEDERAL CROWN LAND
              IN NWT (ISR) .............................................................................................................................22-1
CHART 4:      APPLICATION FOR GEOPHYSICAL OR DRILLING AUTHORIZATIONS ON
              ILA 7(1)(A) AND 7(1)(B) LANDS .............................................................................................22-7
CHART 5:      RIGHTS TO THE RESOURCE ON FEDERAL CROWN LANDS IN ISR AND ON
              INUVIALUIT 7(1)(b) LANDS ONSHORE AND OFFSHORE .................................................23-1
CHART 6:      RIGHTS TO THE RESOURCE ON INUVIALUIT 7(1)(A) LANDS DECLARATION
              OF DISCOVERY.........................................................................................................................23-5
CHART 7:      DEVELOPMENT PLAN APPROVAL BY THE NEB IN THE NWT ONSHORE AND
              OFFSHORE ISR..........................................................................................................................24-1
CHART 8:      SURFACE DEVELOPMENT PLAN APPROVALS BY ILA ON INUVIALUIT 7(1)(A)
              AND 7(1)(B) LANDS..................................................................................................................24-5
CHART 9:      PRODUCTION AUTHORIZATIONS ON FEDERAL CROWN LANDS IN THE
              ISR (NWT)...................................................................................................................................25-1
CHART 10:     PRODUCTION AUTHORIZATIONS ON INUVIALUIT 7(1)(A) AND 7(1)(B) LANDS
              IN THE ISR (NWT).....................................................................................................................25-7
CHART 11:     AUTHORIZATION FOR TRANSBOUNDARY PIPELINE UNDER S. 52 OF NEB ACT.......26-2




viii                                                                                                                                        June 2001
                                                                                            Content and Structure


CONTENT AND STRUCTURE
This Guide has four main parts. Each part is marked in the document by a blue divider page, that provides a
detailed table of contents for that part.

           PART I – INTRODUCTION TO THE INUVIALUIT SETTLEMENT REGION

The first five chapters introduce the Reader to the Inuvialuit Settlement Region (ISR), to the Inuvialuit Final
Agreement (IFA) which takes precedence within the ISR, and to the Inuvialuit institutions established pursuant to
the IFA. In particular, Chapter 4 describes the mandate and processes of the Environmental Impact Screening
Committee and the Environmental Impact Review Board, the two bodies responsible for environmental screening
and review pursuant to section 11 of the IFA.

Companies wishing to work in the ISR must understand both the importance of the IFA to Inuvialuit residents and
the necessity of consulting closely with Inuvialuit regarding their interests, before any work will be authorized.

    Chapter 1.0       The Inuvialuit Settlement Region (ISR)
    Chapter 2.0       The Inuvialuit Final Agreement (IFA)
    Chapter 3.0       Institutions Under the Inuvialuit Final Agreement
    Chapter 4.0       IFA Environmental Impact Screening and Review Process
    Chapter 5.0       The Importance of Consultation in IFA Processes

                                       PART II – LANDS IN THE ISR

Authorities and processes governing oil and gas activities in the ISR differ considerably depending on the type of
land on which the activity takes place. This part distinguishes seven types of land, and outlines the authorities and
statutes for decisions on each.

    Chapter 6.0       Significance of Different Types of Land in the ISR
    Chapter 7.0       Working on Inuvialuit-Owned Lands
    Chapter 8.0       Federal Crown Land in NWT Onshore
    Chapter 9.0       Federal Crown Lands in the Offshore ISR
    Chapter 10.0      Northwest Territories Commissioner’s Lands
    Chapter 11.0      The Yukon North Slope in the ISR
    Chapter 12.0      Protected Areas in the ISR




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Content and Structure


                      PART III – REGULATORY AGENCIES AND PROCESSES

This part lists each of the main governmental bodies involved in the assessment and regulation of oil and gas
activity in the ISR. For any particular application, further authorizations may be required, either from these bodies
or from other government departments or agencies. Each chapter describes the role of the government body in
assessment and sets out the authorization process in the form of a chart, accompanied by annotated headings.
These charts of agency processes are then referred to within the stage of activity charts described in Part IV.

    Chapter 13.0      Canadian Environmental Assessment Agency (CEA Agency)
    Chapter 14.0      National Energy Board (NEB)
    Chapter 15.0      Inuvialuit Land Administration (ILA)
    Chapter 16.0      Indian and Northern Affairs (DIAND)
    Chapter 17.0      Northwest Territories Water Board
    Chapter 18.0      Department of Fisheries and Oceans (DFO)
    Chapter 19.0      Environment Canada (EC)
    Chapter 20.0      Government of the Northwest Territories (GNWT)

                      PART IV – AUTHORIZATIONS BY STAGE OF ACTIVITY

Chapters 21 through 26 in Part IV describe steps in the overall authorization process, set out by stage of industry
activity. Because different authorities apply on different types of land, more than one chart is needed for each stage
of activity, each specific to the type of land for which the activity is proposed.

The charts in this Guide describe processes as set out in regulation. In fact there are opportunities to coordinate the
environmental assessment processes, however such arrangements are worked out case-by-case for each application
and so cannot be shown ex ante. Chapter 27 describes some of the opportunities for coordination.

    Chapter 21.0      Rights to Explore and Test
    Chapter 22.0      Authorization for Exploration
    Chapter 23.0      Rights to the Resource
    Chapter 24.0      Development Plan Approvals
    Chapter 25.0      Oil and Gas Production
    Chapter 26.0      Transboundary Pipeline Approvals
    Chapter 27.0      Coordination

                                                  APPENDICES

    Appendix A        Contains maps of the Inuvialuit Settlement Region.
    Appendix B        Contains all of the charts in the Guide for quick reference.
    Appendix C        Lists references used in the preparation of this Guide.
    Appendix D        Lists contacts in Inuvialuit and government organizations for further information on
                      legislative and regulatory requirements and processes.
    Appendix E        Contains checklists of types of authorizations, the legislative base, and responsible agency.




x                                                                                                         June 2001
                                                                                            Abbreviations


ABBREVIATIONS


ACW          Approval to Alter Condition of a Well (issued by National Energy Board)
ADW          Approval to Drill a Well (issued by the National Energy Board)
AWPPA        Arctic Waters Pollution Prevention Act

CC           Community Corporation for an Inuvialuit Community in the ISR
CCRA         Canada Customs and Revenue Agency
CEAA         Canadian Environmental Assessment Act
CEA Agency   Canadian Environmental Assessment Agency
CEPA         Canadian Environmental Protection Act
CIC          Citizenship and Immigration Canada
COGOA        Canada Oil and Gas Operations Act
CPRA         Canada Petroleum Resources Act
CSR          Comprehensive Study Report
CTA          Canadian Transportation Agency
CWS          Canadian Wildlife Service, Environment Canada

DED          Department of Economic Development, Government of Yukon
DFO          Department of Fisheries and Oceans (Federal)
DFO-FHM      Fisheries and Oceans Canada, Fish Habitat Management
DFO-CCG      Fisheries and Oceans Canada, Canadian Coast Guard
DIAND        Department of Indian Affairs and Northern Development
DOP          Direction on Procedures (issued by National Energy Board)
DPA          Drilling Program Approval

EA           Environmental Assessment under Canadian Environmental Assessment Act
EARPGO       Environmental Assessment Review Process Guidelines Order
EC           Environment Canada
EIRB         Environmental Impact Review Board
EIS          Environmental Impact Statement
EISC         Environmental Impact Screening Committee
EISRP        Environmental Impact Screening and Review Process, Chapter 11 of IFA

FA           Federal Authority
FAA          Fisheries Act Authorization
FCR          Federal Coordination Regulations under the Canadian Environmental Assessment Act
FIO          Frontier Information Office
FJMC         Fisheries Joint Management Committee

GNWT         Government of the Northwest Territories
GRRB         Gwich’in Renewable Resources Board
GLWB         Gwich’in Land and Water Board

HADD         Harmful Alteration Disruption or Destruction of Fish Habitat
HTC          Hunters and Trappers Committee (for each Inuvialuit community)

IC           Industry Canada
IDC          Inuvialuit Development Corporation
IGC          Inuvialuit Game Council
IFA          Inuvialuit Final Agreement, 1984
IIC          Inuvialuit Investment Corporation



June 2001                                                                                              xi
Abbreviations


ILA                    Inuvialuit Land Administration
ILAC                   Inuvialuit Land Administration Commission
ILC                    Inuvialuit Land Corporation
INAC                   Indian and Northern Affairs Canada
IPC                    Inuvialuit Petroleum Corporation
IR                     Information Request (used by the National Energy Board)
IRC                    Inuvialuit Regional Corporation
ISR                    Inuvialuit Settlement Region

MACA                   Department of Municipal and Community Affairs, Government of NWT
MODUs                  Mobile Offshore Drilling Units
MOU                    Memorandum of Understanding
MVEIRB                 Mackenzie Valley Environmental Impact Review Board
MVLWB                  Mackenzie Valley Land and Water Board
MVRMA                  Mackenzie Valley Resource Management Act

NEB                    National Energy Board, Calgary
NEB ACT                National Energy Board Act
NIRB                   Nunavut Impact Review Board
NOGD                   Northern Oil and Gas Directorate, Indian and Northern Affairs Canada, Ottawa
NWPA                   Navigable Waters Protection Act
NWPAP                  Permit issued under Navigable Waters Protection Act (NWPA)
NWT                    Northwest Territories
NWTWB                  Northwest Territories Water Board
NWTWCB                 Northwest Territories Workers Compensation Board

PPBOR                  Plans, Profiles and Books of Reference (National Energy Board)
PWNHC                  Prince of Wales Northern Heritage Centre in Yellowknife

RA                     Responsible Authority under the Canadian Environmental Assessment Act
RWED                   Department of Resources, Wildlife and Economic Development, Government of NWT

SARA                   Proposed Species at Risk Legislation
SDL                    Significant Discovery Licence
SDP                    Surface Development Plan
SLWB                   Sahtu Land and Water Board
SRRB                   Sahtu Renewable Resources Board

TAC                    Technical Advisory Committee (to the NWT Water Board)
TC                     Transport Canada

WMAC(NWT)              Wildlife Management Advisory Council - Northwest Territories
WMAC(NS)               Wildlife Management Advisory Council - Yukon North Slope

YDAP                   Yukon Development Approval Process
YOGA                   Yukon Oil and Gas Act

Applicant, Developer, Proponent and Company are variously used to denote the Company applying for authorization to
conduct oil and gas activities on lands in the Inuvialuit Settlement Region. Usage varies from one agency/institution to
another: the Inuvialuit Final Agreement refers to “Developer” while the Canadian Environmental Assessment Agency refers
to the “Proponent,” COGOA refers to the “Operator” and the Northwest Territories Water Board procedures refer to
“Applicant.”




xii                                                                                                          June 2001
Introduction to the ISR                                                                                                            Table of Contents


PART I – INTRODUCTION TO THE INUVIALUIT SETTLEMENT REGION

1.0    THE INUVIALUIT SETTLEMENT REGION (ISR)............................................................................. 1-1
       1.1       THE INUVIALUIT FINAL AGREEMENT (IFA)................................................................................... 1-1
       1.2       IMPLEMENTATION OF THE INUVIALUIT FINAL AGREEMENT (IFA) ................................................. 1-1
       1.3       SIGNIFICANCE OF DIFFERENT TYPES OF LAND IN THE ISR............................................................. 1-2
       1.4       RELATIONSHIP TO COMMUNITIES .................................................................................................. 1-2
       1.5       ENVIRONMENTALLY SENSITIVE AND PROTECTED AREAS .............................................................. 1-2
2.0    THE INUVIALUIT FINAL AGREEMENT (IFA) ................................................................................. 2-1
       2.1       GOALS (IFA SECTION 1)................................................................................................................ 2-1
       2.2       BENEFICIARY AND INUVIALUIT CORPORATIONS (IFA SECTIONS 5 AND 6) .................................... 2-1
       2.3       INUVIALUIT-OWNED LANDS (IFA SECTION 7).............................................................................. 2-2
       2.4       CROWN-OWNED LANDS ................................................................................................................ 2-2
       2.5       ACCESS TO AND ACROSS INUVIALUIT-OWNED LANDS (IFA SECTION 7) ...................................... 2-3
       2.6       WILDLIFE COMPENSATION (IFA SECTION 13) .............................................................................. 2-3
       2.7       WATER MANAGEMENT (IFA SECTION 7) ...................................................................................... 2-4
       2.8       SAND AND GRAVEL (IFA SECTION 7) ............................................................................................ 2-4
       2.9       PARTICIPATION AGREEMENTS (IFA SECTION 10) ......................................................................... 2-5
       2.10      ARBITRATION PROCESS (IFA SECTION 18) ................................................................................... 2-5
       2.11      LAWS OF GENERAL APPLICATION (IFA SECTION 7) ..................................................................... 2-5
       2.12      IFA ENVIRONMENTAL IMPACT SCREENING AND REVIEW PROCESS............................................... 2-5
       2.13      ECONOMIC PROVISIONS (IFA SECTIONS 10 AND 16) .................................................................... 2-6
       2.14      LAND USE PLANNING (IFA SECTION 7)......................................................................................... 2-6
3.0    INSTITUTIONS UNDER THE INUVIALUIT FINAL AGREEMENT ............................................... 3-1
       3.1       IFA INSTITUTIONS FOR CO-MANAGEMENT AND ENVIRONMENTAL ASSESSMENT ......................... 3-1
                 3.1.1   Institutions for Co-Management of Wildlife ................................................................... 3-1
                 3.1.2   Institutions of IFA Environmental Impact Screening and Review .................................. 3-3
       3.2       INUVIALUIT INSTITUTIONS ............................................................................................................. 3-4
                 3.2.1   Inuvialuit Regional Corporation (IRC) .......................................................................... 3-4
                 3.2.2   Inuvialuit Land Administration (ILA) ............................................................................. 3-4
                 3.2.3   Inuvialuit Game Council (IGC) ...................................................................................... 3-5
       3.3       COMMUNITY INSTITUTIONS ........................................................................................................... 3-5
                 3.3.1   Community Corporations (CC)....................................................................................... 3-5
                 3.3.2   Community Hunters and Trappers Committees (HTC) .................................................. 3-6
4.0    IFA ENVIRONMENTAL IMPACT SCREENING AND REVIEW PROCESS.................................. 4-1
       4.1       APPLICATION OF THE PROCESS: TO WHICH PROJECTS? ................................................................. 4-1
       4.2       DEVELOPMENTS THAT REQUIRE SCREENING ................................................................................. 4-1
       4.3       EXEMPTION FROM SCREENING ....................................................................................................... 4-2
       4.4       ENVIRONMENTAL IMPACT REVIEW BOARD ................................................................................... 4-7
       4.5       RELATIONSHIP TO THE CANADIAN ENVIRONMENTAL ASSESSMENT ACT .......................................... 4-15
5.0    THE IMPORTANCE OF CONSULTATION IN IFA PROCESSES.................................................... 5-1
       5.1       THE INUVIALUIT INTERESTS .......................................................................................................... 5-1
       5.2       THE DEVELOPER’S INTERESTS ....................................................................................................... 5-1
       5.3       EFFECTIVE CONSULTATION ........................................................................................................... 5-2
       5.4       START EARLY ................................................................................................................................ 5-3
                 5.4.1   Designing Consultation Efforts ...................................................................................... 5-4




June 2001                                                                                                                                                       i
Table of Contents                                             Introduction to the Inuvialuit Settlement Region


LIST OF FIGURES IN PART I

FIGURE 1-1:   MAP 1 - INUVIALUIT SETTLEMENT REGION:..................................................................... 1-3
FIGURE 3-1:   RENEWABLE RESOURCE MANAGEMENT UNDER THE IFA............................................ 3-7
FIGURE 3-2:   INUVIALUIT CORPORATE GROUP STRUCTURE ................................................................ 3-8

LIST OF CHARTS IN PART I

CHART EISC:   ENVIRONMENTAL IMPACT SCREENING COMMITTEE PROCESS ...................................4-3
CHART EIRB:   ENVIRONMENTAL IMPACT REVIEW BOARD PROCESS ...................................................4-8
CHART SSD:    EIRB SMALL SCALE DEVELOPMENT (SSD) PROCEDURE...............................................4-10
CHART SP:     EIRB STANDARD PUBLIC REVIEW (SPR) PROCEDURE ...................................................4-12




ii                                                                                                            June 2001
Introduction to the ISR                                             1 – The Inuvialuit Settlement Region (ISR)



1.0 THE INUVIALUIT SETTLEMENT REGION (ISR)


The Inuvialuit Settlement Region (ISR) extends along the Arctic coast from the Alaska border on the west to the
boundary with the new territory of Nunavut on the east. The ISR spans both land and water within its borders. It
is bounded on the south by the Gwich’in and Sahtu Settlement Areas of the Mackenzie Valley and extends to the
north across the Beaufort Sea to include Banks Island, parts of Victoria Island and the western Queen Elizabeth
Islands. (See FIGURE 1-1)


1.1     The Inuvialuit Final Agreement (IFA)
The first thing a Developer needs to appreciate is that land claim settlement legislation takes precedence in the
ISR. The Inuvialuit of the Western Arctic were the first aboriginal people in the Northwest Territories to conclude
a comprehensive land claim settlement with the Government of Canada.

The Inuvialuit Final Agreement (IFA) was signed by all parties on June 5, 1984. As subsequently amended, the
IFA applies throughout the ISR and prevails on all matters that it covers. The main features of the IFA are
summarized in Chapter 2 of this Guide. For resource activities, the significant features of the IFA are:
    Ownership and control by the Inuvialuit of selected lands within the ISR
    Processes for obtaining approvals on Inuvialuit-Owned lands differ from those on Crown-Owned lands in the
    ISR;
    A guaranteed role for the Inuvialuit in Environmental Screening and Review of development
    proposals in the ISR that are likely to cause a negative environmental impact
    Such proposals undergo close scrutiny for potential negative impacts on wildlife, habitat and the environment,
    and face stringent requirements for prevention and mitigation of impacts;
    Assured opportunities for Inuvialuit to participate in economic activity in the ISR; and
    A high priority for protection of wildlife, habitat and environment, and requirement for
    compensation for any damage caused.


1.2     Implementation of the Inuvialuit Final Agreement (IFA)
Since the IFA was signed in 1984, both Inuvialuit and Developers have gained experience in making the new
arrangements work. The institutions envisaged by the IFA are now established and administrative procedures have
been worked out in the course of dealing with a number of project proposals. This experience has created capacity
in the Inuvialuit land claim institutions for processing applications.

Inuvialuit require high standards from Developers. Inuvialuit place great value upon the IFA and expect
Developers to respect IFA institutions and processes. They also demand openness and thorough efforts at
consultation not just with the major claim institutions but with the communities directly. By taking care to
accommodate community concerns from the start, a Developer can build a good working relationship that will serve
as a sound foundation for future activities.

Wherever work is planned in the Inuvialuit Settlement Region (ISR), an oil and gas Developer must deal with one
or more Inuvialuit institutions in the course of obtaining authorizations. These institutions are described in
Chapter 3 of this Guide.



June 2001                                                                                                      1-1
1 - The Inuvialuit Settlement Region                                                         Introduction to the ISR



With the exception of the Inuvialuit Land Administration (ILA), the Inuvialuit institutions set up pursuant to the
IFA do not have final decision-making authority in relation to resource activities. These institutions do however
provide advice to the authorities that make such decisions, and that advice is taken into account in decision-making.
Decisions on authorization of land use and issuance of rights are made either by government departments or
agencies on Crown lands, or by the Inuvialuit Land Administration (ILA) on lands for which Inuvialuit hold title.


1.3      Significance of Different Types of Land in the ISR
Distinctions between Inuvialuit-Owned land and other types of land are significant. Each type of land has different
ownership of surface and sub-surface rights. Consequently, the Developer has to deal with different regimes on each
in order to obtain rights and authorizations for land use. Refer to FIGURE 1-1 and the maps in APPENDIX A
for the outlines of these areas, and to TABLE 6-1 for the authorities on each type of land.


1.4      Relationship to Communities
There are six Inuvialuit communities for the purposes of the Inuvialuit Final Agreement: Inuvik, Aklavik,
Tuktoyaktuk, Sachs Harbour, Holman and Paulatuk.

No matter what type of land is involved, the authorization process will go faster and more successfully if the
Developer contacts the Community Corporation and the Hunters and Trappers Committee of the affected
community(ies) early on to advise them of their intent to work in the area, and to check for any concerns that
should be addressed when planning or conducting the activity.


1.5      Environmentally Sensitive and Protected Areas
Early on in the planning process, it is important to identify areas in or near parcels that have either formal or
informal protection status, or that have been otherwise identified as environmentally-sensitive areas.

The ISR has the highest proportion of land under formal protection of any jurisdiction in Canada. In some of these
Protected Areas, such as National Parks, industrial activities such as resource exploration and development are
banned. In others, such as bird sanctuaries, activities may be permitted but only after close scrutiny by the
authorities and subject to stringent conditions. There are also some areas within the ISR with less formal forms of
protection. These areas are identified either by government or Inuvialuit agencies as areas of particular sensitivity
for which special precautions should be taken. Protected Areas are described in Chapter 12 and shown on
MAPS 2 and 3 in APPENDIX A.




1-2                                                                                                         June 2001
1 - The Inuvialuit Settlement Region (ISR)                    Introduction to the ISR


                      FIGURE 1-1: INUVIALUIT SETTLEMENT REGION:
                     INUVIALUIT-OWNED LANDS AND CROWN LANDS




June 2001                                                                        1-3
1 - The Inuvialuit Settlement Region (ISR)   Introduction to the ISR




1-4                                                      June 2001
Introduction to the ISR                                                  2 - The Inuvialuit Final Agreement (IFA)



2.0 THE INUVIALUIT FINAL AGREEMENT (IFA)


The Inuvialuit Final Agreement (IFA) was signed by all parties on June 5, 1984. It is a land claim agreement
under subsection 35(3) of the Constitution Act 1982. The IFA applies throughout the Inuvialuit Settlement
Region (ISR) and takes precedence on all matters that it covers. To the extent of any inconsistency between the
IFA and any other federal, territorial or municipal law, the IFA prevails to the extent of the inconsistency
(IFA s. 3(3)).

The legislation implementing the Agreement is the Western Arctic (Inuvialuit) Claims Settlement Act, s.c. 1984,
chp. 24.

The purpose of this Chapter is to highlight features of the IFA most relevant to oil and gas developers. The
procedures by which the commitments in the claim are realized in practice, are set out in the procedures and
guidelines of the Environmental Impact Screening Committee, the Environmental Impact Review Board and the
Rules and Procedures of the ILA. Ultimately however, the authority is the IFA, which prevails in instances of any
conflict. Procedures, guidelines and rules are subject to amendment from time to time. It is therefore useful for
Developers to refer to the IFA to appreciate the intent of the processes.

Readers familiar with other northern land claim settlements will find that arrangements obtained by the Inuvialuit
differ from those in Nunavut or the Mackenzie Valley. Institutions of the IFA are institutions of the claim, but are
not institutions of public government as are their counterparts in Nunavut and the Mackenzie Valley. Resource
development proposals undergo different processes in the ISR from those that apply in the Mackenzie Valley and
in Nunavut.


2.1      Goals (IFA Section 1)
The basic goals of the IFA are three:
    IFA section 1(a) to preserve Inuvialuit cultural identity and values within a changing northern
                     society;
    IFA section 1(b) to enable Inuvialuit to be equal and meaningful participants in the northern
                     and national economy and society; and
    IFA section 1(c) to protect and preserve the Arctic wildlife, environment and biological
                     productivity.

Simply, the IFA provides to Inuvialuit a range of rights, benefits and compensation in return for the surrender of
their interest in certain lands in the Canadian Arctic coast and offshore, without in any way limiting the rights of the
Inuvialuit as Canadian citizens.


2.2      Beneficiary and Inuvialuit Corporations (IFA Sections 5 and 6)
The beneficiaries of the IFA are approximately 5,500 Inuvialuit, the majority of whom live in the six settlements of
Sachs Harbour, Holman, Paulatuk, Tuktoyaktuk, Inuvik and Aklavik in the Northwest Territories.

The responsibility for receiving and managing the Inuvialuit settlement compensation and benefits resides in a
group of corporations owned and controlled by Inuvialuit. Six non-profit Inuvialuit Community Corporations are


June 2001                                                                                                          2-1
2 - The Inuvialuit Final Agreement (IFA)                                                  Introduction to the ISR


controlled by the beneficiaries of the community that each represents, and together these community corporations
comprise the Inuvialuit Regional Corporation (IRC). The Inuvialuit Regional Corporation (IRC) is responsible
for managing and administering Inuvialuit-Owned lands, which it does through the Inuvialuit Land Administration
(ILA). Refer to Chapter 3.


2.3       Inuvialuit-Owned Lands (IFA Section 7)
The IFA creates the Inuvialuit Settlement Region (ISR), encompassing the western Arctic coast from the Alaskan
border to the Amundsen Gulf, and extending into the Beaufort Sea to include Banks Island, part of Victoria Island
and part of the Western Queen Elizabeth Islands (see FIGURE 1-1).

The IFA transfers land title for 91,000 sq km from the Government of Canada (Crown) to the Inuvialuit,
representing 21% of the area that Inuvialuit traditionally used and occupied. Title is vested in Inuvialuit Land
Corporation (ILC), which is wholly owned by IRC. While the lands for which title was transferred can be leased,
they can only be sold to other Inuvialuit or to the Government of Canada.

The Inuvialuit Land Corporation holds title to the following lands, subject to easements and rights-of-way specified
in the IFA:
      Section 7(1)(a)(i) lands, in fee simple absolute including all minerals (whether solid, liquid or gaseous)
      and granular materials. These lands total 11,000 sq km (4,200 sq mi), in blocks of 1800 sq km (700 sq mi)
      near each of the six Inuvialuit communities.
      Section 7(1)(a)(ii) lands, held in a single block of 2,000 sq km (800 sq mi) in Cape Bathurst.
      Section 7(1)(b) lands, in fee simple absolute, excluding oil, gas, related hydrocarbons, coal, native sulphur,
      and minerals, but including granular materials. These lands amount to 78,000 sq km (30,000 sq mi).
      Section 7(2) lands comprise the beds of all lakes, rivers and other water bodies found within Inuvialuit-
      Owned (7(1)(a) or 7(1)(b)) lands. Surface title is held by the Inuvialuit in fee simple absolute; sub-surface
      rights are held by Inuvialuit for water bodies on 7(1)(a) lands and by the federal Crown for water bodies on
      7(1)(b) lands.

Blocks of 7(1)(a) and 7(1)(b) lands were generally selected from areas that the Inuvialuit considered important for
harvesting, traditional use or economic development. These lands are outlined on MAPS 1 to 9 in
APPENDIX A.

Regulation of all land use activities and of access across these lands is under the control of the Inuvialuit Land
Administration (ILA). Procedures here differ from those on Crown lands and are described in Chapters 7 and
15 of this Guide.


2.4       Crown-Owned Lands
The Government of Canada retains ownership of the balance of the territory within the ISR with the exception of
the Inuvialuit-Owned lands described above and a tract of Gwich’in-Owned land north of Aklavik. In total, the
Crown holds title to 80% of the land in the ISR: this proportion is lowest on the mainland, increasing to 100% in
the Western Queen Elizabeth Islands. In addition the Government of the Northwest Territories administers a small
quantum of Commissioner’s Lands under procedures described in Chapter 10 of this Guide.




2-2                                                                                                     June 2001
Introduction to the ISR                                                   2 - The Inuvialuit Final Agreement (IFA)


2.5      Access To and Across Inuvialuit-Owned Lands (IFA Section 7)
All rights of access to and across Inuvialuit lands are subject to conditions that there be:
    no significant damage to the lands,
    no abuse or extension of the right,
    no mischief committed on the lands, and
    no significant interference with Inuvialuit use and enjoyment of the lands.

Resource rights holders must give prior notice to the Inuvialuit Land Administration (ILA) of intent to travel
across Inuvialuit-Owned lands. If access is for more than preliminary or investigative activities (“of a casual nature”)
then temporary or permanent rights-of-way must be negotiated with the ILA before access can occur. These
negotiations will address a suitable route or location of access and compensation for damages.

The IFA guarantees access on and across Inuvialuit-Owned lands for exploration, development and production
activities by holders of rights and interests issued by Canada on Inuvialuit 7(1)(b) lands. But first, a Developer
must pay fair compensation to the Inuvialuit for the access right itself, for any damage to Inuvialuit lands, and for
any lessening of value of Inuvialuit interests in their lands.

Before exercising a right of access, a Developer is required to conclude a Participation/Access Agreement with the
ILA.

Once access is granted, the ILA assumes no responsibility for damages suffered by the Developer and the
Developer is responsible for damages to the land. Developers who do not comply with access provisions can be
denied future access by the ILA.


2.6      Wildlife Compensation (IFA Section 13)
The IFA requires that Inuvialuit be compensated for actual wildlife harvest loss resulting from development
activities in the ISR. Developers whose activities cause such loss are liable for compensation payable to the
Inuvialuit for actual harvest loss, and for the cost of mitigative and remedial measures required to address future
wildlife harvest loss. This liability may be shared with other Developers found guilty of such damage, but the
liability is absolute.

The IFA requires that reviews of proposed developments with a potential for damage to wildlife or habitat provide
an estimate of the potential liability of the Developer based on a worst-case scenario. The Proponent may then be
required to post security. Resource Developers need to pay close attention to the wildlife compensation provisions,
because (as has been the experience with past proposals) the potential liability to a project can be very large.
Section 13 of the IFA applies to all lands in the ISR except 7(1)(a) lands. On 7(1)(a) and 7(1)(b) lands, the
ILA applies a parallel set of requirements.

If the claimant and the Developer cannot come to an agreement on terms for wildlife compensation, the matter can
be referred to arbitration under section 18 of the IFA or to the civil courts.

In recent practice, Developers have entered into Harvester Claim Resolution Agreements with the Inuvialuit Game
Council. Such an Agreement commits the Developer to a compensation plan in the event of adverse impact on
wildlife harvesting activities of an Inuvialuit beneficiary caused by a Developer or its contractors. Under the terms, a
harvester is defined as a claimant engaged in and receiving material part of gross income from resource harvesting,
or who relies on harvesting for subsistence. The purpose of these Agreements is to set out procedures for dealing


June 2001                                                                                                             2-3
2 - The Inuvialuit Final Agreement (IFA)                                                     Introduction to the ISR


with relatively small and uncontentious claims for compensation, in order to avoid a lengthy process of dispute and
arbitration. It is expected that substantial claims related to major spills or similar incidents would ultimately go
through the general process set out in section 13 of the IFA.


2.7      Water Management (IFA Section 7)
Under the IFA, the Government of Canada continues to own all waters in the ISR (IFA s. 7(3)), and so retains
the right to manage and control water for the whole of the ISR, including Inuvialuit-Owned lands, for purposes of
wildlife management, navigation and flood control and protection of the quality of community water supplies.

Inland water use is managed pursuant to the Northwest Territories Waters Act and applications for water use
licences are reviewed by the NWT Water Board. Inland waters, in the context of the Act, means any inland water,
whether in a liquid or frozen state, on or below the surface of the land. Consideration is now being given to the
establishment of a successor board to the NWT Water Board which would have jurisdiction solely within the ISR.
Refer to Chapter 17 and CHARTS WA and WB for the licensing processes of the NWT Water Board.

The definition of the ISR encompasses the marine waters of the Mackenzie Delta and the Beaufort Sea, up to the
high water mark.


2.8      Sand and Gravel (IFA Section 7)
Sand and gravel deposits on Inuvialuit-Owned lands are managed under a system of use priorities which gives first
priority to public community needs, second priority to the direct private and corporate needs of the Inuvialuit, and
third priority to any project approved by an appropriate governmental agency (IFA ss. 7(27,28,29)). The public
and private community needs for sand and gravel are estimated based on a twenty-year forecast of requirements.

In order to obtain sand and gravel from Inuvialuit-Owned lands, a Developer must first obtain a licence or
concession from the ILA. A licence confers a non-exclusive right to remove a certain volume of material for a
specific purpose from a specific pit for period of no more than a year. A concession is the exclusive right to explore,
develop and produce sand and gravel from an area for a period specified in the concession. A licence or concession
may stipulate payment of a royalty, and fees for recovery of reasonable administrative costs and land reclamation
costs where justified.

This section of the IFA also commits the Inuvialuit Land Administration to ensure that, in granting a licence or
concession, sand and gravel is made available to interested parties at “reasonable” prices. The section also provides
guidance on how “reasonable” prices would be calculated. Where a prospective purchaser of sand and gravel
cannot come to terms with the ILA, the matter can be referred to arbitration under IFA section18.

The IFA permits Inuvialuit and the Government of Canada to identify zones within the Western Arctic Region,
including Inuvialuit lands, where removal of sand and gravel is prohibited for all or part of a year, for environmental
reasons or because of other conflicting uses of such land (IFA s. 7(30)). Specifically, the IFA dedicates the Ya Ya
Lakes eskers to sand and gravel development.

Generally, granular resources are scarce in the ISR and renewed oil and gas activity, together with other
requirements, will generate high demand. ILA and DIAND have initiated a joint assessment of granular resources
and the development of a Comprehensive Granular Resource Management Plan.




2-4                                                                                                        June 2001
Introduction to the ISR                                                  2 - The Inuvialuit Final Agreement (IFA)


This planning may affect the terms for and sources of supply. For further information on the Aggregate Resource
Assessment, contact IRC or DIAND.

         Contact:     Granular Resource Management, Coordinator, IRC, Inuvik
         Contact:     Manager, Land Programs, Land and Water Division
                      Natural Resources and Environment Branch, DIAND, Ottawa


2.9      Participation Agreements (IFA Section 10)
Before exercising a guaranteed right of access, or for access to Inuvialuit-Owned lands in order to exercise interests
directly on those lands, the rights-holder must negotiate a Participation Agreement with the ILA. These
agreements may include provisions for covering costs of permitting and inspection; costs associated with wildlife
compensation, habitat restoration, impact mitigation; employment, service and supply contracts; education and
training, and equity participation or other similar types of participatory benefits. This is discussed further in
Chapter 7 of this Guide. If the rights-holder and the ILA are unable to conclude a Participation Agreement, the
matter can be referred for arbitration under section 18 of the IFA.


2.10 Arbitration Process (IFA Section 18)
When Developers are unable to negotiate a satisfactory arrangement with the ILA over the terms of Participation
Agreements, wildlife compensation, habitat restoration and impact mitigation, or for sand and gravel contracts, the
matter can be referred to arbitration. The Arbitration Board provided for in the IFA also has authority to resolve
other matters, such as land use disputes and conflicting subsurface resource claims. Awards made by the
Arbitration Board are subject to review by the Federal Court of Appeal.


2.11 Laws of General Application (IFA Section 7)
Apart from the exceptions established by the IFA, laws of general application apply to all lands in the ISR. This
means that no matter where work is planned in the ISR, legislation such as the Northwest Territories Waters Act,
the Canadian Environmental Assessment Act, the Canada Oil and Gas Operations Act, and other federal and
territorial laws continue to apply. A list of the main laws affecting oil and gas activity in the ISR is provided in
Chapter 6 of this Guide.

On Inuvialuit-Owned lands, the Inuvialuit enjoy all the rights of private property owners under laws of general
application. The main difference on Inuvialuit-Owned lands is the authority of the ILA to administer surface land
use, and in the case of 7(1)(a) lands, to administer subsurface rights.

The ILA has the authority to set terms and conditions for environment and safety that equal or exceed laws of
general application.


2.12 IFA Environmental Impact Screening and Review Process
Section 11 of the IFA establishes a formal Environmental Impact Screening and Review Process to examine
proposed developments that are subject to Screening. The IFA requires that unless the provisions of section 11
have been complied with, government shall not issue any licence or approval that would allow any proposed
development to proceed.


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2 - The Inuvialuit Final Agreement (IFA)                                                    Introduction to the ISR




For a proposed development that is subject to the process, the first step is Screening of the proposed development
by the Environmental Impact Screening Committee (EISC). If the EISC finds that the proposal could have a
“significant negative environmental impact,” the project can be referred for further review, by a panel of the
Environmental Impact Review Board (EIRB) or by another review authority.

Not all proposed developments in the ISR are subject to the IFA Environmental Impact Screening and Review
Process. Some very low impact activities on Crown lands may be exempt, and developments on Inuvialuit-Owned
lands may be but are not necessarily subject to Screening. Processes are described further in Chapter 4 and
CHARTS EISC and EIRB.


2.13 Economic Provisions (IFA Sections 10 and 16)
The equal participation of Inuvialuit in the northern economy and society is one of the fundamental goals of the
IFA; this objective is defined more explicitly in IFA section 16 as “Inuvialuit integration into Canadian society
through development of an adequate level of economic self-reliance and a solid economic base.”

Several measures in the IFA are intended to advance this goal, including:
      the federal government agrees that for any application for exploration, development or production rights on
      Crown lands and on 7(1)(b) lands within the ISR, “general guidelines developed by government relating to
      social and economic interests, including employment, training and business opportunities to favour natives” will
      be applied (IFA s. 16(11));
      Developers who want access across or to Inuvialuit-Owned lands, or who want Concession Agreements on
      7(1)(a) lands, are required to negotiate Participation (or Access) Agreements that cover a range of socio-
      economic benefits;
      Developers may also negotiate a Cooperation Agreement with the Inuvialuit Land Administration (ILA),
      toward an agreed framework for negotiating Participation Agreements for a range of possible future activities.
      The ILA (in practice and/or IRC/ILC) may voluntarily conclude Cooperation Agreements with respect to the
      objectives in section 16(11) of the IFA; and
      the Inuvialuit have a right to be awarded publicly tendered government contracts to develop resources on
      Crown lands, if they submit the best proposal (IFA s. 16(10)).


2.14 Land Use Planning (IFA Section 7)
Subsections 7 (82, 83, 84) of the IFA provide for land use planning. The Mackenzie Delta-Beaufort Sea Delta
Land Use Plan was completed in 1991. However, this plan has largely been superceded by planning and
consultation under the aegis of the Inuvialuit Renewable Resources Conservation and Management Plan. Under
this latter initiative, the Wildlife Management Advisory Council (NWT) works with each of the communities to
develop and update Community Conservation Plans which identify areas of environmental sensitivity or cultural
value for each community. Development proposals are reviewed by the Hunters and Trappers Committee and,
depending on the type of land, the Community Corporation, and their advice is taken into account in the
authorization process. This process is described further in Chapter 12 of this Guide. The planning areas for each
community are marked on MAP 10 in APPENDIX A.




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3.0 INSTITUTIONS UNDER THE INUVIALUIT FINAL AGREEMENT

The Inuvialuit Final Agreement (IFA) provides for the establishment of three sets of institutions:
    Co-management and Environmental Assessment institutions, which include representation from
    both the Inuvialuit and the federal and territorial governments. Administration and technical support for these
    institutions is provided by the Joint Secretariat in Inuvik;
    Inuvialuit institutions, which represent the interests of beneficiaries and that manage Inuvialuit settlement
    lands and funds; and
    Community level organizations, namely Community Corporations (CC) and Hunters and Trappers
    Committees (HTC).

Contacts and addresses for each of these organizations are listed in APPENDIX D.


3.1     IFA Institutions for Co-Management and Environmental Assessment
An environmental co-management system has been developed to meet the goals of the IFA. Inuvialuit and the
governments of Canada, Northwest Territories and Yukon share management responsibilities for the ISR. Five
joint Inuvialuit-government boards and committees contribute to co-operative management of wildlife, habitat and
the environment:
    Wildlife Management Advisory Council (Northwest Territories) (WMAC (NWT));
    Wildlife Management Advisory Council (North Slope) (WMAC (North Slope));
    Fisheries Joint Management Committee (FJMC);
    Environmental Impact Screening Committee (EISC); and
    Environmental Impact Review Board (EIRB).

An organization chart describing resource management under the IFA is shown in FIGURE 3-1.

3.1.1 Institutions for Co-Management of Wildlife
Wildlife Management Advisory Council (NWT)
WMAC (NWT) has jurisdiction over the portion of the ISR in the Northwest Territories (including adjacent
nearshore and offshore waters). This Council has seven permanent members representing Canada (one member),
the Government of NWT (two members) and Inuvialuit (three members). The Chair is appointed by the
Government of NWT with the consent of Inuvialuit and Canada.

The WMAC (NWT) performs the following functions:
    advises federal and territorial government Ministers on wildlife legislation, policy and management in the
    Western Arctic;
    maintains the Inuvialuit Renewable Resource Conservation and Management Plan (1988) which outlines
    goals and principles for conservation in the Western Arctic;
    assists communities to develop Community Conservation Plans;
    participates in research on grizzly bears, caribou, wolves and other wildlife;
    advises wildlife management boards, land use commissions, and institutions of the IFA Environmental Impact
    Screening and Review Process on wildlife issues relating to the Western Arctic;
    determines and recommends Inuvialuit harvesting quotas for caribou (and other migratory animals in the IFA)
    inside or outside the Western Arctic Region; and


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3 - Institutions under the Inuvialuit Final Agreement                                        Introduction to the ISR


      requests (if appropriate) the participation of Hunters and Trappers Committees when the Council manages the
      subsistence harvest.

Wildlife Management Advisory Council (North Slope)
The jurisdiction of the WMAC (North Slope) is the Yukon portion of the ISR, although some powers extend
into the NWT. The membership represents Inuvialuit (two members) and the governments of Canada and the
Yukon (one member each). The Chair is appointed by the Government of Yukon, with the consent of the
Inuvialuit members and Canada. WMAC (North Slope) is responsible for advising federal and territorial
government ministers on all Yukon North Slope wildlife and habitat issues.

The IFA establishes for the Yukon North Slope a “Special Conservation Regime,” the purpose of which is to
conserve wildlife, habitat and traditional use, however final arrangements have not yet been ratified. As well, two
parks have been established in the Yukon North Slope area: the Ivvavik National Park and Herschel Island
Territorial Park. The remaining area, extending from the Babbage River on the west to the Yukon-NWT border,
will be subject to the “Special Conservation Regime,” however at this time, these lands are not available for rights
disposition pursuant to a Withdrawal and Prohibition Order dated 1985. Refer also to Chapter 11 of this
Guide.

The WMAC (North Slope):
      participates in management of the two parks;
      has prepared a Conservation and Management Plan for the North Slope;
      supports and participates in wildlife and habitat research;
      advises Ministers on wildlife policy and management; and
      works with Inuvialuit to promote the wise use of resources and sound environmental management.

Fisheries Joint Management Committee (FJMC)
This Committee has a Chair and four members, two representing Inuvialuit and two appointed by the federal
Minister of Fisheries and Oceans. The Chair is appointed by the members.

The FJMC assists the Inuvialuit and the Government of Canada to manage ISR fisheries and:
      advises the Minister of Fisheries and Oceans on fisheries issues;
      Collects harvest information and recommends subsistence quotas for fish and harvesting quotas for marine
      mammals;
      holds public meetings in each community to exchange information and concerns about the fisheries;
      sponsors research, assessment and monitoring projects which use the knowledge and efforts of resource users
      and scientists;
      manages a public registration system for fishing on Inuvialuit lands, and for entry on Inuvialuit 7(1)(b) lands
      for fishing; and
      restricts the public right of access to Inuvialuit 7(1)(b) lands for fishing (where required for conservation
      purposes, or to prevent interference with Inuvialuit activities or use of land).




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Introduction to the ISR                                    3 - Institutions under the Inuvialuit Final Agreement


3.1.2 Institutions of IFA Environmental Impact Screening and Review
Environmental Impact Screening Committee (EISC)
The EISC has a Chair and six permanent members; three appointed by Canada, (representing each of the
governments of Canada, Yukon and Northwest Territories) and three by the Inuvialuit Game Council. A Chair is
appointed by the federal government with the consent of the Inuvialuit.

For each Screening a Panel comprising the Chair and four of the permanent members is set up. There is provision
in the IFA for adding a Panel member from adjacent claims areas that may be negatively affected, provided that
like representation is available to the Inuvialuit for Screening processes in those adjacent areas.

After reviewing the evidence, the EISC makes a determination on whether there is potential for significant negative
impact. The EISC then indicates in writing to the governmental authority competent to authorize the development
whether, in its view, the development will have no significant negative environmental impact and may proceed
without environmental impact assessment and review under the IFA, or that the project should be subject to
assessment and review under the IFA, or that the proposal has such deficiencies that a new Project Description is
required (IFA s. 11(13)).

The Screening Process is described in Chapter 4 and CHART EISC. For developments subject to Screening,
no government decision or approval can be issued that would allow the project to proceed until the EISC has
completed its determination. Note that there are somewhat different processes for determining what activities will be
subject to Screening, depending on whether the activity is on Crown or Inuvialuit-Owned land. This is discussed
further in the next chapter.

Environmental Impact Review Board (EIRB)
The EIRB has six permanent members; three appointed by Canada, representing each of the governments of
Canada, Yukon and Northwest Territories, and three by the Inuvialuit Game Council. A Chair is appointed by the
federal government with the consent of the Inuvialuit. The EIRB reviews all projects referred to it by the EISC.

For a review, a Panel, consisting of two Inuvialuit, two government-appointed members and the Chair, is selected
from the Board membership. The territorial nominee comes from the territory in which the development would
occur. In parallel with the provision for the EISC, there is provision for adding a Panel member from adjacent
claims areas that may be negatively affected, provided that like representation is available to the Inuvialuit for review
processes in the adjacent areas.

After reviewing the evidence, the Review Panel recommends to the government authority competent to authorize
the development, whether or not the development should proceed and if so on what terms and conditions. It can
also recommend further review.

The Review Panel must also estimate the potential liability of the Developer, determined on a worst case scenario,
for the development (IFA s. 13(11)(b)). Review Processes are described in Chapter 4 and CHARTS EIRB,
SSD and SP.

For a project that is referred to the EIRB, no decision or approval can be issued that would allow the project to
proceed until the EIRB has issued its recommendations.




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3 - Institutions under the Inuvialuit Final Agreement                                        Introduction to the ISR


3.2       Inuvialuit Institutions
3.2.1 Inuvialuit Regional Corporation (IRC)
IRC was established under the IFA and holds the overall responsibility for managing the affairs of its corporate
subsidiaries and achieving goals outlined in the IFA. IRC received the Inuvialuit lands and financial compensation
agreed to under the IFA. The ongoing responsibilities of IRC are:
to implement and defend the land claim settlement;
to fulfill the role as the institutional representative of the Inuvialuit; and
to be the Parent Corporation to and monitor of the Inuvialuit Corporate Group.

IRC and its subsidiaries are controlled by Inuvialuit beneficiaries through a democratic process. Each of the six
communities has a community corporation with elected directors. The Chairperson of each community corporation
and the chairperson of IRC form the IRC Board of Directors. The Chairperson/CEO of IRC is elected by the
directors of the six community corporations. An Organization Chart for IRC is provided in FIGURE 3-2.

Inuvialuit-Owned lands are administered by the Inuvialuit Land Administration, a division of IRC based in
Tuktoyaktuk. IRC also works to foster social goals, education, health and well-being of Inuvialuit through its
Community Development Division.

IRC serves as parent to the Inuvialuit Corporate Group, which includes:
      Inuvialuit Development Corporation, the active business venture capital corporation in the group. IDC’s
      purpose is to carry on business either directly or through ownership of shares in, or participation in ventures
      with other businesses;
      Inuvialuit Land Corporation, which holds title to Inuvialuit-Owned lands;
      Inuvialuit Investment Corporation, which received the largest share of financial compensation from the
      settlement of the claim, and is responsible for managing the “Heritage Fund;” and
      Inuvialuit Petroleum Corporation, which holds active oil and gas interests, and owns a share in the Ikhil
      Gas Project.

Benefits and profits from the Corporate Group are ultimately distributed to Inuvialuit beneficiaries. As parent of the
Corporate Group and representative of all Inuvialuit in these matters, IRC has a direct interest in the success of the
active businesses which it owns and whose success benefits all Inuvialuit.

At the same time, there is a long history in the ISR of commercial activity, and in addition to the Corporate Group,
there is an active private Inuvialuit business sector in the ISR. IRC, as the institution responsible for the claim, has
an obligation to ensure that economic development rights under the claim are used both to support private
businesses in the ISR and to serve the interests of Inuvialuit beneficiaries through the Corporate Group. To discuss
these matters, contact IRC directly at the numbers provided in APPENDIX D.

3.2.2 Inuvialuit Land Administration (ILA)
The Inuvialuit Land Administration (ILA) is a division of the IRC. It is based in Tuktoyaktuk and is responsible
for administering and managing lands received under the IFA. The ILA:
      receives and approves applications for access to and use of Inuvialuit-Owned lands;
      ensures Inuvialuit receive business, employment and training benefits from activities on their lands; and
      monitors land use operations to ensure the protection of the land and environment.




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Introduction to the ISR                                 3 - Institutions under the Inuvialuit Final Agreement


Developers wishing to work on or to travel across Inuvialuit-Owned lands must apply to the ILA for authorization.
The ILA processes applications for rights, such as Land Use Permits, Permanent and Temporary Rights-of-way,
Commercial Leases, and Reconnaissance Permits, and through IRC, is involved in the issuance of mineral,
petroleum and coal Concessions.

The ILA, with participation from other Inuvialuit organizations, also negotiates with Developers the terms of
Participation/Access Agreements, while IRC handles negotiations of Cooperation Agreements and Concession
Agreements.

Chapter 7 describes the lands administered by the ILA, and Chapter 15 describes the authorizations and
processes applied.

3.2.3 Inuvialuit Game Council (IGC)
The Inuvialuit Game Council (IGC) is an incorporated society which represents the collective Inuvialuit interest in
wildlife. The IGC has a Chair and at least one representative from each Hunters and Trappers Committee.

The IGC’s responsibilities are to:
    appoint Inuvialuit members to:
    −    all joint Inuvialuit/government bodies with interests in wildlife,
    −    any Canadian delegation that deals with international wildlife matters,
    −    any group whose purpose is to investigate any aspect of wildlife;
    advise government through WMAC on
    −    policy and administration of wildlife conservation,
    −    existing and proposed legislation for wildlife,
    −    any proposed Canadian position on international wildlife matters;
    assign community hunting areas;
    allocate Inuvialuit quotas among communities;
    assist the WMAC on request; and
    enter into Harvester Claim Resolution Agreements.


3.3     Community Institutions
3.3.1 Community Corporations (CC)
Each of the six Inuvialuit communities has a Community Corporation (CC). Each CC has input into any
development activity that is approved by the ILA on Inuvialuit 7(1)(a) or 7(1)(b) lands near the community.
    Aklavik Community Corporation
    Inuvik Community Corporation
    Tuktoyaktuk Community Corporation
    Sachs Harbour Community Corporation
    Paulatuk Community Corporation
    Olokhaktomiut (Holman) Community Corporation

Applications for permits for work on Inuvialuit-Owned lands are circulated to the CC for the community whose
planning area is affected by the proposed activity. The CC is asked to comment regarding potential impacts and
business opportunities. Community Corporations can request through the IRC that a project on Inuvialuit-Owned



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3 - Institutions under the Inuvialuit Final Agreement                                        Introduction to the ISR


lands be referred to the EISC for Screening. Approvals for long term use of 7(1)(a) lands are subject to ratification
of the Community Corporation for the community closest to these lands.

As a matter of good practice, Proponents of activities on Crown Lands will include the CC in their consultations.

3.3.2 Community Hunters and Trappers Committees (HTC)
Each of the six communities has a Hunters and Trappers Committee (HTC).
      Aklavik Hunters and Trappers Committee
      Inuvik Hunters and Trappers Committee
      Tuktoyaktuk Hunters and Trappers Committee
      Sachs Harbour Hunters and Trappers Committee
      Paulatuk Hunters and Trappers Committee
      Olokhaktomiut (Holman) Hunters and Trappers Committee.

The role of the HTC is to:
      advise the Inuvialuit Game Council on local wildlife matters;
      make bylaws regarding the exercise of certain Inuvialuit preferential harvest rights under the IFA;
      sub-allocate quotas; and
      review development proposals and comment to EISC before a Screening determination is made.

The interests of an HTC extend to both Crown and Inuvialuit private lands within a community’s respective
planning area, and may be affected by activities on adjacent planning areas. For some Inuvialuit communities (in
particular Inuvik, Aklavik and Tuktoyaktuk), planning areas overlap. Planning areas are described in the
Community Conservation Plans, 2000 for each community. Refer to section 12.2.1 of this Guide for general
description of planning processes, and to website www.bmmda.nt.ca for maps of the Community Conservation
Plans.




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Introduction to the ISR                         3 - Institutions under the Inuvialuit Final Agreement



FIGURE 3-1: RENEWABLE RESOURCE MANAGEMENT UNDER THE INUVIALUIT FINAL
            AGREEMENT

                                   ORGANIZATION CHART




                          Source: EISC Operating Guidelines and Procedures




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3 - Institutions under the Inuvialuit Final Agreement                                             Introduction to the ISR




FIGURE 3-2: INUVIALUIT CORPORATE GROUP STRUCTURE




                                                        Source: Inuvialuit Regional Corporation




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Introduction to the ISR                                  4 - IFA Environmental Impact Screening and Review


4.0 IFA ENVIRONMENTAL IMPACT SCREENING AND REVIEW
    PROCESS

The authorities for the IFA Environmental Impact Screening and Review Process and its application to projects on
federal Crown lands within the ISR are the Environmental Impact Screening Committee and the Environmental
Impact Review Board, and their respective guidelines and procedures.

         Contact:   Secretary, Environmental Impact Screening Committee, Inuvik, NWT
         Reference: EISC Operating Guidelines and Procedures, February 1999

         Contact:   Secretary, Environmental Impact Review Board, Inuvik, NWT
         Reference: EIRB Operating Procedures, October 30, 1997

For issuance of rights and authorizations for land use projects on Inuvialuit-Owned lands, the authority is the
Inuvialuit Land Administration (ILA).

         Contact:   Administrator, Inuvialuit Land Administration, Tuktoyaktuk, NWT
         Reference: ILA Rules and Procedures, 1986

This Chapter offers general background. For authoritative advice, refer to the contacts noted above at the numbers
listed in APPENDIX D.


4.1      Application of the Process: To Which Projects?
The IFA mandates that “no licence or approval shall be issued that would have the effect of permitting any
proposed development to proceed unless the provisions of the Environmental Impact Screening and Review Process
have been complied with” (IFA s. 11(31)).

The consequence of this is that before government regulators can approve or Developers start any development in
the onshore or offshore of the ISR, the requirements of section 11 of the IFA must be met. This does not mean that
all developments must go through Screening and Review, but it does mean that those that are subject to Screening
or in respect of which Screening is requested by the Inuvialuit must go through the process as defined before the
development can be authorized.

The IFA Environmental Impact Screening and Review Process consists of two stages:
    Screening, which is mandatory for development proposals that meet the criteria listed below; and
    Review, which may or may not be required depending on the conclusions of the Screening Process.


4.2      Developments That Require Screening
Development has a highly specific meaning in the IFA. In relation to resource activity, “development” is defined
as any commercial or industrial undertaking or venture, including support and transportation facilities relating to
the extraction of non-renewable resources from the Beaufort Sea, other than commercial wildlife harvesting.




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A “Developer” is defined as a person, the government or any other legal entity owning, operating or causing to
be operated any development in whole or in part in the Inuvialuit Settlement Region, and includes any co-
contractor of such owner or Operator (Definitions section, IFA).

Section 11 of the IFA stipulates that the following will be subject to Environmental Impact Screening:
      (1)(a)     developments of consequence to the Inuvialuit Settlement Region that are likely to cause a
                 negative environmental impact (IFA s. 13(7));
      (1)(b)     developments in the Yukon North Slope;
      (1)(c)     developments in the ISR, in respect of which Inuvialuit request Environmental Screening; and
      (1)(d)     developments in areas where the traditional harvest of the Gwich’in or Sahtu Dene may be
                 adversely affected: this would be on request, and subject to agreement with the Inuvialuit.

Activities subject to Screening include scientific research and camps, granting of water rights, industrial waste
disposal, energy, mineral and aggregate exploration and extraction and commercial transportation developments.

Subsection 11(2) of the IFA distinguishes between onshore and offshore developments for the purposes of
Screening and Review. However by letter dated April 10, 1987 the Inuvialuit Game Council gave DIAND formal
notice that under paragraph 11(1)(c) all developments in the offshore on Crown lands within the ISR are to be
submitted for Screening.

The requirements for Screening of proposed developments are different on Inuvialuit-Owned lands from those on
Crown lands. A proposed development on Inuvialuit-Owned lands may be, but is not necessarily, referred for
Screening; the decision on whether to refer an application for work on Inuvialuit-Owned lands is made by the ILA.


4.3     Exemption from Screening
According to the EISC Operating Guidelines and Procedures, it is the basic premise of the Screening Committee
that all proposed developments on Crown lands in the ISR, both onshore and offshore, are likely to have some
negative effect on the environment and are potentially subject to Screening. However not all activities are likely to
have a significant negative impact. The EISC has determined that certain classes of activities may be exempt from
Screening, and these are listed in Appendix C of the EISC Operating Guidelines and Procedures.

To determine whether a proposed activity on Crown land may be exempt, Developers are advised to consult the
EISC.
        Contact:   Secretary, Environmental Impact Screening Committee, Inuvik
        Reference: Exemptions from Screening on Crown Lands

The situation is different for developments on Inuvialuit-Owned lands. On these lands, the ILA issues the
permits for land use. To determine whether a proposed development on Inuvialuit 7(1)(a) or 7(1)(b) lands may be
exempt from Screening, the Proponent should contact the ILA Administrator. Proposed developments may be
subject to Screening pursuant to paragraph 11(1)(c), i.e. developments in the ISR in respect of which Inuvialuit
request Screening. For instance, WMAC, FJMC, IGC or a Community Corporation may request through the
IRC that a project on Inuvialuit lands be referred for Screening.
        Contact:   Land Administrator, ILA
        Reference: Exemptions from Screening on Inuvialuit Owned 7(1)(a) and 7(1)(b) Lands




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CHART EISC: Environmental Impact Screening Committee Process
Under IFA subsection 11(31), no licence or approval shall be issued that would have the effect of permitting any
proposed development to proceed unless the provisions of section 11 have been complied with. When a regulatory
agency informs the EISC that an application for a licence or permit has been made, the EISC will advise the
Developer of the requirements for Screening. The EISC will also advise Developers when a request for Screening
has been made under IFA paragraph 11(1)(c) or (d). It is ultimately the responsibility of the Developer to submit
a Project Description to the EISC for any proposed development subject to the IFA Environmental Impact
Screening and Review process.

Such developments go first to the Environmental Impact Screening Committee (EISC). Most applications are
dealt with fully by the EISC without having to go to the Environmental Impact Review Board (EIRB) for further
assessment.

Contact the Secretary of the EISC to discuss the Screening Process and to obtain the current version of the EISC
Operating Guidelines and Procedures. The key requirements of the Developer are consultation and preparation of
a detailed Project Description. Because both these requirements can take considerable time, it is recommended that
contact with the EISC be made well in advance of the time the permit is required.

Screening of a proposal proceeds through the following sequence: submission of the Project Description,
processing, Screening, decision, notification and, if necessary, referral to the review stage. The following headings
correspond to steps on CHART EISC.

SC-1     Proponent Prepares Project Description
         It is the responsibility of the Proponent to prepare and to submit the Project Description to the EISC. The
         purpose of the Project Description is to provide the EISC with sufficient information on the proposed
         development to permit the EISC to make an adequate preliminary assessment of the project and its
         environmental impact.

         Refer to “EISC Operating Guidelines and Procedures” for detailed requirements on content and format.
         The Project Description must include summaries of consultation with regulatory agencies and with
         communities, an overview of the proposal, an environmental overview of the area, an environmental impact
         assessment, as well as proposed mitigation, contingency plans and reclamation plans.

         It is important not to under-estimate the time required to prepare the Project Description. The time and
         effort committed to ensuring a complete and sound Project Description can do much to expedite the
         authorization process.

         When developing the plan for the development, whether for Screening by EISC or by other agencies, the
         Proponent can reduce the risk of delay and iterations by taking time to define the project as completely as
         possible at the Project Description stage. The EISC prefers to consider proposals that cover as many of
         the components of exploration and/or development as possible. The nature of oil and gas work is that
         results of initial work may or may not justify progression to the next phase. The EISC’s requirement is that
         the Proponent provide as complete a picture as possible of the proposed development for which approvals
         are being sought. If the development is modified after a development permit is issued, the regulatory agency
         will decide whether the amendment is significant and, if so, will send it back to the EISC for Screening.
         The Developer is then required to submit a new Project Description to the EISC identifying the proposed
         amendments.



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Introduction to the ISR                               4 - IFA Environmental Impact Screening and Review



SC-2   Proponent Undertakes Consultation
       Consultation with Inuvialuit Communities
       When preparing the Project Description, the Developer is urged to consult thoroughly with residents of the
       communities most likely to be affected, Inuvialuit organizations and the co-management bodies set up
       pursuant to the IFA. Refer also to Chapter 5 of this Guide.

       The first line of consultation should be with the Hunters and Trappers Committee (HTC) whose
       members may be affected by the proposal. The EISC regards the HTC as a key element of the co-
       management system, and the focal point for consultation. An account of this consultation is required as
       part of the Project Description. Generally the EISC will not screen a Project Description until community
       consultation is complete and the results are available to the EISC.

       An important consideration when planning community consultation is that the availability of members of
       the HTC varies with the demands of hunting and fishing seasons. It is very difficult for instance to plan
       meetings between May and August, when hunting priorities draw HTC members out on the land.

       In addition to consultation with the HTC, it is to the advantage of Proponents to consult with the
       respective Community Corporations and the umbrella Inuvialuit co-management organizations, in
       particular the Fisheries Joint Management Committee (FJMC) and the Wildlife Management Advisory
       Council (NWT and/or North Slope).

       Obtain Advice from EISC and Government Agencies on Requirements
       The Developer is required to provide to the EISC a list of all government approvals required. To prepare
       this list, to obtain other relevant information, and to anticipate requirements for project planning, the
       Proponent will have to contact the relevant federal and territorial government departments and agencies.
       Refer to APPENDIX D for addresses and contact numbers.

SC-3   Proponent Submits Project Description to EISC

SC-4   EISC Secretary Receives Project Description 30 Days in Advance of EISC Meeting
       After receiving the Project Description, the Secretary of the EISC will put the item on the agenda for a
       future meeting of the EISC, and/or may request supplementary information. Procedures require that the
       Project Description be received at least 30 days before the EISC meeting at which it will be screened.
       Screening usually occurs in 50 days or less after the submission is received.

       The Proponent should contact the Secretary regarding procedures for scheduling the EISC’s
       consideration of the application and to discuss timelines. Developers should be aware that the EISC is not
       a full-time standing body. Only the Secretary is available for day-to-day business. Meetings are held about
       every five to six weeks, normally in Inuvik. A tentative meeting schedule is available from the Secretary.
       The date and location of a meeting is confirmed at the previous meeting.

       EISC procedures require that an exact copy of the Project Description submitted to the EISC be sent by
       the Proponent to the affected HTC. If the HTC requires additional time to examine a Project
       Description, it may ask the EISC to delay Screening until the next regular meeting of the EISC.




June 2001                                                                                                     4-5
4 - IFA Environmental Impact Screening and Review                                       Introduction to the ISR


SC-5   Proponent and Regulatory Agency Notified of Screening Meeting
       The Secretary will advise the regulatory agencies identified by the Developer in the Project Description.

SC-6   Project Description Examined at EISC meeting
       The Project Description is discussed by the EISC as a whole. The Developer may wish to make a
       presentation at the meeting if the development is controversial or complex.

SC-7   EISC Determines Proposal Exempt from Screening
       The EISC may determine that the proposal is exempt from Screening, in which case the EISC notifies the
       Proponent and regulatory agency to that effect.

SC-8   EISC Determines Proposal Will be Screened
       If the EISC determines that the proposal will be screened, it will strike a Screening Panel SC-9. Each
       Screening Panel consists of the Chair and four EISC members: two appointees of Canada and two
       appointees of the Inuvialuit. The Screening Panel will base its deliberations on the Project Description,
       and will also draw on other sources of information and comment, including the Hunters and Trappers
       Committees, Community Conservation Plans, Wildlife Management Plans, the Inuvialuit Harvest Study,
       the co-management bodies, government agencies, the public and communities. Under the IFA subsection
       11(13), the Screening Panel has three options for determination, as follows.

SC-9   Screening Panel Struck and Decision Rendered

SC-10 Determination: No Significant Impact
       The Screening Panel may determine that the project has no significant negative environmental impact, and
       may proceed without further review under the IFA (IFA s. 11(13)(a)).

SC-11 Proponent and Regulatory Agency Notified: Licence Can Be Issued
       The EISC indicates in writing to the governmental authority competent to authorize the development its
       determination. Requirements of section 11 of the IFA have been met and the authority can proceed with
       its decision. Note that the mandate of the EISC is advisory. While the determination of the EISC will be
       taken into account, the regulator has the final say on whether to authorize the development and on what
       terms and conditions are to be attached to that authorizations.

SC-12 Determination: Significant impact
       The Screening Panel may determine that the development could have significant negative impact and will
       be subject to further review under the IFA. The Proponent and regulatory agency are notified SC-13.




4-6                                                                                                   June 2001
Introduction to the ISR                                  4 - IFA Environmental Impact Screening and Review


SC-13 Proponent and Regulatory Agency Notified – Subject to Further Review under IFA

SC-14 Referral to Environmental Impact Review Board
         The EISC may refer the proposal either to the EIRB (IFA s. 11(16) or to another review process that, in
         the opinion of the EISC, will encompass the IFA assessment and review function (IFA s. 11(15)). Refer
         to CHART EIRB for steps in the EIRB process.

SC-15 Determination: Deficient
         The Screening Panel may determine that the development proposal has deficiencies of a nature that
         warrant a termination of its consideration (IFA s. 11(13)(c)). In that event, the Proponent may alter
         plans and submit a revised Project Description, or may choose to withdraw completely.

SC-16 Proponent and Regulatory Agency Notified – No Licence to be Issued



4.4      Environmental Impact Review Board
The Review Process described in section 11 of the IFA is the purview of the Environmental Impact Review Board
(EIRB). It is also possible under IFA subsections 11(15) and 13(9) for the EISC to refer the proposed
development to another review process, if the EISC is of the opinion that the other review process will adequately
encompass the assessment requirements of the IFA. Strictly, the IFA requires that if the proposed development is
subject to a governmental development or environmental impact review process, and the EISC is of the opinion that
that review process will adequately encompass IFA requirements based on an assessment of factors set out in IFA
subsections 13(10) and (11) then the EISC shall refer the proposal to that other review process. Note however that
such a decision to refer to another review body shall only be taken after the EISC has considered the features of a
specific Project Description before it and the terms of reference and capacity of the specific alternative review body.

The EIRB has a structure balanced equally between the parties to the IFA. It is neither a government nor an
Inuvialuit organization, but must remain independent and non-partisan. Appointees to the Board are expected to
participate as experienced, independent citizens, not as representatives of jurisdiction or viewpoint. Three members
are appointed by the Inuvialuit Game Council (IGC), and three by the Government of Canada, one of whom is
nominated by the federal government, and one each by the governments of Yukon and NWT. A Chair is
appointed by Canada with the consent of the Inuvialuit.

Based on the public review, the Review Panel recommends whether a proposed development should proceed, and if
so under what terms and conditions. Terms and conditions will include mitigative measures and remediation, and
wildlife compensation. The Review Panel provides an estimate of the potential liability of the Developer,
determined on worst case scenario. The Review Panel may also recommend that further review is required.

Special duties of the EIRB are:
    to set environmental standards in the Husky Lakes and Cape Bathurst areas; and
    to take into account specific criteria in consideration of any development proposals for the Yukon North Slope.




June 2001                                                                                                         4-7
4 - IFA Environmental Impact Screening and Review                                         Introduction to the ISR


Review cases have been few in number, reflecting generally low levels of activity in the ISR the past few years. Few
cases that have been screened actually go to the review stage. Of some 400 cases screened, fifteen have been
referred, and of these four progressed to the review stage.

        Contact:   Secretary, Environmental Impact Review Board, Inuvik
        Reference: Operating Procedures, October 30, 1997


CHART EIRB: Environmental Impact Review Board Process
The following headings correspond to the steps on CHART EIRB.

RB-1 Referral Received from the EISC
        The EIRB is required to conduct a public review for each project referred to it by the EISC.

RB-2 Proponent Contacted. Preliminary Meeting with EIRB Staff Arranged.
        Once a project has been referred, the secretary of the EIRB will forward a copy of the Operating
        Procedures to the Proponent, and staff will meet with the Proponent to explain the requirements. The
        Proponent is required to submit to the EIRB an Environmental Impact Statement (EIS), which then
        becomes the basis for the review.

        The requirements for the EIS are set out in section 10 of the EIRB the Operating Procedures. These
        requirements have been amended to conform to those of the Canadian Environmental Assessment Act
        (CEAA) more closely. Requirements include the purpose of the development, results of the consultation
        process, consideration of alternatives, potential environmental effects, rationale, mitigative measures,
        assessment of worst case scenarios, protection and monitoring commitments, plans for remediation and
        abandonment.

        Preparation of a thorough and sound EIS is a substantial undertaking, however there are advantages to
        taking the time at this stage to anticipate and address concerns identified during consultation with both
        Inuvialuit and government agencies. Submission of a complete EIS will reduce the time required to
        address deficiencies in the information provided. As well, to the extent that the EIS satisfies the
        requirements under CEAA, government agencies will be able to rely on the EIS in the Environmental
        Assessment requirements under CEAA. (Refer to Chapter 13 and CHART CEAA for the CEAA
        process.)

RB-3 Public Notice of Referral Issued

RB-4 Registration of Participants and Government Representatives Begins

RB-5 EIRB Retains Technical Advisors




4-8                                                                                                     June 2001
Introduction to the ISR   4 - IFA Environmental Impact Screening and Review




June 2001                                                              4-9
4 - IFA Environmental Impact Screening and Review                                           Introduction to the ISR


RB-6 EIRB Holds Procedural Meeting
       Within 30 days of receiving the EIS, the EIRB will meet and will decide (among other matters) what
       procedure should be followed for the review. The proposal may be subject either to the Small-Scale
       Development Procedures (SSD) RB-7 or to the Standard Public Review Procedures (SPR)
       RB-8.

       The EIRB will determine whether a proposed development should be directed into the SSD procedures
       after considering the following criteria:
           limited spatial extent;
           short-term impact;
           limited community effects;
           insignificant cumulative effects;
           existing class assessment; and
           previous Environmental Assessments undertaken on the project.

       The EIRB is also able to vary either the SSD or the SPR procedures. The EIRB may choose to vary the
       procedures on its own motion, or the Proponent or a registered participant may apply to the EIRB to vary
       the procedures. Example of variations that could be considered are a change in the time requirements, in
       the scoping process, in the use of a pre-hearing conference, or a special investigation of certain issues. The
       EIRB may also call for a general assessment of a class of developments prior to initiating a review for a
       specific proposal: this, like the Class Screening concept available under CEAA, may create efficiencies in
       review when several similar applications are expected.


CHART SSD: EIRB Small Scale Development (SSD) Procedure

SSD-1 Development Proposal Designated as a SSD

SSD-2 EIRB Staff Assist Proponent to Outline EIS

SSD-3 Proponent Submits EIS

SSD-4 EIRB Decides Whether to Accept EIS
       EIRB may reject the EIS. In case of rejection, SSD-5, the Proponent may choose to revise the EIS and
       resubmit within a time limit established by the EIRB (s. 13.2.3 Operating Procedures).

SSD-6 EIRB Accepts EIS

SSD-7 Chair Designates Review Panel
       The review is conducted by a Panel of four selected from the permanent members of the EIRB, plus the
       Chair. There is provision for adding a Panel member from adjacent claims areas that may be negatively
       affected, provided that like representation is available to the Inuvialuit for review processes in the adjacent
       areas.




4-10                                                                                                      June 2001
Introduction to the ISR   4 - IFA Environmental Impact Screening and Review




June 2001                                                             4-11
4 - IFA Environmental Impact Screening and Review                                        Introduction to the ISR


SSD-8 Minimum 30 day Preparation Period. Decision on Whether Public Meeting Required
       Review Panel Holds Public Meeting SSD-9, or Public Meeting Not Required SSD-10, or
       EIRB Investigator Holds Public Meeting SSD-11.

SSD-12 EIRB Renders Final Decision
       The Review Panel recommends whether a proposed development should proceed, and if so under what
       terms and conditions, including mitigative measures and remediation.

SSD-13 Competent Authority and Proponent Informed of Decision
       The EIRB decision is transmitted to the governmental authority or authorities competent to authorize the
       development (IFA s. 11(27)) by means of a Decision Report. In the case of oil and gas activities in the
       NWT land portion of the ISR or the ISR offshore lands, the NEB is the competent authority.

SSD-14 Decision Made Public
       Both parties to the IFA, the Proponent, registered intervenors and the public are advised of the Decision.

SSD-15 Competent Authority Decision
       For a project that is referred to the EIRB, no decision or approval can be issued to allow the project to
       proceed until the EIRB has issued its recommendations. The Regulatory Authority must consider the
       decision of the Review Panel when deciding if the proposed development may proceed especially when
       attaching terms and conditions and specifying mitigative and remedial measures. The ultimate decision of
       the Regulatory Authority must be consistent with the IFA, in particular with subsection 11(27).

       If the authority is unwilling, or unable to accept any of the recommendations in the decision of the EIRB
       or wishes to modify any of the recommendations, the authority is required to give reasons in writing within
       30 days of receiving the decision, stating why it has not accepted the recommendations.

       The EIRB Operating Procedures point out that the 30 day limitation does not mean that the final
       decision to approve or reject the development must occur within 30 days of the EIRB decision, but that
       the decision on the EIRB recommendations must be made in that time period.


CHART SP: EIRB Standard Public Review (SPR) Procedure

SP-1   Proponent Submits Outline for Environmental Impact Statement (EIS)

SP-2   EIRB, Registered Participants and Government Representatives Examine EIS
       Outline

SP-3   Scoping Session Held (If Necessary)

SP-4   Suggested Changes to EIS Outline Summarized and Presented to Proponent by EIRB
       Staff



4-12                                                                                                  June 2001
Introduction to the ISR   4 - IFA Environmental Impact Screening and Review




June 2001                                                             4-13
4 - IFA Environmental Impact Screening and Review                                           Introduction to the ISR



SP-5   Proponent Prepares and Submits Draft EIS

SP-6   EIRB, Registered Participants and Government Representatives Examine Draft EIS

SP-7   Comments on Draft EIS Summarized by EIRB Staff and Forwarded to Proponent

SP-8   Proponent Prepares and Submits Revised EIS

SP-9   Revised EIS Examined by EIRB
       EIRB decides whether or not to accept EIS. The EIRB may decide to Reject EIS (SP-10) in which
       case the Proponent may either choose to revise and re-submit the EIS SP-8, or to withdraw the proposed
       development entirely SP-11, in which instance the decision is made public SP-12.

SP-13 Revised EIS Accepted
       If the EIRB accepts the revised EIS, it then becomes the final EIS SP-14.

SP-15 EIRB Chairman Designates Review Panel
       In each case, the review is conducted by a Panel of four selected from the permanent members of the
       EIRB, plus the Chair. There is provision for adding a Panel member from adjacent claims areas that may
       be negatively affected, provided that like representation is available to the Inuvialuit for review processes in
       the adjacent areas.

SP-16 Preliminary Schedule and Agenda Drafted by EIRB Staff

SP-17 Pre-Hearing Conference (if necessary)

SP-18 Hearing Order Issued

SP-19 Preparation Period (minimum 60 days)

SP-20 Public Hearing

SP-21 EIRB Decision
       Based on the public review, the Review Panel recommends whether a proposed development should
       proceed, and if so under what terms and conditions. Terms and conditions will include mitigative measures
       and remediation, and wildlife compensation. The Review Panel provides an estimate of the potential
       liability of the Developer, determined on worst case scenario. The Review Panel may also recommend that
       further review is required.




4-14                                                                                                      June 2001
Introduction to the ISR                                 4 - IFA Environmental Impact Screening and Review


SP-22 Competent Authority and Proponent Informed of Decision
        The EIRB decision is transmitted to the governmental authority or authorities competent to authorize the
        development (IFA s. 11(27)) by means of a Decision Report. In the case of oil and gas activities in the
        NWT land portion of the ISR or the ISR offshore lands, the NEB is the competent authority. Public
        Both parties to the IFA, the Proponent, registered intervenors and the public are advised of the decision.

SP-23 Competent Authority Decision
        For a project that is referred to the EIRB, no decision or approval can be issued to allow the project to
        proceed until the EIRB has issued its recommendations. The Regulatory Authority must consider the
        decision of the Review Panel when deciding if the proposed development may proceed especially when
        attaching terms and conditions and specifying mitigative and remedial measures. The ultimate decision of
        the Regulatory Authority must be consistent with the IFA, in particular with subsection 11(27).

        If the authority is unwilling, or unable to accept any of the recommendations in the decision of the EIRB
        or wishes to modify any of the recommendations, the authority is required to give reasons in writing within
        30 days of receiving the decision, stating why it has not accepted the recommendations.

        The EIRB Operating Procedures point out that the 30-day limitation does not mean that the final
        decision to approve or reject the development must occur within 30 days of the EIRB decision, but that
        the decision on the EIRB recommendations must be made in that time period.


4.5     Relationship to The Canadian Environmental Assessment Act
The IFA Environmental Impact Screening and Review Process does not relieve the federal government from its
obligations to ensure that a development meets the requirements of the Canadian Environmental Assessment Act
(CEAA). These requirements are described in Chapter 13 and the steps that each Responsible Authority must
follow under CEAA are outlined on CHART CEAA.

In the years since the implementation of CEAA, the EISC and EIRB have worked with the Agency and federal
departments to identify opportunities for coordination that meet the requirements of both the IFA and CEAA. By
bringing the information requirements both of the Project Description and of the Environmental Impact Statement
more closely into line with the requirements under CEAA, these documents and the determinations based on them
can more readily be taken by a Responsible Authority as meeting its obligations under CEAA. As well, both the
EISC and EIRB solicit information and comment from government agencies and officials, to ensure that decisions
are based on the most complete assessment of issues.




June 2001                                                                                                     4-15
4 - IFA Environmental Impact Screening and Review                                      Introduction to the ISR


In another initiative toward coordination, the EIRB and Minister of the Environment, in December 1999, entered
into a Memorandum of Understanding (MOU) on substitution of an EIRB Panel Review for a CEAA Panel
Review. The Minister of the Environment has agreed in principle that a review by the EIRB may be permitted to
substitute for a Panel Review under CEAA, but that such substitution will only be considered on a case-by-case
basis. Pursuant to the MOU, the EIRB will, upon referral of a development for its review, promptly notify the
Minister of the Environment and the CEA Agency of the referral, so that the opportunity for substitution can be
considered in good time.

        Contact:   Secretary, Environmental Impact Review Board, Inuvik
        Reference: EIRB-CEAA Memorandum of Understanding, Substitution under CEAA

The issue of coordination of Environmental Assessment is discussed further in Chapter 27.




4-16                                                                                                June 2001
Introduction to the ISR                                  5 – The Importance of Consultation in IFA Processes



5.0 THE IMPORTANCE OF CONSULTATION IN IFA PROCESSES


5.1      The Inuvialuit Interests
The implementation of the IFA has given Inuvialuit a strong role in the ISR, as land-owners, as co-managers of
wildlife, and as participants in the review of proposed developments. In all these processes, Inuvialuit insist that
communities that may be affected by a development must be consulted before activities begin.

Inuvialuit are not opposed to development and activity. Many have been employed in the construction of the DEW
line, in Beaufort Sea exploration and in northern mining projects. Inuvialuit want opportunities for the rapidly
growing number of young people in the communities of the ISR. At the same time, Inuvialuit regard the land and
wildlife as assets that must be protected for the long term, and they insist that activity must not be at a long-term
cost to the environment. They want to know who is going out on the land in their area. They also want a
reasonable opportunity to participate in employment and business opportunities connected to the activity.

The range of interests may vary from one community to another, and an important aspect of consultation is the
scoping of interests, which may encompass harvesting concerns, cultural and archaeological resources, traditional
use issues, wildlife and environmental effects, economic opportunities for employment and business, skills
development, as well as social issues.

The communities of the ISR have come some distance in considering the issues related to development and in
preparing for any consultation that may be required. The Wildlife Management Advisory Council (NWT) has
worked with the communities over the past several years to produce first the “Inuvialuit Renewable Resources
Conservation and Management Plan” and more recently up-dated Community Conservation Plans for each of the
six Inuvialuit communities. These Conservation Plans were developed as tools to describe the resources of priority
and places of environmental sensitivity for each community. The Plans form the basis for a proposed Land Use
Decision Process, and for community input to the IFA Environmental Impact Screening and Review Process.
From a Developer’s point of view, Community Conservation Plans are a valuable first source of information on
conservation priorities in the area in which work is planned, and a basis for consultation and cooperation with
communities.


5.2      The Developer’s Interests
Communities can provide important “deliverables;” northern expertise, a source of labour and services, support for
authorizations, and access to funds (for instance for training, through government programs). A sound relationship
with the community helps the Developer to negotiate fair and reasonable terms in agreements that may be entered
into with Inuvialuit organizations.

To Obtain Authorizations
The pressing reason for a Developer to consult is to comply with regulatory requirements, in order to obtain
authorization to proceed. The extent of consultation required becomes more formal and more demanding with
increasing scale of activity. For activities below the threshold for a Class B Land Use Permit on Crown land, (see
TABLE 15-2), there is no formally regulated requirement for consultation although it is strongly recommended.
For more intense activities, expectations for consultation are higher. Once a development has to go through IFA
Environmental Impact Screening or to the Inuvialuit Land Administration for authorization, the requirement to
consult is firm. If consultation is not done by the Developer, then EISC or ILA will have to contact the


June 2001                                                                                                          5-1
5 – The Importance of Consultation in IFA Processes                                            Introduction to the ISR


communities themselves, and the review process may be delayed. Review and approval can be much quicker (and
cheaper for the Developer) if community concerns have already been considered, and accommodated in the Project
Description. If the Developer does the consultation rather than leaving to an agency, he/she has the opportunity to
assure that the consultation is done to his or her satisfaction, that information on the project is up to date, and that
information on community concerns comes directly to the Developer rather than through an intermediary.

For advanced exploration and development, the requirements to consult are compulsory and are given force by the
Screening and regulatory processes.

To Build a Long-Term Working Relationship
The purpose of consultation is not merely to satisfy regulatory requirements. Whether the requirement is formal or
not, efforts taken to inform and consult communities about planned activities can help to build a good working
relationship. This goodwill may be valuable in later stages of activity when the Developer needs some
accommodation from the community on an issue or should conflicts arise. As familiarity with communities and
other interests grow, so too will knowledge of who to contact for advice on the consultation process and for specific
development proposals.

Equally, failure to address issues during early exploration can compromise future dealings. If a community comes to
distrust a Developer, it will be all the harder to satisfy local concerns when development activities become more
intense and more rigorous standards have to be met.

There can be other benefits from consulting. Communities can often supply useful information for planning, for
instance, on the timing of break-up or the nature of the terrain. Early consultation can also be effective in saving
costs and time. If Screening or authorizations are delayed because of objections that communities have not been
consulted, critical “windows” can be missed.

To Manage Expectations
The reality of exploration is that it is high risk and there is uncertainty in the progression from one phase of activity
to the next. Communities tend to see the potential for larger projects during the initial exploration stages, without
understanding the risks involved. Younger Inuvialuit in particular have limited experience with oil and gas activity.
Consultation can increase awareness about the industry, and can help to keep expectations of the community for
jobs and contracts in line with reality.


5.3       Effective Consultation
There are two objectives of consultation:
      for the Developer to understand local issues (social, political, environmental and economic) related to the
      activity and, to the extent possible, to accommodate these concerns in project design; and
      for the community to understand the activities that will be undertaken, the timing and planning constraints for
      the Developer, and the opportunities and impacts that can reasonably be expected.




5-2                                                                                                          June 2001
Introduction to the ISR                                   5 – The Importance of Consultation in IFA Processes


Established consultation practice identifies the following elements as key to effective consultation:
    Design: Design communications and consultation activities in a manner that responds to the expectations of
    the community for consultation, as well as meeting the requirements for project planning.
    Notify: Provide the community with notice. Leave time for the community to consider issues, taking into
    account community workload and seasonal availability.
    Consult: Preferably face to face, to achieve a fair and open exchange of views.
    Inform: Tell the community everything they need to know about the nature, location, timing of the full range
    of activities. Provide information in a form suitable to the audience, including oral presentations in non-
    technical language.
    Accommodate: When developing the Project Description, describe the consultation and show how local
    information and knowledge were taken into account in the Project Description.
    Be Accountable: For your commitments, with consistency in message and the messenger(s).
    Start Early: The longer you wait to consult, the further along the communities may go in developing
    expectations and positions based on information available from non-Proponent sources.

Contact the EISC (on Crown lands) or ILA (on Inuvialuit-Owned lands) and government agencies for help in
focussing consultation requirements, and for coordinating community consultation with other regulatory processes.


5.4      Start Early
Obtaining authorizations takes time. Consultation does not benefit from being rushed. It should be clear from this
Guide that many organizations, both government and Inuvialuit, must coordinate to see an application through to
final approval. Each of these organizations have their own scheduling issues, with different requirements for notice,
setting of hearing dates, and processes for consulting other agencies. No matter how efficient any organization may
be, the need to coordinate with so many others can mean a long lead time for approval even of activities that may
not seem contentious.

For an Operator trying to catch brief seasonal windows of opportunity, this lead time can be frustrating. While the
system will try to accommodate rush requirements, sometimes the timeframes for a last-minute project cannot be
met.

The biggest favour you can do for your project is to start the process early, leaving ample lead time to obtain
authorizations needed for operations. While this is true in planning for dealing with regulatory processes elsewhere,
it is all the more important in the ISR, both because of the logistics of catching brief operating seasons and because
of the high priority placed on consultation under the IFA.

Even before the details of the project are fully worked out, contact the regulators and either the EISC (on Crown
Lands) or the ILA (on Inuvialuit-Owned lands). Advise them that a project could be coming and find out when
the key dates for starting the process may be. An early understanding of the range of requirements that must be met
is an important asset in planning activities and in working effectively to obtain authorizations and other decisions
when they are needed.




June 2001                                                                                                         5-3
5 – The Importance of Consultation in IFA Processes                                            Introduction to the ISR




5.4.1 Designing Consultation Efforts
Established public consultation practice stresses the importance of the design phase for any public process. Because
of the importance of consultation in the ISR and across the north, this design component is critical for project
management and application review purposes. In designing the consultation plan, there is need to distinguish
regulatory requirements and standards from what is needed to consult the range of community interests
appropriately. Early planning for community consultation and communications, tested in advance with key
organizations and community opinion leaders, will pay dividends in terms of public acceptance of the consultation
process and the ability of regulators to respond to a “complete” application.

Consultation planning should contemplate the requirements that regulators will have for the adequacy of
consultation efforts as a factor in authorizing project activities. Generally, regulators will consider the consultation
procedures as well as the specific advice received. Planning should consider the requirement to document such
aspects as:
      consultation process and methods;
      problems encountered during the execution of the consultation process;
      organizations, groups and individuals contacted;
      advice or input received;
      issues related to the project;
      how the project proposal responds to issues;
      how advice or input has been incorporated; and
      any planned communications or consultation activities.

For better assurance of acceptance of the consultation process, consultation plans should be reviewed in advance by
key opinion leaders in communities and agencies. This advance checking step (that is, consulting on the nature and
timing of the consultation procedures) can provide early warning of process issues and greatly improve not only the
effectiveness of the process for those being consulted, but also the acceptability and credibility of company efforts.

Advance checking with regulatory agencies such as IRC, ILA, EISC, HTC, and DIAND provides important
information about who needs to be consulted and what regulators will look for in an application as a result of the
consultation effort. Since applications are commonly referred between agencies, applications must respond to the
collective requirements that reviewing agencies may have for adequate consultation.




5-4                                                                                                          June 2001
Lands in the ISR                                                                                                               Table of Contents


PART II – LANDS IN THE INUVIALUIT SETTLEMENT REGION

6.0    SIGNIFICANCE OF DIFFERENT TYPES OF LAND IN THE ISR ................................................... 6-1
       6.1         SUMMARY OF AUTHORITIES AND PROCESSES ................................................................................ 6-1
       6.2         LAWS OF GENERAL APPLICATION .................................................................................................. 6-1
       6.3         ENVIRONMENTAL LAWS AND REGULATION ................................................................................... 6-2
7.0    WORKING ON INUVIALUIT-OWNED LANDS .................................................................................. 7-1
       7.1         INUVIALUIT-OWNED LANDS .......................................................................................................... 7-1
       7.2         INUVIALUIT 7(1)(A) LANDS ........................................................................................................... 7-1
       7.3         INUVIALUIT 7(1)(B) LANDS ........................................................................................................... 7-2
       7.4         INUVIALUIT 7(2) LANDS: BEDS OF WATER BODIES ...................................................................... 7-4
       7.5         WILDLIFE COMPENSATION ............................................................................................................ 7-4
8.0    FEDERAL CROWN LAND IN NWT ONSHORE ................................................................................. 8-1
       8.1         ROLE FOR THE INUVIALUIT ON FEDERAL CROWN LANDS .............................................................. 8-1
       8.2         AUTHORIZATIONS ON FEDERAL CROWN LANDS (ONSHORE) ........................................................ 8-2
9.0    FEDERAL CROWN LANDS IN THE OFFSHORE ISR....................................................................... 9-1
       9.1         FURTHER LEGISLATION APPLICABLE TO OFFSHORE OIL AND GAS ACTIVITIES ............................. 9-2
10.0   NORTHWEST TERRITORIES COMMISSIONER’S LANDS.......................................................... 10-1
       10.1        AUTHORIZATIONS ON COMMISSIONER’S LANDS .......................................................................... 10-1
11.0   THE YUKON NORTH SLOPE IN THE ISR........................................................................................ 11-1
       11.1        YUKON NORTH SLOPE IN THE IFA............................................................................................... 11-1
       11.2        EAST OF THE BABBAGE RIVER ..................................................................................................... 11-1
       11.3        AUTHORIZATIONS ON THE YUKON NORTH SLOPE........................................................................ 11-2
12.0   PROTECTED AREAS IN THE ISR ...................................................................................................... 12-1
       12.1        FORMALIZED PROTECTED AREA STATUS ..................................................................................... 12-1
                   12.1.1 National Parks: Highest Level of Conservation Protection ........................................ 12-1
                   12.1.2 Territorial Parks and Sites ........................................................................................... 12-2
                   12.1.3 Protection under the Inuvialuit Final Agreement (IFA) ............................................... 12-2
                   12.1.4 Migratory Bird Sanctuaries .......................................................................................... 12-2
                   12.1.5 Protection for Archaeological Sites.............................................................................. 12-2
                   12.1.6 Marine Protected Area Planning under the Oceans Act .............................................. 12-4
       12.2        INFORMAL PROTECTION............................................................................................................... 12-4
                   12.2.1 Community Conservation Plans ................................................................................... 12-5
                   12.2.2 Key Habitat Sites for Birds ........................................................................................... 12-7
                   12.2.3 Critical Habitat Areas for Fish..................................................................................... 12-7
                   12.2.4 Beaufort Sea Beluga Management Plan ....................................................................... 12-7
                   12.2.5 Wildlife Management and Protection ........................................................................... 12-8
       12.3        PROTECTED AREA PLANNING: NWT PROTECTED AREAS STRATEGY ......................................... 12-9




June 2001                                                                                                                                                 i
Table of Contents                                                                                                                    Lands in the ISR


LIST OF TABLES IN PART II

TABLE 6-1:  LEGISLATION AND AUTHORITIES FOR DIFFERENT TYPES OF LAND – RIGHTS
            ISSUANCE, LAND USE AND TENURE, WATER USE AND ENVIRONMENTAL
            ASSESSMENT................................................................................................................................. 6-4
TABLE 6-2: FEDERAL ACTS ON OIL AND GAS RIGHTS, OPERATIONS, LAND AND WATER USE.... 6-6
TABLE 6-3: FEDERAL ACTS AND REGULATIONS....................................................................................... 6-8
TABLE 9-1: AUTHORITIES FOR NORTHERN OFFSHORE ACTIVITIES .................................................... 9-3
TABLE 9-2: LEGISLATION AND AUTHORIZATIONS BY TYPE OF OFFSHORE ACTIVITY .................. 9-5
TABLE 12-1: ACTS AND REGULATIONS FOR PROTECTED AREAS AND PROTECTION OF
            WILDLIFE ................................................................................................................................... 12-10
TABLE 12-2: PROTECTED AREAS IN THE INUVIALUIT SETTLEMENT REGION – FORMALLY
            LEGISLATED PROTECTION .................................................................................................... 12-12
TABLE 12-3: PROTECTED AREAS IN THE INUVIALUIT SETTLEMENT REGION – INFORMAL
            TYPES OF PROTECTION: NOT LEGISLATED, BUT TAKEN INTO ACCOUNT IN
            SCREENING AND ISSUANCE OF AUTHORIZATIONS........................................................ 12-14

LIST OF FIGURES IN PART II

FIGURE 12-1 PROPOSED LAND USE DECISION PROCESS IN THE ISR .................................................... 12-6




ii                                                                                                                                           June 2001
Lands in the ISR                                          6 – Significance of Different Types of Land in the ISR



6.0 SIGNIFICANCE OF DIFFERENT TYPES OF LAND IN THE ISR


6.1      Summary of Authorities and Processes
In Canada, the authority to pass laws and regulations in relation to lands and resources is held by the Crown, specifically
by the federal government and, south of 60, by provincial governments. An important difference between the provinces
and the northern territories is that in the North the federal Crown owns and controls most of the lands and resources, and
retains authority over resource rights and activities. The exception is the territory of Yukon, which has achieved
devolution of ownership and management of oil and gas resources through the Canada-Yukon Oil and Gas Accord, and
is in the course of devolution of other federal responsibilities for land and water resources.

The Inuvialuit Final Agreement (IFA) of 1984 settled land ownership in the ISR and defined a role for the
Inuvialuit in governance, especially in environmental management, in the ISR. Specifically, the IFA transferred
ownership of selected lands from the federal Crown to Inuvialuit. As a result, Inuvialuit own the surface and
subsurface rights to 13,000 sq km and the surface rights (including rights to granular resources) to 78,000 sq km.
The total area of the ISR is 450,000 sq km. The remaining land in the ISR (about 80%) remains federal Crown
land (by far the largest proportion) or Commissioner’s land (small in percentage terms).

There can be confusion over the various terms used to describe lands on which the Inuvialuit hold rights to surface
or sub-surface. For example, strictly speaking, the term Inuvialuit land just applies to the lands for which title
was transferred to Inuvialuit under specific sections of the IFA, i.e. under section 7(1)(a) for both surface and
subsurface rights, or under section 7(1)(b) for the surface rights alone. Sometimes, these are called “7(1)(a)” or
“7(1)(b)” lands, or “Inuvialuit-Owned lands.” The problem is that reference is often made to “Inuvialuit land”,
meaning all the land in the ISR, regardless of ownership. This Guide uses the term Inuvialuit-Owned Lands
to refer to lands for which the Inuvialuit hold the surface rights (IFA s. 7(1)(b) lands), and those lands for which
Inuvialuit hold surface and sub-surface rights (IFA s. 7(1)(a) lands). (Such lands are also sometimes called
Inuvialuit private lands).

The distinction is important because the ILA is the authority over land use decisions on the 7(1)(a) and 7(1)(b)
lands, and also issues resource rights on 7(1)(a) lands (Chapter 7). The federal Crown issues sub-surface rights
on 7(1)(b) lands, on Crown land both onshore and offshore (Chapters 8 and 9), and Commissioner’s Lands
(Chapter 10). Authorizations for land use are obtained from the federal Crown for activity on federal Crown
land and from the Government of the Northwest Territories for activities on Commissioner’s lands.

The legislation and authorities for work on different types of land in the ISR are summarized on TABLE 6-1.


6.2      Laws of General Application
Apart from the exceptions established by the IFA, laws of general application continue to apply throughout the
ISR. Under IFA subsection 7 (101), on Inuvialuit-Owned lands, the Inuvialuit enjoy the rights of private property
owners under laws of general application. The main difference on Inuvialuit-Owned lands is the authority of the
ILA to administer surface land use, and, in the case of 7(1)(a) lands to administer sub-surface rights.

This means that no matter where work is planned in the ISR, the spectrum of federal and territorial law applies,
ranging from health and safety to corporate registration to environmental protection. A short list of the primary acts
bearing on oil and gas activity in the ISR is provided on TABLE 6-2. For a more complete list of federal acts and
regulations, refer to TABLE 6-3.


June 2001                                                                                                              6-1
6 – Significance of Different Types of Land in the ISR                                              Lands in the ISR


6.3       Environmental Laws and Regulation
There is a wide range of environmental law and regulation with which Developers must comply in the ISR. The
parallel roles of the federal and territorial governments, the role for the Inuvialuit pursuant to the IFA, and the
passage of later legislation result in complicated requirements for the Developer.

Management of the environment is complex, both between the federal and territorial governments and in relation to
Inuvialuit processes. For example, powers have been devolved to the Government of the NWT for wildlife and
forests, but the federal government retains control of land and water. There is also some overlap between statutes,
so a Company may for instance be subject both to the Canadian Environmental Protection Act and the
Environmental Protection Act (NWT). As shown on TABLE 12-1, which lists acts and regulations governing
environmental protection and protected areas in the NWT, there is a range of legislation, both territorial and
federal, that imposes successive layers of regulatory processes for approval and subsequent compliance.

Passage of national legislation after the implementation of the IFA has also complicated the system. The IFA was
explicit (IFA s. 11(32)) that nothing would restrict the power of the Government to carry out environmental
impact assessment and review under the laws and policies of Canada. The Canadian Environmental Assessment
Act (CEAA), which took effect in 1995, sets out requirements for Environmental Screening and Review that must
be met in addition to the requirements under section 11 of the IFA. While CEAA processes will consider the
question of what are the residual environmental effects after mitigation, including regulatory requirements, have
been met, there is limited integration between the CEAA process and subsequent authorization processes.
Furthermore, on 7(1)(a) lands where the Inuvialuit dispose of sub-surface rights, the ILA may set terms and
conditions with respect to the environment and safety that equal or exceed the standards provided for under laws of
general application (IFA s. 7(99)).

Regulators and Inuvialuit organizations are aware of this complexity and want to work with Developers to ensure
the requirements are as clear as possible, to cut down duplication and to find practical solutions. As mentioned, the
Environmental Impact Review Board (EIRB) has entered into a Memorandum of Understanding with the
Minister of Environment on Substitution of environmental review processes.

There is no simple remedy for this complexity, no “easy fix” to prevent duplication, nor is there a single authority,
federal or Inuvialuit, able to resolve coordination issues. This places a heavy onus on the Developer to understand
the processes and to work with regulators to find a route through the complexity to an efficient process that is
effective in protecting the environment. There are three strategic points to consider:
      First, standards are high for an important reason. Inuvialuit place the highest priority on protecting
      the land, wildlife and the environment. This priority is reflected in every aspect of the IFA and of wildlife
      management in the ISR. Inuvialuit demand that resource Developers pay close attention to environmental
      impacts of their work, that Developers understand the area in which they will be working, the nature of the
      impacts and that they make every effort to plan and conduct operations to mitigate such impacts.

      Secondly, a resource Developer needs to take into account this complexity and the sensitivity
      of environmental concerns when applying for authorizations. By starting early, raising issues early,
      consulting with the local communities and Inuvialuit organizations, the Developer has a better chance of seeing
      questions of overlap dealt with before they become an impediment. Early engagement in consultation and
      problem-solving, even when the issues raised by a low-impact exploration project may seem slight to a
      Developer, can do much to avoid conflict over environmental matters at later stages if exploration proves
      successful and the project moves ahead.




6-2                                                                                                       June 2001
Lands in the ISR                                     6 – Significance of Different Types of Land in the ISR


   Thirdly, issues of coordination take time. A Developer must raise issues early, to allow time for
   approaches to be developed to avoid duplication. Most regulators are receptive to Developer’s suggestions for
   coordination processes, but negotiations among agencies take time. Time spent on negotiating a coordinated
   process in advance is worthwhile. Though it takes time to negotiate coordination, the gains from an integrated
   process typically far outweigh the costs of an ad hoc approach.




June 2001                                                                                                     6-3
6 – Significance of Different Types of Land in the ISR                                                                                                       Lands in the ISR


TABLE 6-1: LEGISLATION AND AUTHORITIES FOR DIFFERENT TYPES OF LAND – RIGHTS ISSUANCE, LAND USE AND
           TENURE, WATER USE AND ENVIRONMENTAL ASSESSMENT

        TOPIC           Inuvialuit-Owned            Inuvialuit-Owned       Crown Land in NWT             Crown Land in NWT             Commissioner’s              Crown Land in
                              Lands                       Lands                Onshore                       Offshore                   Land in NWT                   Yukon
                         s. 7(1)(a) Lands            s. 7(1)(b) Lands

    Location         Near communities.            Throughout ISR.          Onshore ISR in the       All offshore waters within the    Blocks of land in or      ISR in Yukon, east of
                     Includes 7(1)(a)(ii) lands   Includes 7(2) lands      NWT                      boundaries of the ISR, to the     near municipal            Babbage River.
                     and 7(2) lands within        within 7(1)(b) lands.                             high water mark                   boundaries                Onshore and some
                     these lands.1                Onshore only                                                                                                  nearshore
                     Onshore only

    Oil and Gas      IFA as authority;            CPRA administered by     CPRA administered by     CPRA administered by              CPRA administered         Yukon Oil and Gas Act
    Rights           issued by IRC/ILA            DIAND (NOGD)             DIAND (NOGD)             DIAND (NOGD)                      by DIAND (NOGD)           administered by DED,
                                                                                                                                                                Yukon Government

    Oil and Gas      COGOA administered by         COGOA administered      COGOA administered       COGOA administered by the         COGOA administered        Yukon Oil and Gas Act
    Operations       the NEB                      by the NEB               by the NEB               NEB                               by the NEB                administered by DED,
                                                                                                                                                                Yukon Government

    Land Use and     ILA Rules and the IFA,       ILA Rules and the IFA,   Territorial Lands Act    Federal Real Property Act and     Commissioner’s Lands      Territorial Lands Act
    Tenure           administered by ILA          administered by ILA      Territorial Land Use     Regulations administered by       Act                       administered by
                                                                           Regs                     Treasury Board and DIAND          Area Development Act      DIAND Whitehorse
                                                                           Territorial Lands Regs                                     (NWT) administered        and
                                                                           Federal Real Property                                      by MACA (GNWT)            Yukon Surface Rights
                                                                           Act and Regulations                                                                  Act by the Surface
                                                                           administered by                                                                      Rights Board
                                                                           DIAND, Yellowknife2

    Inland Water     NWT Waters Act               NWT Waters Act           NWT Waters Act           Not applicable                    NWT Waters Act            Yukon Waters Act
    Use3             administered by NWT          administered by NWT      administered by NWT                                        administered by NWT       administered by Yukon
                     Water Board, with            Water Board, with        Water Board, with                                          Water Board, with         Water Board, with
                     assistance from DIAND        assistance from DIAND    assistance from DIAND                                      assistance from           assistance from DIAND
                     Water Resources (NWT)        Water Resources          Water Resources                                            DIAND Water               Water Resources
                     Fisheries Act administered   (NWT)                    (NWT)                                                      Resources (NWT)           (Yukon)
                     by DFO-FHM                   Fisheries Act            Fisheries Act                                              Fisheries Act             Fisheries Act
                                                  administered by DFO-     administered by DFO-                                       administered by DFO-      administered by DFO-
                                                  FHM                      FHM                                                        FHM                       FHM

1
  Refer to section 7 of IFA for precise definitions.
2
  The Territorial Lands Act applies to the onshore only. Authorizations under the Federal Real Property Act and Regulations may be issued for either the onshore or offshore.
3
  Use of inland waters, above or below ground, in a liquid or frozen state.


6-4                                                                                                                                                                June 2001
Lands in the ISR                                                                                              6 – Significance of Different Types of Land in the ISR


        TOPIC              Inuvialuit-Owned             Inuvialuit-Owned    Crown Land in NWT             Crown Land in NWT              Commissioner’s              Crown Land in
                                 Lands                        Lands             Onshore                       Offshore                    Land in NWT                   Yukon
                            s. 7(1)(a) Lands             s. 7(1)(b) Lands

    Marine Water         Not applicable            Not applicable           Not applicable            Arctic Waters Pollution          Not applicable             Not applicable
    Use                                                                                               Prevention Act
                                                                                                      Oceans Act4
                                                                                                      Fisheries Act administered by
                                                                                                      DFO-FHM
                                                                                                      Canadian Environmental
                                                                                                      Protection Act administered by
                                                                                                      EC

    Environmental        IFA EISRP upon referral   IFA EISRP upon           Subject to IFA EISRP,     Subject to IFA EISRP             Screening by MACA          Subject to IFA EISRP,
    Assessment           from the ILA, conducted   referral by the ILA,     conducted by              conducted by EISC/EIRB           under Commissioner’s       conducted by
                         by EISC/EIRB              conducted by             EISC/EIRB                                                  Lands Act                  EISC/EIRB
                                                   EISC/EIRB                                          CEAA conducted by RA
                         CEAA conducted by RA                               CEAA conducted by                                          Commercial                 Yukon Oil and Gas Act
                                                   CEAA conducted by RA     RA                                                         development                by DED Yukon.
                                                                                                                                       applications are subject   CEAA conducted by
                                                                                                                                       to IFA EISRP               RA6
                                                                                                                                       conducted by
                                                                                                                                       EISC/EIRB
                                                                                                                                       Assessment of
                                                                                                                                       authorizations that are
                                                                                                                                       subject to CEAA is
                                                                                                                                       conducted by the RA5

ILA                Inuvialuit Land Administration               CPRA        Canada Petroleum Resources Act             MACA Municipal and Community Affairs
NEB                National Energy Board                        COGOA       Canada Oil and Gas Operations Act          EISC      Environmental Impact Screening Committee
DIAND              Indian and Northern Affairs Canada           CEAA        Canadian Environmental Assessment Act      EIRB      Environmental Impact Review Board
YDAP               Yukon Development Approval Process           IFA EISRP   Inuvialuit Final Agreement Environmental Screening and Review Process
ILC                Inuvialuit Land Corporation                  DED         Department of Economic Development, Yukon Government
IRC                Inuvialuit Regional Corporation              RA          Responsible Authority under CEAA
                                                                YDAP        Yukon Development Approval Process




4
  Refer to Chapter 8 regarding authorities responsible for administering these Acts.
5
  Authorizations by MACA are not subject to CEAA. If another authorization is on the Law List or Inclusion List however, CEAA requirements must be met.
6
  Pending legislation and implementation of Yukon Development Approval Process (YDAP).


June 2001                                                                                                                                                                     6-5
6 – Significance of Different Types of Land in the ISR                                                        Lands in the ISR



TABLE 6-2:          FEDERAL ACTS ON OIL AND GAS RIGHTS, OPERATIONS, LAND AND
                    WATER USE


               SUBJECT                                     STATUTE                             DEPARTMENT/AGENCY

  Issuance of Sub-Surface Rights on       Canada Petroleum Resources Act (CPRA)          Northern Oil and Gas Directorate,
  Federal Crown Land                                                                     INAC, Ottawa
  (NWT and offshore)

  Issuance of Sub-Surface Rights on       Western Arctic (Inuvialuit) Claim Settlement   Inuvialuit Land Corporation (ILC)
  Inuvialuit 7(1)(a) Lands                Act
                                          ILA Rules and Procedures

  Oil and Gas Construction and            Canada Oil and Gas Operations Act              National Energy Board
  Operations in NWT and Offshore          (COGOA)

  Oil and Gas Construction Operations     Yukon Oil and Gas Act                          Yukon Government
  in Yukon Territory                                                                     Dept. of Economic Development
                                                                                         Chief Operations Officer

  Pipelines, Construction and             National Energy Board Act for                  National Energy Board (NEB)
  Operation                               transboundary pipelines
                                          Canada Oil and Gas Act (COGOA) for
                                          pipelines wholly within the NWT

  Land Use and Tenure                     Territorial Lands Act                          DIAND
                                                                                         Yellowknife and Whitehorse


                                          Federal Real Property Act                      DIAND and Treasury Board

                                          Commissioner’s Lands Act                       Municipal and Community Affairs
                                                                                         Yellowknife and Inuvik

  Water Use                               NWT Waters Act                                 NWT Water Board
                                                                                         DIAND Water Resources, Yellowknife

                                          Yukon Waters Act                               Yukon Water Board,
                                                                                         DIAND Whitehorse

  Environmental Assessment (Federal)      Canadian Environmental Assessment Act          Canadian Environmental Assessment
                                                                                         Agency, Vancouver
                                                                                         and Responsible Authority

  Environmental Assessment (IFA)          Inuvialuit Final Agreement                     Environmental Impact Screening
                                          Western Arctic Claim Settlement Act            Committee, Inuvik
                                                                                         Environmental Impact Review Board,
                                                                                         Inuvik

  Construction and Operations             Explosives Act                                 Natural Resources Canada, Ottawa


  Land Claim Settlement Legislation for   Nunavut Act                                    DIAND, Yellowknife
  Adjacent Lands                          Nunavut Land Claim Agreement Act
                                          Gwich’in Land Claim Settlement Act
                                          Sahtu Dene and Metis Land Claim
                                          Settlement Act
                                          Mackenzie Valley Resource Management Act




6-6                                                                                                                   June 2001
Lands in the ISR                                                 6 – Significance of Different Types of Land in the ISR



                SUBJECT                                      STATUTE                                DEPARTMENT/AGENCY

  Protection of Fish and Fish Habitat       Fisheries Act                                    Habitat Management, DFO, Yellowknife
                                                                                             Environment Canada, Yellowknife

  Protection of Navigable Waters            Navigable Waters Protection Act (NWPA)           Fisheries and Oceans - Coast Guard,
                                                                                             Yellowknife and Sarnia

  Protection of Marine Waters               Arctic Waters Pollution Prevention Act           Indian and Northern Affairs, Yellowknife
                                            (responsible ministers DOT and DIAND)            Fisheries and Oceans – Coast Guard,
                                            Oceans Act                                       Yellowknife
                                            Canadian Environmental Protection Act            Environment Canada, Yellowknife
                                            Canada Waters Act

  Transportation                            Aeronautics Act                                  Transport Canada
                                            Canada Shipping Act                              Canadian Transportation Agency
                                            Coasting Trade Act
                                            Transportation Act
                                            Bridges Act
                                            Public Harbours and Port Facilities Act
                                            Government Property Traffic Act                  GNWT Department of Transportation
                                            Transportation of Dangerous Goods Act


For regulations pursuant to these statutes and web-site addresses refer to the List of Federal Acts and Regulations, TABLE 6-3.
For statutes and regulations of the Government of the NWT, refer to Chapter 20.




June 2001                                                                                                                           6-7
6 – Significance of Different Types of Land in the ISR                                                   Lands in the ISR



TABLE 6-3:          FEDERAL ACTS AND REGULATIONS


           ACTS AND REGULATIONS                               REGULATING AGENCY                        WEB-SITE

 Aeronautics Act                                       Transport Canada                     www.canada.justice.gc.ca

 Arctic Waters Pollution Prevention Act                Indian and Northern Affairs          www.canada.justice.gc.ca
 Arctic Waters Pollution Prevention Regulations        Department of Fisheries and Oceans
 Arctic Shipping Pollution Prevention Regulations
 Governor in Council Authority Delegation Order
 Shipping Safety Control Zones Order

 Bridges Act                                           Transport Canada                     www.canada.justice.gc.ca

 Canada Labour Code, Part II                           National Energy Board                www.canada.justice.gc.ca
 Canada Oil and Gas Occupational Health and
 Safety Regulations

 Canada Labour Standards Act                           Human Resources and Development      www.canada.justice.gc.ca
 Canada Labour Standards Regulations                   Canada, Western Region
 Canada Labour Relations Board Regulations
 Canada Industrial Relations Regulations

 Canada Oil and Gas Operations Act (COGOA)             National Energy Board (NEB)          www.canada.justice.gc.ca
 Canada Oil and Gas Certificate of Fitness
 Regulations
 Canada Oil and Gas Diving Regulations
 Canada Oil and Gas Drilling Regulations*
 Canada Oil and Gas Production and Conservation
 Regulations*
 Canada Oil and Gas Installations Regulations
 Canada Oil and Gas Geophysical Operations
 Regulations
 Canada Oil and Gas Operations Regulations
 Oil and Gas Spills and Debris Liability Regulations
 “Guidelines Respecting Physical Environmental
 Programs During Petroleum Drilling and
 Production Activities on Frontier Lands”
 “Offshore Waste Treatment Guidelines”
 “Contingency Plan Guidelines”
 “Guidelines for Use of Oil Based Drilling Muds”
 “Geophysical and Geological Programs on Frontier
 Lands: Guidelines for Approvals and Reports”
 “Guidance Notes for the Canada Oil and Gas
 Drilling Regulations (includes Contingency Plan
 Guidelines)”
 (*will be consolidated in Canada Oil and Gas
 Drilling and Production Regulations)

 Canada Petroleum Resources Act                        Northern Oil and Gas Directorate,    www.ainc.inac.g.c.ca
 Environmental Studies Research Fund Regions           INAC
 Regulations                                           Technical Assistance from the NEB
 Frontier Lands Petroleum Royalty Regulations
 Frontier Lands Registration Regulations




6-8                                                                                                                June 2001
Lands in the ISR                                               6 – Significance of Different Types of Land in the ISR



           ACTS AND REGULATIONS                              REGULATING AGENCY                          WEB-SITE

 Canada Shipping Act                                  Marine Safety Division                 www.canada.justice.gc.ca
 Air Pollution Regulations                            Transport Canada
 Dangerous Goods Shipping Regulations
 Garbage Pollution Prevention Regulations
 Oil Pollution Prevention Regulations
 Pollutant Discharge Reporting Regulations
 Pollutant Substances Regulations
 Response Organizations and Oil Handling Facilities
 Regulations
 Safe Working Practices Regulations
 Ship-Source Oil Pollution Fund Regulations

 Canada Transportation Safety Board Act               Canadian Transportation Safety Board   www.canada.justice.gc.ca

 Canada Wildlife Act, R.S.C. 1985, c. W-9, as am.     Canadian Wildlife Service              www.canada.justice.gc.ca
 S.C. 1994, c.23                                      Environment Canada
 Wildlife Area Regulations                            Yellowknife

 Canada-Yukon Oil and Gas Accord Implementation       Department of Economic Development,    www.canada.justice.gc.ca
 Act                                                  Government of Yukon, Whitehorse
                                                      DIAND, Whitehorse

 Canadian Environmental Assessment Act, S.C.          Canadian Environmental Assessment      www.canada.justice.gc.ca
 1992, c.37, as am. S.C.1994, c.46                    Agency (CEA Agency) and Responsible    www.ceaa.gc.ca
 Federal Authorities Regulations SOR/96-280           Authority
 Projects Outside Canada Environmental Assessment
 Regulations, SOR/96-491
 Consolidated Regulations under CEAA, Inclusion
 List, Exclusion List, Comprehensive Study List,
 Law List, amended Nov. 1999
 Regulations Respecting Coordination by Federal
 Authorities of Environmental Assessment
 Procedures and Requirements (Federal Coordination
 Regulations), SOR/97-181

 Canadian Environmental Protection Act, S.C.          Environmental Protection Service,      www.canada.justice.gc.ca
 1999, c.33                                           Environment Canada
 Dumping at Sea Regulations (Gazetted)
 Petroleum Refinery Liquid Effluent Regulation

 Coasting Trade Act                                   Canadian Transport Agency              www.canada.justice.gc.ca
                                                      Transport Canada

 Customs Act                                          Canada Customs and Revenue Agency      www.canada.justice.gc.ca
                                                      (CCRA)

 Customs Tariff Act                                   CCRA                                   www.canada.justice.gc.ca

 Customs and Excise Offshore Application Act          CCRA                                   www.canada.justice.gc.ca

 Energy Administration Act. R.S.C. 1985, c. E-6.      National Energy Board                  www.canada.justice.gc.ca
                                                                                             www.neb-one.gc.ca

 Explosives Act                                       Natural Resources Canada               www.canada.justice.gc.ca
 Ammonium Nitrate and Fuel Oil Order
 Explosives Regulations
 Resources and Technical Surveys Act




June 2001                                                                                                               6-9
6 – Significance of Different Types of Land in the ISR                                                        Lands in the ISR



           ACTS AND REGULATIONS                             REGULATING AGENCY                               WEB-SITE

 Federal Real Property Act                           Indian and Northern Affairs                www.inac.gc.ca/legisl/legisl.html
 Federal Real Property Regulations                   Treasury Board

 Firearms Act                                        Justice Canada                             www.ainc.inac.gc.ca

 Fisheries Act, R.S.C. 1984, c.F-14.                 Fisheries and Oceans Canada                www.canada.justice.gc.ca
 Fishery (General) Regulation
 “Canadian Water Guidelines: Summary of
 Guidelines for Water Quality in Canada”
 “Policy for the Management of Fish Habitat
 Habitat Conservation and Protection Guide”
 “Guidelines for the Use of Explosives in Canadian
 Fisheries Water”

 Fisheries Act, s. 36(3)                             Environmental Protection Service,          www.canada.justice.gc.ca
 Petroleum Refinery Liquid Effluent Regulations      Environment Canada

 Government Property Traffic Act                     Transport Canada                           www.canada.justice.gc.ca
 Airport Traffic Regulations

 Gwich’in Land Claim Settlement Act                  Indian and Northern Affairs                www.canada.justice.gc.ca
                                                     Yellowknife

 Immigration Act                                     Human Resources Development Canada         www.canada.justice.gc.ca
                                                     Citizenship and Immigration Canada

 Investment Canada Act                               Industry Canada                            www.canada.justice.gc.ca
 Investment Canada Regulations

 Mackenzie Valley Resource Management Act            DIAND, Yellowknife                         www.canada.justice.gc.ca
                                                     MVEIRB
                                                     MVLWB

 Migratory Birds Convention Act, 1994, S.C.          Canadian Wildlife Service                  www.canada.justice.gc.ca
 1994, c.22                                          Environment Canada
 Migratory Bird Sanctuary Regulations
 Migratory Birds Regulations

 National Energy Board Act, R.S.C. 1985, c.N-7       National Energy Board                      www.neb-one.gc.ca
 Part VI (Oil and Gas) Regulations
 Onshore Pipeline Regulations
 Offshore Pipeline Regulations
 Pipeline Crossing Regulations Part I and II

 National Parks Act, R.S.C. 1985, c.N-26             Parks Canada                               www.canada.justice.gc.ca

 Navigable Waters Protection Act, R.S.C.1985,        Canadian Coast Guard, Fisheries and        www.canada.justice.gc.ca
 c.N-22                                              Oceans Canada
 Ferry Cable Regulations
 Navigable Waters Bridges Regulations
 Navigable Waters Works Regulations

 Northern Pipeline Act, R.S.C. 1985, c.N-26          National Energy Board                      www.canada.justice.gc.ca

 Northwest Territories Act                           Indian and Northern Affairs, Yellowknife   www.canada.justice.gc.ca
 Game Declared in Danger of Becoming Extinct
 Northwest Territories Reindeer Regulations




6-10                                                                                                                   June 2001
Lands in the ISR                                             6 – Significance of Different Types of Land in the ISR



           ACTS AND REGULATIONS                             REGULATING AGENCY                             WEB-SITE

 Northwest Territories Archaeological Sites          Prince of Wales Northern Heritage         www.canada.justice.gc.ca
 Regulations                                         Centre

 Northwest Territories Waters Act, S.C. 1992, c.39   NWT Water Board and                       www.inac.gc.ca
 Northwest Territories Waters Regulations            Indian and Northern Affairs
                                                     Yellowknife

 Nunavut Act                                         Indian and Northern Affairs               www.canada.justice.gc.ca
                                                     Yellowknife

 Nunavut Land Claim Agreement Act                    Indian and Northern Affairs               www.canada.justice.gc.ca
                                                     Yellowknife

 Oceans Act, S.C. 1996, c.31.                        Fisheries and Oceans Canada               www.canada.justice.gc.ca
 “Policy on Marine Protected Areas”

 Public Harbours and Port Facilities Act             Transport Canada                          www.canada.justice.gc.ca


 Sahtu Dene and Metis Land Claim Settlement Act      Indian and Northern Affairs               www.canada.justice.gc.ca

 Territorial Lands Act                               Indian and Northern Affairs Land          www.inac.gc.ca
 Territorial Lands Regulations                       Administration, Yellowknife
 Territorial Land Use Regulations
 Territorial Lands Act Exclusion Order               Indian and Northern Affairs
 Oil and Gas Land Order                              Land Resources, Whitehorse
 Territorial Coal Regulations
 Territorial Quarrying Regulations
 Territorial Dredging Regulations
 “Withdrawal from Disposal Orders”

 Transportation of Dangerous Goods Act, S.C.         Environment Canada                        www.canada.justice.gc.ca
 1992, c.34
 Spill Contingency and Reporting Regulations
 Transportation of Dangerous Goods Regulations

 Western Arctic (Inuvialuit) Claim Settlement Act    Indian and Northern Affairs               www.inac.gc.ca
 “ILA Rules and Procedures”                          Inuvialuit Land Administration (ILA)

 Yukon Act                                           Indian and Northern Affairs, Whitehorse   www.canada.justice.gc.ca
 “Game Declared in Danger of Becoming Extinct”
 Yukon Archaeological Sites Regulations

 Yukon First Nations Self-Government Act             Indian and Northern Affairs, Whitehorse   www.canada.justice.gc.ca

 Yukon Oil and Gas Act                               Yukon Government                          www.canada.justice.gc.ca
 Geoscience Exploration Regulations                  Department of Economic Development
 Licence Administration Regulations (DRAFT)          Chief Operations Officer
 Oil and Gas Drilling and Production Regulations
 Oil and Gas Disposition Regulations (DRAFT)
 Oil and Gas Royalty Regulations

 Yukon Surface Rights Board Act, s.c. 1994, c.43     Yukon Surface Rights Board                www.canada.justice.gc.ca
                                                     Whitehorse

 Yukon Waters Act, s.c. 1992, c.40                   Yukon Territories Water Board             www.canada.justice.gc.ca
 Yukon Waters Regulations                            Whitehorse




June 2001                                                                                                                 6-11
6 – Significance of Different Types of Land in the ISR   Lands in the ISR




6-12                                                          June 2001
Lands in the ISR                                                         7 – Working on Inuvialuit-Owned Lands


7.0 WORKING ON INUVIALUIT-OWNED LANDS


7.1      Inuvialuit-Owned Lands
The Inuvialuit Final Agreement (IFA) transferred title to certain blocks of land to the Inuvialuit, pursuant to IFA
section 7(1). These lands are outlined on MAPS 1 to 9 in APPENDIX A.

Title to these lands is held by the Inuvialuit Land Corporation (ILC), a wholly owned subsidiary of the Inuvialuit
Regional Corporation (IRC). The lands are managed and administered by the Inuvialuit Land Administration
(ILA), a division of IRC. The ILA is governed by a Commission of three members (ILAC) appointed by the
IRC. Depending on the nature and scale of the land use application, authorization may be issued either by the
Land Administrator or by the ILAC.

The authorizations that an Operator needs to cross or to work on Inuvialuit-Owned lands are issued by the ILA,
pursuant to the ILA Rules and Procedures. The ILA also has latitude to negotiate terms and conditions for rights
and activities directly with Developers, provided the terms are consistent with the IFA. Negotiation of such
agreements in advance of application for rights can help to establish a framework for cooperation between Inuvialuit
and Developers that can expedite the approval process.

To the extent of any inconsistency between the IFA and the ILA Rules and Procedures, the IFA prevails to the
extent of the inconsistency (IFA s. 3(3)). Matters beyond the scope of the ILA Rules and Procedures are subject
to Laws of General Application as they would normally apply to private lands.

Refer to Chapter 15 for specifics on ILA authorizations, and to CHART ILA for steps in the ILA process.


7.2      Inuvialuit 7(1)(a) Lands
On blocks of land subject to paragraph 7(1)(a) of the IFA, the Inuvialuit hold fee simple absolute title to the
surface of the lands and subsurface title. For these lands, the Inuvialuit are in effect private landowners. The lands
are not federal lands and any federal jurisdiction over the lands derives from the IFA.

These lands amount to 13,000 sq km in blocks of 1,800 sq km near each of the six communities (under s.
7(1)(a)(i)) and a single block of 2,000 sq km on Cape Bathurst (under IFA s. 7(1)(a)(ii)).

Two blocks of 7(1)(a) lands have unique status. A block on Cape Bathurst is designated as a Special
Development Area, and is subject to environmental protection criteria established by the Environmental Impact
Review Board (EIRB). One other block of 7(1)(a) land occupied by pingos just to the west of Tuktoyaktuk
identified in the IFA has been established as the Pingo Canadian Landmark.

Sub-Surface Rights:                                                   Refer to CHART 2, Chapter 21
      On 7(1)(a) lands, the Inuvialuit have extensive powers including the disposition and administration of
      resource rights. On 7(1)(a) lands only, it is the Inuvialuit Land Administration (ILA) that issues rights to
      explore for and develop sub-surface. There are no 7(1)(a) lands in the Yukon portion of the ISR or in the
      offshore.

         The principal vehicle for rights issuance on 7(1)(a) land is the Concession Agreement for a Specified
         Lease, which grants the Lessee the right to explore for, develop, operate, produce, win, take and remove


June 2001                                                                                                          7-1
7 – Working on Inuvialuit-Owned Lands                                                               Lands in the ISR


          oil and gas from the Lease area. It also grants a non-exclusive right to conduct geophysical operations. In
          return, the Lessee commits to financial, working interest and royalty arrangements. Recent leases have
          been conditional upon on the negotiation between IRC and the Lessee of a Comprehensive Cooperation
          and Benefits Agreement.

Surface Rights and Land Use:                                      Refer to CHART ILA, Chapter 15
       On 7(1)(a) lands, the ILA also owns and administers surface rights and manages land use. Resource
       development cannot proceed without an appropriate permit for access to or across Inuvialuit-Owned lands.

Access:                                                                  Refer to CHART ILA, Chapter 15
          For access to or across all Inuvialuit-Owned lands for purposes of resource exploration or development, a
          Developer must first acquire a right from and then notify the ILA before exercising that right. The
          requirements for commercial access depend on the scope and intent of the access and are set out in ILA
          Rules and Procedures.

Environmental Assessment:                                           Refer to CHART EISC, Chapter 4
       For authorizations issued by the ILA, the ILA decides in the course of the review of the application
       whether or not to refer the proposal to the IFA Environmental Impact Screening and Review Process.

          If the proposed activity requires authorizations issued not by the ILA but by government, then the
          requirements of IFA section 11 on Environmental Impact Screening and Review Process must be met
          before the authorization may be issued.
                                                                           Refer to CHART CEAA, Chapter 13
          All lands in the ISR are also subject to the Canadian Environmental Assessment Act, and the
          requirements of the Act must be met before authorizations can be issued that would allow the development
          to proceed.

Oil and Gas Activities:                                               Refer to CHART NEB, Chapter 14
       The ILA does not regulate oil and gas activity. The Canada Oil and Gas Operations Act (COGOA),
       applies to oil and gas activities in the NWT land portion of the ISR and the ISR offshore.
       Authorizations are obtained by application to the National Energy Board. There are no Inuvialuit 7(1)(a)
       lands in the Yukon land portion of the ISR.

Water Use:                                                    Refer to CHARTS WA and WB, Chapter 17
      Inland water use in the NWT part of the ISR is governed by the NWT Waters Act. Water licences for
      activities that exceed the thresholds under the Regulations are obtained by application to the NWT Water
      Board in Yellowknife.


7.3       Inuvialuit 7(1)(b) Lands
On 7(1)(b) lands, Inuvialuit hold fee simple title in the lands, excluding oil, gas, other hydrocarbons, coal, sulphur
and minerals, but including granular materials. The federal government holds subsurface title to these resources, but
not to granular materials, and retains jurisdiction over them subject to the IFA. The quantum is approximately
78,000 sq km.

Certain 7(1)(b) lands have unique status. The Husky Lakes area south of Tuktoyaktuk is a “Special Development
Area:” proposed developments for this area must meet environmental protection criteria set by the Environmental




7-2                                                                                                       June 2001
Lands in the ISR                                                        7 – Working on Inuvialuit-Owned Lands


Impact Review Board (EIRB). The IFA identified two other areas, Nelson Head and DeSalis Bay for landmark
designation, however the federal government has decided not to pursue designation of these areas.

Sub-Surface Rights:                                                Refer to CHART 1, Chapter 21
      On 7(1)(b) land, the sub-surface rights are held by the Government of Canada, and are issued by the
      Department of Indian and Northern Affairs (NOGD) pursuant to the Canada Petroleum Resources Act.
      There are no 7(1)(b) lands in the Yukon portion of the ISR or in the offshore.

Surface Rights and Land Use:                                        Refer to CHART ILA, Chapter 15
       On 7(1)(b) lands, the ILA has authority over surface rights and land use, as set out in the ILA Rules
       and Procedures. Applications for land use licences and permits, leases, rights-of-way must be made to the
       ILA. Resource development cannot proceed without an appropriate permit for access to or across
       Inuvialuit-Owned lands issued by the ILA.

Access:                                                                  Refer to CHART ILA, Chapter 15
          For access to or across all Inuvialuit-Owned lands for purposes of resource exploration or development, a
          Developer must first acquire a right from and then notify the ILA before exercising that right. The
          requirements for commercial access depend on the scope and intent of the access and are set out in ILA
          Rules and Procedures.

Environmental Assessment:                                           Refer to CHART EISC, Chapter 4
       For authorizations issued by the ILA, the ILA decides in the course of the review of the application
       whether or not to refer the proposal to the IFA Environmental Impact Screening and Review Process.

          If the proposed activity requires authorizations issued not by the ILA but by government, then the
          requirements of IFA section 11 on Environmental Impact Screening and Review Process must be met
          before the authorization may be issued.
                                                                           Refer to CHART CEAA, Chapter 13
          All lands in the ISR are also subject to the Canadian Environmental Assessment Act, and the
          requirements of the Act must be met before authorizations can be issued that would allow the development
          to proceed.

Oil and Gas Activity:                                                Refer to CHART NEB, Chapter 14
       The ILA does not regulate oil and gas activity. The Canada Oil and Gas Operations Act (COGOA)
       applies to oil and gas activities in the NWT portion of the ISR and the ISR offshore. Authorizations are
       obtained by application to the NEB. There are no Inuvialuit 7(1)(b) lands in the Yukon portion of the
       ISR.

Water Use:                                                     Refer to CHARTS WA and WB Chapter17
      Inland water use in the NWT part of the ISR is governed by the NWT Waters Act. Water licences for
      activities that exceed thresholds under the Regulations are obtained by application to the NWT Water
      Board in Yellowknife.




June 2001                                                                                                       7-3
7 – Working on Inuvialuit-Owned Lands                                                                Lands in the ISR


7.4      Inuvialuit 7(2) Lands: Beds of Water Bodies
The Inuvialuit also hold fee simple absolute title to the beds of all lakes, rivers and other water bodies found within
Inuvialuit-Owned lands. Sub-surface rights are held either by the Crown where the water body is within 7(1)(b)
lands or by the Inuvialuit where the water body is within 7(1)(a) lands.

The federal Crown owns the water itself, and manages it under the Northwest Territories Waters Act. Applications
to use water or to dispose of waste in water must go to the NWT Water Board for water licences: whether a
licence will actually be required will depend on whether the use exceeds the thresholds set for water licences. Refer
to Chapter 16.


7.5      Wildlife Compensation
One of the central duties of the ILA is the protection of Inuvialuit from damage to wildlife, an obligation under
section 13 of the IFA. This section requires that the Inuvialuit be protected from wildlife harvest loss resulting from
any development in the ISR.

For rights and authorization issued by the ILA on 7(1)(a) and 7(1)(b) lands, this goal is furthered by ensuring
that all projects are reviewed carefully for impacts on wildlife, that mitigative and remedial provisions are imposed,
and that terms are set for compensation for any damage caused. However, “authorization to proceed shall not be
unreasonably withheld” (ILA Rules and Procedures 1986). This matter is mentioned here because of the
significance in past review processes of the potential liability of the Developer for damage to wildlife. Refer also to
section 2.6 of this Guide




7-4                                                                                                         June 2001
Lands in the ISR                                                         8 – Federal Crown Land in NWT Onshore


8.0 FEDERAL CROWN LAND IN NWT ONSHORE


In the Northwest Territories, the Government of Canada (federal Crown) owns and controls most of the lands and
resources, and retains authority over oil and gas rights and activities. In the NWT part of the ISR, Crown Lands
are those lands for which title was not transferred to the Inuvialuit under the IFA or to the Gwich’in pursuant to the
Gwich’in Land Claim Settlement Act.

Crown lands make up about 80% of lands within the ISR. As a result of withdrawals for Inuvialuit-Owned lands
combined with withdrawals for national parks, the areas of Crown lands available for resource rights disposition or
activity are much more limited on the mainland ISR than in the islands, and tend to be farther away from
communities than are Inuvialuit-Owned lands. Consequently, the proportion of Crown land is lowest on the
mainland, increasing northward to 100% on the Western Queen Elizabeth Islands.

On Crown lands in the NWT part of the ISR, both the surface and subsurface rights are owned by the
Government of Canada. Crown lands are administered and controlled by the Department of Indian Affairs and
Northern Development (DIAND) with the exception of Commissioner’s Lands, comprising a few smaller blocks of
land in or near communities, for which the administration and control has been transferred to the Government of
the NWT.


8.1      Role for the Inuvialuit on Federal Crown Lands
On Crown lands, the IFA creates an important role for Inuvialuit in reviewing proposals for development. Under
IFA subsection 11(31), no licence or approval shall be issued that would have the effect of permitting any proposed
development to proceed until the development has been subjected to the IFA Environmental Impact Screening and
Review Process. Therefore, only the lowest impact activities that are below the threshold for a Class B Land Use
Permit or a Type B Water Licence would not be subject to the IFA Environmental Screening and Review
Process. (Refer to TABLE 16-2 for thresholds.)

While federal statutes remain the authority for resource activities on Crown lands - in that it is government that
makes the final decision to issue permits and authorizations - the Inuvialuit co-management institutions undertake
Environmental Screening and review, and their advice is taken into account in the government’s decisions on
authorizations and the terms and conditions attached to those authorizations.

This process obliges Developers to consult with communities, their organizations and with co-management
organizations. The results of the process are taken into consideration by DIAND when making decisions on
whether to authorize activities and under what conditions.

The IFA also requires DIAND to apply benefits guidelines to give Inuvialuit individuals and firms opportunities to
participate in economic activity. DIAND meets this requirement by ensuring that Benefits Plans meet or exceed the Benefits
Statement of Principles, as described in Chapter 16 of this Guide. Approval of a Benefits Plan is required before the
NEB may issue oil and gas authorizations under COGOA.




June 2001                                                                                                            8-1
8 – Federal Crown Land in NWT Onshore                                                              Lands in the ISR


8.2     Authorizations on Federal Crown Lands (Onshore)

Oil and Gas Rights:                                              Refer to CHART 1, Chapter 21
       The issuance of petroleum rights on Crown Lands and on Inuvialuit 7(1)(b) lands is the responsibility of
       DIAND under the Canada Petroleum Resources Act.

Oil and Gas Activities:                                             Refer to CHART NEB, Chapter 14
       The Canada Oil and Gas Operations Act and the National Energy Board Act regulations govern oil and
       gas exploration, development, processing and pipelines on federal Crown lands in the NWT part of the
       ISR. This Act is administered by the National Energy Board.

Surface Rights and Land Use:                                            Refer to Chapter 16
       In order to exercise rights, a rights-holder must obtain approval for activities that occupy and use the
       surface of the land. Land use operations are governed by the Territorial Lands Act and in cases where land
       use operations involve the use of water, also by the Northwest Territories Waters Act. Regulations pursuant
       to the Territorial Lands Act include Territorial Lands Regulations, which apply to long -term use or
       occupancy of Crown land and require that a Lease, Licence or Agreement of Sale be obtained; and
       Territorial Land Use Regulations, which require Land Use Permits as a means of controlling such land
       use activities as camps, access roads, drilling, use of heavy equipment and fuel caches.

        Most exploration and development activities on Crown Lands require either a Class B Land Use Permit
        or a Class A Land Use Permit, according to the thresholds set out in the Territorial Land Use
        Regulations. These thresholds relate to the use of explosives, of vehicles of a certain weight, use of power
        machinery, campsite duration, fuel storage capacity, and trail construction. Certain activities do not require
        a Land Use Permit, so long as such activities do not exceed the threshold set for Class B Permits.

Environmental Assessment:                                            Refer to CHART EISC, Chapter 4
       Authorizations that would have the effect of allowing development to proceed must first meet the
       requirements of the IFA section 11 on Environmental Impact Screening and Review, and (subject to the
       exceptions described in Chapter 4) will be subject to Screening by the Environmental Impact Screening
       Committee (EISC).
                                                                     Refer to CHART CEAA, Chapter 13
       The Canadian Environmental Assessment Act applies to all lands in the ISR, including federal Crown
       lands. The role of CEAA in Yukon and the part of the ISR on the Yukon North Slope may change in the
       future, but CEAA remains in effect for the present. For each of the laws noted in this section that are on
       the Inclusion List and the Law List Regulations, the Responsible Authority must ensure that CEAA
       requirements for Environmental Assessment (EA) are met before authorizations can be issued.

Water Use:                                                     Refer to CHART WA and WB, Chapter 17
      Inland water use in the NWT part of the ISR is governed by the NWT Waters Act. Water licences for
      activities that exceed thresholds under the Regulations are obtained by application to the NWT Water
      Board in Yellowknife.




8-2                                                                                                      June 2001
Lands in the ISR                                                   9 – Federal Crown Land in the Offshore ISR


9.0 FEDERAL CROWN LANDS IN THE OFFSHORE ISR


Pursuant to the definition set out in the Inuvialuit Final Agreement (IFA s.2), the boundary of the ISR extends
into the offshore, tracking northward along longitude 141° from the Alaska/Yukon border north to the 80th parallel
of latitude, then south on longitude 110 ° to the NWT/Nunavut boundary. The area, as outlined on MAP 1,
takes in the Beaufort Sea roughly from Victoria Island in the east to the boundary of Yukon and Alaska in the
West.

The submarine areas of the ISR are federal Crown lands. Both surface and sub-surface rights are held by the
Crown. Canada’s role in the offshore is clarified in subsection 7(3) of the IFA, which states, “the Crown shall
retain ownership to all waters in the ISR.”

In the interval since the last round of offshore activities, there have been legislative and administrative changes to
federal arrangements for dealing with applications for hydrocarbon and other resource activities in the Delta-
Beaufort offshore. The reallocation of the responsibilities of the Canada Oil and Gas Land Administration to the
NEB and to DIAND, replacement of the Public Lands Grant Act with the Federal Real Property Act,
implementation of the Canadian Environmental Assessment Act, and new legislation such as the Oceans Act: these
all have important implications for authorities and processes in the offshore.

At time of writing, federal departments were working to clarify the requirements and to develop administrative
arrangements necessary to discharge federal responsibilities for hydrocarbon activities in the offshore. For
information on the progress of these discussions:
         Contact:     Director, Northern Oil and Gas Directorate, DIAND, Ottawa.

While Canada retains ownership and authorities to manage surface and sub-surface activities, the IFA applies by
definition to the whole of the ISR, including the offshore. To be clear, there are no Inuvialuit 7(1)(a) or 7(1)(b)
lands in the ISR offshore. The Inuvialuit do not own any sub-surface resources under marine waters, nor do they
have any interests in the sea bed, as they do for example under 7(2) in the beds of inland water bodies within
7(1)(a) and 7(1)(b)lands. The application of the IFA is through the sections which confer a role and an interest
for Inuvialuit in developments on Crown lands within the ISR.

Also in the interval since the last round of oil and gas activity in the offshore, land use planning processes for the
ISR have advanced considerably, outlining areas of particular environmental sensitivity and concern in the course of
developing Community Conservation Plans. A Beluga Whale Management Plan has been developed, and work
has progressed on other fish management plans under the auspices of the FJMC and DFO.

The following headings set out legislation bearing on oil and gas activities, under headings similar to those used for
other types of land in the ISR. Offshore oil and gas activities use different equipment and technologies however,
and the marine environment is subject to a quite different legislative framework. Refer to TABLE 9-1 for other
legislation bearing on oil and gas work in the northern offshore.

Oil and Gas Rights                                                           CHART 1, Chapter 21
       The Canada Petroleum Resources Act governs the issuance of rights, tenure and the setting and collection
       of royalties on Crown reserve lands in the offshore of both NWT and Yukon. Rights are issued by
       DIAND-NOGD, as described on CHART 1. The NEB assists by rendering decisions on the extent of
       discovery and issuing Declarations of Significant Discovery and Declarations of Commercial Discovery.



June 2001                                                                                                         9-1
9 – Federal Crown Land in the Offshore ISR                                                          Lands in the ISR


Oil and Gas Activities                                                    CHART NEB, Chapter 14
       The Canada Oil and Gas Operations Act governs oil and gas exploration, development and production in
       the ISR offshore. This Act is administered by the NEB.

         Regulations under COGOA set extensive requirements for activities aimed at protecting water quality and
         the marine environment that are incremental to the requirements for similar activities undertaken on land.
         These requirements relate to design, to operations and to reporting requirements. Regulations also set out
         authorizations that are specific to offshore activities, including a Drilling Program Approval.

Use of the Seabed
        Offshore drilling, both exploratory and development, and dredging of materials require the use of the
        seabed. The Federal Real Property Act, which replaces the Public Lands Grant Act, provides for the
        disposition of offshore seabed permits and leases, including a Sea Bed Leasing Authority. The FRPA
        Regulations address the use of gravel for construction purposes, inspection under the regulations is carried
        out by DIAND.

Federal Environmental Assessment
       The Canadian Environmental Assessment Act applies throughout the ISR offshore. For any oil and gas
       exploration, development or production activities requiring an authorization under paragraph 5(1)(b) of
       COGOA, the NEB as the Responsible Authority must ensure that requirements of CEAA for
       Environmental Assessment are met.

         Several categories of offshore hydrocarbon activities are included on the Comprehensive Study List
         Regulations under CEAA. Physical works for production of oil or gas located offshore, any offshore oil or
         gas pipeline, and an offshore exploratory drilling project in an area in which no exploratory drilling project
         has been previously assessed under CEAA or its predecessor. It is possible that at least initial projects in
         each category would more likely undergo Panel Review. This recommendation may come from the RA.

Environmental Assessment under the IFA
       The IFA requires that the provisions of section 11 on Environmental Screening and review be met before
       government can issue an authorization that enables a development to proceed. Section 11(2) however
       excludes the application of the IFA EISRP from the offshore, with the specific exception of screening and
       review for purposes of wildlife compensation. By letter dated April 10, 1987, the Inuvialuit Game Council
       provided formal notice to DIAND that all developments in the ISR offshore on Crown lands within the
       ISR shall be submitted for Screening to the EISC.


9.1      Further Legislation Applicable to Offshore Oil and Gas Activities
TABLE 9-1 lists the main legislation bearing on oil and gas activities in the northern offshore. Operators must
contact each of the departments/agencies directly for information on requirements and processes.

Certain of these requirements are described in more detail for east coast operations in other Guides in the
Regulatory Roadmap series: Oil and Gas Approvals in Atlantic Canada – Nova Scotia Offshore Area and Oil
and Gas Approvals in Atlantic Canada – Newfoundland Offshore Area.

TABLE 9-2 lists the legislation and authorizations for offshore oil and gas activity, organized by type of offshore
activity.




9-2                                                                                                        June 2001
Lands in the ISR                                                                9 – Federal Crown Land in the Offshore ISR



TABLE 9-1: AUTHORITIES FOR NORTHERN OFFSHORE ACTIVITIES

                                  AUTHORITIES FOR NORTHERN OFFSHORE ACTIVITIES

 Authorization                                                    Acts and Regulations                 Contact/Reference

 Protection and Management of Arctic Marine Waters

 Disposal of waste into marine waters is regulated through        Canadian Environmental Protection    Environmental Protection
 the issuance of Disposal At Sea Permits under CEPA               Act (CEPA)                           Service
                                                                  New Dumping at Sea Regulations       Environment Canada
                                                                  have been Gazetted                   Yellowknife
                                                                  Guidance Manual for Disposal at
                                                                  Sea Applications

 Prevention of pollution in Arctic waters caused by range of      Arctic Waters Pollution Prevention   Environment and Conservation
 activities, including both shipping activities and non-          Act                                  DIAND, Yellowknife
 shipping activities such as oil and gas work.
 Regulations specify conditions relevant to waste discharge
 levels and pollution prevention. Inspection is carried out by
 DIAND Water Resources.

 Protection of fish and fish habitat. Issuance of Fisheries Act   Fisheries Act                        Fisheries and Oceans Canada
 Authorizations, as described further in Chapter 17.              Marine Mammal Protection             Yellowknife
                                                                  Regulations

 Responsibility for planning for use of marine waters is          Oceans Act                           Fisheries and Oceans Canada
 accorded to DFO under the Oceans Act. DIAND also
 participates in planning pursuant to the Western Arctic
 Claim Implementation Act.

 Provision under Oceans Act for planning and establishment
 of Marine Protected Areas.

 Foreign Vessel Authorizations

 Foreign-registered vessels and Canadian-registered non-          Coasting Trade Act                   Manager, Marine Complaints
 duty paid vessel Operators must apply for a Coasting             Customs and Excise Offshore          and Investigations
 Trade Licence to undertake coasting voyages in Canadian          Application Act                      Canadian Transportation
 territorial waters. A Coasting Trade Licence allows a            Customs Act                          Agency, Hull
 foreign vessel Operator to operate their vessels temporarily     Customs Tariff                       Canada Customs and Revenue
 in Canada, and on a duty-reduced basis when no suitable          Vessel Duties Reduction or Removal   Agency
 Canadian vessel is available to carry out the required           Regulations
 operations. The authorization process includes a                 “Notice to Persons Seeking
 determination by CTA on whether there are any Canadian           Licences Pursuant to the Coasting
 vessels available and suitable for meeting the needs of the      Trade Act”
 Applicant. Before a Coasting Trade Licence may be
 granted, the vessel must meet the marine safety inspection
 requirements of Transport Canada or the NEB.

 Foreign Vessel Clearance

 Research vessels, sponsored by a foreign country, may be         Coasting Trade Act                   Coasting Trade Advisor
 eligible for a Foreign Vessel Clearance under the Coasting                                            Marine Policy
 Trade Act.                                                                                            Transport Canada, Ottawa




June 2001                                                                                                                         9-3
9 – Federal Crown Land in the Offshore ISR                                                                       Lands in the ISR




                                 AUTHORITIES FOR NORTHERN OFFSHORE ACTIVITIES

 Authorization                                                 Acts and Regulations                  Contact/Reference

 Foreign Worker Authorizations

 In general foreign workers will be authorized to work in      Immigration Act, s. 5(3)              Human Resources Development
 Canada temporarily when it will not adversely affect                                                Canada (HRDC)
 employment and career opportunities of Canadian citizens
 or landed immigrants.                                                                               Citizenship and Immigration
                                                                                                     Canada (CIC)

 Employer must apply to HRDC for an Employment                                                       HRDC
                                                               Immigration Act, s. 5(3)
 Validation if such is determined to be necessary by                                                 CIC
 HRDC/CIC.

 Once an Employment Validation is obtained, application        Immigration Act s. 5(3)               CIC
 must be made to CIC for an Employment Authorization.

 An exception to CIC’s authority is with respect to seismic
 operations in Canadian waters beyond 12 nm from the
 baselines. All other operations are subject to Immigration
 Act and Regulations.

 Vessel Certifications: Marine Safety Requirements Foreign and Canadian-Flagged Vessel Operators

 Safety of shipping and protection of life, property and the   Canada Shipping Act                   Marine Safety Division
 marine environment.                                           Canada Shipping Pollution             Transport Canada
                                                               Prevention Regulations
                                                               Crewing Regulations
 A range of requirements for marine safety certificates and    Marine Occupational Safety and
 letters of compliance for Canadian and foreign-flagged        Health Regulations
 vessels, standby vessels, Mobile Offshore Drilling Units      International Convention for
 (MODUs), and Floating Production Storage and                  Prevention of Pollution from Ships
 Offloading (FPSOs). Transport Canada’s jurisdiction           Standards Respecting Standby
 does not extend to installations, gravity-based production    Vessels
 platforms or accommodation installations                      Load Line Regulations
                                                               Non-Canadian Ships Safety Order
 Safety Inspection Certificate
 Radio Certificate                                             The Marine Occupational Safety
 Minimum Safe Manning Document                                 and Health Regulations apply to all
 International Oil Pollution Prevention Certificate            vessels that are not moored to the
 Canadian Oil Pollution Prevention Certificate                 ocean floor. Drilling platforms or
 Certificate of Compliance (Oil)                               self-powered semi-submersibles
 Certificate of Compliance (Noxious Liquid Substances)         become vessels once they haul
 International Certificate of Fitness for the Carriage of      anchor.
 Dangerous Chemicals in Bulk
 Certificate of Fitness of the Carriage of Chemicals in Bulk
 Document of Compliance for Carriage of Dangerous
 Goods
 Safety Management Certificate
 Certificate of Insurance or Other Financial Security
 Load Line Certificate
 International Tonnage Certificate
 Letter of Compliance for Standby Vessels




9-4                                                                                                                     June 2001
   Lands in the ISR                                                                9 – Federal Crown Land in the Offshore ISR




                                      AUTHORITIES FOR NORTHERN OFFSHORE ACTIVITIES

     Authorization                                                   Acts and Regulations                    Contact/Reference

     Other

     Under s. (1)(f) approvals are required for radio-               Radiocommunication Act                  Industry Canada
     communication sites in the offshore. Law List

     Pending Legislation

     Proposed requirement for permits/licenses for activities that   Species at Risk Legislation             Environment Canada
     may affect endangered or threatened species.

     Proposed legislation for establishment of marine                Marine Conservation Area                Heritage Canada
     conservation areas.                                             Legislation




   TABLE 9-2: LEGISLATION AND AUTHORIZATIONS BY TYPE OF OFFSHORE ACTIVITY

     Offshore Oil and Gas                                   Legislation                        Authorizations That May Be Required
           Activity

Marine seismic vessel, conducting         Canada Oil and Gas Operations Act and              Geophysical Operations Authorization from NEB
survey                                    Regulations

                                          Arctic Waters Pollution Prevention Act and         Conditions for prevention of pollution, may be
                                          Regulations                                        attached to other authorizations

                                          Fisheries Act and Regulations                      Fisheries Act Authorizations, if required

                                          Canada Shipping Act and Regulations                Vessel Certifications, Letters of Compliance, and
                                                                                             other requirements, administered by Transport
                                                                                             Canada

                                          Coasting Trade Act                                 For foreign vessels, Coasting Trade Licence required.

                                          Immigration Act                                    For foreign workers, Employment Validation and
                                                                                             Employment Authorization required from
                                                                                             CIC/HRDC.

Marine seismic vessel in transit          Canada Shipping Act and Regulations                Vessel Certifications, Letters of Compliance and other
                                                                                             requirements, administered by Transport Canada
                                                                                             Transport Canada

                                          Arctic Waters Pollution Prevention Act and         Conditions may be attached to another authorization.
                                          Regulations                                        Administered by Indian and Northern Affairs

                                          Coasting Trade Act                                 Coasting Trade Licence, from CTA, CCRA and
                                                                                             TC for foreign registered vessels.

                                          Immigration Act                                    For foreign workers, Employment Validation and
                                                                                             Employment Authorization required from
                                                                                             CIC/HRDC




   June 2001                                                                                                                                  9-5
   9 – Federal Crown Land in the Offshore ISR                                                                     Lands in the ISR



     Offshore Oil and Gas                                 Legislation                  Authorizations That May Be Required
           Activity

Drill ship, anchored and preparing to   Canada Oil and Gas Operations Act            Approval to Drill a Well
drill or drilling (exploration)                                                      Drilling Program Approval
                                                                                     Authority to Alter Condition of a Well
                                                                                     Authority to Undertake a Diving Program
                                                                                     Authority to Conduct a Geotechnical or Engineering
                                                                                     Feasibility Program
                                                                                     Issued by NEB

                                        Arctic Waters Pollution Prevention Act and   Conditions may be attached to another authorization.
                                        Regulations                                  Administered by Indian and Northern Affairs

                                        Immigration Act                              For foreign workers, Employment Validation and
                                                                                     Employment Authorization required from
                                                                                     CIC/HRDC

Drill ship, anchored and preparing to   Canada Oil and Gas Operations Act            Approval to Drill a Well
drill or drilling (development)                                                      Drilling Program Approval
                                                                                     Development Plan Approval
                                                                                     Well Operations Program Authorization
                                                                                     Issued by NEB

                                        Arctic Waters Pollution Prevention Act and   Conditions may be attached to another authorization.
                                        Regulations                                  Administered by Indian and Northern Affairs
Drill ship, unanchored and moving       Canada Shipping Act                          Various Certificates, Letters of Compliance and other
                                                                                     requirements, administered by Transport Canada
                                                                                     Transport Canada
                                        Arctic Waters Pollution Prevention Act and   Conditions may be attached to another authorization.
                                        Regulations                                  Administered by Indian and Northern Affairs.
                                        Coasting Trade Act                           Coasting Trade Licence, from CTA, CCRA and
                                                                                     TC for foreign registered vessels
                                        Immigration Act                              Employment Validation and Employment
                                                                                     Authorization required from CIC/HRDC

Supply shipping serving offshore oil    Canadian Shipping Act                        Various certificates, letters of compliance and other
and gas operations                                                                   requirements, administered by Transport Canada

                                        Arctic Waters Pollution Prevention Act and   Conditions may be attached to another authorization.
                                        Regulations                                  Administered by Indian and Northern Affairs

                                        Immigration Act                              Employment Validation and Employment
                                                                                     Authorization required from CIC/HRDC

Permanent structures, including         Canada Oil and Gas Operations Act            Construction Authorizations
gravity-based production platforms                                                   Production Operations Authorizations
and artificial islands.
                                        Federal Real Property Act and Regulations    Sea Bed Leasing Authority, and possibly other
                                                                                     authorizations for instance for dredging, issued by
                                                                                     Indian and Northern Affairs.

                                        Fisheries Act and Regulations                Fisheries Act Authorization issued by DFO-FHM

                                        Navigable Waters Protection Act              Navigable Waters Protection Permit issued by DFO-
                                                                                     CCG




   9-6                                                                                                                    June 2001
   Lands in the ISR                                                          9 – Federal Crown Land in the Offshore ISR



    Offshore Oil and Gas                               Legislation                   Authorizations That May Be Required
          Activity

                                     Canadian Environmental Protection Act and     Disposal at Sea Permit, if required
                                     Regulations

                                     Radiocommunication Act                        Approvals for radiocommunication sites in the
                                                                                   offshore, from Industry Canada

                                     Immigration Act                               For foreign workers, Employment Validation and
                                                                                   Employment Authorization required from
                                                                                   CIC/HRDC

Vessel entering Canadian waters in   Foreign Vessel Clearance                      Issued b;y Foreign Affairs and International Trade.
order to do research
                                     Arctic Waters Pollution Prevention Act and    Conditions may be attached to another authorization.
                                     Regulations                                   Administered by Indian and Northern Affairs

                                     Canada Shipping Act                           Various certificates and requirements administered by
                                                                                   Transport Canada

Offshore Pipeline                    National Energy Board Act, s. 52 or s. 58     Certificate of Public Convenience and Necessity
                                                                                   Order under s. 58
                                                                                   Approval of Plans, Profiles and Books of Reference
                                                                                   Leave to open

                                     Canada Oil and Gas Operations Act             Approvals of gathering systems

                                     Canadian Environmental Protection Act         Disposal at Sea Permit issued by Environment
                                                                                   Canada

                                     Arctic Waters Pollution Prevention Act and    Conditions may be attached to another authorization.
                                     Regulations                                   Administered by Indian and Northern Affairs




   June 2001                                                                                                                       9-7
9 – Federal Crown Land in the Offshore ISR   Lands in the ISR




9-8                                               June 2001
Lands in the ISR                                            10 – Northwest Territories Commissioner’s Lands


10.0 NORTHWEST TERRITORIES COMMISSIONER’S LANDS


Although there have been discussions about devolution of provincial-type powers over resources from the federal to
the territorial government, at present the Government of the Northwest Territories has limited control of surface
lands or sub-surface rights.

The only exception is Commissioner’s Land. On these blocks, generally situated within or near municipal
boundaries of the six communities, administration and control of surface rights has been transferred by
Order-in-Council to the Commissioner of the NWT. For these lands the Commissioner can “act like an owner” in
the sense of being able to sell, lease, transfer, or otherwise confer interests in land to third parties. These powers
extend only to the surface of these lands; sub-surface rights continue to be owned and controlled by the federal
Crown. (Commissioner’s Lands are often referred to as Block Land Transfers.)

In the ISR, Commissioner’s Lands are within the municipal boundary of all but one of the Inuvialuit communities.
The exception is Inuvik, for which the boundary of Commissioner’s Lands extends beyond the municipal boundary,
taking in approximately 200 sq km of land.

The issuance of land use permits on Commissioner’s Land is governed by the Commissioner’s Lands Act and
Commissioner’s Lands Regulations, which are administered by the Department of Municipal and Community
Affairs (MACA). The issuance of resource rights on these lands is administered by the federal Crown, through
DIAND.


10.1 Authorizations on Commissioner’s Lands
Oil and Gas Rights:                                                   Refer to CHART 2, Chapter 21
       Although administration and control of the surface of the land is held by the Commissioner, the federal
       Crown retains the sub-surface rights, which it disposes of pursuant to the Canada Petroleum Resources
       Act.

Surface Rights and Land Use:
       These lands are administered by MACA pursuant to the Commissioner’s Lands Act. This Act governs
       surface access and use of the land. In addition, under an arrangement with the federal government,
       MACA processes Lease applications on land within municipal boundaries that is not Commissioner’s
       Land.

         For activities on these lands, MACA issues Land Use Permits, Quarry Permits, Easements, Leases and
         Right-of-Ways. The permits are issued by the MACA office in Inuvik:

         Contact:   Senior Lands Officer, Inuvik Regional Office
         Contact:   Community Planner, Municipal and Community Affairs, Norman Wells
         Reference: Commissioner’s Lands Act
                    Commissioner’s Lands Regulations
                    Municipal Lands Act (NWT)
                    Area Development Act (NWT)
                    Planning Act (NWT)




June 2001                                                                                                        10-1
10 – Northwest Territories Commissioner’s Lands                                                 Lands in the ISR


Environmental Assessment:
       Applications for use of the surface are processed by MACA, which undertakes the Environmental
       Screening. Applications are processed either internally, for minor activities, or through the Commissioner’s
       Land Review Committee, which is coordinated by MACA in Yellowknife.

        Contact:      Senior Environmental Planner, Community Operations, MACA, Yellowknife

                                                                  Refer to CHART EISC, Chapter 4
        Authorizations that would have the effect of allowing development to proceed must first meet the
        requirements of IFA section 11 on Environmental Impact Screening and Review and (subject to the
        exceptions described in Chapter 4) will be subject to Screening by the Environmental Impact Screening
        Committee.

                                                               Refer to CHART CEAA, Chapter 13
        The Canadian Environmental Assessment Act applies to all lands in the ISR, including Commissioner’s
        Lands. Authorizations under COGOA and the NWT Waters Act are on the Inclusion List, and the
        Responsible Authority must ensure that CEAA requirements are met before authorizations may be issued.
        Note that CEAA does not apply to authorizations that are issued by MACA pursuant to territorial
        legislation.

Oil and Gas Activities:                                      Refer to CHART NEB, Chapter 14
       The Canada Oil and Gas Operations Act governs oil and gas activities on Commissioner’s lands in the
       ISR.

Water Use:                                                 Refer to CHART WA and WB, Chapter 17
      Water use on Commissioner’s Lands is governed by the NWT Waters Act. Water Licences are obtained
      by application to the NWT Water Board in Yellowknife.




10-2                                                                                                  June 2001
Lands in the ISR                                                         11 – The Yukon North Slope in the ISR


11.0 THE YUKON NORTH SLOPE IN THE ISR


11.1 Yukon North Slope in the IFA
The Inuvialuit Settlement Region (ISR) extends westward as far as the international boundary with Alaska,
crossing territorial jurisdictions into Yukon and extending southward to the boundary between the watersheds of the
Porcupine River and the Beaufort Sea. The southern boundary is also the northern limit of the Vuntut Gwitch’in
Settlement Area. The area of the ISR within Yukon is called the “Yukon North Slope,” and is shown on MAP 9
in APPENDIX A.

The Inuvialuit do not hold land in the Yukon. However, in recognition of their traditional use of the Arctic coast,
the IFA confers certain hunting and economic rights in the area.

Because of the significance of this area to the Porcupine caribou herd, Inuvialuit sought through the IFA an higher
degree of conservation protection. Section 12 of the IFA sets aside the area to the west of Babbage River for
Ivvavik National Park, and sets aside Herschel Island as a territorial park. IFA section 12 stipulates that Ivvavik
National Park will be zoned and managed as a wilderness park, and that the park regime for Herschel Island
Territorial Park will be no less stringent than that of the National Park. The only exception is for a small area near
Pauline Cove. The effect of IFA section 12 is to prohibit non-renewable resource activities entirely from both
Ivvavik National Park and Herschel Island Territorial Park, with the exception of a small area near Pauline Cove.


11.2 East of the Babbage River
In the remainder of the Yukon North Slope, the area to the east of Babbage River as far as the NWT border, a
“Special Conservation Regime” is envisaged by the IFA. In this area “controlled development” may take place but
must meet higher environmental standards, again reflecting the concern of Inuvialuit about the sensitivity and
significance of this area.

The “Special Conservation Regime” envisaged by the IFA would require that all development proposals be
screened by the EISC to determine whether they could have a significant negative effect on wildlife, habitat or
harvesting. Uses that may have a significant negative impact may be permitted if it is decided that public
convenience and necessity outweighs conservation interests in the area: such proposals shall be subject to public
environmental impact review. When considering developments that are referred for further review, a review agency
(the EIRB if called upon) would be required to take into account specific criteria set out in IFA subsection
12(23), in addition to IFA section 11 requirements on environmental impacts.

For the present however, this is somewhat theoretical. A Withdrawal and Prohibition Order (PC 1985, 320 and
321), prevents the issuance of surface rights or sub-surface rights in the whole of the Yukon North Slope, including
the area east of Babbage River. While the IFA did not anticipate the continuation of the withdrawal order in
perpetuity, there are at present no plans to lift or alter this protection. In the event that the Withdrawal Order is
lifted, it can be expected that the Special Conservation Regime will set high environmental standards for activity of
any kind in Yukon North Slope.




June 2001                                                                                                       11-1
11 – The Yukon North Slope in the ISR                                                               Lands in the ISR


11.3 Authorizations on the Yukon North Slope
Should consideration be given to allowing activity on the Yukon North Slope, such activity would be subject to
different legislation from that which applies in the Northwest Territories’ portion of the ISR, reflecting differences
in the settlement of land claims and the process of devolution. These are outlined only briefly here, both because
rights to the Yukon portion of the ISR are not currently available for disposition, and because some aspects of the
overall regulatory regime are in transition. For detail on the processes, contact the officers noted below. Contact
numbers are provided in APPENDIX D.

Driving the evolution of the regulatory regime bearing on oil and gas activity in Yukon are two key initiatives:
devolution of federal responsibilities to the Yukon Government, starting with the Canada Yukon Oil and Gas
Accord, and the Umbrella Final Agreement between Yukon First Nations and the federal and territorial
governments, which provides for participation by First Nations in resource management and land-use decision-
making.

Devolution of responsibilities for disposition of hydrocarbon rights and management of oil and gas activities have
already been transferred pursuant to the Canada Yukon Oil and Gas Accord. Further devolution of federal
responsibilities for land, waters, forestry and minerals is expected as early as April 1, 2002. Legislation has been
drafted by the Yukon government that replicates the existing regulatory arrangements and which will be
administered by essentially the same personnel, so that the transition will be smooth. The Yukon government may
subsequently alter the regulatory arrangements.

Oil and Gas Rights:
       On November 19, 1998, the Canada-Yukon Oil and Gas Accord Implementation Act took effect,
       transferring responsibility for management of oil and gas resources in Yukon to the Yukon government.
       The Yukon government has the power to make laws respecting exploration for oil and gas, development,
       conservation and management of oil and gas, and oil and gas pipelines other than extra-territorial
       pipelines. These powers apply throughout Yukon, and to certain waters in bays along the Beaufort Sea,
       but not into the Yukon offshore.

         As a result, oil and gas rights in the Yukon are no longer subject to the Canada Petroleum Resources Act,
         but to the Yukon Oil and Gas Act (YOGA) and the Draft Disposition Regulations. Rights are normally
         issued through competitive bidding, following a five-step process. An ad valorem system of royalties,
         ranging from a minimum of 5% to a maximum of 15%, has been proposed in draft royalty regulations.

         Contact:      Manager, Oil and Gas Resources,
                       Department of Economic Development (DED), Yukon Government, Whitehorse

Oil and Gas Activity:
       The Yukon Oil and Gas Act also covers licensing of oil and gas activities in the onshore, in particular the
       issuance of permits for exploration and of leases for production. Licences are required before activities may
       commence. Activities are conducted pursuant to Draft Geoscience Exploration Regulations and Draft
       Drilling and Production Regulations. Activities are licensed by the Chief Operations Officer (COO)
       pursuant to Draft Licence Administration Regulations, which specify what information must be submitted
       and how applications must be prepared to obtain a licence.

         Applicants for a licence must meet a range of requirements, including subjection of the project to
         Environmental Assessment. An Applicant may also have to provide financial assurance. Before activities
         may begin for a project valued at more than $1 million a year, a Benefit Agreement must be in place. In


11-2                                                                                                       June 2001
Lands in the ISR                                                          11 – The Yukon North Slope in the ISR


         the case of an application to drill a well, an Applicant will also be required to submit a refundable well
         abandonment deposit.

         Apart from some near shore waters identified in the Yukon Act and which are subject to the Yukon Oil
         and Gas Act, activities in the offshore are governed by the Canada Oil and Gas Operations Act.

         Contact:     Chief Operations Officer
                      Department of Economic Development (DED), Yukon Government

         Note that the National Energy Board Act continues to apply throughout Yukon and the offshore.

Surface Rights:
       Pursuant to the Umbrella Final Agreement, the Yukon Surface Rights Board Act establishes the Yukon
       Surface Rights Board, with powers to determine whether or not access is required to settlement land or to
       other private land in order to exercise sub-surface rights, to establish terms and conditions for access, and
       to determine compensation for disturbance caused by the access.

         Contact:     Yukon Surface Rights Board

Land Use:
      These lands are Crown lands, and are administered by DIAND in Whitehorse under the Territorial
      Lands Act, Territorial Land Use Regulations and the Yukon Act. In anticipation of devolution on April 1,
      2002, the Yukon government has released proposed amendments to the Yukon Act and has introduced a
      draft Territorial Lands (Yukon) Act), which would continue the same regime as that which currently
      operates under federal legislation. Note that there is provision under the Umbrella Final Agreement for a
      land use planning process, however there are no land use plans presently in place.

         Contact:     Director, Mineral Resources, Indian and Northern Affairs, Yukon

Environmental Assessment:                                          Refer to CHART EISC, Chapter 4
       Should the Yukon part of the ISR be opened to development activities, the IFA requires that all
       development proposals be subject to the “Special Conservation Regime” described above in 10.2.

                                                                         Refer to CHART CEAA, Chapter 13
         At time of writing, Environmental Assessment of oil and gas activities in Yukon is conducted pursuant to
         territorial legislation which mirrors the process under the Canadian Environmental Assessment Act
         (CEAA). This process was adopted through transfer regulations (s. 97) under the Yukon Oil and Gas
         Act. Environmental assessment for authorizations for land and water use are conducted pursuant to
         CEAA.

         Processes for Environmental Assessment in Yukon will change when federal legislation for a new
         Development Assessment Process (YDAP) is passed. The Development Approval Process will largely
         replace CEAA on Crown land and on Settlement Land. Implementation of the DAP is not expected
         before 2002.

         To discuss Environmental Assessment requirements for oil and gas activities:
         Contact:     Manager, Oil and Gas Resources
                      Department of Economic Development, Government of Yukon, Whitehorse


June 2001                                                                                                        11-3
11 – The Yukon North Slope in the ISR                                                          Lands in the ISR


        To discuss the Development Assessment Process:
        Contact:     Director, Development Assessment Process, Indian and Northern Affairs, Yukon

Water Use:
      Water rights are presently held by the Crown and issuance is governed by the Yukon Waters Act. Pursuant
      to this federal Act, the Yukon Water Board regulates conservation, development and use of waters and
      deposit of waste on settlement and Crown land. Licences are required for certain activities and are
      obtained by application to the Yukon Water Board. The regime includes special compensation rules for
      impacts on settlement land or traditional uses of water by aboriginal people.

        In anticipation of assuming responsibility for water as early as April 1, 2002, the Yukon Government has
        introduced a draft Waters Act, which would continue the same regime as currently provided under the
        current Yukon Waters Act.
        Contact:   Chairman, Yukon Territory Water Board
        Reference: Yukon Waters Act




11-4                                                                                                 June 2001
Lands in the ISR                                                                  12 – Protected Areas in the ISR


12.0 PROTECTED AREAS IN THE ISR


The first priority for Inuvialuit, and their prime motivation for seeking a land claim settlement in the first place, is
concern for wildlife and environment. Inuvialuit have relied on the wildlife and natural resources of the western
Arctic for generations and are very concerned that the long-term health and integrity of these resources be preserved
for future generations.

The Inuvialuit sense of stewardship for the land and wildlife is demonstrated throughout the Inuvialuit Final
Agreement and in the requirement for developments in the ISR to undergo close examination by co-management
bodies on which Inuvialuit have a guaranteed role.

In a practical sense, all the lands in the ISR are protected, not only by Crown legislation and regulation, but by the
provisions of the IFA, for instance for IFA Environmental Impact Screening and Review. Federal and territorial
legislation bearing on protection of the environment is listed on TABLE 12-1.

For certain areas of acute environmental sensitivity, the Inuvialuit, working with the Crown, have taken protection
further and assigned special status and in some cases legislated protected status. In aggregate, the areas set aside are
extensive: some 29% of the ISR has some form of legal protection status under which resource activity would either
be completely prohibited, or only allowed under very stringent conditions.

The purpose of this section is to point out these protected areas and the implications of this protection for the
planning of oil and gas activities. Protected areas in the ISR are listed on TABLES 12-2 and 12-3 at the end of
this Chapter, and shown on MAPS 2 and 3 in APPENDIX A.


12.1 Formalized Protected Area Status
The areas set aside for formal protection under federal and territorial law are listed on TABLE 12-1 along with
the location and restrictions on resource activities, and are outlined on MAP 2 in APPENDIX A.

At present, there are no National Wildlife Areas or Marine Wildlife Areas in the ISR.

12.1.1       National Parks: Highest Level of Conservation Protection
In the areas with the highest level of protection, National Parks, resource and other industrial activities are
prohibited. There are three large national parks in the ISR:
    Ivvavik National Park, on the Yukon North Slope;
    Aulavik National Park, on Banks Island; and
    Tuktut Nogait National Park, on the eastern margin of the Inuvialuit Settlement Region.

These parks provide eco-regional representation and include some of the calving grounds for the various caribou
herds that summer in the ISR. Aulavik National Park also encompasses a Migratory Bird Sanctuary on Banks
Island.




June 2001                                                                                                         12-1
12 – Protected Areas in the ISR                                                                      Lands in the ISR


For further information on National Parks and on National Historic Sites:

         Contact:   Northern Parks Advisor, Parks Canada, Yellowknife
         Reference: National Parks Act

12.1.2       Territorial Parks and Sites
One Yukon Territorial Park was established on Herschel Island as a result of the IFA. The level of protection for
this park is intended to be no less than for national parks, that is, a prohibition on all industrial activities. An
exception is made under the IFA for the lands adjacent to Pauline Cove, on which development activities may be
permitted subject to requirements specified in IFA subsections 12(19) and (23).

12.1.3       Protection under the Inuvialuit Final Agreement (IFA)
The IFA identifies several areas for a higher level of environmental protection.
    The Yukon North Slope east of Babbage River falls under a “Special Conservation Regime,” the
    purpose of which is the conservation of wildlife, habitat and traditional use (IFA s. 12(2)). For the present, an
    Order-in-Council Withdrawal Order (320,321, dated 1985) prohibits the disposition of sub-surface or surface
    rights, effectively prohibiting resource activities. Section 12 of the IFA allows that “controlled development”
    may be countenanced in the future, however no change in the withdrawal order will be considered until a
    “Special Conservation Regime” is developed and put into effect.

    Blocks of land in Cape Bathurst and Husky Lakes were designated in the IFA as “Special Development
    Areas.” The IFA does not prohibit mineral activities on these lands in perpetuity, but proposed developments
    must satisfy environmental standards that will be established by the Environmental Impact Review Board.

    The IFA identified three areas for “Landmark Status:” “Pingo Canadian Landmark” on 7(1)(a) lands
    just to the west of Tuktoyaktuk, and Nelson Head and DeSalis Bay on 7(1)(b) lands. Federal landmark
    legislation has lapsed in the years since the IFA was concluded. Discussions continue toward national park
    status for the Pingo site at Tuktoyaktuk, but neither Nelson Head nor DeSalis Bay will be pursued.

12.1.4       Migratory Bird Sanctuaries
The ISR is a very important area for migratory birds, with extensive lowlands and wetlands favoured by geese and
other waterfowl for staging and nesting.

There are five Migratory Bird Sanctuaries in the ISR, listed on TABLE 12-2. Sanctuaries protect migratory bird-
life and habitat, and impose restrictions on the timing and nature of activities undertaken. Mineral or petroleum
activities are not prohibited within a Migratory Bird Sanctuary, but activity will only be permitted if it is low impact
and undertaken under limited conditions.

Refer to section19.2 of this Guide for information on application processes for permits to undertake activity in a
Migratory Bird Sanctuary.

12.1.5       Protection for Archaeological Sites
Sites of cultural and archaeological significance are formally protected under both federal and territorial legislation
throughout the NWT and including Crown Lands in the ISR. On Inuvialuit-Owned lands, the Inuvialuit Land
Administration (ILA) Rules and Procedures apply in addition to Laws of General Application.




12-2                                                                                                        June 2001
Lands in the ISR                                                                12 – Protected Areas in the ISR


Clarification of the requirements is offered in “Guidelines for Developers for the Protection of Archaeological
Resources in the NWT,” now in draft form. These and other sources useful to Developers are available on the
Prince of Wales Northern Heritage Centre website.
        Contact:   Territorial Archaeologist, Prince of Wales Northern Heritage Centre, Yellowknife
        Reference: Historical Resources Act (NWT)
                   Northwest Territories Act, Archaeological Sites Regulations
                   Territorial Lands Act, Territorial Land Use Regulations subsections 16(a) and (b)
                   “Guidelines for Developers for the Protection of Archaeological Resources in the NWT,”
                   Draft November 2000. www.pwnhc.learnnet.nt.ca

The objective of processes developed under the various acts is “to ensure that the impacts of proposed developments
upon heritage resources are assessed and mitigated before ground surface-altering activities occur.” Heritage
resources are defined to include but not be limited to archaeological and historical sites, burial grounds, historic
buildings and cairns.

    The Northwest Territories Archaeological Sites Regulations pursuant to the Northwest Territories Act stipulate
    that no person shall excavate or investigate any archaeological site, or remove or collect any archaeological
    specimen unless he has a permit to do so. Note that the current regulations are being revised, and amendments
    are expected to be implemented shortly that will modify processes for issuance of permits and introduce new
    timelines for applications.

    On federal Crown land in the ISR, the Territorial Land Use Regulations pursuant to the Territorial Lands Act
    apply. These regulations prohibit land use operations within 30 metres of heritage sites without a permit
    (s. 10(a)) and require (s. 16) that if a suspected archaeological site or burial ground is discovered, the
    Developer must suspend activities, report on findings, and protect the site from further disturbance.

    On Inuvialuit-Owned lands, ILA Rules and Procedures set out a similar requirement for an Operator to
    suspend operations and notify the Administrator of any find (s. 19(9)). The ILA is currently developing
    procedures for assessment and mitigation of heritage resources on Inuvialuit-Owned lands. It is expected that
    the Prince of Wales Northern Heritage Centre will serve as a resource to the ILA process, in parallel with its
    role on Crown lands.

    On Commissioner’s Lands, the Historical Resources Act (NWT) enables the Commissioner to order a person
    whose activities threaten any prehistoric or historic remains to provide for adequate investigation, recording and
    salvage of such remains (s. 9(1)).

    Oil and gas activities near archaeological sites are also regulated by the Canada Oil and Gas Geophysical
    Operations Regulations under COGOA. These apply on Crown and Inuvialuit-Owned lands in the NWT.
    Section 27 of the Regulations requires that if an archaeological site or burial ground is discovered during an
    onshore geophysical operation, the Operator must suspend the operation and inform a Conservation Officer of
    the NEB. The Operator may not resume the activity until the NEB’s Conservation Officer is satisfied that the
    operation will not affect or disturb the site. In the case of Inuvialuit-Owned lands, the Operator must satisfy
    both the NEB Conservation Officer and the ILA.

The Prince of Wales Northern Heritage Centre in Yellowknife is the agency that oversees protection and
management of heritage resources in the NWT, in partnership with land claim authorities, regulatory agencies, and
the federal government. The Centre’s role is in identifying the need for impact assessment, making
recommendations to the regulatory agency involved, setting the terms of reference of the study, authorization and
review of the field work, and ensuring that the Developer complies with mitigative measures recommended by the


June 2001                                                                                                       12-3
12 – Protected Areas in the ISR                                                                      Lands in the ISR


study undertaken. For further information on the types of study required depending on the scope and phase of
development, contact the Territorial Archaeologist.

These requirements have implications for the timing of activities. For instance, if a documentary search is required
for sites in the vicinity of the operations, this must be initiated early enough that the search can be conducted, then
the information used to modify plans so as to avoid and protect identified sites. Developers are advised to contact
the Prince of Wales Northern Heritage Centre as early in planning as possible.

The Prince of Wales Northern Heritage Centre will perform searches of the Archaeological Sites database to
identify known sites in the development area. In some instances, depending on the size of the request or operational
constraints, the Centre might forward the request to the Sites Registrar at the Canadian Museum of Civilization,
where searches will be undertaken for a fee.

If field work is necessary, consideration must be given to the brevity of the field season, and the need to have
applications for summer work programs in to the Prince of Wales Centre by March 31 of that year. Note that it is
also expected that Developers will undertake follow-up monitoring of the effect of their activities on sites in the
vicinity.

Processes for review of applications for Land Use Permits on Crown lands and for Land Use Licences on
Inuvialuit-Owned lands require the Developer to show that sites have been identified and their protection taken into
consideration in planning. If this step is missed, then review of applications may be delayed until the information
can be provided.

12.1.6       Marine Protected Area Planning under the Oceans Act
The Oceans Act provides for the establishment of Marine Protected Areas and for Integrated Management
Planning for ocean-related activities in marine and coastal areas and for marine environmental quality programs.

DFO is considering three offshore areas in the Western Arctic for designation, however there are at present no
formally designated Marine Protected Areas in the ISR under the Oceans Act. There is however underway for the
Western Arctic an initiative for Integrated Management Planning. Following meetings by a Senior Management
Committee to establish policy directions and to monitor the ongoing progress of the initiative, a Working Group of
DFO, FJMC, IGC, DIAND, IRC, and CAPP has been established to research, through an Integrated
Management Planning process, the merits of establishing a pilot Marine Protected Area in support of the Beaufort
Sea Beluga Management Plan (see 12.2.4 below).

There is still uncertainty from an industry point of view on the implications of the Oceans Act for planning. It is not
yet known what the implications are for access to the offshore and the effects on the management of oil and gas
activities. For information on Marine Protected Areas in the Central and Arctic Region:
         Contact:   D. Chipperzack, Department of Fisheries and Oceans, Yellowknife
         Reference: Oceans Act, Policy on Marine Protected Areas


12.2 Informal Protection
In addition to areas with legislated protection, many sites have been identified both by the Inuvialuit and by
government agencies as deserving of special care. These areas are “flagged” in processes so that when an
application for a permit or authorization is made, the agencies will check for such areas and may recommend stricter
operating conditions. These areas are summarized on TABLE 12-3.



12-4                                                                                                        June 2001
Lands in the ISR                                                                  12 – Protected Areas in the ISR



If a Proponent is aware of these areas in advance, the project can be designed so as to anticipate such concerns and
so avoid contention and delays.

12.2.1       Community Conservation Plans
Each of the six communities of the ISR has completed a Community Conservation Plan which outlines the issues
and areas of environmental value or sensitivity for the people of the area. Community Conservation Plans identify
vulnerable or critical habitat and harvesting areas and recommend varying degrees of protection for them. This is
the first level of protection that a community can assign to an area.

Community Conservation Plans complement the Inuvialuit Renewable Resources Conservation and Management
Plan (1988) developed by the Wildlife Management Advisory Council (NWT) and the Fisheries Joint
Management Committee. Community Conservation Plans are considered to be “dynamic” and subject to change
from time to time, to take into account changes in the environment and wildlife and people’s concerns. The intent is
to undertake comprehensive updates of these Plans every four years. These are important references for Developers
planning to work in a particular area, and should be used as a basis for consultation with the community.

For electronic versions of the maps in Community Conservation Plans, refer to the Beaufort-Mackenzie Mineral
Development Area website at www.bmmda.nt.ca.

The most recent Conservation Plans were completed in March 2000. These Plans designate zones for different
degrees of environmental protection. The zone designations range from Zone A - lands that can be managed with
current regulatory practice, through increasing degrees of restriction, to Zone E - lands on which no development
should be permitted.

It is not explicit in the Conservation Plans what regulatory restrictions would be envisaged, nor is it clear what force
these designations would have in the IFA Environmental Screening review processes. Companies must consult the
Plans, the Hunters and Trappers Committee, and the Joint Secretariat to discuss the designations in the areas in
which they wish to do work.

Drawing on past Community Conservation Plans, DIAND has prepared an Environmental Sensitivity Map for
the ISR. The 1998 version of the Environmental Sensitivity Map is included as MAP 3 in APPENDIX A.

The Plans also outline a land use decision process for development proposals. On Inuvialuit-Owned lands, this
process would have the Hunters and Trappers Committee and the Community Corporation review the Project
Description and Community Conservation Plan, and if necessary, have a meeting and secret ballot to come to a
community decision on what concerns should be communicated to the ILA. On Crown lands, the process would
have the Hunters and Trappers Committee review the Project Description and the Conservation Plan, meet and
vote if necessary on the decision and concerns that should be communicated to the EISC that is undertaking the
Screening of the development. FIGURE 12-1 describes the land use decision process proposed by WMAC
(NWT) in the ISR. The planning areas for each community are marked on MAP 10 in APPENDIX A.
         Contact:   Wildlife Management Advisory Council (NWT)
                    Hunters and Trappers Committee for local community, Joint Secretariat to obtain copies
         Reference: Community Conservation Plans for each of the six Inuvialuit communities




June 2001                                                                                                         12-5
12 – Protected Areas in the ISR                           Lands in the ISR



FIGURE 12-1 – PROPOSED LAND USE DECISION PROCESS IN ISR




12-6                                                           June 2001
Lands in the ISR                                                                    12 – Protected Areas in the ISR



12.2.2        Key Habitat Sites for Birds
In addition to the five existing Migratory Bird Sanctuaries, the Canadian Wildlife Service has identified a list of
Key Habitat Sites for bird-life. Although parts of these areas have been granted formal protection, some parts do
not have a legislated status. Nevertheless, these sites represent special bird habitat and merit special care. The
current list for the ISR is included on TABLE 12-3, however new areas are identified from time to time.

When applications are made to DIAND for land use authorizations, the department circulates them to other
agencies, including the Canadian Wildlife Service, for comment.

For the most up-to-date list of Key Habitat Sites, and further information on restrictions and prudent measures that
Operators can take:
         Contact:   Habitat Biologist, NWT
                    Northern Conservation Division, Canadian Wildlife Service
         Reference: Key Migratory Bird Terrestrial Habitat Sites in the NWT, Occasional Paper 71

12.2.3        Critical Habitat Areas for Fish
The federal Department of Fisheries and Oceans (DFO) and the Fisheries Joint Management Committee
(FJMC) are in the process of developing Fish Management Plans as part of co-management planning for fisheries.
These plans will identify some areas as Critical Habitat Areas for different species. These areas could be directly
affected by oil and gas development activities, but also indirectly by project discharges upstream of the habitat.

When applications for permits are circulated to government agencies or to Inuvialuit co-management bodies, critical
Habitat Areas for Fish will be flagged for some kind of protection under terms and conditions attached to the
permit, or if the risk is too great, could be the reason for rejecting the application. It is important for an Applicant to
consult first with the HTC in the area, with the FJMC, and with DFO to ensure that activity plans take these areas
into account.
         Contact:   Area Habitat Biologist, Western Arctic Region, Fisheries and Oceans (DFO)
         Reference: Fish Management Plans, FJMC and DFO

12.2.4        Beaufort Sea Beluga Management Plan
FJMC and IGC have also developed a management plan for beluga whales, setting out guidelines to assist
government, the EISC and EIRB and the ILA in their evaluation of development proposals (including mining
projects and port development) which may affect beluga whales, their habitat or harvesting.

The plan distinguishes four beluga management zones. Zone 1a includes 1800 sq km of shallow waters at the
mouth of the Mackenzie River; Zone 1b includes areas where beluga are harvested by residents of Paulatuk and
other eastern ISR communities; Zone 2 is a broad travel corridor extending from Cape Bathurst to Kay Point,
Yukon; Zone 3 is all the remaining marine waters in the ISR, and Zone 4 covers the Beaufort Sea outside of
Canadian waters. Zone 1 has the highest priority for protection.

Pending further work on Marine Protected Area Planning (described in section 12.1.6 of this Guide) the
Inuvialuit Game Council and Inuvialuit Regional Corporation adopted in 2001 an interim position opposing
hydrocarbon exploration or development within Beluga Management Zone 1a.




June 2001                                                                                                           12-7
12 – Protected Areas in the ISR                                                                  Lands in the ISR



To discuss the Beluga Whale Management Plan and its implications for planning of oil and gas activities:
        Contact:   Resource Biologist, Fisheries Joint Management Committee (FJMC)
        Reference: Beaufort Sea Beluga Management Plan

        Contact:      Area Habitat Biologist, Western Arctic Region, DFO
                      Fisheries Act and Marine Mammal Protection Regulations

12.2.5       Wildlife Management and Protection
In addition to the designation of certain areas as special habitat, wildlife and wildlife habitat can be protected
through the attachment of terms and conditions to regulatory authorizations. Developers planning activities need to
consult closely not only with Inuvialuit and co-management institutions, but also with wildlife managers in RWED
(GNWT) and with the Canadian Wildlife Service of Environment Canada. (Refer to Chapter 20 for a list of
GNWT responsibilities bearing on oil and gas activities.)

In the Northwest Territories the responsibility for management of wildlife is held by the Government of the NWT
(GNWT). In the ISR, Inuvialuit participate in wildlife management through the Inuvialuit Game Council, the
Hunters and Trappers Committees, and the co-management institutions established pursuant to the IFA section
14, the Fisheries Joint Management Committee and the Wildlife Management Advisory Committees. The co-
management institutions include appointees of the IGC, the federal government and the territorial government. The
government appointees do not act as representatives however, so it is important to seek advice not only from
Inuvialuit and co-management organizations, but also from government departments directly responsible for wildlife
management.

The Wildlife Management Division based in Inuvik is an important point of contact for Developers planning
activities in the ISR. Contact the Division for information on wildlife location, movements, and various habitats,
and to discuss approaches to monitoring of wildlife and scheduling of activities and other measures to mitigate
impacts. Among other matters, the Wildlife Management Division operates a satellite tracking program for caribou
and assists in the development of wildlife management plans. These joint management plans, such as the Draft Joint
Management Plan for the Cape Bathurst-Bluenose-Bluenose West Caribou Herd, and the Joint Management Plan
for Fur Bearing Mammals in the Inuvik Region may have implications for planning of oil and gas activities in the
ISR. The Wildlife Management Division can advise on the status of these plans and their implications.

        Contact:      Supervisor, Wildlife Management Division
                      Resources, Wildlife and Economic Development, Inuvik

Developers working throughout the ISR need to be aware of the risk of bear attacks. Field camps can attract
unwelcome attention from bears, including grizzly bears, polar bears and black bears. The Wildlife and Fish
Division of RWED in Inuvik can provide advice on safety in bear country, and other wildlife education initiatives.
Inuvialuit Hunters and Trappers Committees are also concerned about the possibility of polar bear or grizzly bear
kills in self-defense, because it reduces the number of tags available to the community for sport hunting. A common
condition for activities involving camps is the requirement to employ a bear monitor.

        Contact:      Manager, Wildlife and Fish Division
                      Resources, Wildlife and Economic Development, Inuvik




12-8                                                                                                   June 2001
Lands in the ISR                                                                 12 – Protected Areas in the ISR


In addition to current responsibilities for migratory birds and other wildlife, the Canadian Wildlife Service will have
a role in the administration of Species at Risk legislation, before Parliament at the time of writing. (Refer to
Chapter 19 on Environment Canada.)

Contact:               Canadian Wildlife Service, Environment Canada, Yellowknife.


12.3 Protected Area Planning: NWT Protected Areas Strategy
Representatives of IGC and IRC participated in the NWT Protected Areas Strategy initiative of 1996 to 1998.
The Protected Areas Strategy (PAS) is intended to set the framework, goals and guidelines for establishment of
protected areas in the NWT, with implementation left to each region.

Among the “Guiding Principles” set out in the PAS, several are relevant to the resource industry. The PAS gives
precedence to land claim agreements; it calls for full stakeholder participation in planning; and it calls for the
assessment of non-renewable resources as part of the evaluation of proposed protected areas. The PAS
recommends that while proposals for new protected areas are being evaluated, the area of concern should be
protected from resource activities, and for areas designated for the highest levels of protection, recommends that all
industrial activities be prohibited.

As a next step, the PAS now requires that government agencies work with regionally-based management bodies to
develop Protected Area System Plans, due for completion within two years. IRC however has advised that formal
legislated protection is complete in the ISR and no Protected Area System Plan is required.

Nevertheless, it is important for Developers interested in an area of the ISR to keep abreast of protected area
planning. While the PAS recommends that both ecological and non-renewable resource values be taken into
account in decision-making on Protected Areas, the fact is that in relatively unexplored areas such as the ISR there
is inadequate resource data for such an integrated evaluation. Inuvialuit organizations involved in protected area
planning need to be informed of the prospectivity of their lands so that they can make the best decisions on the
trade-offs involved in formal designations of protected areas in the ISR. Developers planning community
consultation should ask about protected area planning initiatives in their area of interest and be open with the
community about the prospectivity of the area.

Another initiative under the Protected Areas Strategy may have implications for Operators with a long-term
interest in access to land in the ISR and throughout Nunavut and the NWT. DIAND has committed under the
strategy to develop guidelines for the use of interim protection. As well, DIAND will be working on guidelines for
compensation to third party interests facing expropriation or other negative impacts resulting from the creation or
modification of a protected area.

           Contacts:  Director, Oil and Gas, RWED
                      Inuvialuit Regional Corporation (IRC) and Inuvialuit Game Council (IGC)
           Reference: NWT Protected Areas Strategy: Protecting Special Natural Areas in the NWT
                      NWT Protected Areas Strategy: Protected Areas Toolkit




June 2001                                                                                                        12-9
12 – Protected Areas in the ISR                                                                                Lands in the ISR



TABLE 12-1: ACTS AND REGULATIONS FOR PROTECTED AREAS AND PROTECTION
            OF WILDLIFE


               ACTS                   POLICY and/or REGULATIONS                                   REFERENCE

  Western Arctic (Inuvialuit)      Environmental Impact Screening and Review         Inuvialuit Regional Corporation
  Claims Settlement Act            Special Development Areas                         Inuvialuit Game Council
                                   Special Conservation Regime
                                   Fish Management Plans

  National Parks Act               Guiding Principles and Operating Policies         Parks Canada Yellowknife

  Territorial Parks Act (Yukon)    Territorial Parks Regulations                     Renewable Resources
                                                                                     Whitehorse

  Migratory Birds Convention       Migratory Bird Sanctuary Regulations              Northern Conservation Division
  Act                              Migratory Birds Regulations                       Canadian Wildlife Service Yellowknife

  Oceans Act                       Policy on Marine Protected Areas, March           DFO Winnipeg
                                   1999                                              http://www.oceansconservation.com

  Northwest Territories Act        NWT Archaeological Sites Regulations              Prince of Wales Northern Heritage Centre,
                                   Guidelines for Developers for the Protection of   Yellowknife
                                   Archaeological Resources in NWT (Draft)

                                   Game Declared in Danger of Becoming Extinct       DIAND Yellowknife
                                   Northwest Territories Reindeer Regulations

  Yukon Act                        Yukon Archaeological Sites Regulations            DIAND Whitehorse
                                   Game Declared in Danger of Becoming Extinct

  Territorial Lands Act            Territorial Land Use Regulations                  DIAND Yellowknife and Whitehorse

  Historical Resources Act                                                           Prince of Wales Northern Heritage Centre
  (NWT)                                                                              Yellowknife
                                                                                     Commissioner of the NWT

  Historical Sites and Monuments   National Sites Declaration Regulations            Parks Canada, Yellowknife
  Act

  Fisheries Act                    Marine Mammal Regulations                         Fisheries Habitat Management
                                   Fishery (General) Regulations                     DFO Yellowknife
                                   Fish Health Protection Regulations
                                   Effluent Regulations
                                   NWT Fishery Regulations
                                   Yukon Fishery Regulations
                                   Policy for the Protection of Fish Habitat

  Canada Wildlife Act              Critical Wildlife Area Regulations                Canada Wildlife Service

  Wildlife Act (NWT)                                                                 Resources, Wildlife and Economic
                                                                                     Development, Yellowknife

  Canadian Environmental           Dumping at Sea Regulations                        Environmental Protection Service
  Protection Act                   Petroleum Refinery Liquid Effluent Regulation     Environment Canada, Yellowknife

  Environmental Protection Act     Spill Contingency and Reporting Regulations       Resources, Wildlife and Economic
  (NWT)                            (NWT)                                             Development, Yellowknife
                                   Air Quality Guidelines (NWT)



12-10                                                                                                                  June 2001
Lands in the ISR                                                             12 – Protected Areas in the ISR



                  ACTS              POLICY and/or REGULATIONS                        REFERENCE

   Environmental Rights Act                                             Resources, Wildlife and Economic
   (NWT)                                                                Development, Yellowknife

   Forest Protection Act (NWT)                                          Resources, Wildlife and Economic
                                                                        Development, Yellowknife

   Forestry Act                  Timber Regulations                     DIAND, Yellowknife




Note: Bills not yet passed include legislation on Marine Conservation Areas and Species at Risk.




June 2001                                                                                                  12-11
12 – Protected Areas in the ISR                                                                                                        Lands in the ISR



TABLE 12-2: PROTECTED AREAS IN THE INUVIALUIT SETTLEMENT REGION – FORMALLY LEGISLATED PROTECTION



         AREA DESIGNATED                             PROTECTED STATUS                    AREA AND LOCATION                   RESTRICTIONS ON
                                                                                                                            MINERAL ACTIVITIES

 Aulavik National Park, NWT            National Park                               12,500 sq km                          Prohibited
                                       National Parks Act and                      Northern Banks Island
                                       Guiding Principles and Operating Policies

 Tuktut Nogait National Park           National Park                               16,340 sq km                          Prohibited
                                       National Parks Act and                      East of Darnley Bay
                                       Guiding Principles and Operating Policies

 Ivvavik National Park (Yukon)         National Park                               West of Babbage River on the Yukon    Prohibited
                                       National Parks Act and                      North Slope
                                       Guiding Principles and Operating Policies

 Anderson River Delta Bird Sanctuary   Migratory Bird Sanctuary                    1083 sq km                            Sanctuary Permit required for
                                       Migratory Birds Convention Act              Southern shore of Liverpool Bay       land use activities (case by case)
                                       Migratory Bird Sanctuary Regulations
                                       Migratory Birds Regulations

 Cape Parry Bird Sanctuary             Migratory Bird Sanctuary                    3 sq km                               Sanctuary Permit required for
                                       Migratory Birds Convention Act              Tip of Parry Peninsula near Baillie   land use activities (case by case)
                                       Migratory Bird Sanctuary Regulations        Islands
                                       Migratory Birds Regulations

 Banks Island No. 1 Bird Sanctuary     Migratory Bird Sanctuary                    20,518 sq km                          Sanctuary Permit required for
                                       Migratory Birds Convention Act              Western shore of Banks Island         land use activities (case by case)
                                       Migratory Bird Sanctuary Regulations
                                       Migratory Birds Regulations

 Banks Island No. 2 Bird Sanctuary     Migratory Bird Sanctuary                    142 sq km                             Wholly contained within Aulavik
                                       Migratory Birds Convention Act              Northeastern shore of Banks Island,   National Park, mineral activities
                                       Migratory Bird Sanctuary Regulations        Thompson River Valley                 prohibited
                                       Migratory Birds Regulations




12-12                                                                                                                                          June 2001
Lands in the ISR                                                                                                                              12 – Protected Areas in the ISR



          AREA DESIGNATED                                   PROTECTED STATUS                                   AREA AND LOCATION                         RESTRICTIONS ON
                                                                                                                                                        MINERAL ACTIVITIES

 Kendall Island                              Migratory Bird Sanctuary                                    606 sq km                                   Sanctuary Permit required for
                                             Migratory Birds Convention Act                              Kendall Island                              land use activities (case by case)
                                             Migratory Bird Sanctuary Regulations
                                             Migratory Birds Regulations

 Herschel Island Territorial Park            Territorial Parks Act (Yukon)                               Herschel Island                             Prohibited
                                             Inuvialuit Final Agreement

 Pingo Canadian Landmark                     Inuvialuit Final Agreement                                  16.4 sq km on 7(1)(a) lands to west of      Prohibited
                                                                                                         Tuktoyaktuk community site

 Husky Lakes                                 Inuvialuit Final Agreement, Section 8                       Block of 7(1)(b) Inuvialuit-Owned lands     Not prohibited, but approval
                                             Special Development Area: Developer must prove that         south of Tuktoyaktuk                        subject to higher environmental
                                             the activity meets criteria that will be set by the EIRB,   Reference: Map 7, Appendix A                standards
                                             and must account for his standard of performance

 Cape Bathurst                               Inuvialuit Final Agreement                                  Block of 7(1)(a) land on Cape Bathurst      Not prohibited, but approval
                                             Special development area: Developer must prove that the     Reference: Map 7, Appendix A                subject to higher environmental
                                             activity meets criteria that will be set by the EIRB, and                                               standards. Any new subsurface
                                             must account for his standard of performance                                                            development subject to consent of
                                                                                                                                                     Canada

 Yukon North Slope, east of Babbage River    Inuvialuit Final Agreement, Section 12                      Section of the ISR to the east of Babbage   Prohibited
                                             Special Conservation Regime                                 River extending to the NWT-Yukon
                                             Withdrawal and Prohibition Order prevents disposition       border
                                             of mineral rights for this area, and prohibits entry for    Reference: Map 9, Appendix A
                                             staking or prospecting

 Archaeological Sites                        Northwest Territories Act                                   Contact Prince of Wales Northern            Sites are protected from
                                             NWT Archaeological Sites Regulations                        Heritage Centre for information             disturbance. Sites found in the
                                             Territorial Lands Act                                                                                   course of activities must be
                                                                                                                                                     reported and protected

 Archaeological Sites in the Yukon part of   Yukon Archaeological Sites Regulations                      Yukon Territorial Archaeologist,            Sites are protected from
 the ISR                                                                                                 Whitehorse                                  disturbance. Sites found in the
                                                                                                                                                     course of activities must be
                                                                                                                                                     reported and protected


These areas are marked on MAP 2 in APPENDIX A.



June 2001                                                                                                                                                                         12-13
12 – Protected Areas in the ISR                                                                                                                                 Lands in the ISR


TABLE 12-3: PROTECTED AREAS IN THE INUVIALUIT SETTLEMENT REGION – INFORMAL TYPES OF PROTECTION:
            NOT LEGISLATED, BUT TAKEN INTO ACCOUNT IN SCREENING AND ISSUANCE OF AUTHORIZATIONS


        DESIGNATION                                     STATUS                                  AREA AND LOCATION                           RESTRICTIONS ON MINERAL
                                                                                                                                                   ACTIVITIES

 Areas noted in Community          These land-use maps identify key areas for         For each community.                                 Activities in these areas may be approved,
 Conservation Plans                harvesting and habitat. Are taken into account     For the ISR as a whole.                             but strict terms and conditions may be
                                   when development proposals are considered by       Reference: Community Conservation Plans             imposed to avoid damage.
                                   DIAND, by ILA, and by EISC/EIRB.                   Reference: Map 3, Appendix A

 Key Habitat Sites for Birds       Listed by Canadian Wildlife Service. Some are      Seven in the ISR: Mackenzie River Delta,            Activities in these areas may be approved,
                                   partly or wholly covered by other, formal          Kugalik-Liverpool Bay, Anderson River,              but will require strict terms and conditions
                                   protection. Taken into account by DIAND, by        Harrowby Bay-Lower Horton, Cape Parry, Egg          to avoid damage.
                                   ILA and the EISC /EIRB when making                 River, Prince Patrick Island. Reference: Map 2,
                                   decisions.                                         Appendix A

 Critical Habitat Areas for Fish   Listed under Fish Management Plans. They are       Fish Management Plans are in process of being       Activities in these areas may be approved,
                                   taken into account by DIAND, by ILA and the        developed by the Fisheries Joint Management         but will require strict terms and conditions
                                   EISC/EIRB when making decisions.                   Committee and the Dept. Fisheries and Oceans.       to avoid damage.

 Beaufort Sea Beluga               Guidelines to be taken into account by DIAND,      Zone 1a includes 1800 sq km at mouth of the         Zone 1 is to be considered a Protected
 Management Plan (1998)            ILA and EISC when development proposals are        Mackenzie River.                                    Area. No industrial activities should be
                                   evaluated.                                         Zone 1b includes areas where beluga are harvested   permitted in this Zone during open water.
                                                                                      by Paulatuk, and other eastern ISR communities.     Development proposals outside Zone 1
                                   Identifies four zones of significance for beluga   Zone 2 encompasses a major travel corridor,         should be evaluated for effects on water or
                                   concentration, calving and harvesting.             extending from Baillie Islands in the east to Kay   ice quantity or quality.
                                                                                      Point in Yukon.
                                                                                      Zone 3 is the remaining marine area within the      Industrial activities in Zone 2 and 3 may
                                                                                      ISR.                                                be permitted if do not adversely affect
                                                                                                                                          conservation, protection, or harvesting of
                                                                                                                                          beluga.

 Caribou Calving Areas             Priority for the Inuvialuit, and the GNWT. They    Large areas of the Western Arctic Coast are used    Activities in these areas may be approved,
                                   are taken into account by DIAND and the EISC       for calving in May-June. Discussions are underway   but will require strict terms and conditions
                                   when making decisions.                             on “Caribou Protection Measures” for the entire     to avoid damage.
                                                                                      region, including the calving grounds.

EISC        Environmental Impact Screening Committee                                              ILA          Inuvialuit Land Administration
DIAND       Department of Indian Affairs and Northern Development, Government of Canada           GNWT         Government of the Northwest Territories




12-14                                                                                                                                                                    June 2001
Regulatory Agencies and Processes                                                                                                      Table of Contents


PART III – REGULATORY AGENCIES AND PROCESSES

13.0   CANADIAN ENVIRONMENTAL ASSESSMENT AGENCY (CEAA)............................................. 13-1
        13.1         CANADIAN ENVIRONMENTAL ASSESSMENT ACT (CEAA) ................................................................. 13-1
        13.2         REQUIREMENTS FOR ENVIRONMENTAL ASSESSMENT UNDER CEAA........................................... 13-1
        13.3         APPLICATION OF CEAA TO OIL AND GAS PROJECTS .................................................................... 13-3
        13.4         COORDINATION AMONG FEDERAL DEPARTMENTS ...................................................................... 13-4
        13.5         COORDINATION BETWEEN IFA AND CEAA ................................................................................ 13-6
14.0   NATIONAL ENERGY BOARD (NEB) ................................................................................................. 14-1
        14.1         FRONTIER INFORMATION OFFICE (FIO) ....................................................................................... 14-2
        14.2         NATIONAL ENERGY BOARD ACT (NEB ACT)................................................................................... 14-2
        14.3         CANADA OIL AND GAS OPERATIONS ACT (COGOA) ...................................................................... 14-3
        14.4         PROTECTION OF THE ENVIRONMENT ............................................................................................ 14-4
        14.5         NEB RESPONSIBILITIES UNDER THE CANADA PETROLEUM RESOURCES
                     ACT (CPRA)................................................................................................................................. 14-5
15.0   INUVIALUIT LAND ADMINISTRATION (ILA) ............................................................................... 15-1
        15.1         INUVIALUIT LAND ADMINISTRATION (ILA) RULES ..................................................................... 15-1
        15.2         NEGOTIATION OF AGREEMENTS WITH THE ILA ........................................................................... 15-1
        15.3         PETROLEUM RIGHTS ISSUANCE ON 7(1)(A) LANDS ...................................................................... 15-2
        15.4         COMMERCIAL ACCESS ................................................................................................................. 15-3
        15.5         LAND USE AUTHORIZATIONS ...................................................................................................... 15-3
        15.6         WILDLIFE COMPENSATION .......................................................................................................... 15-3
        15.7         LIABILITY FOR DAMAGE .............................................................................................................. 15-3
16.0   INDIAN AND NORTHERN AFFAIRS (DIAND): LAND USE, SURFACE TENURE AND
        BENEFITS ............................................................................................................................................... 16-1
        16.1         CANADA PETROLEUM RESOURCES ACT (CPRA) ............................................................................ 16-1
        16.2         LAND USE AUTHORIZATIONS UNDER THE TERRITORIAL LANDS ACT............................................. 16-3
        16.3         LAND DISPOSITIONS .................................................................................................................... 16-8
        16.4         FEDERAL REAL PROPERTIES ACT................................................................................................... 16-8
        16.5         ARCTIC WATERS POLLUTION PREVENTION ACT .............................................................................. 16-9
        16.6         IFA ENVIRONMENTAL IMPACT SCREENING AND REVIEW REQUIREMENT.................................... 16-9
        16.7         REQUIREMENTS OF THE CANADIAN ENVIRONMENTAL ASSESSMENT ACT ....................................... 16-10
        16.8         FEDERAL REQUIREMENTS FOR BENEFITS PLANS ....................................................................... 16-10
17.0   NORTHWEST TERRITORIES WATER BOARD .............................................................................. 17-1
        17.1         NWT WATERS ACT AND REGULATIONS ........................................................................................ 17-1
        17.2         RELATED LEGISLATION ............................................................................................................... 17-2
18.0   DEPARTMENT OF FISHERIES AND OCEANS................................................................................ 18-1
        18.1         FISHERIES ACT ............................................................................................................................. 18-1
        18.2         AUTHORIZATION UNDER FISHERIES ACT SUBSECTION 35(2) ........................................................ 18-3
        18.3         AUTHORIZATIONS UNDER FISHERIES ACT SECTION 32 (FOR DESTRUCTION
                     OF FISH BY ANY MEANS OTHER THAN FISHING) ......................................................................... 18-4
        18.4         NAVIGABLE WATERS PROTECTION ACT .......................................................................................... 18-5




June 2001                                                                                                                                                           i
Table of Contents                                                                                Regulatory Agencies and Processes



19.0   ENVIRONMENT CANADA ................................................................................................................... 19-1
       19.1        RESPONSIBILITIES UNDER THE FISHERIES ACT (1985) .................................................................. 19-3
       19.2        MIGRATORY BIRDS CONVENTION ACT (MBCA).............................................................................. 19-3
       19.3        CANADA WILDLIFE ACT .............................................................................................................. 19-4
       19.4        PROPOSED SPECIES AT RISK BILL (SARA) .................................................................................. 19-4
       19.5        RESPONSIBILITIES UNDER CANADIAN ENVIRONMENTAL ASSESSMENT ACT ..................................... 19-5
       19.6        CANADIAN ENVIRONMENTAL PROTECTION ACT .............................................................................. 19-6
       19.7        DISPOSAL AT SEA PERMITS UNDER CEPA................................................................................... 19-6
20.0   GOVERNMENT OF THE NORTHWEST TERRITORIES ............................................................... 20-1
       20.1        OWNERSHIP OF NON-RENEWABLE RESOURCES ........................................................................... 20-1
       20.2        ROLE OF THE GNWT IN OIL AND GAS ACTIVITIES ...................................................................... 20-1
       20.3        DEPARTMENTAL RESPONSIBILITIES RELATED TO OIL AND GAS .................................................. 20-2



LIST OF TABLES IN PART III
TABLE 14-1:        NATIONAL ENERGY BOARD – ACTS AND REGULATIONS ............................................14-1
TABLE 15-1:        AGREEMENTS NEGOTIATED WITH THE ILA.....................................................................15-8
TABLE 15-2:        RIGHTS AND AUTHORIZATIONS ISSUED BY THE INUVIALUIT LAND
                   ADMINISTRATION ON INUVIALUIT-OWNED
                   LANDS – SECTION 7(1)(A) AND 7(1)(B)................................................................................15-8
TABLE 15-3:        REQUIREMENTS FOR COMMERCIAL ACCESS TO INUVIALUIT-OWNED LANDS ...15-12
TABLE 16-1:        INDIAN AND NORTHERN AFFAIRS (DIAND): ACTS AND REGULATIONS..................16-2
TABLE 16-2:        THRESHOLDS FOR LAND USE PERMITS ON FEDERAL CROWN LANDS .....................16-3
TABLE 17-1:        LEGISLATION RELATED TO PROTECTION OF INLAND WATERS.................................17-2
TABLE 18-1:        DEPARTMENT OF FISHERIES AND OCEANS LEGISLATION...........................................18-2
TABLE 19-1:        ENVIRONMENT CANADA: ACTS AND REGULATIONS...................................................19-2
TABLE 20-1:        GOVERNMENT OF THE NORTHWEST TERRITORIES: LEGISLATION..........................20-5

LIST OF CHARTS IN PART III
CHART CEAA:        CANADIAN ENVIRONMENTAL ASSESSMENT ACT PROCESS ..............................................13-7
CHART NEB:         NEB COGOA AUTHORIZATION PROCESS IN THE ISR......................................................14-5
CHART ILA:         ILA APPLICATION REVIEW PROCESS .................................................................................15-4
CHART LUP:         DIAND APPROVAL PROCESS FOR CLASS A AND B LAND USE PERMITS ...................16-4
CHART BEN :        DIAND APPROVAL PROCESS FOR BENEFITS PLANS.....................................................16-11
CHART WA:          APPLICATION FOR TYPE A WATER LICENCE ...................................................................17-3
CHART WB:          APPLICATION FOR TYPE B WATER LICENCE: FOR SMALLER PROJECTS ..................17-7
CHART DFO:         FISHERIES ACT AUTHORIZATIONS ......................................................................................18-6
CHART EC:          DISPOSAL AT SEA PERMIT ....................................................................................................19-7




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13.0 CANADIAN ENVIRONMENTAL ASSESSMENT AGENCY (CEAA)

Reader’s Caution: CEAA has recently undergone a five-year review pursuant to CEAA subsection 72(1),
                  resulting in the issuance of “Strengthening Environmental Assessment for Canadians:
                  Report of the Minister of Environment to the Parliament of Canada on the Review of the
                  Canadian Environmental Assessment Act March 200l.”

                      Based upon this review, legislative amendments have been introduced in Bill C-19 in the
                      current Parliament. These amendments, if passed as proposed, will have implications for the
                      process charts as shown in this Guide and will affect the coordination role that the CEA
                      Agency would perform in an inter-jurisdictional project.


13.1 Canadian Environmental Assessment Act (CEAA)
The Canadian Environmental Assessment Act sets out requirements for Environmental Assessment and Review of
projects involving the federal government. The Act, which came into force January 1995, requires that projects that
are authorized, proposed or funded by the federal government and projects proposed on federal lands shall be
assessed by the appropriate federal authorities before any authorizations are issued.

CEAA also creates the Canadian Environmental Assessment Agency (CEA Agency), which has certain
responsibilities in the EA process, and has responsibility for promoting harmonization in Environmental
Assessment. The Agency reports to the Minister of Environment, and has a President based in the National
Capital Region. The office responsible for British Columbia and the three northern territories is located in
Vancouver.

        Contact:      Canadian Environmental Assessment Agency, Pacific and Northern Region
        Contact:      Environment and Conservation, DIAND Yellowknife
        Web-site:     http://www.ceaa.gc.ca


13.2 Requirements for Environmental Assessment under CEAA
Responsibility for implementing the EA requirements under CEAA falls on the federal department(s) or
agency(ies) that exercise specified powers or perform specified duties or functions in respect of the proposed
development. A Federal Authority that is required to ensure that an Environmental Assessment of the project is
conducted is called a Responsible Authority (RA). Refer to CEAA section 11 and section 5 for precise wording.

There are four types of Environmental Assessment (EA) under CEAA:
    Screening, dealing with more than 99% of applications;
    Comprehensive Study;
    Mediation; and
    Panel Review, by a panel fully independent of government and appointed by the Minister of the Environment.




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Every Screening or Comprehensive Study of a project and every Mediation or Panel Review is required to
consider the factors set out in subsection 16(1), as follows. Refer to the Act for precise wording:
(a)    environmental effects of the project, including the effects of malfunctions or accidents that may occur in
       connection with the project and any cumulative environmental effects that are likely to result from the project
       in combination with other projects or activities that have been or will be carried out;
(b)    significance of the effects;
(c)    comments from the public;
(d)    technically and economically feasible measures that would mitigate any significant adverse environmental
       effects; and
(e)    any other relevant matter, such as the need for the project and alternatives to the project, that the RA (in the
       case of a Screening) or the Minister (in the case of a Comprehensive Study, Panel Review or Mediation)
       after consulting with the RA may require to be considered.

Further factors must be considered when the EA requirement is for a Comprehensive Study or for a Mediation or
Panel Review (s. 16(2)):
(a)    the purpose of the project;
(b)    alternative means of carrying out the project that are technically and economically feasible and the
       environmental effects of any such alternative means;
(c)    need for, and requirements of, any follow-up program in respect of the project; and
(d)    the capacity of renewable resources likely to be affected to meet the needs of the present and those of the
       future.

Note that the factors that must be considered in an EA will depend both on the type of EA required, with
additional factors required for a Comprehensive Study or Mediation/Panel Review, and on decisions made on the
list and scope of factors to be considered, and if applicable, on the terms of reference for Mediation/Panel Review.

The application of this Act to a substantial project in the ISR has yet to take place. CEAA processes for larger
projects have been tested on only one project to date in the NWT, a Comprehensive Study of the Diavik Project,
proposed diamond mine. There has not been a CEAA Panel Review to date in the jurisdiction, nor have the
processes for Comprehensive Study or Mediation or Panel been undertaken in an area with a settled land claim.
There are as yet no class Screenings available for petroleum exploration or development.

Many Screenings have been completed however, and there have been extensive discussions among Agency staff,
the RAs, and the EISC and EIRB in anticipation of applications that would require a Comprehensive Study
and/or Mediation/Panel Review. Arrangements to deal with a particular project will only be determined after
details of the proposed development have been received and reviewed.

Coordination of information requirements as a basis for discussion among agencies of a coordinated review process
have been formalized to some extent by the March 2001 agreement among RAs and land claim institutions
regarding Guidance on Provision of a Preliminary Information Package for Gas Development in the NWT.




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13.3 Application of CEAA to Oil and Gas Projects
Application of CEAA, as described on CHART CEAA, is established through a series of determinations made
by a Federal Authority. Four sets of Regulations provide guidance on whether an EA is required for a project and
if so, what type of assessment is required. Each of these Regulations include sections bearing on oil and gas activity
on frontier lands. Proponents should refer directly to these Regulations when planning any particular activity:
    Exclusion List Regulations,
    Inclusion List Regulations,
    Law List Regulations, and
    Comprehensive Study List Regulations.

The Exclusion List Regulations (SOR/99-439) specify those projects that do not require an Environmental
Assessment because they are considered to have insignificant effects on the environment. Excluded oil and gas
activities are limited to minor relocation of existing pipelines or installation of pipeline components that would not
result in any extension beyond the right-of-way, or be undertaken within 30 m of a water body, or result in any
water, air or noise emissions.

The Inclusion List Regulations (SOR/99-436) prescribe physical activities not relating to physical works that
quality as projects under CEAA, and therefore may require an EA. Some sections affecting northern oil and gas
include:
    Part II, Oil and Gas Projects
    18       Physical activities relating to the exploration for, or the production of, oil or gas that require an
             authorization under paragraph 5(1)(b) of COGOA.
    19       Physical activities relating to the approval of a development plan under subsection 5(1)(4) of
             COGOA.
    39.1     Physical activities that are carried on in Canada relating to the establishment or relocation of a
             temporary road for use in winter.

    Part V, Transportation
    36      Dredge or fill operations in a navigation channel of a historic canal or other navigable water for the
            purpose of ensuring the navigability of the navigable water.

    Part VI, Waste Management
    40     The dumping of any substance for which a permit is required under Part VI of the Canadian
           Environmental Protection Act.

    Part VII, Fisheries
    42-47 Alteration or destruction of fish or fish habitat that requires an authorization under Fisheries Act and
           Regulations.

    Part VIII, Wildlife
    49     Physical activities referred to in paragraph 3(2)(b) on subsection 10(1) of the Migratory Bird
           Sanctuary Regulations that require a permit under section 9 of those Regulations.
    54     The deposit of oil, oil wastes or any other substance harmful to migratory birds in waters or in any
           area frequented by migratory birds that requires an authorization under paragraph 35(2)(b) of the
           Migratory Bird Regulations.




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    Part X, Northern Projects
    68      Physical activities that require a licence under Yukon Waters Act.
    69      Physical activities that require a licence under the NWT Waters Act.
    70      Physical activities that require a Class A or Class B Land Use Permit.
    71      Physical activities relating to establishment or use of a temporary field camp where the camp is to be
            used for 200 person-days or more.

    Part XII, Miscellaneous
    76     Physical activities that require a licence to use or occupy federal lands under paragraph 4(2)(a) of the
           Federal Real Property Regulations.

The Law List Regulations (SOR/99-330 and SOR/99-438) prescribe the Acts and Regulations that confer
powers, duties or functions on federal authorities or the Governor in Council, the exercise of which requires a
federal EA. Some of the provisions relevant to northern oil and gas activities are:
    Arctic Waters Pollution Prevention Act, under subsections 10(3) and 13(1).
    Canada Oil and Gas Operations Act – NEB’s issuance of authorization for oil and gas activities.
    Canadian Environmental Protection Act – Environment Canada’s ocean disposal permitting process.
    Explosives Act – NRCan’s process for authorizing use of explosives.
    Fisheries Act – DFO-FHM’s HADD permitting process.
    National Energy Board Act – NEB’s transboundary pipeline authorization process.
    Navigable Waters Protection Act – DFO-CCG’s NWPA permitting process.
    Northwest Territories Waters Act – the NWT Water Board’s licencing process.
    Territorial Land Use Regulations – DIAND’s land use and tenure authorization process.
    Yukon Waters Act – the Yukon Water Board’s licencing process.
    Radio Communication Act – Industry Canada’s licencing process for the construction of communication
    towers.

The Comprehensive Study List Regulations (SOR/94-638) prescribe projects for which a Comprehensive
Study is required.

    Part IV, Oil and Gas Projects
    11     Proposed construction, decommission or abandonment, of a platform, artificial island or any other
           physical work for production of oil or gas, located offshore.
    13     Proposed construction, decommissioning or abandonment or an expansion that would result in an
           increase of production capacity of more than 35% of an oil refinery, sour gas processing facility, LNG
           facility, petroleum or LNG storage facilities of minimum capacities.
    14     Proposed construction of an oil and gas pipeline more that 75 km in length on a new right-of-way, or
           an offshore oil and gas pipeline.
    15     A proposed offshore exploratory drilling project in an area where no other offshore exploratory
           drilling project has been previously assessed either under the CEAA or under its predecessor, the
           Environmental Assessment Review Process Guidelines Order (EARPGO).


13.4 Coordination Among Federal Departments
Oil and gas activities typically cause a trigger of CEAA requirements for more than one Responsible Authority
(RA). Depending on the location and specifics of the proposal, an oil and gas activity may require not only
authorization of the activity itself by NEB under COGOA or by Yukon Government under YOGA, but also Land


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Use Permits (on Crown lands) of DIAND, a water licence from the NWT Water Board or the Yukon Water
Board, Fisheries Act Authorizations, Navigable Waters Protection Act Permits, and potentially other
authorizations as well. Effective and timely coordination of EA requirements among RAs is important to ensure
consistent and timely consideration of a proposed activity.

The need for effective coordination is acknowledged in CEAA and was a major topic during the five-year review.
One of the purposes of the Act (s. 4(b)(1)) is to ensure that Responsible Authorities (RAs) carry out their
responsibilities in a coordinated manner with a view to eliminating unnecessary duplication in the EA process. In
the event of disagreement among RAs over how the CEAA requirements will be met, section 12 of CEAA
provides for a role for the Agency in advising RAs on how to coordinate.

Requirements for coordination are further elaborated in Regulations Respecting the Coordination by Federal
Authorities of Environmental Assessment Procedures and Requirements (1997), known also as Federal
Coordination Regulation (FCR). The FCR set out time limits for federal authorities to meet when making
determinations on whether an EA is likely to be required for a proposed activity, whether additional information is
needed from the Proponent, and for notifying the Proponent of determinations. There are also requirements for
contacting, coordinating with and responding to other federal authorities, both those authorities that are likely to
exercise a power that would enable the project to proceed, and those that may have specialist or expert knowledge.
Further guidance is provided in A Reference Guide for the Canadian Environmental Assessment Act: The Federal
Coordination Regulations, July 1997, available on the CEAA web-site.

From the Proponent’s perspective, coordination among federal authorities is extremely important, both for
timeliness and avoidance of duplication and to ensure consistency in the treatment of like activities. Under present
arrangements, it is important for the Proponent to consult closely with RAs regarding EA determinations, as well
as with both RAs and the CEA Agency regarding coordination among RAs. Key matters to confirm through
these consultations are:
    Identification of the Lead Responsible Authority, which is negotiated among RAs case-by-case. The
    establishment of a lead RA is not a legal requirement of CEAA but is an administrative convenience that is
    generally used in situations where there is more than one RA. The lead RA may vary from one application to
    the next.

    The Scope of EA Required. Where there is more than one RA, the RAs together are to determine the
    scope of the project to be reviewed, the factors to be considered in the Review and the scope of these factors.

    The Level of EA Required. Each RA makes its own determination under CEAA and may refer the
    project proposal to the Minister for a decision on whether to referral to a Mediation/Panel Review at any time
    during the assessment process. The RA may make such a referral before the Screening or Comprehensive
    Study is complete. Referral to Mediation/Panel Review might occur early in the Screening or Comprehensive
    Study process, or possibly later, after considerable effort has already been expended.

    It is especially important that the level of EA is resolved as early on in the process as possible, so that the
    Proponent can anticipate the full range of requirements from the outset. The Environmental Assessment
    requirements of a Panel Review or Comprehensive Study entail much more advance work than a straight-
    forward Screening. Lost time can be especially costly when operating windows are as narrow as on the Arctic
    Coast.

    The Schedule to be Expected, and clear dead-lines for submission of materials by the Proponent in
    keeping with the schedule.



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    Opportunities to Coordinate Information Requirements or for Substitution of Processes
    between CEAA and IFA Environmental Impact Screening and Review. Refer to section 13.5 below.

Note that the charts in this Guide portray regulatory processes as set out in Regulation. Opportunities for
coordination are described, but the charts cannot show a coordinated process because such harmonization and
coordination will be worked out based on the specifics of the project proposal, case-by-case.

A Federal Inter-departmental Task Force on Northern Oil and Gas Development, (EA and Regulatory Working
Group) has been working for some months on options for coordination among agencies, specifically on
coordination of processes for review of a major inter-jurisdictional project such as a pipeline through the Mackenzie
Valley. Consideration is also needed for coordination of processes to deal with the large number of exploration and
development applications that will parallel a pipeline application (discussed also in Chapter 27).


13.5 Coordination Between IFA and CEAA
The second opportunity for harmonization is between CEAA requirements for Environmental Assessment
(including all forms of EA) and requirements under IFA section 11 for Environmental Impact Screening and
Review. The IFA processes described in Chapter 4 envisage two levels of Environmental Assessment: an initial
Screening, followed by further Review if warranted.

Under CEAA, there is an opportunity to coordinate CEAA and IFA processes both at the Screening
(CEAA s. 12(4)(c)) and at the Review stages. CEAA sections 12, 40 and 43 allow for an RA to cooperate with
another jurisdiction where another jurisdiction has a responsibility or authority to conduct an EA of the project,
and for the Minister to allow for substitution of processes. As well, section 24 allows for the use of a previously
conducted EA in the current Screening or Review as appropriate.

Under the IFA, the capacity for EISC or EIRB to coordinate is defined differently. For instance, there is no
clause in the IFA enabling either body to participate in a joint Review. Generally, consideration of opportunities
for coordination would occur on a case-by-case basis, after the EISC has received a particular Project Description.


This has not precluded consideration of other opportunities for coordination:
    Coordination of Information Requirements
    Efforts have been made to harmonize somewhat the information requirements for IFA Screening and Review
    Processes with those of CEAA. As well, RAs will accept the Project Description prepared for the EISC as
    the basis for starting the determinations required under CEAA.

    Harmonization of information requirements has been formalized in the case of a Mackenzie Valley pipeline
    application through the agreement of March 2001, “Guidance on Provision of a Preliminary Information
    Package for Gas Development in the NWT,” which sets out the information required by all federal authorities
    and land claim institutions to enable the consideration options for process coordination.

    Contribution of the EISC Screening Determination to CEAA processes
    There are no protocols for coordination between IFA Screening or IFA Review with CEAA Screening or
    Comprehensive Study. Typically, the EISC has undertaken the Screening function according to its processes,
    then the EISC determination has been taken into account when the Regulatory Authority makes a decision
    under CEAA. The EISC determination (or EIRB decision) can be taken into consideration in any level of
    EA decision: a CEAA Screening, Comprehensive Study, or Mediation/Panel Review.


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      Substitution of IFA Panel Review for CEAA Panel Review
      A Memorandum of Understanding between CEAA and the EIRB was concluded and signed in December
      1999 which would allow the Minister of Environment to consider the possibility of allowing an EIRB Panel
      Review to substitute for a CEAA Panel Review, in the event that both IFA and CEAA processes result in the
      conclusion that further Review by Panel is necessary.

      In the event that IFA processes result in a referral to an EIRB Panel, but the CEAA process results in a
      Screening or Comprehensive Study level of EA, there is no protocol for coordination. Options and
      opportunities for coordination would be considered case-by-case. CEAA allows for the Screening or
      Comprehensive Study to take into account the EIRB Panel Review and Decision.


CHART CEAA - Canadian Environmental Assessment Act Process
CHART CEAA describes the determinations that must be made pursuant to CEAA.

The responsibility of the Proponent is to provide the governmental authorities with the information needed at each
stage to make a sound and informed determination at each stage of the process. The information requirements and
the depth of analysis required are typically much greater for a Comprehensive Study and again for a Panel Review
than for a Screening.

It is in the Proponent’s interest to find out as early as possible in the process whether the project will be subject to
the more intense level of scrutiny involved for a Comprehensive Study or Panel Review. It is therefore worthwhile
to ensure that the initial Project Description that triggers the series of determinations is comprehensive and in
sufficient detail to ensure that time is not lost in reiterative information requests.

C-1       Determination: Does CEAA apply?
          Upon receipt of a Project Description from the Proponent, the RA must determine first whether CEAA
          applies. This requires consideration of a series of questions:
              Is the activity a “project,” under the definition in section 2 of CEAA? Included in the definition of
              “project” is any physical activity not relating to a physical work that is on the Inclusion List
              Regulations.
              Is the activity excluded, under the Exclusion List Regulations?
              Is there a Federal Authority involved, as defined under CEAA subsection 2(1)?
              Is there a CEAA section 5 trigger, i.e. the Federal Authority is a Proponent, a provider of financial
              support, a land owner or administrator, or issues any authorizations that would allow the project to be
              carried out?

          If CEAA does not apply to the activity, there is no requirement to undertake an Environmental
          Assessment (EA) under CEAA.

          If CEAA applies, an EA must be conducted before a Federal Authority exercises any of the powers or
          performs any of the duties or functions outlined in section 5 of CEAA. Refer to CEAA section 5 and
          section 11 for precise wording. Essentially, an EA is required before the federal government can take any
          action that would allow the project to proceed in whole or part, and it is up to the RA to ensure that the
          EA is conducted as early as is practicable in the planning stages of the project and before irrevocable
          decisions are made.




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C-2    Application of Federal Coordination Regulations
       In the case of an application for oil and gas activity, there may be several Responsible Authorities under
       CEAA, whether the activity is on Crown lands or on Inuvialuit-Owned lands. Where there are two or
       more RAs, CEAA section 12 requires that they together determine the manner in which to perform their
       duties and functions, i.e. their respective roles and responsibilities. In particular the Regulations
       Respecting the Coordination by Federal Authorities of Environmental Assessment Procedures and
       Requirements 1997 (Federal Coordination Regulations), require that each RA carries out its duties “in a
       coordinated manner with a view to eliminating unnecessary duplication in the EA process.”

       The Federal Coordination Regulations require federal departments to consult according to set time lines
       with others that may be RAs or that may be able to provide specialist information. RAs are required to
       determine the scope of the project, the scope of the factors to be considered, and to agree on a schedule for
       taking a course of action or making a recommendation. Although not a regulated requirement, a lead RA
       is generally selected to coordinate the determination processes, based on such matters as legislative
       authorities and environmental effects. For northern oil and gas projects, there is no pre-determined lead;
       this would be negotiated project-by-project.

C-3    Determination: Which EA Track?
       Once it is determined that an EA is required and the RAs have been identified and coordinated, a
       decision must be made on the level of EA warranted by the project. This depends on the project. Projects
       that are listed under the Comprehensive Study List Regulations are required to undergo a Comprehensive
       Study and all other projects are subjected to a CEAA Screening.

       CEAA section 16 sets out the factors that must be considered as part of any Screening, Comprehensive
       Study, Mediation or Panel Review. Other factors may be added to these at the discretion of the RA.

       The determination of scope is a very important step in the CEAA process. Either the RAs, or if a project
       is referred to a Mediator or Panel Review, the Minister of Environment will determine the scope of the
       project (CEAA s. 15(1)), factors to be considered (CEAA s. 16), and scope of the factors.

       Under current arrangements, Projects on the Comprehensive Study List may be referred to Panel Review
       or Mediator. Under CEAA section 21, the RA shall either ensure that the Comprehensive Study is
       done, or refer the project to the Minister of Environment for referral to further assessment.

       There is an opportunity for coordination between the IFA and CEAA Screening processes under the
       Federal Coordination Regulations. Even if there is no formal coordination, the EISC determination and
       the EIRB report (if undertaken), can be taken into account in any level of EA under CEAA. Refer to
       section 12.5 of this Guide.

C-4    Screening
       The majority (99%) of Environmental Assessments under CEAA have been Screenings, carried out in
       accordance with CEAA section 18. The RA is responsible for ensuring that a Screening is conducted,
       where the project is not on the Comprehensive Study List or the Exclusion List, and for preparing a
       Screening Report. Preparation of all or part of the Screening Report may be delegated, for example to a
       Proponent or to another body or jurisdiction. In practice the RAs have often allowed the Proponent’s
       Environmental Impact Statement to serve as the Screening document to be evaluated by the RAs, and if
       appropriate, the public. Where the RA is of the opinion that the information provided is not adequate, it



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        must ensure that any necessary studies are undertaken. While preparation of the report may be delegated,
        the RA must itself make the Screening decision.

        The time taken to complete a Screening can vary from one day for a small, simple project to several months or
        longer for more complex undertakings. Under CEAA, Screenings are self-directed assessments, meaning that
        the RA has discretion to decide how the EA is to be conducted and is responsible for making the final decision.
        It is therefore possible for an RA to set quite detailed requirements for a Screening. Furthermore, the RA may
        give public notice and an opportunity to the public to examine the Screening report.

        Clearly, it would not be in the interests of efficiency for a project to go through a detailed Screening, only
        to be referred later to further assessment. CEAA section 25 provides discretion to an RA that is of the
        opinion that the project may cause significant adverse environmental effects, or that public concern
        warrants, enabling the RA at any time to request that the Minister of Environment refer the project to
        further assessment.

        Since 1996, the Agency has been promoting the Class Screening concept, as described in CEAA section
        19. Class Screenings are appropriate for projects that are repetitive in nature and whose environmental
        effects are well understood. To date, the Agency has not declared any Class Screenings for frontier oil
        and gas activities.

C-5     Comprehensive Study
        A project will undergo a Comprehensive Study when it is prescribed within the Comprehensive Study List
        Regulations. The List includes offshore physical works for production, offshore exploratory drilling in an
        area where not previously assessed, an onshore pipeline (over 75 km) on a new right-of-way, and an
        offshore pipeline. Refer to the Comprehensive Study List Regulations for details.

        Where a project is on the Comprehensive Study List Regulations, the RA must ensure either that a
        Comprehensive Study is conducted and a report submitted to the Minister of Environment and CEA
        Agency, or that the project is referred to the Minister of Environment for referral to Mediation/Panel
        Review (CEAA s. 21).

        Every Comprehensive Study must include the consideration of both section 16(1) and section 16(2)
        factors. Further factors may be added at the discretion of the RA. Public involvement also plays an
        important role in the Comprehensive Study process. For further information, consult “A Guide to the
        Preparation of a Comprehensive Study under CEAA for Proponents and Regulatory Authorities.”

        Once the RA has finalized the Comprehensive Study Report, the CSR must be provided to the Minister
        of the Environment and the Agency. At this time, the Agency holds a public comment period in order to
        receive comments from the public. The Agency then prepares recommendations on a course of action to
        be forwarded to the Minister, who makes a final determination.

        Public participation in a Comprehensive Study is mandatory once the CSR is complete, when the Agency
        invites public review and comment. The Agency also encourages RAs to involve the public earlier in the
        process of developing the CSR, for example by arranging public meetings, open houses and other venues.


        Since the Act’s inception in 1995, Comprehensive Studies have been used with 46 proposed projects,
        among them five oil and gas development/pipeline projects on the East Coast of Canada. The duration of



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       these studies has ranged from 117 to 462 days. Chief factors affecting timing are: the preparation of
       analysis and data by the Proponent, public consultations by the Proponent, and the need to consult with
       other federal departments and jurisdictions. Most often, the RAs have accepted the Proponent’s
       Environmental Impact Statement as the basis of the Comprehensive Study, for circulation to other federal
       departments and to the public.

       Upon receipt of the Comprehensive Study Report, the CEA Agency shall make the report public and request
       public comment by a specified date. The Agency then prepares a report, making recommendations to the
       Minister of Environment who makes a determination pursuant to CEAA section 23.

C-6    Screening Determination: Need for Further Assessment?
       In the case of a Screening, the determination of significant adverse environmental effects is made by the
       RA pursuant to CEAA section 20. There are three options:

C-7    RA May Take Action: Environmental Effects Not Likely Significant
       Where the determination is that the project is not likely to cause significant adverse environmental effects,
       the RA may take such action as would enable the project to be carried out, and must ensure that the
       appropriate mitigation measures be implemented. At this point, the RA may resume the regulatory
       process, subject to recommended conditions, as described on the CHART CEAA, C-19.

C-8    RA May Take No Action: Environmental Effects Not Justifiable
       Where the determination is that the project is likely to cause significant adverse environmental effects that
       cannot be justified, then the RA may not exercise any power or perform any duty or function that would
       permit the project to be carried out in whole or in part. Notice is accordingly filed in a public registry. At
       this stage, the Proponent may decide to adjust the proposal and resubmit the project to the RA.

C-9    Referral for Further Assessment
       Where the determination is that, taking into account the implementation of mitigation measures, it is
       uncertain whether the project is likely to cause significant adverse environmental effects (CEAA
       s. 20(1)(b)(i)), or if it is likely to cause significant adverse environmental effects but they have not been
       determined to be unjustified (CEAA s. 20(1)(b)(i)), or if public concern warrants, the RA shall refer the
       project to the Minister of the Environment for a decision on whether to send the proposal for Mediation or
       Panel Review. The RA issues public notice of the referral to the Minister.

C-10   CS Determination
       In the case of a Comprehensive Study, the Minister of Environment must decide on one of the following
       courses of action, pursuant to CEAA section 23.

C-11   Environmental Effects Not Likely Significant: Refer Project to RA
       Where the determination is that the project is not likely to cause significant adverse environmental effects
       (CEAA s. 23(a)(i)), the RA may take such action as would enable the project to be carried out. The
       RA is responsible for ensuring that the appropriate mitigation measures be implemented. At this point,
       the RA may resume the regulatory process, subject to recommended conditions.




June 2001                                                                                                       13-11
13 – Canadian Environment Assessment Agency (CEAA)                         Regulatory Agencies and Processes


C-12    Environmental Effects Likely Significant and Cannot Be Justified: Refer Project to
        RA
        Where the determination is that the project is likely to cause significant adverse environmental effects that
        cannot be justified (CEAA s. 23(a)(ii)), then the RA may not exercise any power or perform any duty or
        function that would permit the project to be carried out in whole or in part (CEAA s. 37(1)(b)). Notice
        is accordingly filed in a public registry. At this stage, the Proponent may decide to adjust the proposal and
        resubmit the project to the RA.

C-13    Referral for Further Assessment
        Where the Minister of Environment determines that, taking into account the implementation of mitigation
        measures, it is uncertain whether the project is likely to cause significant adverse environmental effects
        (CEAA s. 20(1)(b)(i)), or that the project is likely to cause significant adverse environmental effects but
        such effects have not been determined to be unjustified (CEAA s. 20(1)(b)(i)), or if public concerns
        warrant, the Minister of the Environment shall refer the project to a Mediator or a Panel Review.

C-14    Decision on Further Assessment
        The Minister of Environment decides whether to refer the project to a Mediator or a Panel Review. The
        Minister has the discretion to make the decision to refer at any time in the CEAA process, where he is of
        the opinion that a project, after mitigation, may cause significant adverse environment effects, or that
        public concerns warrant a reference (CEAA s. 28).

        If the project is referred for further assessment, no RA may exercise any power, perform any duty or
        function that would allow the project to be carried out in whole or in part until the Review phase is
        complete.

C-15    Panel Review
        Typically, a project requiring further assessment is referred to Panel Review. Both the Sable Gas Project
        and the Terra Nova Project underwent federal Panel Reviews.

        Either at this stage, or as soon as it becomes evident that a Panel Review is likely, the Minister of
        Environment may negotiate an agreement on arrangements for a joint Review with another body that has
        responsibilities for Environmental Assessment in the jurisdiction. The RA must ensure that the agreement
        meets certain criteria, related to panel membership, public participation and factors to be considered.

        In the ISR, a Memorandum of Understanding has been concluded between the Minister of Environment
        and EIRB that would allow for substitution of an EIRB Panel Review for a CEAA Panel Review. Refer
        to section 4.5 of this Guide.

        A CEAA Panel must ensure that information required for assessment is obtained and made public, must
        hold hearings that offer the public an opportunity to participate, and must prepare a report setting out the
        rationale, conclusions and recommendations related to the Environmental Assessment, including
        mitigation and follow-up.

        Panel Reviews follow procedures set out in Ministerial Guidelines issued in November 1997 (Procedures
        for an Assessment by a Review Panel, CEAA s. 58(1)(a)). Among other requirements, these procedures
        establish specified time periods for the phases of the Review that are under the control of the federal
        government.


13-12                                                                                                    June 2001
Regulatory Agencies and Processes                13 – Canadian Environmental Assessment Agency (CEAA)


C-16   Mediation
       To date, a formal mediation process has not been used in an Environmental Assessment, although
       informal mediation and other dispute resolution techniques have occasionally been used. At the end of the
       mediation process, a report must be prepared for Ministerial review.

C-17   Panel (or Mediator C-16) Submits Report
       The report is submitted to the Minister of the Environment and the Minister for each RA. The Minister
       of Environment makes the report public.

C-18   Final CEAA Determination
       The Minister of each RA takes into account the Panel Report or Mediator’s Report, and determines the
       implications for its authority and how the recommendation should be integrated into its further handling of
       the application. If several RAs are involved, there is a requirement to discuss the course of action to be
       taken and to agree on a schedule.

       The Minister of the RA seeks the approval of the Governor in Council for one of the following courses of
       action.

C-19   RA May Take Action: Environmental Effects Either Justifiable or Not Significant
       Where, taking into account mitigation measures the RA considers appropriate,
       i the project is not likely to cause significant adverse environmental effects, or
       ii the project is likely to cause significant adverse environmental effects that can be justified in the
            circumstances,
       the RA may continue the regulatory process towards issuing permits or authorizations and shall ensure
       that mitigation measures are implemented.

C-20   RA May Take No Action: Environmental Effects Not Justifiable
       Where the project is likely to cause significant adverse environmental effects that cannot be mitigated and
       are not justifiable, then the RA files public notice C-21, and must not take any action that would enable
       the project to proceed in whole or in part.

C-22   Authorization Process Proceeds
       At this point, each RA may resume the normal regulatory process toward issuance of approvals, and
       subject to the conditions on mitigative measures set out in the decision. The RA must advise the public of
       the decision and the course of action to be followed. The RA may issue a certificate that an EA has been
       completed.

       Applicants must be aware that the completion of the EA phase does not mean that authorizations are then
       issued, nor does it assure a positive outcome of the regulatory process. The completion of the EA phase
       simply allows the regulatory authorization phase to proceed to a decision on the application. Depending
       on the regulator’s practice, authorization processes may have been underway while EA requirements were
       dealt with, or may have been suspended. As a result of the Regulatory Review, authorities may attach
       further and more stringent conditions to the authorizations issued. For information on the regulatory
       processes, refer to the following chapters on the various federal agencies.




June 2001                                                                                                     13-13
13 – Canadian Environment Assessment Agency (CEAA)                      Regulatory Agencies and Processes


C-23    Implementation of Follow-up Program and Mitigation
        The RA is responsible for ensuring that the mitigative conditions are implemented, for developing any
        follow-up program and arranging for implementation of the follow-up program.




13-14                                                                                               June 2001
Regulatory Agencies and Processes                                                          14 – National Energy Board (NEB)



14.0 NATIONAL ENERGY BOARD (NEB)

The National Energy Board (NEB), based in Calgary, is an independent federal regulatory tribunal established
in 1959. The NEB exercises regulatory powers under the National Energy Board Act, the Canada Oil and Gas
Operations Act, and the Canada Petroleum Resources Act. As well, NEB inspectors have been appointed safety
officers to administer Part II of the Canada Labour Code.

Table 14-1: NATIONAL ENERGY BOARD – ACTS AND REGULATIONS

          ACTS                         REGULATIONS and GUIDELINES                                        REFERENCE

  National Energy Board     Part VI (Oil and Gas) Regulations                                 http://www.neb.gc.ca/pubs/
  Act                       Onshore Pipeline Regulations                                      index.htm#Acts
                            Offshore Pipeline Regulations
                            Guidelines for Filing Requirements (Feb 22, 1995 and
                            Amendments)
                            Guidance Notes for the Onshore Pipeline Regulations 1999
                            Section 58 Streamlining Order XG/X0-100-2000

  Canada Oil and Gas        Canada Oil and Gas Certificate of Fitness Regulations
  Operations Act            Canada Oil and Gas Diving Regulations                             http://www.neb.gc.ca/pubs/index.htm
                            Canada Oil and Gas Drilling Regulations*                          #Acts
                            Canada Oil and Gas Production and Conservation Regulations*
                            Canada Oil and Gas Installations Regulations                      http://laws.justice.gc.ca/en/index.
                            Canada Oil and Gas Geophysical Operations Regulations             html
                            Canada Oil and Gas Operations Regulations
                            Oil and Gas Spills and Debris Liability Regulations               Chief Conservation Officer
                            Installation Regulation Regulations                               NEB Calgary
                            Guidelines Respecting Physical Environmental Programs
                            During Petroleum Drilling and Production Activities on Frontier
                            Lands
                            Offshore Waste Treatment Guidelines
                            Contingency Plan Guidelines
                            Guidelines for Use of Oil-Based Drilling Muds
                            Geophysical and Geological Programs on Frontier Lands
                            Guidelines for Approvals and Reports
                            Guidelines Concerning Financial Responsibility

  Canada Petroleum          Environmental Studies Research Fund Regions Regulations
  Resources Act                                                                               http://www.neb.gc.ca/pubs/index.htm
                                                                                              #Acts

                                                                                              http://laws.justice.gc.ca/en/index.
                                                                                              html

  Canada Labour Code        Oil and Gas Occupational Safety and Health Regulations            www.canada.justice.gc.ca
  Part II                   Safety and Health Committees and Representatives Regulations
                            Oil and Gas Occupational Health and Guidance Notes                Chief Safety Officer
                                                                                              NEB Calgary

  Canadian                  Inclusion List Regulations                                        NEB as Responsible Authority under
  Environmental             Exclusion List Regulations                                        CEAA
  Assessment Act            Law List Regulations
                            Comprehensive Study List Regulations                              Professional Leader Environmental
                            Regulations Federal Coordination Regulations                      NEB Calgary

*These Regulations are being updated and consolidated into the Canada Oil and Gas Drilling and Production Regulations.



June 2001                                                                                                                           14-1
14 – National Energy Board (NEB)                                           Regulatory Agencies and Processes


14.1 Frontier Information Office (FIO)
The NEB maintains the Frontier Information Office as a contact point for companies wanting technical
information on oil and gas activities regulated by the NEB. The FIO maintains computer databases and microfilm
files of industry reports on geological, geophysical and drilling operations on frontier lands. Services available
through the FIO include:
    referrals to the appropriate parties for authorizations of oil and gas exploration operations on frontier lands;
    access to reference collection of released oil and gas technical reports submitted by industry;
    a private viewing room available by appointment for searching reports, self-serve printing of paper copies from
    microfilm; and
    information packages for northern rights issuance on behalf of DIAND.

Requests for other publications and information can be made to the FIO contact noted in APPENDIX D.


14.2 National Energy Board Act (NEB Act)
The NEB’s powers in relation to oil and gas under the National Energy Board Act (NEB Act) include the
granting of authorizations for:
    construction and operation of interprovincial and international oil and gas pipelines;
    setting of tolls and tariffs for oil and gas pipelines under its jurisdictions;
    export of oil and natural gas; and
    import of natural gas.

The NEB has an advisory function to the federal government, and keeps under review matters relating to all
aspects of energy supply, production, development and trade which fall within federal jurisdiction. The NEB also
provides expert technical advice to other boards and government departments, including DIAND.

The NEB role in regulation of pipelines is of direct concern for the ISR: without gathering and transmission to
southern markets, field development will not proceed.

Transmission pipelines in the ISR would be regulated under either the Canada Oil and Gas Operations Act
(COGOA) or the National Energy Board Act (NEB Act). In general, proposed pipelines that are located wholly
within the NWT would be regulated under COGOA. Transboundary pipelines that run between the NWT and a
neighbouring province or territory, or the United States, would be regulated under the NEB Act. (Certain
proposed facilities relating to existing transboundary pipelines and certain new pipelines wholly within the NWT
could also be regulated under the NEB Act.)

Proposed pipelines greater than 40 km in length require a certificate under section 52 of the NEB Act. Under
section 58 of the Act, pipelines 40 km or less may be exempted from this and related requirements. Whether a
proposed pipeline is subject to section 50 or section 58 of the NEB Act will influence the NEB process. The
Review process for transboundary pipelines is discussed further on CHART 11.

The location of the origin and terminus of the proposed pipeline will influence the Environmental Assessment and
approvals processes. Transboundary pipelines originating in, or passing through, the ISR would be subject to both
the IFA and CEAA. If the pipeline extended south into the Mackenzie Valley, it would also be subject to the
Mackenzie Valley Resource Management Act (MVRMA). For each proposed project, the NEB would consider




14-2                                                                                                     June 2001
Regulatory Agencies and Processes                                               14 – National Energy Board (NEB)


the pertinence of any proposed upstream and downstream facilities with respect to the jurisdiction of the NEB Act,
scope of the project, scope of the Environmental Assessment and cumulative effects.

Because a transboundary pipeline application would be subject to this range of requirements, the arrangements for
an Environmental Assessment process would necessarily be the subject of negotiation among the agencies and
departments involved. It is not possible to anticipate the timing or results of such negotiations, nor is it useful for
purposes of this Guide to speculate on the outcome.


14.3 Canada Oil and Gas Operations Act (COGOA)
In 1994, the NEB became responsible for regulating operational aspects of oil and gas activities on Canada’s
frontier lands not otherwise regulated by joint federal-provincial boards or under the NEB Act.

The Canada Oil and Gas Operations Act (COGOA) applies to all lands in the NWT portion of the onshore and
to the offshore to a distance of 200 nautical miles offshore of the coast of NWT and Yukon. Because COGOA
applies to oil and gas activities rather than to interests, it governs all lands in the NWT part of the ISR, both
Crown and Inuvialuit-Owned. In the Yukon, the Yukon Oil and Gas Act has replaced COGOA.

COGOA requires the regulation of exploration, development, production and transportation of oil and gas in a
manner that promotes safety of the worker, protection of the environment and conservation of
hydrocarbon resources. A wide range of authorizations, approvals and licences are required pursuant to
COGOA and Regulations and Guidelines as listed on TABLE 14-1.

A basic prerequisite for undertaking any oil and gas related activity is an Operating Licence. An Operating
Licence is required under the Canada Oil and Gas Operations Act to conduct any activity related to the exploration
for or the development of oil and gas in the NWT, including the ISR and in the offshore ISR. An Applicant can
hold an Operating Licence and carry out activities through a contractor. The Operating Licence is not area
specific. The term of the Operating Licence is one year, dating from April 1, and the annual fee is currently $25
(2000).

An Operating Licence may be obtained from the Chief Conservation Officer at the NEB. Allow one to two days
for issuance.

The Act, Regulations and Guidelines set out the requirements that must be met before activities are undertaken.
The requirements were developed in anticipation of hydrocarbon activities in the frontier offshore, and much of the
regulatory content is directed to management of offshore exploration drilling and development of offshore
production facilities. Many requirements are more pertinent to activities offshore than onshore. It is important to
consult directly with the NEB regarding the authorizations that may be required and conditions that must be met.
Approvals that may be issued pursuant to COGOA and Regulations include:
    Geological or Geophysical Operations Authorizations;
    Drilling Program Approval;
    Approval to Drill a Well;
    Approval to Alter Condition of a Well;
    Construction Authorization;
    Approval of Development Plan;
    Authorization to Conduct Environmental Study;
    Authorization to Undertake a Diving Program;



June 2001                                                                                                         14-3
14 – National Energy Board (NEB)                                               Regulatory Agencies and Processes


    Authorization to Conduct a Geotechnical or Engineering Feasibility Program;
    Approval for Well Operation;
    Safety Plan Approval;
    Environmental Protection Plan Approval;
    Emergency Response Plan Approval;
    Oil Spill Response Plan Approval;
    Production Operations Authorization;
    Well Operations Program Authorization; and
    Decommissioning/Abandonment Work Authorization.

Processes for obtaining COGOA authorizations are described in CHART NEB at the end of this Chapter.


14.4 Protection of the Environment
An important emphasis of both COGOA and the NEB Act is protection of the environment. In addition to the
NEB’s mandate under these two Acts, Regulations under the Canadian Environmental Assessment Act (CEAA)
make the NEB a Responsible Authority, so that before the NEB can issue an authorization under COGOA or
under the NEB Act, the requirements of CEAA must be met as described on CHART CEAA. Since
authorization under COGOA would enable a development to proceed in the ISR, such authorization must also
meet the requirements of the IFA Environmental Impact Screening and Review Process, as described on
CHARTS EISC and EIRB.

On one hand, this combination of requirements creates a powerful tool for environmental protection.
Environmental concerns of each of the NEB, federal RAs, and Inuvialuit co-management institutions are brought
to bear on the Review and authorization process for oil and gas activities, with opportunities for consultation more
broadly in each of the processes. These concerns can be given force through the attachment of terms and conditions
for avoidance and mitigation of impacts to authorizations both under COGOA and under the NEB Act.

Under CEAA, the RA, in this case the NEB, is responsible for ensuring that the mitigative conditions are
implemented, and for developing and arranging for the implementation of any follow-up program. The NEB has
had experience with environmental regulation of many projects in a wide range of environmental contexts. The
Board can attach terms and conditions to protect the environment, both general and specific and including
stipulations as appropriate on avoidance and protection of wildlife. These requirements are then enforceable under
the terms of COGOA and the NEB Act.

On the other hand, overlapping mandates create a risk of multiple reviews and conflicting outcomes for the
Applicant. CHART NEB below describes COGOA review processes as they appear in legislation, without
coordination of Environmental Assessment. In fact, there are provisions in law for coordination, delegation and
substitution of processes, both among federal agencies and between the federal government and processes under
settled land claims, in this case the IFA.

Provisions for coordination of processes are listed in Chapter 27 at the end of this Guide. The point to note is
that while there is capacity for coordination, whether it actually occurs is up to the initiative of federal regulators
and institutions of the IFA. Such coordination would be worked out case-by-case. This puts an onus on a
Proponent to ensure that consideration is given early on in the authorization process so that opportunities for
efficiencies are not missed. As early as possible, it needs to be sorted out whether and how processes will be
coordinated, so that a Proponent can anticipate the full range of requirements from the outset. In particular, it




14-4                                                                                                          June 2001
Regulatory Agencies and Processes                                              14 – National Energy Board (NEB)


needs to be resolved early on whether the development is likely to be referred to further Review under CEAA, and
whether in that case, substitution of an EIRB Panel Review for a CEAA Panel Review is possible.
It is important for a Proponent to contact the National Energy Board as early on as possible in the planning stage
to discuss ways in which requirements can be coordinated from the outset.


14.5 NEB Responsibilities under the Canada Petroleum Resources Act
     (CPRA)
As described in Chapter 16, the CPRA governs the issuance of rights, tenure and the setting and collection of
royalties on Crown reserve lands and Inuvialuit 7(1)(b) lands in the NWT, and in the coastal offshore of both
NWT and Yukon. These responsibilities are in the main discharged by DIAND-NOGD, however the NEB
assists by rendering decisions on the extent of discovery and issuing Declaration of Significant Discovery and
Declaration of Commercial Discovery.

The role for NEB in the Rights to the Resource phase is described later in this Guide in Chapter 21 and
CHART 5.

The NEB also assists in the administration of the Environmental Studies Research Fund. This Fund is
established pursuant to Part VII subsection 76(1) of CPRA, and is financed from levies per hectare paid by
industry. The CPRA also establishes a management board under subsection 78(1), whose mandate is to manage
the ESRF research program, which sponsors environmental and social studies designed to assist government and
regulatory decision-making relating to oil and gas exploration, development and production on Canada’s frontier
lands. Several research areas have been identified in the ISR, both onshore and offshore.

CHART NEB - COGOA Authorization Process in the ISR
CHART NEB sets out the steps for obtaining authorizations from the NEB, pursuant to COGOA paragraph
5(1)(b), of any oil and gas work or activity such as seismic, well drilling, pipeline and facilities construction, or
third party projects. Responsibility for approving applications made under COGOA paragraph 5(1)(b) has been
delegated to the Chief Conservation Officer of the NEB.

The role for the NEB in Approval of Development Plan is described on CHARTS 7 and 8.

N-1      Consultation with Inuvialuit Communities and Organizations.
         Obtain Advice from NEB and Government Agencies on Requirements
         Approval to conduct oil and gas activity in the ISR requires an authorization from NEB. Prior to
         submitting an application, the Company should contact the NEB for specific submission requirements.
         Applications that are incomplete or in which the information is unclear could result in a delay in
         processing.

         Depending on the nature of the activity, other authorizations may also be required, including:
             Land Use Permit (DIAND);
             Water Licence (NWT Water Board);
             Fisheries Act Authorization (DFO-FHM);
             Navigable Waters Protection Act Permit (DFO-CCG); and/or
             Sanctuary Permit under Migratory Bird Sanctuary Act (EC), and potentially other authorizations
             from these and other departments/agencies.


June 2001                                                                                                        14-5
14 – National Energy Board (NEB)   Regulatory Agencies and Processes




14-6                                                      June 2001
Regulatory Agencies and Processes                                         14 – National Energy Board (NEB)


       The authorizations process must also meet the requirements of both CEAA and the IFA for
       Environmental Screening and possible Review. Screening under the IFA requires the Applicant to
       consult with HTCs, communities and in some cases the IGC, FJMC, WMAC.

       An Applicant should confirm requirements in advance so that design of the work plan can take them into
       account from the earliest stages.

N-2    Company Applies for Work Authorization under COGOA 5(1)(b) or Submits Project
       Description
       Applications are submitted to the Chief Conservation Officer of the NEB. The process can be started
       with the submission of a Project Description. Applications that may be applied for include:
            Geological or Geophysical Operations Authorizations;
            Approval to Drill a Well;
            Approval to Alter Condition of a Well;
            Construction Authorization ;
            Approval of Development Plan;
            Authorization to Conduct Environmental Study;
            Authorization to Undertake a Diving Program; and/or
            Authorization to Conduct a Geotechnical or Engineering Feasibility Program.

N-3    Company Submits Proof of Financial Responsibility
       Under COGOA section 27, section 90 of the Canada Oil and Gas Drilling Regulations and section 11 of
       Canada Oil and Gas Production and Conservation Regulations, a Proponent for any oil and gas work in
       the ISR
       is required to provide Proof of Financial Responsibility in the form of a letter of credit, a guarantee or
       indemnity bond or in any other form and amount satisfactory to the NEB.

       Evidence of Financial Responsibility must be in a form that affords access by the NEB for the purpose of
       settlement of claims for damage caused by spills or discharges from any work authorized under 5(1)(b) of
       COGOA, such as drilling, production or construction operations.

       Refer also to the Oil and Gas Spills and Debris Liability Regulations under COGOA, or NEB’s
       “Guidance Notes for the Canada Oil and Gas Drilling Regulations,” available from the Frontier
       Information Office.

N-4    NEB Notifies EISC, DIAND and other RAs
       Pursuant to the Federal Coordination Regulations under CEAA, the NEB notifies other Responsible
       Authorities (RAs) and the EISC. The NEB also notifies DIAND-NOGD when a COGOA
       application is received.

N-5    Requirements under IFA Section 11 for EISRP Must be Met
       Under the IFA subsection 11(31), no licence or approval shall be issued that would enable a
       development to proceed before the provisions of IFA Chapter 12, the Environmental Impact Screening
       and Review Process, have been dealt with. Refer to CHARTS EISC and EIRB for steps that must be
       followed to satisfy IFA requirements for environmental impact assessment.




June 2001                                                                                                  14-7
14 – National Energy Board (NEB)                                         Regulatory Agencies and Processes


       In the absence of coordination between the EISC and the RAs on Screening or on a Comprehensive
       Study, the NEB as the RA for COGOA and the NEB Act would conduct the EA Screening or
       Comprehensive Study. The NEB would wait on the completion of the EISC Screening Report, and
       would take the results into consideration in the course of preparing its own reports. The EISC report
       would be included as part of evidence before NEB in its decision. Or, if the EISC decided to refer the
       project for further assessment under the IFA, the NEB would wait until the completion of the EIRB
       Panel Review, and include the EIRB results as evidence in its decision on whether the project should
       proceed. Either or both of the EISC and EIRB could intervene in the NEB’s consideration to react to
       comments or questions.

N-6    Requirements for Environmental Assessment under CEAA Must be Met
       The NEB is a Responsible Authority under CEAA for COGOA authorizations, and so must ensure that
       the EA requirements of CEAA are met. If an EA is required, the NEB must ensure that the EA is
       undertaken as early as possible in the planning stages (CEAA s. 11(1)) and before it may issue
       authorizations that would allow an oil or gas project to proceed.

       The more invasive the activity, the more likely that triggers for other RAs will occur. For other than the
       most basic exploration activities, applications for oil and gas activities are likely to trigger CEAA
       responsibilities for other RAs, for instance for a Land Use Permit from DIAND, a Water Licence from
       the NWT Water Board, Fisheries Act Authorization from DFO, explosives authorizations from Natural
       Resources Canada, etc .

       Where other RAs are involved, the NEB would coordinate pursuant to the Federal Coordination
       Regulations. A lead RA would be negotiated among the RAs, and would be decided case-by-case.

       Refer to CHART CEAA in Chapter 13 for steps in the CEAA process. A project requiring an EA
       would undergo at least one of Screening, Comprehensive Study, Panel Review or Mediation.

       In the event of a Screening, the decision is made by the Chief Conservation Officer of the NEB, and may
       not be delegated. The EISC Screening determination or a Panel Review by the EIRB could be taken as
       evidence for consideration in the CEAA Screening and determination.

       Options under CEAA for the decision following a Screening or Comprehensive Study are:
           Project Not Justified;
           Project Not Likely to Cause Significant Adverse Environmental Effects: Authorization
           Processes May Proceed/Resume
           Project Subject to Further Environmental Impact Review under CEAA.

       If the decision is to allow the project to proceed, the NEB process then resumes. However, either the
       NEB or another RA may decide that further assessment is warranted: RAs make their own Screening
       decisions so any RA could refer the development on, and this referral could be made before the Screening
       is complete.

       Projects on the Comprehensive Study List must either undergo a Comprehensive Study or be referred for
       further assessment, typically a Panel Review. In the event of a Comprehensive Study, the determination is
       made by the Minister of the Environment. The options are: to reject the development, to accept with
       terms and conditions, or to require further Review. If the decision is to allow the project to proceed, the
       NEB process then resumes.


14-8                                                                                                  June 2001
Regulatory Agencies and Processes                                           14 – National Energy Board (NEB)



       If the project is referred for further assessment under CEAA, the Minister of Environment decides
       whether to refer the project on to a Panel Review or Mediation, typically a Panel Review. This is an
       intensive and public process of scrutiny of the environmental effects of a project. Coordination of further
       Review will be pursuant to the Federal Coordination Regulations, and in the event that both the EISC and
       the Minister of the Environment, on the recommendation of an RA, consider that further Review is
       necessary, pursuant to the EIRB-CEAA Memorandum of Understanding.

N-7    Decision Based on EA Under CEAA
       The NEB typically considers the results of EA processes by other RAs and the EISC/EIRB before
       making its determination under CEAA. Either;

N-8    The Project is Not Justified; or
N-9    Authorization Processes May Proceed/Resume
N-10 NEB Regulatory Review of Application
       The focus of the NEB review is to ensure that the proposed development meets regulatory requirements
       for safety, protection of the environment and conservation of oil and gas resources.

       In practice, the NEB Review would begin once the Project Manager and Review Team are running
       parallel with the Environmental Assessment phase. Reviews are typically completed within 30 days unless
       the application is incomplete or ancillary submissions or approvals are delayed (for instance because of
       problems with Proof of Financial Responsibility, Benefits Plan or Environmental Screening.)

       If the Review Team finds that the application is lacking information, or requires clarification, the Team
       may send to the Applicant a Request for Further Information N-11. This can result in a delay in
       processing.

N-12 NEB Decision on Proof of Financial Responsibility
       This decision is made by the Board of the NEB.

N-13 NEB Issues Technical Report with Terms and Conditions
       The CEAA EA decision may meet in whole or in part the NEB’s requirement to promote environmental
       protection. In addition, the NEB must meet requirements to promote safety, conservation of resources,
       and economic efficiency in the Canadian public interest while respecting individuals’ rights.

       Following review of the application, decisions on the Environmental Assessment and Benefits Plans, the
       Project Manager at the NEB prepares a Technical report and any terms and conditions that may be
       affixed to an authorization. Such terms and conditions may relate to safety, environmental protection, oil
       and gas resource conservation, or other matters as necessary.

N-14 NEB Decision on the Application
       The decision on approval of an application under COGOA has been delegated to the Chief Conservation
       Officer of the NEB.




June 2001                                                                                                    14-9
14 – National Energy Board (NEB)                                            Regulatory Agencies and Processes


N-15 Minister (DIAND) Approved Benefits Plan Required Before NEB Can Issue
     Authorizations
        Under COGOA subsection 5(2), a Benefits Plan approved by the Minister of DIAND is required before
        the NEB may issue an authorization. Refer to CHART BEN, Chapter 15 for steps in the approval
        process.

N-16 NEB Issues Letter of Authorization
        If the authorizations is approved, a Letter of Authorization with appropriate terms and conditions and
        date of expiration is issued to the Proponent. If not approved, a letter stipulating the reasons for decision is
        issued to the Proponent and work may not be undertaken, N-17, and NEB notifies DIAND-NOGD of
        its decision, N-18.

N-19 Company Meets Requirements and Obtains Other Authorizations
N-20 Activities May Begin
        The Proponent may undertake the proposed oil and gas work or activity subject to the terms and
        conditions of the NEB authorization.




14-10                                                                                                      June 2001
Regulatory Agencies and Processes                                       15 – Inuvialuit Land Administration (ILA)




15.0 INUVIALUIT LAND ADMINISTRATION (ILA)

         Note: The ILA Rules and Procedures were originally written in 1986. A formal review of the ILA
         Rules and Procedures is currently underway to reflect changes in practice and to clarify requirements. It is
         important to contact the ILA directly to confirm details on requirements and processes.

         In particular, note that the sequence of processes described in CHART ILA is flexible, and some
         processes may in practice work in parallel rather than consecutively. Since 1986 practice has evolved
         considerably, and continues to evolve as applications are dealt with.


15.1 Inuvialuit Land Administration (ILA) Rules and Procedures
Activities on Inuvialuit-Owned lands are administered by the Inuvialuit Land Administration (ILA), a division of
IRC. The ILA is governed by a Commission (ILAC) comprising three members appointed by the IRC.
Depending on the nature and scale of the activity, authorization may be issued either by the ILA Administrator or
the ILAC.

The Inuvialuit Land Corporation (ILC) issues oil and gas rights on 7(1)(a) lands. Authorizations for land use
and access to 7(1)(a), 7(1)(b), and 7(2) lands, are issued by ILA pursuant to the ILA Rules and Procedures.
These rules govern the terms of access to and across Inuvialuit-Owned lands, the issuance of rights on these lands
as permitted by the IFA, authorizations for use of the surface of Inuvialuit-Owned lands, and conditions for such
work, fees payable and processes to obtain these authorizations. In cases where the ILA Rules and Procedures are
found to be inconsistent with the IFA, the IFA prevails to the extent of the inconsistency. Matters beyond the
scope of the ILA Rules and Procedures are subject to “Laws of General Application” as they would normally
apply to private lands.

In addition, the ILA may negotiate with a Developer certain terms and conditions that may deviate somewhat from
the Rules, provided the terms are still consistent with the IFA and that IRC agrees.

To obtain current information on requirements, contact the ILA directly.

         Contact:      ILA Administrator, Inuvialuit Land Administration, Tuktoyaktuk


15.2 Negotiation of Agreements with the ILA
The Rules and Procedures attach a range of obligations to any right or authorization, including obligations to
report, to pay fees and certain costs, to provide benefits to Inuvialuit and to fulfil work obligations. The ILA also
has latitude to attach further terms and conditions in relation to operations, protection of wildlife, protection of
special places (such as burial grounds and archaeological sites) and provision of socio-economic benefits to
Inuvialuit (including education and training, and possibly equity participation.)

There is a wide range of potential conditions that the ILA may attach to any right or authorization, depending on
the nature of the project. There has been relatively little activity in the ISR since the ILA Rules and Procedures
were developed in 1986, and consequently there are few precedents regarding the terms and conditions that would
be attached to oil and gas projects.



June 2001                                                                                                         15-1
15 – Inuvialuit Land Administration (ILA)                                  Regulatory Agencies and Processes


ILA is empowered to enter into agreements with a Developer respecting terms and conditions for socio-economic
benefits in relation to issuance of rights:
    a Cooperation Agreement can be negotiated between the Developer and ILA (or directly through IRC)
    to outline a general understanding and basic commitments on benefits, as a framework for negotiating further
    agreements required for particular phases of activity, i.e. Participation Access Agreements.

    a Participation/Access Agreement is required for access to or across Inuvialuit-Owned Lands. (The
    1986 ILA Rules and Procedures refer to Participation and Access Agreements separately. In practice, the
    ILA now negotiates a single Participation/Access Agreement).

Participation and/or Access Agreements (refer to TABLE 15-1) may include a wide range of provisions:
    arrangements to cover costs of permitting and inspection and costs associated with wildlife compensation,
    habitat restoration and impact mitigation;

    socio-economic terms, including business opportunities (for instance, service and supply contracts for Inuvialuit
    firms) and education and training for Inuvialuit; and

    equity participation by Inuvialuit in the project.

In cases where negotiation of a Cooperation Agreement has not been a condition of obtaining rights to Inuvialuit-
Owned lands, ILA encourages Developers to consider negotiation of a Cooperation Agreement early on as a
framework for future cooperation. A Cooperation Agreement provides a foundation for negotiation of Participation
and Access Agreements that may be required later in the application process. Conclusion of a Cooperation
Agreement in advance of application for rights and authorizations can clarify and expedite the approval process.
Cooperation Agreements can also be extended to encompass activities on Crown lands as well as on Inuvialuit-
Owned lands identified in the agreement.


15.3 Petroleum Rights Issuance on 7(1)(a) Lands
The ILA Rules and Procedures govern the issuance of rights to explore for and develop sub-surface resources on
7(1)(a) lands.

In February 2000, IRC and ILC offered oil and gas rights over approximately 4,800 sq km (1850 sq mi) in six
parcels near the communities of Aklavik, Inuvik and Tuktoyaktuk. Following a competitive bid process, the
Concessions were approved in principle, subject to various conditions, on April 30, 2000.

The principal vehicle for rights issuance is the Concession Agreement. A Concession Agreement applies to a
specified area of land, and grants the Concession-holder the right to explore for, develop, operate, produce, win,
take and remove oil and gas from the specific area. It also grants a non-exclusive right to conduct geophysical
operations. In return, the Lessee commits to financial, working interest and royalty arrangements. Recently issued
Concession Agreements have been conditional upon on the negotiation between IRC/ILA and the Concession
Holder of a Comprehensive Cooperation and Benefits Agreement.

In instances where an Operator does not have the sub-surface rights to an area under a Concession Agreement but
wishes to undertake exploration, an Operator can apply to the ILA for a Reconnaissance Permit, which confers
the non-exclusive right to explore for oil and gas on Inuvialuit 7(1)(a) lands. Refer to TABLE 15-2.




15-2                                                                                                     June 2001
Regulatory Agencies and Processes                                      15 – Inuvialuit Land Administration (ILA)




15.4 Commercial Access
For access to or across Inuvialuit-Owned lands for the purposes of exploration or development, a Developer must
first acquire a right from the ILA. Requirements imposed for allowing access for a commercial activity depend on
the scope and intent of the access and are set out in the ILA Rules and Procedures section 4. Before exercising a
right of access a Developer is required to conclude a Participation Agreement with the ILA.

The ILA guarantees access on and across Inuvialuit-Owned lands for exploration, development and production
activities by holders of rights and interests issued by Canada on Inuvialuit 7(1)(b) lands. A Developer must pay
fees, as set by the ILA, to the Inuvialuit for the surface access right. ILA may also require a security deposit
against any damage to Inuvialuit lands, and any lessening of value of Inuvialuit interests in their lands. TABLE
15-3 summarizes the requirements for commercial access.


15.5 Land Use Authorizations
In order to work on 7(1)(a), 7(1)(b) or 7(2) lands, an Operator requires authorization from the ILA in the form
of Land Use Permits, Well Site Lease or Commercial Lease. Authorizations available are listed on
TABLE 15-2. Thresholds for three classes of Land Use Permits are set out in the ILA Rules and Procedures
section 10.


15.6 Wildlife Compensation
The IFA requires that the Inuvialuit be protected from wildlife harvest loss resulting from any development in the
ISR. This goal is achieved by ensuring that all projects are reviewed carefully for impacts on wildlife and by setting
terms for compensation for any damage caused.

Every proposed development shall be reviewed by the local Hunters and Trappers Committee (HTC) to
determine if the project could have significant negative impact on present or future wildlife harvesting. If the HTC
determines that there could be a significant negative impact from the project, it can submit a request to the ILA or
the IGC that the proposal be referred to the EISC for Screening under the IFA Environmental Screening and
Review Process. Any other Inuvialuit organization may also request that a project be referred for Screening to the
EISC.

In addition, if the ILA determines that closer examination is warranted, it will refer the matter to the EISC. The
determinations of Screening and, if undertaken Panel Review, will be provided to the ILA as the issuing authority.
The review agency is required to recommend terms and conditions for mitigation in order to minimize any negative
impact on wildlife harvesting. The EIRB (or other review agency conducting the Review under the IFA) must also
provide an estimate of the potential liability of the Developer, determined on a worst case scenario.


15.7 Liability for Damage
A rights-holder is obliged to prevent damage to wildlife and habitat and to avoid disruption of Inuvialuit harvesting.
If damage occurs, the Developer is required to restore wildlife and its habitat as far as is practicable. A rights-
holder is also required to compensate Inuvialuit hunters, trappers and fishermen for actual wildlife harvest loss,
whether commercial or subsistence, and for damage to equipment caused by the development.




June 2001                                                                                                        15-3
15 – Inuvialuit Land Administration (ILA)                                   Regulatory Agencies and Processes


“Actual wildlife harvest loss” means provable loss or diminution of wildlife harvesting or damage to property used
in harvesting. An Inuvialuk claiming damages must make a claim in writing within three years and must prove the
case on a balance of probabilities.

Where it is established that wildlife harvest loss was caused by development, the liability of the Developer is
absolute, and the Developer may be either singly liable or liable jointly with other Developers. If the Inuvialuit
claimant and the Developer cannot come to agreement, the case can be referred to a mediator or to the Arbitration
Board.

A Wildlife Compensation Fund has been established through ILA to receive wildlife compensation fees that are
paid in relation to access or sub-surface rights on Inuvialuit-Owned lands. The ILA Administrator can withdraw
monies from this Fund to pay damage awards, to pay for mitigation and restoration should a Developer default, or
to pay for reasonable costs of studies.

CHART ILA - ILA Application Review Process
The application process is set out in the ILA Rules and Procedures section 7. Applications must be accompanied
by an application fee and a security deposit and must provide a Preliminary Plan for land use and occupancy. A
complete application submitted to the ILA before the 22nd of the month will be considered at the subsequent
meeting (usually the next month).

The time required to obtain an authorization varies depending on a range of factors. Some rights, such as Land
Use Licences and Residential Leases, can be issued directly by the ILA office. Others, such as Commercial
Leases have to receive approval from the ILAC at a scheduled meeting. The process can also be expedited if terms
related to Inuvialuit benefits have been negotiated prior to the application. If, however, the ILA finds that the
application is incomplete, or that more information is needed, or that the proposal should undergo Environmental
Screening, the process can take longer while these matters are dealt with.

ILA-1 Developer Consults with Inuvialuit and Government Organizations

ILA-2 Negotiation of Cooperation Agreement, and Participation/Access Agreements as
      Required
        A Developer may find it useful to negotiate with the ILA Administrator’s office or with IRC, the general
        framework of benefits and arrangements for cooperation on future activities. A Cooperation Agreement
        sets out the general principles on benefits, then the details of Participation and Access Agreements are
        worked out later as authorizations required become better defined.

        Negotiation of a Cooperation Agreement is voluntary, in that one is not compulsory under ILA Rules
        and Procedures. ILA encourages Developers to enter into a Cooperation Agreement, in particular in the
        case of multiple activities or of a multi-year project, because it can reduce the extent and detail otherwise
        required in Participation or Access Agreements required for each right applied for. Recently issued
        Concession Agreements require conclusion of a Cooperation and Benefits Agreement as a condition of
        implementation. The Developer needs to ensure that the planning schedule includes sufficient time for
        negotiation of such agreement.

        Cooperation Agreements can be extended to include Crown lands as well as Inuvialuit-Owned lands.




15-4                                                                                                      June 2001
Regulatory Agencies and Processes                                     15 – Inuvialuit Land Administration (ILA)


       At this time or concurrently with development of application, the Developer and the Land
       Administrator’s office negotiate the specific terms of the Participation and/or Access Agreements required
       as conditions of the rights applied for. In practice, the terms of these Agreements may be worked out over
       the course of the application process, however they must be finalized before the ILA will issue any
       authorizations.

ILA-3 Developer Submits Rights Application to ILA for Registration/Review
       Application is submitted to the Land Administrator based in Tukytoyaktuk. Every application must be
       accompanied by preliminary plan showing intended land use or occupancy, and an estimate of the area
       affected. Application for Commercial Lease or Right-of-Way involving facilities must contain a Surface
       Development Plan (ILA Rules and Procedures 7(24)). In practice, a Developer may submit an initial
       draft to the ILA Administrator for comment before finalizing the application.

ILA-4 Decision on How to Handle Application(s)
       The Land Administrator decides how to handle the application(s), and what rights are required.

ILA-5 Application Referred to Short Procedures
       Applications for Land Use Licences and Residential Leases can be reviewed under the Short Procedure
       where the Land Administrator is of the opinion that the operations will not significantly interfere with
       Inuvialuit use or the peaceable enjoyment of the Inuvialuit lands. In the case of oil and gas activities, this
       procedure would be available for surveying or site investigation.

ILA-6 Rights Issued by ILA Administrator
       The Short Procedure allows for issuance of a Land Use Licence or Residential Lease within 24 hours.

ILA-7 Application Rejected for Technical Reasons
       An application may be rejected because it was not made in accordance with the Rules and Procedures, or
       if the Applicant has been in non-compliance. The Developer may then decide to Alter the Application
       and Re-Apply ILA-8.

ILA-9 Application Referred to General Evaluation Procedures
       If the Short Procedure is not available because of the right applied for, the application is referred to
       General Evaluation Procedures.

       If the ILA is of the opinion that the development will very likely be referred for Screening by the EISC,
       the Land Administrator may choose to refer an application to the EISC prior to the ILAC meeting
       (ILA-14 below) in the interests of streamlining the process.

ILA-10 Application Referred to General Consultation Procedure
ILA-11 ILA Administrator Requires Additional Information
       The ILA Administrator may request additional information as necessary to enable him to evaluate any
       effects of the proposed development on Inuvialuit-Owned lands. The request suspends the General
       Evaluation Procedure until information has been received and is found to be satisfactory. The
       Administrator may also require an inspection of the lands.



June 2001                                                                                                         15-5
15 – Inuvialuit Land Administration (ILA)   Regulatory Agencies and Processes




15-6                                                               June 2001
Regulatory Agencies and Processes                                     15 – Inuvialuit Land Administration (ILA)


ILA-12 ILA Administrator Posts Announcement
       The announcement sets the date and agenda of the public session of the ILAC. Contact the
       Administrator for advice on scheduling.

ILA-13 Public ILAC Meeting with Inuvialuit/Other organizations
       ILA procedures allow for an invitation of public comment, opportunity to the Applicant to clarify or
       comment, preparation by ILAC of a draft decision, an opportunity for public comment on the Applicant’s
       comments, and finally a decision by the ILAC.

       The Chairpersons of the Community Corporation, the Inuvialuit Development Corporation and the
       Inuvialuit Game Council each provide comments to the ILAC prior to or during the First Phase of the
       ILAC meeting. As well, any Inuvialuit business may advise the ILA Administrator regarding to
       arrangements for employment or business opportunities.

ILA-14 ILAC Decision
       In the final phase of the meeting, the ILAC decides whether ILA-15 to Request Additional
       Information from the Developer, ILA-16 to Defer the Application until the next public ILAC
       meeting, ILA-17 to Reject the Application, ILA-18 to Approve directly the application, or ILA-
       19 to Refer the Proposal to IFA Environmental Impact Screening and Review Process.

ILA-20 Determination of IFA Environmental Impact Screening and Review Provided to
       ILAC
       Results of the EISC Screening and EIRB Panel Review, if undertaken, are provided to the ILAC and
       taken into account in the ILAC decision.

ILA-21 ILAC Decision
       The ILAC decides whether or not to approve the application, and if so under what terms and conditions.

ILA-22 Rights Issued by ILA Administrator
       Before the ILA may issue a Commercial Lease, Quarry Concession, or Permanent Right-of-Way which
       relates to an area in whole or part on 7(1)(a) lands, the decision must be first ratified by two-thirds vote of
       the affected Community Corporation. For the same rights to be issued on 7(1)(b) lands, the decision must
       be ratified by a two-thirds vote of IRC.

       No holder of a Commercial Lease, Public Lease, Permanent Right-of-Way, or Public Right-of-Way
       which includes a Surface Development plan shall initiate activity unless the ILA verifies that the project
       has been developed in accordance with the Surface Development Plan.

       A Security Deposit may be required, either according to the Rules and Procedures, or more if the
       potential environmental damage is deemed to be higher.

       When, after completion of the project, the Administrator is satisfied that the rights-holder has complied
       with all terms and conditions of the right and the provisions of these rules, he shall issue a Letter of
       Clearance.




June 2001                                                                                                       15-7
15 – Inuvialuit Land Administration (ILA)                                                                                                 Regulatory Agencies and Processes


Table 15-1: AGREEMENTS NEGOTIATED WITH THE ILA7

        AGREEMENT                                                       REQUIRED FOR                                                                        PROVISIONS

    Participation/Access    Required for: Commercial Leases: (1,2,3) Land Use Permit: (A,B,C) Right-of-Way, Reconnaissance              Shall identify with respect to each Right terms and
    Agreement               Permit, Concession, Quarry Licence or Quarry Concession.                                                    conditions (s. 10(3)) for:
                                                                                                                                        *           costs for ILA inspections
                            The Owner of a valid right or interest issued by Canada on Inuvialuit-Owned lands shall be guaranteed       *           wildlife compensation, restoration and
                            access. Before exercising the access right, a Developer must conclude A Participation/Access                mitigation;
                            Agreement, unless otherwise agreed by the ILA.                                                              *           employment, service and supply contracts;
                                                                                                                                        *           education and training; and
                            A Participation/Access Agreement sets out rights and obligations of parties, including terms and
                                                                                                                                        *           equity participation or other types of
                            conditions under which the ILA shall grant right(s) and under which the party shall have access on and
                                                                                                                                        participatory benefit.
                            across Inuvialuit Lands. Each right under the Participation/Access Agreement shall directly relate to
                            and be necessary for the activities to be carried out under the valid right or interest issued by Canada.
                                                                                                                                        Subject to payment of fair compensation for access and
                            Although the 1986 ILA Rules and Procedures distinguish Participation Agreements and Access                  land rents.
                            Agreements and their respective purposes, in recent practice the ILA has combined these purposes into
                            Participation/Access Agreements.

    Cooperation             Optional, for any rights issued by the ILA. The ILA and any rights-holders on Inuvialuit lands may enter    May deal with time-frame and procedures for
    Agreement               into a Cooperation Agreement. Serves as an “enabling agreement.” Signed by the Chair of IRC.                concluding various Participation Agreements, and
                                                                                                                                        employment education, training and business
                            Where a Cooperation Agreement has been concluded, the Administrator shall take the provisions into          opportunities for Inuvialuit, and such other matters as
                            account in the procedures for issuance of rights.                                                           agreed.

    Concession              For larger projects that are wholly or partially on Inuvialuit-Owned 7(1)(a) lands. A Concession            Terms can include:
    Agreement               Agreement gives a Developer an exclusive right to explore for Inuvialuit-Owned sub-surface resources, and       security of tenure;
                            sets out the royalty and revenue-sharing framework.                                                             royalties on production;
                                                                                                                                            work requirements;
                            Applies to specific area for a specified term. The lands covered by the Concession Agreement may include        bonus and Rental payments;
                            other non-7(1)(a) lands.                                                                                        participation or back-in rights; and
                                                                                                                                            surrender obligations




7
    Concession Agreements must be authorized by IRC and ratified by the appropriate community corporations.


15-8                                                                                                                                                                         June 2001
Regulatory Agencies and Processes                                                                                              15 – Inuvialuit Land Administration (ILA)



Table 15-2: RIGHTS AND AUTHORIZATIONS ISSUED BY THE INUVIALUIT LAND ADMINISTRATION ON
INUVIALUIT-OWNED LANDS – SECTION 7(1)(A) AND 7(1)(B)


    RIGHT OR                                               PURPOSE                                                  MAXIMUM AREA                   OTHER REQUIREMENTS
  AUTHORIZATION                                                                                                   MAXIMUM DURATION

 Land Use Licence   Right to carry out operations of a non-commercial nature for a limited period. Includes     Up to 1 ha.                      Obligations to provide
                    access for scientific investigation, research or surveying. Generally not available for     For up to 1 year.                employment and business
                    commercial activities, but sometimes are issued for very low impact access.                                                  opportunities to Inuvialuit may
                                                                                                                                                 be waived for Land Use
                    Inuvialuit guides may apply for and obtain a Land Use Licence on behalf of any person                                        Licences.
                    who will enter upon or cross Inuvialuit Lands under the guidance of that Inuvialuk.

                    If for just surveying and site investigation, or if Inuvialuit Guide employed, Land Use
                    Licences can be issued by the Short Procedure, within 24 hrs. Otherwise within 10 days.

 Land Use Permit:   Right to do commercial activities requiring the occupancy of a specific area or the non-    Up to 10 ha.                     Land rents payable.
 Class A, B, C      exclusive use of Inuvialuit-Owned lands for a limited time.                                 For up to 2 years.
                                                                                                                Renewable for 1 year.            Participation/Access Agreement
                    Thresholds for A, B, and C permits are based on use of explosives, vehicle weight, use of   Right to use (as distinct from   must be negotiated.
                    drilling machinery, duration of campsite, fuel storage, trails.                             occupy) up to 10 sq km.

 Reconnaissance     The non-exclusive right to explore for surface materials on any Inuvialuit-Owned lands,     Up to 10,000 sq km.              Land rents payable.
 Permit             and for oil and gas on 7(1)(a)lands.                                                        For up to 2 years.
                                                                                                                                                 Minimum work requirements are
                    Activities need a Land Use Permit, Commercial Lease or Rights-of-Way. Any                   Can be assigned.                 set.
                    construction or drilling requires a Land Use Permit.
                                                                                                                                                 Participation/Access Agreement
                    Not required for holder of a Concession or Quarry Concession in the area of the                                              must be negotiated. Cooperation
                    Concession                                                                                                                   Agreement optional.




June 2001                                                                                                                                                                     15-9
15 – Inuvialuit Land Administration (ILA)                                                                                                Regulatory Agencies and Processes



     RIGHT OR                                                 PURPOSE                                                  MAXIMUM AREA                 OTHER REQUIREMENTS
   AUTHORIZATION                                                                                                     MAXIMUM DURATION

 Commercial Lease:    Exclusive right of permanent occupancy of a limited area to carry out operations of          Up to 60 ha.                   Participation/Access Agreement
 Class 1, 2, 3.       commercial nature indicated in the Right.                                                    For up to 30 years.            required.

                      Needed for operations for more than 3 years, (for instance for a generating plant,                                          Application must include a
                      compressor, pump station), for operations involving extraction, separation, processing,                                     Surface Development Plan.
                      transportation or shipment of oil or gas.
                                                                                                                                                  Land Rents are payable.
                      A Commercial Lease Class 1 must be ratified by Community Corporation on 7(1)(a)                                             Security Deposit required,
                      lands, or by Inuvialuit Regional Corporation on 7(1)(b) lands.                                                              according to Schedule or as
                                                                                                                                                  recommended by EIRB.
                      Note: Any Inuvialuk has the right to harvest wildlife on any Lease over 0.2 ha, unless
                      otherwise agreed.


 Concession           Exclusive right to explore for and to extract from a specific area on 7(1)(a) lands.         For a Block.                   Minimum work requirements.
                                                                                                                   Up to 30 years.
                      Must first be ratified by Community Corporation on 7(1)(a) lands or by IRC on 7(1)(b)                                       Participation/Access Agreement
                      lands.                                                                                       Can be assigned.               required.

                      Any construction or drilling requires a Land Use Permit.                                                                    Cooperation Agreement
                                                                                                                                                  optional.

                                                                                                                                                  Must be negotiated with ILA.

                                                                                                                                                  Security deposit, according to
                                                                                                                                                  Schedule or as recommended by
                                                                                                                                                  EIRB.

 Well Site Lease      A Well Site Lease confers the exclusive right to occupy a limited area containing an oil     For 6 ha.                      Land Rents payable.
                      and gas well. No person may keep or maintain an oil or gas well for more than 3 years, or    Up to 30 years.
                      produce oil and gas without a well site lease.                                                                              Participation/Access Agreement
                                                                                                                                                  required.
                      A well site licence is not necessary for exploration purposes, however one is required for
                      production.




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Regulatory Agencies and Processes                                                                                                        15 – Inuvialuit Land Administration (ILA)



      RIGHT OR                                                      PURPOSE                                                    MAXIMUM AREA               OTHER REQUIREMENTS
    AUTHORIZATION                                                                                                            MAXIMUM DURATION

 Quarry Licence             The non-exclusive right to extract surface materials from a specific location on Inuvialuit-   Up to 10 ha.                 Royalties for first 1000 cubic
                            Owned lands. For a specified volume from a specified site.                                     For up to 1 year.            metres payable at time of
                                                                                                                                                        application.
                            Activities require Land Use Permit.                                                            Can be assigned.
                                                                                                                                                        Minimum work requirements.


 Quarry Concession          The exclusive right to explore for, develop and extract surface materials from a specified     Up to 10 ha.                 Minimum work requirements.
                            area on Inuvialuit-Owned lands for a prescribed period.                                        For up to 10 years.
                                                                                                                                                        Royalties payable.
                            Before Quarry Concession can be applied for, the land must first be staked according to        Can be assigned.
                            Rules and Procedures.                                                                                                       Participation/Access Agreement
                                                                                                                                                        required.
                            Must first be ratified by Community Corporation on 7(1)(a) lands or by IRC on 7(1)(b)
                            lands.                                                                                                                      Cooperation Agreement
                                                                                                                                                        optional.
                                                                                                                                                        Must be negotiated with ILA.

 Temporary Right-of-        Right to non-exclusive use of strip of Inuvialuit-Owned lands for a limited period for         For up to 2 years.           Land rents payable.
 Way                        commercial transportation of people or goods, petroleum or water by pipeline, or power by      Not renewable.
                            an electrical transmission.                                                                                                 Are requirements in relation to
                                                                                                                           Can be assigned.             winter road and harvesting if
                            Construction or maintenance activities require a Land Use Permit unless this TRW is                                         traffic is heavy?
                            required for access to an operation for which a Land Use Permit has already been
                            granted.                                                                                                                    Participation/Access Agreement
                                                                                                                                                        is required.

 Permanent Right-of-        For the non-exclusive use of a strip of Inuvialuit-Owned lands for a long period for           For up to 30 years.          Land rents payable.
 Way                        commercial transportation of people or goods, petroleum or water by pipeline, or power by
                            an electrical transmission.                                                                    Can be assigned.             Participation/Access Agreement
                                                                                                                                                        required.
                            Construction or maintenance activities require a Land Use Permit.
                                                                                                                                                        Security deposit required
                            Application must include a Surface Development Plan.                                                                        according to Schedule or as
                                                                                                                                                        recommended by EIRB.
                            Must first be ratified by Community Corporation on 7(1)(a) lands or by IRC.



All rights are subject to fees, either by schedule, by calculation according to set formula, or as negotiated in an Agreement. Refer to current Rules and Procedures for details.



June 2001                                                                                                                                                                          15-11
15 – Inuvialuit Land Administration (ILA)                                                                                                      Regulatory Agencies and Processes



Table 15-3: REQUIREMENTS FOR COMMERCIAL ACCESS TO INUVIALUIT-OWNED LANDS

                               PURPOSE OF THE ACCESS                                                                                   REQUIREMENT

 Access Across Inuvialuit-Owned Lands: Access of a commercial nature required to                  Must give prior notice to the ILA.
 reach non-Inuvialuit lands to exercise rights of a casual nature relating to investigative and
 preliminary work.                                                                                Administrator can issue a Land Use Licence.

 Access Across Inuvialuit-Owned Lands: Access of a commercial nature required to                  Must give prior notice to the ILA.
 reach non-Inuvialuit lands to exercise rights, and the access is significant but temporary.
 Example of significant access would be the construction of winter road, camps, use of any        Administrator can issue a Temporary Right-of-Way.
 explosives.
                                                                                                  Requires negotiation of a Participation/Access Agreement on location and compensation for
                                                                                                  damages.

 Access Across Inuvialuit-Owned Lands: Access of a commercial nature required to                  Must give prior notice to the ILA.
 reach non-Inuvialuit lands to exercise rights for more than a temporary period.
                                                                                                  Administrator can issue a Permanent Right-of-Way.

                                                                                                  Requires negotiation of a Participation/Access Agreement with the ILA.

 Access to or Across Inuvialuit-Owned Lands: Access of a commercial nature on or                  Such access is guaranteed, but is subject to the negotiation of a Participation Agreement,
 across Inuvialuit lands required by a holder of a valid Right issued by Canada on Inuvialuit-    and obtaining applicable land use and right-of-way authorizations.
 Owned lands, e.g. on 7(1)(b) lands, or pre-existing Rights on 7(1)(a) lands.

 Access To Inuvialuit-Owned Lands: Access to Inuvialuit 7(1)(a) lands to exercise                 Requires appropriate Right issued by the Administrator.
 mineral rights issued by the ILA.
                                                                                                  These Rights require the negotiation of a Participation/Access Agreement. Refer to
                                                                                                  TABLE 15-1.


In every case, access is permitted subject to requirements that there be:
    no significant damage to the lands;
    no abuse or extension of the right;
    no mischief committed on the lands; and
    no significant interference with Inuvialuit use and enjoyment of the lands.

If damage to the land does occur, the user is fully responsible, and the Inuvialuit are not liable for any damages suffered by the user. Users who fail to comply
with provisions attached to the permits for access can be removed from the land. Depending on the right issued a security deposit may be required.



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Regulatory Agencies and Processes                                      16 – Indian and Northern Affairs (DIAND)



16.0 INDIAN AND NORTHERN AFFAIRS (DIAND): LAND USE,
     SURFACE TENURE AND BENEFITS

Rights granted under the Canada Petroleum Resources Act authorize the holder to carry out exploration on Crown
land. In order to exercise these rights, a rights-holder must obtain approval for activities that occupy and use the
surface of the land. Land use operations and land dispositions in both the NWT and Yukon portions of the ISR
are currently governed by the Territorial Lands Act, Territorial Land Use Regulations, and Territorial Land
Regulations. In cases where land use activities involve the use of water, Water Licences are required in the NWT
part of the ISR pursuant to the Northwest Territories Waters Act (Chapter 17 of this Guide), and in Yukon
pursuant to the Yukon Waters Act (Chapter 11 of this Guide).

The federal department of Indian and Northern Affairs Canada (DIAND) is responsible for administering Crown
lands and resources in the NWT part of the ISR and the ISR offshore. The Northern Oil and Gas Directorate in
Ottawa is responsible for the administration of the Canada Petroleum Resources Act with assistance from the
National Energy Board. DIAND offices based in Inuvik, Yellowknife and Whitehorse administer land and water
authorizations for the ISR.

TABLE 16-1 summarizes the federal Acts in which DIAND has a role related to authorization of oil and gas
activities in the ISR. Responsibility for dealing with applications for approval of Benefits Plans under section 5(2)
of the Canada Oil and Gas Operation Act is shared by the Northern Oil and Gas Directorate in Ottawa and the
Minerals and Petroleum Resources Directorate in Yellowknife. The Ottawa office reviews Benefits Plans in
relation to development activities and offshore drilling; Yellowknife reviews Benefits Plans in relation to exploration
activities, and monitors compliance with Benefits Plans once approved.

         Contacts:    Northern Oil and Gas Directorate, Ottawa
                      Manager, Petroleum Development and Benefits Division,
                      Minerals and Petroleum Resources, Yellowknife


16.1 Canada Petroleum Resources Act (CPRA)
The Canada Petroleum Resources Act (CPRA) applies to Crown reserve lands in the offshore ISR, to Crown
reserve lands in the onshore NWT portion of the ISR, to NWT Commissioner’s lands and to Inuvialuit-Owned
7(1)(b) lands. It governs allocation of Crown lands to the private sector, tenure to the allocated rights, and the
setting and collection of royalties. On 7(1)(a) lands, these matters are covered by the ILA Rules and Procedures.

Note that the Yukon has, with passage of the Yukon Oil and Gas Act in 1998, been removed from the jurisdiction
of the CPRA. As a consequence, CPRA applies to the NWT land portion of the ISR, and to the marine waters
offshore both Yukon and NWT. (For arrangements in Yukon, refer to Chapter 11 of this Guide.)

The CPRA governs the issuance of:
    Exploration Licence
    Declaration of Significant Discovery
    Declaration of Commercial Discovery;
    Production Licence; and
    Sub-surface Storage Licence.




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16 – Indian and Northern Affairs (DIAND)                                               Regulatory Agencies and Processes


DIAND-NOGD is responsible for issuance of rights, as outlined in Chapter 21 CHART 1, and issuance of
Production Licence, as shown on CHART 5 in Chapter 23. The NEB provides technical assistance to the
process for Declaration of Discovery.

Table 16-1: INDIAN AND NORTHERN AFFAIRS (DIAND) POLICY STATED IN
“CANADIAN ENERGY FRONTIERS – A FRAMEWORK FOR INVESTMAND AND JOBS”:
ACTS AND REGULATIONS

          ACTS and REGULATIONS                                       ROLE                                  CONTACT

 Canada Petroleum Resources Act                     NOGD administers issuance of rights,       Northern Oil and Gas Directorate
 Frontier Lands Petroleum Royalty Regulations       tenure and oil and gas royalties on ISR    DIAND, Ottawa
 Frontier Lands Registration Regulations            lands where the federal Crown owns the     www.inac.gc.ca
                                                    sub-surface rights. Policy is stated in
                                                    “Canadian Energy Frontier – A
                                                    Framework for Investment and Jobs.”

 Canada Oil and Gas Operations Act                  NOGD coordinates the approval of           Northern Oil and Gas Directorate,
 (s. 5(2))                                          Benefits Plans by Minister (DIAND).        DIAND Ottawa

 Territorial Lands Act (TLA)                        DIAND issues Land Use Permits              District Manager,
 Territorial Land Use Regulations (TLUR)            pursuant to the TLA and TLUR.              North Mackenzie District
 Territorial Lands Regulations (TLR)                                                           DIAND Inuvik
 Oil and Gas Land Order                             DIAND issues dispositions of land and
 Territorial Coal Regulations                       surface tenure pursuant to the TLA and     Land Resources
 Territorial Dredging Regulations                   TLR.                                       DIAND Whitehorse
 Territorial Lands Act Exclusion Order
 Territorial Quarrying Regulations
 Yukon Timber Regulations
 Yukon Archaeological Sites Regulations
 Guide to the Territorial Land Use Regulations
 Northwest Territories Waters Act

 Federal Real Property Act                          DIAND works with Department of Public      Land Administration
 Federal Real Property Regulations                  Works in review of applications and        DIAND Yellowknife
                                                    issuance of Sea Bed Leasing Authority on
                                                    federal Crown lands in the offshore.       Bureau of Federal Real Properties
                                                                                               Treasury Board, Ottawa

 Canadian Environmental Assessment Act              DIAND as Responsible Authority.            Environment and Conservation
 Inclusion List Regulations                                                                    DIAND Yellowknife
 Exclusion List Regulations
 Law List Regulations                                                                          CEA Agency, Vancouver
 Comprehensive Study Regulations
 Federal Coordination Regulations

 Arctic Waters Pollution Prevention Act             DIAND is responsible for the non-          DIAND Yellowknife
 Arctic Waters Pollution Prevention Regulations     shipping parts of the AWPPA and has        with other departments
 Arctic Shipping Pollution Prevention Regulations   Pollution Prevention Officers for
 Pollutant Substances Regulations                   inspection and enforcement. DIAND
                                                    advises NEB on conditions that should be
                                                    attached to authorizations.




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Regulatory Agencies and Processes                                                  16 – Indian and Northern Affairs (DIAND)



          ACTS and REGULATIONS                                         ROLE                                      CONTACT

 Northwest Territories Waters Act                    Water licenses are issued by the NWT           NWT Water Board
 Northwest Territories Waters Regulations            Water Board, with technical assistance         Water Resources
                                                     from DIAND Water Resources in                  DIAND Yellowknife
                                                     Yeloowknife.                                   District Manager
                                                                                                    North Mackenzie District
                                                                                                    DIAND, Inuvik

 Yukon Waters Act                                    Water licenses are issued by the Yukon         Yukon Water Board
 Yukon Waters Regulations                            Water Board, with technical assistance         Water Resources
                                                     from DIAND Water Resources in                  DIAND Whitehorse
                                                     Whitehorse.

 GUIDELINES FOR LAND USE*
 “Natural Resource Development in the NWT: Requirements, Procedures and Legislation, “DIAND
 “Environmental Operating Guidelines, Pits and Quarries, DIAND,” 1994
 “Land Use Guidelines: Access Roads and Trails, DIAND,” 1994
 “Environmental Operating Guidelines: Access Roads and Trails,” DIAND
 “Reclamation Guidelines for Northern Canada,” DIAND
 “Guide to Completing Application for a Land Use Permit Pursuant to the Territorial Land Use Regulations”
 “Environmental Guidelines: Northern Seismic Operations”
 “Environmental Operating Guidelines: Hydrocarbon Well Sites in Northern Canada”
 “Handling and Disposal of Waste Fluids from On-Land Sumps in NWT and Yukon”

 *Note: Guidelines do not have the force of law, however the requirements can be given force if they are attached as conditions to Water
 Licences, Leases or Land Use Permits issued by the Minister. DIAND is currently revising some of these guidelines. For the most up-
 to-date-versions contact the Manager, Land Administration in Yellowknife.



16.2 Land Use Authorizations Under the Territorial Lands Act
The Territorial Lands Act governs the disposition of interests in the surface of lands in the NWT and Yukon
Territory. The Act permits the Governor in Council to authorize the sale, lease or other disposition of lands and to
make Regulations authorizing the Minister of DIAND to make the disposition.

Land Use Permits are available pursuant to the Territorial Land Use Regulations, which govern the temporary use
of Crown lands in the ISR. Regulations set minimum thresholds for activity, above which Land Use Permits are
required. There are two types of Land Use Permits, Class A and B. Class B has the lower thresholds. Activities
below the Class B threshold do not require a Land Use Permit. Land Use thresholds are summarized on
TABLE 16-2 and the process for obtaining a Land Use Permit on Crown Lands is described on
CHART LUP.

Table 16-2: THRESHOLDS FOR LAND USE PERMITS ON FEDERAL CROWN LANDS

        ACTIVITY THRESHOLD                       CLASS A LAND USE PERMIT                         CLASS B LAND USE PERMIT

 No person shall, without a Class A or B      Territorial Land Use Regulations             Territorial Land Use Regulations
 permit, carry on any work or undertaking     Section 8                                    Section 9
 on territorial lands that involves:

 (a) use of explosives, in any 30 day         more than 150 kg                             more than 50 kg but less than 150 kg
 period, of




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16 – Indian and Northern Affairs (DIAND)                                                 Regulatory Agencies and Processes



         ACTIVITY THRESHOLD                        CLASS A LAND USE PERMIT                      CLASS B LAND USE PERMIT

 (b) use, except on a public road, of any      exceeds 10 t net vehicle weight            more than 5 t but less than 10.5 t net vehicle
 vehicle that                                                                             weight, or that exerts pressure on the ground
                                                                                          in excess of 35 k pa

 (c) use of power driven machinery for         exceeds 2.5 t                              exceeds 500 kg but less than 2.5 t
 earth drilling whose operating weight

 (d) establishment of any campsite that is     more than 400 man-days                     more than 100 but less than 400 man-days,
 to be used for                                                                           by more than 2 people

 (e) establishment of any petroleum fuel       exceeding 30 000 L capacity                more than 4 000 L but less than 30 000 L
 storage facility

 (e) use of a single container for the         exceeding 4 000 L capacity                 more than 2 000 L but less than 4 000 L
 storage of petroleum fuel of capacity

 (h) and (f) levelling, grading clearing       exceeding 1.5 m in width and exceeding     exceeding 1.5 m in width but not exceeding 4
 cutting or snowploughing of any line, trail   4 ha in area                               ha in area
 or right-of-way

 (f) use of any                                self-propelled power driven machine for    n/a
                                               moving earth or clearing land of
                                               vegetation

 (g) use of any                                stationary power driven machine for        n/a
                                               hydraulic prospecting, moving earth or
                                               clearing land, other than a power saw

Available on the web at: http://canada.justice.gc.ca/en/index.html




CHART LUP – DIAND Approval Process for Land Use Permits on Federal Crown
Lands in the ISR

LUP-1 Consultation with Inuvialuit Communities and Organizations

LUP-2 Obtain Advice from EISC and Departments/Agencies on Requirements
          Information on preparation of a Land Use Permit Application and the necessary form and schedules are
          available from the District Manager of DIAND in Inuvik.

          An Applicant will also have to prepare a Project Description for EISC, and should contact the Secretary
          to confirm processes, requirements and timelines.

          Activities requiring a Land Use Permit may also require authorizations from other federal or territorial
          departments/agencies. Applicants should also contact these other authorities to ensure that planning takes
          regulatory requirements into account from the outset.




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June 2001                                                              16-5
16 – Indian and Northern Affairs (DIAND)                                  Regulatory Agencies and Processes


LUP-3 Company Prepares and Submits Project Description (EISC) and Permit Application
      (DIAND)
       Completed applications for Land Use Permits must be submitted to the District Manager of DIAND in
       Inuvik together with the application fee, land use fee, a complete description and summary of operations,
       an environmental baseline and an assessment of environmental, resource and socio-economic effects. The
       District Manager of DIAND in Inuvik has been appointed Engineer for purposes of the Territorial Lands
       Act.

LUP-4 DIAND Reviews Application for Completeness
       DIAND first reviews the Land Use Permit Application for completeness. If incomplete, the Applicant is
       advised and may provide the necessary information and resubmit the application LUP-5.

       The date of acceptance of the Application as complete is the starting point for the notional timelines set
       out in the Territorial Land Use Regulations for processing of Class A and B Land Use Permit
       Applications. In the case of a Class A Permit Application, the Engineer is required within ten days of
       receiving an application to take certain actions (TLUR s. 24 and 25) either to:
           notify the Applicant of further requirements for information or otherwise;
           issue a Class A Permit subject to any terms of conditions required;
           notify the Application that further time is required (in which case the Engineer has 42 days from the
           date of application to issue or refuse to issue a Permit);
           notify the Applicant that the Engineer has ordered further studies (in which case the Engineer has 12
           months to issue or refuse to issue a Permit); or
           refuse to issue the permit and notify the Applicant of this refusal and reasons.

       In the case of a Class B Permit Application, the Engineer has three days to notify the Applicant that the
       application cannot be accepted (TLUR s. 26), and ten days to either issue the Class B permit or refuse
       to issue and provide reasons. The Engineer may also notify the Applicant that an application for a Class
       B Permit will be considered as an application for a Class A Permit.

       In practice, Land Use Permits are generally issued within 42 days of the date of application, however
       there are reasons outside of DIAND’s control that may extend this time-frame. With the introduction of
       requirements for EA under CEAA and Screening under the IFA, other processes must be dealt with
       before DIAND may issue authorizations, and may extend the time required to process an application.

LUP-6 DIAND District Office Consults with Local Communities, Inuvialuit and First Nations
       This consultation process is undertaken internally by DIAND.

LUP-7 Referral to Land Advisory Committee
       The Land Advisory Committee is an informal committee that functions primarily by mail, and includes
       representatives of:
           Federal departments of DFO, Environment Canada, Transport Canada, Natural Resources
           Canada, other DIAND divisions;
           GNWT departments of Resources Wildlife and Economic Development, of Education, Culture and
           Employment, the Prince of Wales Northern Heritage Centre, of Municipal and Community Affairs,
           of Department of Transportation; and
           potentially affected town or hamlet councils.


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LUP-8 DIAND Notifies EISC
       Upon receipt of a completed application, DIAND circulates it to other agencies of government for their
       comment, and notifies the EISC that an application has been received. In practice, it is often the EISC,
       having received a Project Description, who first notifies DIAND.

LUP-9 Requirements under IFA section 11 EISRP Must Be Met
       Before issuing a Land Use Permit, DIAND must ensure that IFA section 11 requirements for Inuvialuit
       Environmental Impact Screening and Review have been dealt with (see CHARTS EISC and EIRB).

LUP-10 Requirements for EA under CEAA Must Be Met
       Issuance of a Class A or Class B Land Use Permit under the Territorial Lands Act is captured by the
       Inclusion List Regulations and therefore must meet the EA requirements under CEAA before
       authorization processes may conclude.

LUP-11 CEAA Determination
       In making the CEAA determination as RA, the Engineer considers the EISC determination, advise from
       the lands Advisory Committee and other regulators. Refer to CHART CEAA for specific steps in the
       process. LUP-12 The Application May Be Rejected or LUP-13 Authorization Processes
       May Proceed/Continue.

LUP-14 DIAND Decision on Land Use Permit
       The Land Engineer continues work on the Land Use Permit Application, drawing on advice provided by
       the Land Advisory Committee and other departments. DIAND will work with other departments to
       check for compliance with related Acts and Regulations, for example under CEPA and the
       Transportation of Dangerous Goods Act in relation to disposal and transportation of toxic waste.

       Based on this review, the Engineer decides either to issue a Land Use Permit with Terms and
       Conditions, or Application May be Rejected, LUP-15.

       Section 45 of the Territorial Land Use Regulations allows an Applicant to appeal within 30 days any
       decision of an Engineer or an inspector to the Minister of Indian and Northern Affairs.

LUP-16 DIAND Engineer Issues Land Use Permit With Terms and Conditions
       The Territorial Land Use Regulations allow for the attachment of a wide range of terms and conditions
       respecting location of the work and facilities, seasonality of work, type and size of equipment used,
       methods of operation, of water use, of disposal of waste, protection of wildlife and fisheries, and protection
       of places of recreational, scenic and cultural value. Inspections by DIAND officers are conducted during
       the operation and at the conclusion to ensure compliance with conditions.

       Where an activity disturbs the land surface, conditions for site abandonment and restoration will be
       specified in the Permit. These conditions generally require restoration of the site to as near the original
       state as practical. Regulations allow for the setting of a security deposit of up to $100,000 as a condition
       of a Permit.




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16 – Indian and Northern Affairs (DIAND)                                   Regulatory Agencies and Processes


16.3 Land Dispositions
For projects requiring long-term tenure of a site, the Occupant may require a Land Lease or Licence of Occuption
pursuant to the Territorial Lands Regulations and the Territorial Lands Act or a Licence of Occupation pursuant to
the Federal Real Property Act and Regulations.

A Lease is sometimes referred to as a Surface Lease or Land Lease. A Lease is issued for a term of up to 30
years, and is renewable for up to an additional 30 years. As in the case of Land Use Permits, Regulations allow
for the attachment of a wide range of conditions on operations and restoration, and security deposits can be
required. DIAND as lessor, may negotiate with the leasee a wide range of covenants for attachment to the Lease.

There is no specified timeframe for review of an application for land disposition under the Territorial Lands Act.
An application will be circulated by DIAND among departments and to affected communities. By consulting
thoroughly when developing the plan and application, a Developer can improve the public understanding of the
project and anticipate the concerns of communities and federal agencies in the design of the work program.

As long as proposed activities on a Lease are consistent with the purpose of a Lease, a Land Use Permit is not
required.

For information on how to apply, contact:
         Contact:   District Manager, North Mackenzie District, Inuvik, regarding quarry permits
         Contact:   Manager, Land Administration, DIAND, Yellowknife
         Reference: Territorial Lands Act, Territorial Lands Regulations
                    Crown Land Application Form

Certain oil and gas developments may require land dispositions under the Federal Real Property Act. Rights-of-
way (for gathering systems or exploration roads) or Licences of Occupation may be issued pursuant to the Federal
Real Property Regulations. Work is now underway at DIAND to clarify these requirements.
         Contact:     Manager, Land Administration, DIAND, Yellowknife

Quarry Permits are available pursuant to the Territorial Quarry Regulation.
         Contact:     District Manager, North Mackenzie District, DIAND, Inuvik


16.4 Federal Real Properties Act
Certain offshore and onshore activities may require authorization pursuant to the Federal Real Property Act
(FRPA) and Regulations. For example, construction of a permanent structure such as an artificial island or
dredging of seabed material for such uses may require a Sea Bed Leasing Authority under the Act. Onshore,
Licences of Occupation under the FRPA may be required for linear developments such as gathering lines or
roads, though not for a main transmission pipeline.

Several departments share authorities under the Federal Real Property Act, including the Bureau of Federal Real
Properties at Treasury Board, DIAND, Department of Public Works and Federal Real Property Transactions
Registry at the Department of Justice. At present, it is expected that DIAND will administer the FRPA in the
ISR for oil and gas activities in the ISR.




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Regulatory Agencies and Processes                                         16 – Indian and Northern Affairs (DIAND)


Discussions are currently underway to clarify requirements and processes. For information on these arrangements,
contact:
         Contact:   Director, Northern Oil and Gas Directorate, Ottawa
         Reference: Federal Real Properties Act, Federal Real Property Regulations


16.5 Arctic Waters Pollution Prevention Act
The Arctic Waters Pollution Prevention Act prohibits deposition of waste into Arctic marine waters unless
authorized by Regulation, and prescribes limits of liability for unauthorized deposits of waste. The Act does not
apply to inland waters. Regulations pursuant to the Act allow for the review and approval of plans and installations
in Arctic waters that could be a source of water pollution and for security deposits. Anyone exploring for,
developing or exploiting a natural resource on any land or any submarine area adjacent to Arctic waters is civilly
liable for losses, damage and costs and this liability is absolute.

Administration of the Act is shared among several departments. Transport Canada administers Arctic shipping.
DIAND administers non-shipping activities, (for example artificial islands, ice islands and anchored drilling installations.
NEB administers drilling from ships). DFO (both FHM and Coast Guard) also has a role. There are no direct
authorizations issued under the AWPPA but the departments may recommend terms and conditions to be attached to
authorizations under the COGOA or the Territorial Lands Act.

At one time, an interdepartmental ad hoc committee, the Arctic Waters Advisory Committee, reviewed proposed
developments and recommended operating conditions, for example on waste disposal, for attachment to
authorizations. Since then, there have been changes in authorities, and the process for administering the Act has
not yet been fully worked out.
         Reference: Arctic Waters Pollution Prevention Act
                    Arctic Waters Pollution Prevention Regulations
                    Arctic Shipping Pollution Prevention Regulations
                    Pollutant Substances Regulations


16.6 IFA Environmental Impact Screening and Review Requirement
Applications for land use authorizations, land disposition or seabed leasing authority on Crown Lands are subject
to the IFA Environmental Impact Screening and Review Process, pursuant to section 11 of the IFA. DIAND
notifies EISC when it receives an application to start the IFA process. DIAND will take into account the results of
this process in its decision on whether and under what terms and conditions to issue the land use authorization.
Refer to Chapter 4 and CHARTS EISC and EIRB of this Guide. For authoritative information on
requirements:
         Contact:      Secretary, Environmental Impact Screening Committee (EISC), Inuvik
                       EISC Operating Guidelines and Procedures, Section 11, Inuvialuit Final Agreement




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16 – Indian and Northern Affairs (DIAND)                                   Regulatory Agencies and Processes


16.7 Requirements of the Canadian Environmental Assessment Act
The IFA process does not relieve DIAND from responsibility for Screening of the application as a Responsible
Authority under CEAA. In addition to the trigger for CEAA under the Territorial Lands Act there may be triggers
under other statutes, depending on the nature of the activity proposed. Refer to Chapter 13 and CHART
CEAA for steps that must be followed by the Responsible Authority.
        Contact:   District Manager, North Mackenzie District, DIAND Inuvik
        Contact:   Canadian Environmental Assessment Agency, Pacific and Northern Region, Vancouver
        Reference: Canadian Environmental Assessment Act


16.8 Federal Requirements for Benefits Plans
Under section 5.2 of the Canada Oil and Gas Operations Act (COGOA), a Benefits Plan approved by the
Minister of DIAND is required before the NEB can issue an authorization for an oil and gas activity, unless the
Minister has waived the requirement.

A Benefits Plan sets out what a Company will do:
    to inform and consult with northerners;
    to maximize employment, training and business supply and service opportunities for northerners and northern
    businesses;
    to provide compensation, as necessary, for attributable damages to resource harvesting; and to
    report annually to DIAND.

DIAND has issued a Benefits Statement of Principles as a guide to expectations of Proponents developing
Benefits Plans. This statement is copied at the end of this chapter. For relatively simple projects (e.g. onshore
seismic exploration), a commitment to the Benefits Statement of Principles may be considered to be sufficient. For
more advanced projects (offshore activities, onshore drilling or development), commitments would be expected to
go beyond the Statement, and to be more specific. When major operations are contemplated, the Benefits Plan
may have to address benefits for Canadians and Canadian firms.

In the case of 7(1)(a) lands, benefits will have had to be negotiated as part of the Participation, Access,
Cooperation and Concession Agreements required by the ILA before rights are issued. In the case of projects on
Inuvialuit 7(1)(a) lands, there is still a COGOA requirement for a Benefits Plan, however Agreement(s) with the
ILA may be accepted as meeting federal requirements. In these cases, DIAND will also bind the Applicant with
the Benefits Statement of Principles.

In the case of Crown lands and 7(1)(b) lands, the federal government is bound by subsection 16(11) of the IFA
to apply general guidelines on benefits to each application for exploration, development or production rights. This
requirement is met by application of the Benefit Statement of Principles. DIAND may discuss the proposed
Benefits Plan with the ILA to confirm the status of these commitments. In most cases, there will be Participation
Access Agreements negotiated in relation to surface rights on 7(1)(b) lands, and these agreements along with a
commitment to the Benefit Statement of Principles would generally be accepted as meeting federal requirements.

While these provisions represent the regulatory view of requirements, it needs to be pointed out that the settlement
of land claims has changed the legislative context for benefits from development and the experience with other
resource projects in the past few years have created high expectations among First Nations of benefits from resource
development. Dealing with community expectations and meeting regulatory requirements will be two quite different
matters.


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Regulatory Agencies and Processes                                     16 – Indian and Northern Affairs (DIAND)



This section is a simple treatment of a complex subject, a subject of acute concern to northern communities and so
to the Applicant and to government. Consult with DIAND in Ottawa and Yellowknife for further information on
federal requirements.

         Contact:     Manager, Petroleum Development and Benefits Division,
                      Mineral and Petroleum Resources Directorate
                      Northern Oil and Gas Directorate, Ottawa

From the Inuvialuit point of view, field development of gas in the ISR is a vital tool for economic development, in a
region with few other non-renewable resource prospects. Without such activity, participation of Inuvialuit as “equal
and meaningful participants in the northern and national economy” (IFA s. 1.(b)) is unlikely. Clauses in IFA
sections 7, 10, and 16 provide the framework for negotiation of benefits in relation to work in the ISR and in
particular for work on Inuvialuit-Owned lands. In an effort to secure long-term economic returns from development,
IRC made negotiation of Cooperation and Benefits Agreements a condition of issuance of Concession Agreements
in recent issuance of rights. Terms of Cooperation and Benefits Agreements are similar from one Concession to
another, and in some cases apply to Crown lands as well as to Inuvialuit-Owned lands. Guidelines (for instance on
definitions of Inuvialuit businesses) have been issued by IRC over the course of this year to clarify implementation
issues. Contact the IRC directly to discuss Inuvialuit requirements.


CHART BEN - DIAND Approval Process For Benefits Plans Required Under
COGOA

B-1      Consultation
         As described in Chapter 15 of this Guide, requirements for benefits on ISR lands vary from Crown
         lands to Inuvialuit-Owned lands, and are often the subject of Cooperation and Benefits Agreements
         negotiated to cover concessions of Inuvialuit-Owned lands as well as, in some cases, Crown lands.
         Consultation needs to begin early with Inuvialuit and non-Inuvialuit communities that may be affected, to
         discuss expectations and capacity. The Applicant should also obtain advice from DIAND on Crown
         Lands and from DIAND and ILA on Inuvialuit-Owned lands regarding requirements.

B-2      Applicant for COGOA Authorization Develops Benefits Plan Unless Requirement
         Waived
         Under section 5. 2 of the Canada Oil and Gas Operations Act (COGOA), a Benefits Plan approved by
         the Minister of DIAND is required before the NEB can issue an authorization for an oil and gas activity,
         unless the Minister has waived the requirement. The Benefits Plan process should begin as early as
         possible to avoid unnecessary delay of the NEB authorization, and normally proceeds concurrently with
         NEB review processes.

         The Benefits Plan is created by the Proponent and approved by DIAND. It is a plan rather than an
         agreement between the Proponent and government. There are no Guidelines for development of these
         Plans, beyond the Benefits Statement of Principles. On Inuvialuit-Owned lands, the Applicant will be
         negotiating terms directly with the ILA, within the framework established by the IFA and ILA Rules and
         Procedures regarding Agreements (Refer to Chapters 7 and 14). On Crown Lands, the Applicant
         may have some flexibility in the form and substance of Benefits Plans.



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16 – Indian and Northern Affairs (DIAND)   Regulatory Agencies and Processes




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Regulatory Agencies and Processes                                    16 – Indian and Northern Affairs (DIAND)


B-3    Applicant Submits Benefits Plan for Approval to DIAND (NOGD)
       Applications are submitted to the DIAND (NOGD) in Ottawa for review. New staff have recently been
       hired for the Yellowknife office of DIAND to provide a northern representation and liaison of federal oil
       and gas responsibilities. This unit, within the Mineral and Petroleum Resources Directorate will handle
       applications for approval of Benefits Plans for exploration projects. Applications for approval of Benefits
       Plans for offshore exploration, and for development onshore and offshore would continue to go through
       DIAND (NOGD) in Ottawa. Contact the Yellowknife office to confirm administrative arrangements
       currently in effect.

       Contact:     Manager, Oil and Gas, Mineral and Petroleum Resources, Yellowknife

B-4    DIAND Reviews Benefits Plan
       DIAND may consult with Community Corporations, ILA and others to confirm the commitments
       described in the Benefits Plan, and to satisfy itself that the benefits opportunities are appropriate.

B-5    Minister (DIAND) Decides on Benefits Plan
       The Minister DIAND, based on departmental advice, may decide that the Benefits Plan is inadequate
       and should be Referred Back To The Applicant B-6, in which case the Applicant May Consult
       Further, Revise Benefit Plan and Resubmit B-7.

B-8    Minister Approves Benefits Plan: DIAND Notifies NEB that Authorizations may be
       Issued




June 2001                                                                                                       16-13
16 – Indian and Northern Affairs (DIAND)                                                      Regulatory Agencies and Processes



                                            Benefits Statement Of Principles
 Companies engaged in oil and gas exploration activities in the Northwest Territories, and requiring a Benefits Plan, are expected to follow
 the principles outlined below.

 It is recognized that the nature and duration of work programs must be considered in determining the extent to which companies are able
 to implement the benefits principles.

 Industrial Benefits
 The Company is committed to obtaining its goods and services on a fair and competitive basis. The Company will support and encourage
 the development of regional businesses by considering potential suppliers for work associated with the program on the basis of best
 value, competitiveness and benefits to the reginal communities and by providing relevant information to the supply community. Within the
 context of its general procurement policy, the Company will conduct its operations so as to optimize the short and long-term benefits
 accruing to the North by providing opportunities for involving northern businesses on a full, fair and competitive basis.

 The Company is committed to work with regional communities and government agencies to identify potential business development
 opportunities.

 The Company is committed to ensuring that its contractors follow the above with respect to all subcontracting opportunities.

 Employment and Training
 The Company is committed to the principles of fair and equal employment and trining opportunities consistent with the Canadian Charter
 of Rights and Freedoms. This commitment will promote fairness in employment opportunities and avoid employment practices which
 results in employment barriers. The Company will give first consideration to qualified individuals resident in the regional communities.

 The Company is committed to work with regional communities and government agencies to identify potential employment and training
 opportunities.

 The Company is committed to ensuring that its contractors follow the above with respect to all employment and training opportunities.

 Consultation
 The Company is committed to providing appropriate information concerning its exploration programs to concerned individuals, groups
 and communities in the region. Exchanging relevant information in a timely fashion will enable the Company to assess the potential local
 economic and employment opportunities.

 Compensation
 The Company will provide fair and equitable compensation, consistent with applicable territorial policies, to individuals involved in
 hunting, trapping and fishing in the event of adverse impacts demonstrated to result from project-related activities.

 Annual Report Requirement
 The Company will submit an annual report to DIAND, Northern Oil and Gas Directorate, within six months of the completion date of its
 seasonal work program.

 The report should contain the following information:
 i      brief work program description;
 ii     total program costs (total value of purchased goods and services, total direct wages and total direct work months);
 iii    total direct wages by northern community of residence;
 iv     total direct work months by community of residence;
 v      number of northern community residents employed for each program component (e.g. seismic, drilling, support and
        construction);
 vi     total value of purchased goods and services from each northern community, including a brief description of the goods and
        services purchased from each community;
 vii    listing of consultations undertaken; and
 viii   a brief description of any programs that may be undertaken in the next work season.

 Comprehensive Land Claim Settlement Agreements
 The comprehensive land claim settlement agreements for the Inuvialuit, Gwich’in, Sahtu and Nunavut areas contain provisions regarding
 consultations and benefits as well as other matters such as land and water use, environmental review and surface access. When
 planning activities in these land claim settlement areas, companies are expected to familiarize themselves with the provisions of the
 relevant land claim agreement and make early contact with the responsible Aboriginal organization regarding procedures and timelines.

16-14                                                                                                                              June 2001
Regulatory Agencies and Processes                                        17 – Northwest Territories Water Board



17.0 NORTHWEST TERRITORIES WATER BOARD

Reader’s Caution: At time of writing, possible changes to the processes described here were under discussion.
                  To confirm processes and requirements, contact Water Resources, DIAND in Yellowknife.


Under the IFA, the federal Crown retains ownership and control of all waters in the ISR. So while applications
for land use are made to the ILA or to DIAND, authorization to use water anywhere in the Northwest Territories
portion of the ISR is issued pursuant to the Northwest Territories Waters Act and Regulations. Water use
authorizations are obtained by application to the Northwest Territories Water Board, a federally appointed board,
based in Yellowknife.

Formerly, the NWT Water Board sat for the whole of the Northwest Territories. With the implementation of the
Mackenzie Valley Resource Management Act and the Nunavut Act, the NWT Water Board is responsible only for
the ISR. Discussions are underway between IRC and the federal government regarding the possibility of a
successor agency based in the ISR. For the present, the NWT Water Board remains the authority.

The Executive Assistant to the NWT Water Board is the contact regarding the administration of the licensing and
public hearing process. The Executive Assistant is the intermediary between the Applicant and the Board,
receiving applications, supporting documentation and fees, and dealing with matters other than technical issues,
before and after licensing.

         Contact:   Executive Assistant, NWT Water Board, Yellowknife
         Reference: NWT Waters Act and NWT Waters Regulations

The first point of contact regarding the requirements for a Water Licence for activities in the ISR is the District
Office in Inuvik.

         Contact:      District Manager, Inuvik District Office, Inuvik NT

The Water Resources Directorate of DIAND in Yellowknife provides technical support to the NWT Water
Board, and can advise a Proponent on technical aspects of an application.

         Contact:      Water Resources, DIAND, Yellowknife


17.1 NWT Waters Act and Regulations
If work involves the use of inland water, direct or indirect disposal of waste into water, or physical alterations to
inland waterways in the NWT, the Northwest Territories Waters Act applies, and depending on the intensity of the
activity, a Developer may have to obtain a Water Licence.

The Act and Regulations set thresholds for activities, based on the volume of water used, alteration of flow,
discharge (whether direct or indirect) of waste into water, and potential for aquatic effects. Activities that may
exceed these thresholds require a Water Licence, either Type B (the lower threshold) or Type A (for larger
undertakings). A typical timeline for obtaining a Type B Water Licence is four to six months.




June 2001                                                                                                            17-1
17 – Northwest Territories Water Board                                                        Regulatory Agencies and Processes


Thresholds for oil and gas exploration and development are set out on Schedule IV of the Regulations. In
petroleum exploration, if any waste is discharged to a sump (and only to a sump), then a Type B Licence is
required: if there is any waste discharged to anything other than a sump, then a Type A Licence may be required.
In the case of oil and gas production, processing or refining, if there is any deposit of waste at all, a Type A
Licence is required.

Water Licences set the terms and conditions for use of waters, and may include a range of conditions for security
deposits, site preparation (including stream crossings), construction and modifications, operation and maintenance,
spill contingency planning, water quality and quantity measurements, deposit of waste, effluent standards and
studies. Licences also typically include conditions relating to abandonment and restoration of the site. A security
deposit may be required to ensure that the conditions of closure and restoration are fully met. Money from the
security deposit may be used to compensate individuals who suffer damages as a result of the development, should
the Water Licence fail to do so. Enforcement and monitoring of compliance with the conditions of a Water Licence
is the responsibility of Water Resource Officers based in offices throughout the NWT.

Processes for obtaining Water Licences are described on CHART WA for Type A Licences and CHART WB
for Type B Licences.


17.2 Related Legislation
In addition to the NWT Waters Act, a range of other federal Acts and Regulations bear upon quality of inland
waters. In the course of reviewing an application for a Water Licence, the NWT Water Board will request
comment from other departments on implications of the proposed activity on their respective mandates under
legislation. It is important for project planning to take into consideration requirements under a range of Acts and
Regulations, and to have regard to the guidelines available from DIAND.

Table 17-1: LEGISLATION RELATED TO PROTECTION OF INLAND WATERS
           WATER USE                 WASTE DISPOSAL INTO WATER                             ENVIRONMENTAL PROTECTION

   NWT Waters Act                    NWT Waters Act                             Northwest Territories Act
   NWT Waters Regulations            NWT Waters Regulations                     Canadian Environmental Protection Act
   (in NWT part of the ISR)          Fisheries Act                              Environmental Protection Act (NWT)
                                     Fisheries Regulations                      Transportation of Dangerous Goods Act
   Yukon Waters Act                  Canada Water Act                           Spill Contingency Planning and Reporting Regulations
   Yukon Waters Regulations          Navigable Waters Protection Act            Environmental Rights Act (NWT)
   (in Yukon part of ISR)                                                       Pesticides Act (NWT)

                                         GUIDELINES FOR WATER LICENCE APPLICATIONS

   “Is a Water Licence Required?”
   “Guidelines for Tailings Impoundment in the NWT,” February 1987
   “Guidance for Northern Aquatic Effects Monitoring,” Water Resources Division, DIAND, October 1997
   “Guidelines for Contingency Planning,” January 1987
   “Water Licensing in the Northwest Territories: Summary of Procedures and Information Requirements,” January 1996, Revised:
   January 1997
   “QAQC Guidelines for Use by Class A Licensees” (Also available for Class B Licensees)
   “NWT Water Board Questionnaire: Exploration and Development”
   “Guidelines for the Use of Oil-Based Drilling Muds,” Natural Resources Canada (formerly EMR)
   “Guidelines for Canadian Drinking Water Quality,” Health and Welfare Canada
   “Guidelines for Canadian Recreational Water Quality,” Health and Welfare Canada

Note: Guidelines do not have the force of law, however the requirements can be given force if they are attached to Land Use Permits, Leases or
Water Licences issued by the Minister. Contact DIAND Water Resources in Yellowknife directly for the most up-to-date versions.



17-2                                                                                                                               June 2001
Regulatory Agencies and Processes                                       17 – Northwest Territories Water Board




CHART WA – NWT Water Board Application For Type A Water Licence

WA-1 Applicant Prepares Application for Water Licence
       Water licences are obtained by application to the NWT Water Board. For information on requirements:
       Contact:      District Manager, Inuvik District Office, DIAND, Inuvik

       For more technical questions on the requirements:
       Contact:      Water Resources Division, DIAND, Yellowknife

       DFO should be consulted directly in advance of preparing the application to anticipate requirements
       under the Fisheries Act and the “Policy for the Management of Fish Habitat.” Refer to Chapter 18 and
       CHART DFO.

       Contact:   Area Habitat Biologist, Western Arctic Region, DFO, Yellowknife
       Reference: Fisheries Act, Policy for the Management of Fish Habitat

WA-2 Applicant Submits Application to NWT Water Board
       Application for a Water Licence is begun by submitting a Schedule III application form, the application
       fee, the first year’s water use fee, a Project Description, a description of potential environmental concerns
       and impacts, a baseline assessment of the environment and an assessment of socio-economic issues of
       concern.

       In applying for the Water Licence, the Applicant will have to provide detailed plans for each phase of
       development, production and closure. Based on an analysis of these plans, the NWT Water Board will
       set the standards for water uses and discharges, for creation and management of tailings, and set any
       specific requirements for treatment of discharge needed. The Water Licence will also deal with sewage
       management, spills and leakages.

       The application must include a closure plan addressing all site issues related to protection of waters and
       water quality. Before a site can be abandoned, legislation requires the site to be returned to as near the
       original state as is practical, and that measures be taken to protect land, water and watersheds from
       pollution from the site and to secure the site for public safety. In addition to protection of water, the plan
       must also address the security of the site for public safety, steps for removal or management of various
       wastes, tailings management, remediation, stabilization and contouring the reduce erosion, removal of
       stream crossings, removal of contaminated soils, reclamation of site and rights-of-way, revegetation,
       removal of buildings and equipment. These requirements are not set out in specific Regulations, but are
       worked out on a case-by-case basis to deal with the particular conditions of the project and its location.

       If a Company decides to alter its plans, and this change does not fall within the terms of the existing
       licence, the Applicant must apply to the NWT Water Board for an amendment to the licence, using a
       Schedule III Application form.




June 2001                                                                                                        17-3
17 – Northwest Territories Water Board   Regulatory Agencies and Processes




17-4                                                            June 2001
Regulatory Agencies and Processes                                     17 – Northwest Territories Water Board


WA-3 DIAND Water Resources Assesses Adequacy of Information
       DIAND Water Resources first checks the application for completeness. If the application is complete, the
       application is designated as either a Type A or B licence WA-4. The application may be returned to
       Applicant if deficient WA-5.

WA-6 Public Notification
       The NWT Water Board issues public notice that an application has been received and gives the date and
       location of a public hearing. Notification is placed in the Canada Gazette.

WA-7 Application Referred to Technical Advisory Committee (TAC)
       The Water Resource Division, on behalf of the NWT Water Board refers the application for review by
       the Technical Advisory Committee (TAC), a committee composed of scientific authorities from various
       government agencies, industry, and representatives from special interest groups. TAC is chaired by the
       Manager, Water Resources DIAND (Yellowknife). The Manager and staff review the technical aspects
       of licences and coordinate TAC review and input. The Applicant may be invited to make a presentation
       to TAC and to answer questions.

WA-8 IFA Environmental Impact Screening and Review Process (EISRP) Requirements
     Must Be Met
       Before the NWT Water Board can issue a Type A or B Water Licence, the requirements of the IFA
       Environmental Screening and Review Process must first be met. Typically, the decision of the EISC will
       be taken into accound in the CEAA determination and the Water Board’s deliberations. For a general
       description of the process, refer to Chapter 4 and the steps on CHART EISC and EIRB. For
       authoritative information on requirements, contact:

       Contact:   Secretary, Environmental Impact Screening Committee, Inuvik
       Reference: EISC Operating Guidelines and Procedures
                  Section 11, Inuvialuit Final Agreement

WA-9 EA Requirements Under CEAA Must be Met
       Licensing under the NWT Waters Act is listed under the Inclusion List Regulations (s. 69, Part X) to the
       Canadian Environmental Assessment Act, and so is subject to the Environmental Assessment
       requirements under CEAA. In the case of Type A licences, the Responsible Authority is DIAND, and
       in the case of Type B licences, the Responsible Authority is the NWT Water Board itself. In either case
       the application is referred to DIAND Water Resources to meet the EA requirements.

       Contact:   Water Resources, DIAND Yellowknife
       Contact:   Canadian Environmental Assessment Agency, Western Region, Vancouver
       Reference: Canadian Environmental Assessment Act

       Typically, there are other triggers as well, entailing requirements for other RAs.

       In most cases the CEAA requirements will be met with a Screening. Depending on the outcome of initial
       Screening or Comprehensive Study, a project could be referred to further Review under CEAA, either by
       Panel or Mediator but typically by Panel.




June 2001                                                                                                 17-5
17 – Northwest Territories Water Board                                    Regulatory Agencies and Processes


       For specifics on the CEAA process, refer to Chapter 13 and CHART CEAA.

WA-10 Final CEAA Determination
       The ultimate outcome of the CEAA Environmental Assessment process is a decision on whether federal
       authorities may take action to enable the project to proceed. Legislation allows for some coordination
       betweeen CEAA and IFA processes, however if no formal substitution or coordination occurs the results
       of the EISC Screening and the EIRB Review (if undertaken) can be considered in the CEAA
       determinations (Chapter 27).

       In the case of a project that has been subject to Panel Review or Comprehensive Study, the decision is
       taken by the Minister (DIAND). If the environmental effects of the project are considered Not
       Justifiable, no further action may be taken, WA-11, otherwise, the project Proceeds To The NWT
       Water Board Regulatory Process WA-12.

WA-13 NWT Water Board Public Hearing
       A public hearing is required for Type A Licences. The Board posts notice of a hearing for Type A
       Licences, but if no interventions are received by a date ten working days prior to the public hearing, the
       NWT Water Board may cancel the hearing.

       Under the NWT Waters Act, the NWT Water Board may require security deposits to be posted with
       DIAND. Security deposits can be used to pay for site recovery, and so should be in proportion to the
       estimated costs of closure, reclamation and ongoing maintenance, and can also be used to compensate
       individuals who suffer losses due to the project, when the Licence fails to do so. The amount of security is
       set by the Water Board based on information submitted in the Review process.

       The NWT Waters Act also prohibits the Board from issuing a Licence unless it is satisfied that adequate
       compensation has been provided to affected parties. To this end, the Water Board may also require the
       conclusion of compensation agreements between the Applicant and other water users.

WA-14 TAC Completes Technical Review and Prepares Draft Type A Licence

WA-15 NWT Water Board Reviews and Amends Draft Type A Licence

WA-16 Draft Licence Reviewed by Applicant and Intervenors
       Draft Type A Licences are distributed to intervenors and the Applicant for comment.

WA-17 Licence Reviewed and Approved by the Minister of DIAND
       The Water Board reviews the comments received, finalizes the licence and refers the Licence to Minister
       of DIAND for approval. The Minister either approves the Licence or Rejects With Reasons WA-
       18.

WA-19 NWT Water Board Issues Type A Licence
       If the Minister of DIAND approves the Licence, the NWT Water Board may issue it. The licence may
       stipulate a security deposit, which must be submitted to and administered by the Office Coordinator of the
       Water Resources Division.



17-6                                                                                                    June 2001
Regulatory Agencies and Processes                                    17 – Northwest Territories Water Board



WA-20DIAND Enforces Type A Licence
       Monitoring of the conditions in Water Licences is the responsibility of DIAND Water Resource Officers.
       Water Resources Division, the Northern Analytical Laboratory, and the NWT Water Board are also
       involved in ensuring that conditions of operations, closure and restoration are met. At the end of the
       project a final inspection is conducted: unless the results are satisfactory, DIAND can retain the financial
       security it set for the project.

       Generally, with prior notification and approval, any Licence, Lease or Permit may be surrendered at any
       time by the holder, although a public hearing may be required. Surrender or abandonment of the
       authorization does not release the holder from any obligations respecting closure and reclamation. The
       NWT Water Board may require a Licence to remain in place after abandonment to address monitoring
       issues.


CHART WB – NWT Water Board Application For Type B Water Licence: For
           Smaller Projects

WB-1 Applicant Prepares Application for Type B Water Licence

WB-2 Applicant Submits Application to NWT Water Board. Refer to WA-2.

WB-3 DIAND Water Resources Assesses Adequacy of Information
       DIAND Water Resources checks the application for completeness. If the application is complete, the
       application is designated as either a Type A or B licence WB-4. The application may be returned to
       Applicant if it is found to be deficient WB-5.

WB-6 Public Notification
       For Type B Licences, the NWT Water Board places an advertisement in local newspaper(s) to notify the
       public of the application.

WB-7 Application Referred to Technical Advisory Committee (TAC)
       The Water Resources Division on behalf of the NWT Water Board, refers the application for review by
       the TAC. TAC reviews and provides comment on the application to DIAND Water Resources for the
       EA and for the later regulatory process. (Refer to text under WA-7 for information on TAC.)

WB-8 IFA Environmental Screening and Review Process Requirements Must Be Met
       Before the NWT Water Board can issue a Type A or B Water Licence, the requirements of the IFA
       Environmental Screening and Review Process must first be met. For a general description of the process,
       refer to Chapter 4 and the steps on CHART EISC and EIRB. For authoritative information on
       requirements, contact:
       Contact:   Secretary, Environmental Impact Screening Committee, Inuvik
       Reference: EISC Operating Guidelines and Procedures
                  Section 11, Inuvialuit Final Agreement


June 2001                                                                                                    17-7
17 – Northwest Territories Water Board   Regulatory Agencies and Processes




17-8                                                            June 2001
Regulatory Agencies and Processes                                  17 – Northwest Territories Water Board




WB-9 CEAA Requirements Must be Met
       Licensing under the NWT Waters Act is listed under the Inclusion List Regulations (s.69, Part X) to
       the Canadian Environmental Assessment Act, and so is subject to the Environmental Assessment
       requirements under CEAA. In the case of Type A licences, the Responsible Authority is DIAND, and
       in the case of Type B licences, the Responsible Authority is the NWT Water Board itself. In either case
       the application is referred to DIAND Water Resources to meet the EA requirements.
       Contact:   Water Resources, DIAND Yellowknife
       Contact:   Canadian Environmental Assessment Agency, Western Region, Vancouver
       Reference: Canadian Environmental Assessment Act

       In most cases, CEAA requirements for a project requiring a Type B Water Licence will be met with a
       Screening. Depending on the outcome of initial Screening or Comprehensive Study, a project could be
       referred to further Review under CEAA, either by Panel or Mediator but typically by Panel.

       For specifics on the CEAA process, refer to Chapter 13 and CHART CEAA.

WB-10Decision Based on Environmental Assessment (EA) under CEAA
       The ultimate outcome of the CEAA Environmental Assessment process is a decision on whether federal
       authorities may take action to enable the project to proceed. Legislation allows for some coordination
       betweeen CEAA and IFA processes, however if no formal substitution or coordination occurs the results
       of the EISC Screening and the EIRB Review (if undertaken) can be taken into account in the CEAA
       determinations.

       The RA in the case of a Type B Water Licence is the NWT Water Board itself, and it is the Board that
       makes the decision, both for Screening, and if further Review should be required under CEAA.

       If the environmental effects of the Project Are Considered Not Justifiable, no further action may be
       taken WB-11.

WB-12 Proceed to NWT Water Board Regulatory Process
       In reviewing a Type B Licence Application, the NWT Water Board can, but does not normally, hold
       public hearings.

WB-13TAC Reviews and Comments on Application

WB-14 Water Resources Drafts B Licence for NWT Water Board

WB-15NWT Water Board Reviews, Amends, Approves, Signs CEAA Decision and Licence
       In the case of Type B licences, the Board reviews and may revise the draft licence prepared by TAC, and
       then approves or rejects it. The Water Board Chairman usually signs a Type B Licence, but if a public
       hearing is held for a Type B Licence, the Minister must approve it.




June 2001                                                                                                17-9
17 – Northwest Territories Water Board       Regulatory Agencies and Processes


WB-16NWT Water Board Issues Type B Licence

WB-17DIAND Enforces Type B Licence




17-10                                                               June 2001
Regulatory Agencies and Processes                                     18 – Department of Fisheries and Oceans




18.0 DEPARTMENT OF FISHERIES AND OCEANS

The federal department of Fisheries and Oceans Canada (DFO) has two chief responsibilities that bear on oil and
gas activities: the responsibility for fish and fish habitat administered and regulated by Fish Habitat Management
(DFO-FHM) and responsibility for navigable waters, administered by the Canadian Coast Guard (DFO-CCG).
The principal Acts and Regulations in which DFO has a role are listed on TABLE 18-1.

DFO also participates in an advisory capacity in the administration of the Arctic Waters Pollution Prevention Act,
working with DIAND and other departments in the review of activities with potential impacts on marine waters
and in development of recommendations for conditions to be attached to authorizations. Through its responsibility
for aquatic habitat, DFO shares a common interest with the NWT Water Board, and DFO-FHM provides one
member to the Technical Advisory Committee to the Board. An interest in water quality is also shared with the
Environmental Protection Service of Environment Canada, which is responsible for compliance with the Canadian
Environmental Protection Act (CEPA) and participates in the administration of section 36 of the Fisheries Act.
Refer to Chapter 19. CEPA provides authority to protect the environment and human health by controlling the
release, disposal and transportation of toxic waste.

In the ISR, DFO consults and works closely with the Fisheries Joint Management Committee (FJMC), the co-
management committee established pursuant to the IFA. For instance, DFO consults closely with FJMC with
respect to the Oceans Act, which provides for the establishment of Marine Protected Areas.


18.1 Fisheries Act
DFO is responsible for the administration and enforcement of the Fisheries Act, the intent of which is the
protection of fish, shellfish, crustaceans, marine mammals and their habitats, through the administration, regulation
and enforcement of the provisions of the Fisheries Act. Canadian fisheries waters in the context of the Act include
all waters in the fishing zones of Canada, all waters in Canada’s territorial sea and all inland waters of Canada.

Anyone planning to conduct work in or near water, bears responsibilities under the Act for the conservation and
protection of fish and fish habitat. A Proponent may also be required (upon request of the Minister) to provide
DFO with detailed information so that DFO can determine the potential impact of the project on fish and fish
habitat. DFO must assess whether there will be any destruction of fish, or alteration/disruption/destruction of fish
habitat, or a deposit of a deleterious substance into fisheries waters.

The detail of the information required will depend on the scope and invasiveness of the proposed activity, but
would generally include:
    project plans, specifications, studies, procedures, samples, and other information related to water, place or fish
    habitat;
    evidence that mitigation and/or compensation measures proposed to alleviate potential impacts and/or
    compensate for any loss in the capacity of habitat will be effective, their effectiveness monitored and that any
    deficiencies will be corrected; and
    if sufficient information on fish and fish habitat is not already available for targeted areas, studies conducted by
    the Proponent as required to obtain it.

Discussed below are two authorizations under the Fisheries Act: Authorization under subsection 35(2) (which
authorizes residual Habitat Alteration Disruption or Destruction (HADD))of fish habitat, and Authorization


June 2001                                                                                                          18-1
18 – Department of Fisheries and Oceans                                              Regulatory Agencies and Processes


under section 32 (which authorizes destruction of fish by means other than fishing). The Act imposes other
responsibilities on Proponents in relation to fish-ways, obstruction of fish channels and waterways (s. 20),
alteration of flow, need for Screening on water intakes (s. 30), and deposit of deleterious substances (s. 36). When
DFO first reviews a project proposal it assesses requirements under all the provisions of the Act.

It is important for a Proponent to consult with DFO as early as possible to ensure that planning anticipates the full
range of requirements and to appreciate the timeframes involved. Time frames for issuance of authorizations or
letters of advice can vary greatly, depending on the type and complexity of the project proposed, the fish and
habitat issues involved, and whether or not a CEAA Environmental Assessment is required.

Note that application for authorizations under the Fisheries Act is in a sense voluntary. Proponents are not
prohibited from going ahead with their activities without authorization. But if as a result of activities, fish are
destroyed and/or there is a HADD of fish habitat, contravention of the Fisheries Act could occur and the
Proponent would be liable to prosecution. The Fisheries Act provides the authority to require alteration of a
Company’s plans, termination of existing operations, imposition of fines or imprisonment.

TABLE 18-1 lists policies and guidelines for interpreting the requirements under the Act.

TABLE 18-1: DEPARTMENT OF FISHERIES AND OCEANS LEGISLATION

       ACTS and                POLICY AND GUIDELINES                          AUTHORIZATION                      CONTACT
     REGULATIONS

   Fisheries Act          “Freshwater Intake End-of-Pipe Fish          DFO-FHM may issue Fisheries           DFO-FHM
                          Screen Guidelines,” 1995                     Act Authorization under s. 35(2).     Western Arctic Area
                          “Policy for Management of Fish Habitat”                                            Yellowknife
   Fishery (General)      “Habitat Conservation and Protection         Determines HADD.
   Regulations            Guidelines,” 1998
   NWT Fishery            “Directive on the Issuance of Subsection     DFO-FHM may issue Letter of
   Regulations            35(2) Authorizations” (1995)                 Advice which sets out measures
   Fishways Obstruction   “Guidelines for Attaining No Net Loss”       aimed at ensuring HADD does
   Removal Regulations    (1995)                                       not occur.
                          “Canada’s Fish Habitat Law” (brochure)
                          “Decision Framework for the                  Fishery Officer may authorize
                          Determination and Authorization of           temporary crossing over ice-covered
                          HADD of Fish Habitat,” 1998                  water course.

                          “Guidelines for the Use of Explosives In     DFO-FHM may issue a Blasting
                          or Near Canadian Fisheries Waters,”          Authorization under s. 32.
                          1998 and erratum page dated Dec. 6,
                          2000

                          DFO and Environment Canada share             EC may issue Fisheries Act            Environmental
                          responsibility for water quality under the   Authorization under s. 36(3) and      Protection Service,
                          Fisheries Act                                (4), for deposit of certain           Environment
                                                                       substances into water.                Canada, Yellowknife




18-2                                                                                                                  June 2001
Regulatory Agencies and Processes                                       18 – Department of Fisheries and Oceans



       ACTS and                POLICY AND GUIDELINES                     AUTHORIZATION                      CONTACT
     REGULATIONS

   Navigable Waters       “Navigable Waters Protection            DFO-CCG may issue a NWPA              Central and Arctic
   Protection Act         Application Guide”                      Permit.                               Region
   Navigable Waters                                                                                     DFO-CCG
   Works Regulations                                                                                    Sarnia
   Navigable Waters                                                                                     Navigable Waters
   Bridge Regulations                                                                                   Protection Marine
   Ferry Cable                                                                                          Programs,
   Regulations                                                                                          Edmonton

   Arctic Waters          Arctic Waters Pollution Prevention      DFO works in advisory capacity.       DFO-FHM
   Pollution Prevention   Regulations                                                                   Yellowknife
   Act                    Arctic Shipping Pollution Prevention                                          and
                          Regulations                                                                   DFO-CCG
                          Pollutant Substances Regulations                                              Sarnia

   NWT Waters Act         As listed on TABLE 17-1.                DFO works in advisory capacity.       DFO-FHM and
                                                                  Provides one member to TAC.           NWT Water Board

   Oceans Act             “Marine Protected Areas Policy,” 1999   DFO works with FJMC re:               DFO-Oceans
                                                                  Marine Protected Areas                Yellowknife
                                                                                                        and Winnipeg

   Canadian               Inclusion List Regulations              Environmental Assessment              DFO as an RA
   Environmental          Exclusion List Regulations              requirements under CEAA. A            under CEAA
   Assessment Act         Law List Regulations                    decision to issue an Authorization
                          Comprehensive Study Regulations         under s. 32 or s. 35(2) triggers an
                          Federal Coordination Regulations        EA under CEAA.
                          “DFO CEAA Guidelines”



18.2 Authorization under Fisheries Act Subsection 35(2)
The Fisheries Act contains specific sections designed to protect fish habitat. Fisheries Act subsection 35(1) states
that no person shall carry on any work or undertaking that results in the harmful alteration, disruption or
destruction of fish habitat. However, where a HADD cannot be avoided or mitigated, Fisheries Act subsection
35(2) allows for the authorization of the means and conditions for allowing development projects to take place
(pursuant to the Fishery (General) Regulations subsection 58(2)). Authorizations are generally subject to stringent
conditions. DFO administers the “Policy for the Management of Fish Habitat,” the objective of which is to
achieve a net gain of fish habitat using the guiding principle of No Net Loss (NNL) of habitat.

If DFO determines that implementation of mitigation is expected to prevent or avoid HADD, it may provide to
the Proponent a Letter of Advice to the effect that if such measures are used, section 35 is not expected to be
contravened. A Letter of Advice should not be taken to imply authorization of the project under the Fisheries Act
or other legislation. If HADD occurs as a result of a change in plans for the proposed project or failure to
implement the measures identified in the Letter of Advice, contravention of the Act could occur and the Proponent
would be liable to prosecution under the Act.

If instead DFO determines that HADD is likely and cannot be fully mitigated, then authorization is required
under subsection 35(2) of the Fisheries Act. DFO then assesses whether, given mitigation and habitat
compensation specified in the application, the HADD is acceptable, and if that is the case may issue an
authorization.


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18 – Department of Fisheries and Oceans                                    Regulatory Agencies and Processes



The “Guiding Principle of No Net Loss” requires DFO to consider a hierarchy of options to protect habitat from
adverse effects, in the following order:
    relocation, or physically moving a project or part of it to eliminate adverse impacts;
    redesign of the project so that it no longer has negative impacts on fish habitat;
    mitigation of impacts where relocation and redesign are not possible.

In practice all three are frequently used to reduce or avoid HADD. In some cases however, habitat loss is
unavoidable. Though it is DFO’s least preferred option, losses in habitat productive capacity may be dealt with
through a fourth option, compensation of fish habitat on a case-by-case basis, if the DFO manager concludes
that the compensation proposed is acceptable and feasible. For example, if petroleum exploration, production or
transmission involves the damage to or loss of fish habitat, the Applicant may be required to compensate, preferably
with the creation or enhancement of other fish habitat or productive capacity. The instrument used for habitat
compensation is a Habitat Compensation Agreement with the Developer and is usually incorporated as a condition
in the subsection 35(2) authorization.

CHART DFO describes the steps taken by DFO in the review of applications for authorizations under Fisheries
Act subsection 35(2). Concurrently, DFO will also assess requirements for other authorizations, for example under
section 32 for the use of explosives.


18.3 Authorizations under Fisheries Act Section 32 (For Destruction of Fish
     by Any Means Other Than Fishing)
The detonation of explosives in or adjacent to fish habitat has been demonstrated to cause disturbance, injury or
death to fish and marine mammals, and the harmful alteration, disruption or destruction of habitat (HADD),
sometimes at a considerable distance from the point of detonation. Proponents planning to use an explosive that is
likely to destroy fish and/or cause a HADD of fish habitat are subject to legal obligations under the Fisheries Act.

Proponents should contact the DFO office in Yellowknife as early as possible in the planning process to determine
whether the proposed use of explosive is likely to require an authorization pursuant to Fisheries Act section 32
and/or subsection 35(2). A Proponent may require both a section 32 and a subsection 35(2) authorization.

An important reference is the DFO document “Guidelines for the Use Of Explosives In or Near Canadian
Fisheries Waters,” which offers advice on requirements and means for protection of fish and fish habitat from the
use of confined or unconfined explosives. Proponents unable to meet the guideline requirements should complete
and submit an application for authorization under section 32 of the Fisheries Act (To Destroy Fish by Any Means
Other Than Fishing).

DFO reviews an application first for adequacy of information provided; next, for the extent of risk or potential
damage to fish and or fish habitat, and the acceptability of that risk; next, the probable success of proposed
mitigation and/or compensation and the acceptability of impacts. Included in the review will be consideration of
whether the use of explosives is the only technically feasible means by which to attain the desired objective.

If DFO determines that implementation of the mitigation measures is expected to prevent or avoid destruction of
fish, it may provide to the Proponent a Letter of Advice to the effect that if such measures are used, section 32 is
not expected to be contravened. A Letter of Advice should not be taken to imply authorization of the project under
the Fisheries Act or other legislation. Note if destruction of fish occurs as a result of change in plans for the



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Regulatory Agencies and Processes                                     18 – Department of Fisheries and Oceans


proposed project or failure to implement the measures identified in the Letter of Advice, contravention of section
32 could occur and the Proponent would be liable to prosecution under the Act.

If instead DFO determines that even with mitigation, destruction of fish is still expected to occur, but that this
mortality is acceptable within the context of the fisheries resource, DFO will issue a section 32 authorization.

Or, if fish destruction is expected and the fish mortality is not considered acceptable, DFO may decide that it
cannot issue a section 32 authorization. As in the process described on CHART DFO, the Applicant may either
redesign the project and resubmit or may seek appeal under the Fisheries Act.


18.4 Navigable Waters Protection Act
Where developments obstruct navigable waters, authorization is required under the Navigable Waters Protection
Act. The purpose of this Act is to protect the public right of navigation by prohibiting the building or placement of
any work in, upon, over, through or across navigable waters without Ministerial approval. The determination of
whether or not a waterway is considered “navigable” rests solely with the Minister or the Minister’s designated
representative. (The interpretation of what constitutes a “navigable water” is very broad.)

Regulations pursuant to this Act require the removal of all equipment at the completion of the work, and of any
debris on the water surface or bed. In addition, all works must be provided with lights and a reliable sound signal.

Coast Guard should be contacted as part of pre-application consultations, to discuss whether an authorization will
be required under the NWPA. CCG can also advise on the navigability of a watercourse or water body.
         Contact:   Inspector Supervisor, Central and Arctic Region
                    Coast Guard, Department of Fisheries and Oceans, Sarnia
         Reference: Navigable Waters Protection Act,
                    Navigable Waters Works Regulations, “Navigable Waters Protection Application Guide”

If a permit is indeed required, the Proponent may submit a letter to the Coast Guard requesting approval for the
proposed work under the Act.

Requirement for a Permit under the NWPA constitutes a trigger under the Canadian Environmental Assessment
Act. DFO-CCG is the Responsible Authority and must ensure that Environmental Assessment (EA)
requirements are met. The process for review of an application under the NWPA involves a public advertisement
and review period, and therefore is usually done concurrently with the Screening process. It is important to contact
the Coast Guard early in the planning process, to ensure sufficient lead time for the assessment and approval
process.

Furthermore, if a NWPA Permit is required, the requirements of IFA section 11 for Environmental Impact
Screening and Review must be met before an authorization may be issued by DFO that would allow the activity to
proceed.

Sometimes, a project requiring a permit under the NWPA also requires authorizations under the Fisheries Act.
DFO-FHM will coordinate DFO’s handling of the application, and would copy the project proposal or
application for a Fisheries Act Authorization to Coast Guard if they had not already received it. Coast Guard will
contact the Applicant regarding requirements under the NWPA .




June 2001                                                                                                            18-5
18 – Department of Fisheries and Oceans                                   Regulatory Agencies and Processes


CHART DFO – Authorizations Under the Fisheries Act
CHART DFO illustrates the process for obtaining regulatory approvals required by Fisheries and Oceans
Canada (DFO) under the Fisheries Act.

F-1     Company Prepares Application
        The Company (Applicant) should first contact the area office of DFO in Yellowknife for information
        requirements and detail on procedures for making application. Application for authorization pursuant to
        subsection 35(2) of the Fisheries Act is required in the form set out in Schedule VI to the Fishery
        (General) Regulations.

        The Applicant should consult with the Fisheries Joint Management Committee (FJMC) regarding
        concerns in the area that may be accommodated in the design of the activity, and with the NWT Water
        Board regarding requirements that may affect the application.

        Coast Guard (DFO-CCG) should also be included in pre-application consultations by the Applicant to
        determine the need for a NWPA permit or the navigability of a watercourse or water body. If a NWPA
        permit will be required, significant time may be involved in the approval process.

F-2     Company Submits Application to DFO-FHM
        DFO-FHM will screen applications for the need for an authorization under the Fisheries Act, and Copy
        the Application to DFO-CCG for Review F-3 in relation to the Navigable Waters Protection Act,
        where CCG has not already received the application.

F-4     DFO Determines Whether Application is Complete
        DFO screens an application to determine if there is sufficient information to allow for the assessment of
        impacts. To do this, DFO staff require information related to the use and effect on water resources, fish
        and fish habitat, and navigable waters. If the information is incomplete, DFO will advise the Applicant
        and Will Request Further Information F-5.

F-6     Can HADD be Avoided by Mitigation?
        When DFO-FHM receives an application for a development, it is reviewed for potential impacts on fish
        and fish habitat. DFO-FHM must determine if there is potential for HADD under section 35(1) of the
        Fisheries Act, and whether the HADD may or may not be mitigated.

        To enable DFO to make this determination, the Applicant must provide information on the existing
        aquatic environment, potential impacts of the activities and proposed mitigation. For information on
        recommended design and mitigation, the Applicant should refer to DFO Guidelines, as listed on
        TABLE 18-1.




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Regulatory Agencies and Processes   18 – Department of Fisheries and Oceans




June 2001                                                             18-7
18 – Department of Fisheries and Oceans                                  Regulatory Agencies and Processes


F-7    DFO Issues Letter of Advice
       If DFO-FHM concludes that potential impacts can be mitigated or avoided or are insignificant, DFO
       issues a Letter of Advice. The purpose of the Letter of Advice is to concur with proposed mitigative
       measures within the application or to suggest further mitigative measures. There is no further need for a
       Fisheries Act Authorization.

       Within the approval process, DFO-FHM may foresee that potential problems could occur once
       operations begin on the ground. For example, until camps are established, actual conditions for a water
       source may be unknown. In such a case, the water source may be subject to further review. The Letter of
       Advice flags these future operational concerns for the Applicant.

       Such advice does not constitute an authorization, however Applicants will have some protection against
       enforcement action where due diligence has been applied in implementing the written advice. Note that if
       a HADD of fish habitat occurs as a result of a change in the plans for the proposed project, or failure to
       implement the measures identified in the Letter of Advice, contravention of section 35(1) of the Fisheries
       Act could occur.

       Secondly, a Letter of Advice provides expert advice from DFO for purposes of Screening by the EISC or
       by other Responsible Authorities, such as the NEB or DIAND.

F-8    Can HADD Be Avoided Through Redesign or Relocation?
       If DFO-FHM concludes that HADD is likely, but that it could be avoided through redesign and/or
       relocation, DFO-FHM can instruct the Applicant to redesign and/or relocate the project and re-submit
       the application, F-9.

F-10   Is HADD Acceptable?
       If DFO determines that the harmful alteration, disruption or destruction of fish habitat (HADD) is likely
       and cannot be fully mitigated, then an Authorization is Required Under Subsection 35(2) of
       the Fisheries Act F-11. A Fisheries Act Authorization will list conditions of operations and will require
       compensation of lost or altered habitat.

F-12   For Section 35 Applications, DFO May Consider Compensation
       Where DFO-FHM determines that there will be a HADD, it will also examine whether a HADD is
       acceptable given the mitigation and habitat compensation specified in the application. The determination
       may be based on habitat and fisheries resource values specific to the region or water body. A
       determination is also made on whether the HADD can be compensated.

       Even though an Applicant may be willing to undertake compensation, DFO views compensation as the
       least preferred approach. The preferred approach is to mitigate fully impacts to such an extent that a
       HADD is not likely to result.

F-13   DFO Rejects Application: Company May Re-file or Appeal
       If the decision of DFO-FHM is that even with the implementation of mitigation and the proposed
       compensation, the likely HADD is unacceptable (that is, DFO is not prepared to issue a Fisheries Act
       Authorization, for example because of likely impacts to sensitive, rare or critical habitat) DFO would
       reject the application. DFO would then notify the Applicant that DFO will not issue a subsection 35(2)


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Regulatory Agencies and Processes                                  18 – Department of Fisheries and Oceans


       Authorization and that a violation of the Act could occur should the Applicant choose to proceed as
       proposed.

       At this point, the Applicant still has the option at this point to redesign the program and resubmit the
       application. As well, the Fisheries Act provides for an opportunity to appeal the decision to the Minister.

F-14   Requirements for EA Under CEAA Must be Met
       Authorizations under the Fisheries Act and NWPA Permits are on the Law List of CEAA.
       Consequently DFO as a Responsible Authority (RA) under CEAA must ensure that the requirements of
       that Act are met before issuing authorizations. In the case of oil and gas activities authorized under
       COGOA or the NEB Act, the lead RA would typically be the National Energy Board and DFO would
       coordinate, pursuant to the Federal Coordination Regulations, with the NEB and other RAs.

       Where a Fisheries Act Authorization or NWPA Permit is not required, DFO is a Federal Authority
       providing specialist advice to the lead RA.

       For specifics on the CEAA process, refer to Chapter 13 and CHART CEAA. In most cases the
       CEAA requirements will be met with a Screening. After a Screening, the RA makes the decision whether
       the project should or should not proceed through the regulatory process, or if it should be referred for
       further Review.

       DFO as RA may recommend that the proposal go to further Review, if it concludes that a determination
       cannot be made, or that the potential impacts are not known. This approach may also be taken where the
       Proponent appeals DFO’s decision to Reject the Application F-13.

F-15   Requirements Under IFA Section 11 for EISRP Must be Met
       If a Fisheries Act Authorization is required for an oil and gas activity in the ISR, then the requirements of
       IFA section 11 for Environmental Impact Screening and Review must be met before an authorization
       may be issued by DFO that would allow the activity to proceed.

       Upon receipt of an application, DFO will notify the EISC to start the IFA Screening process, if such
       notification has not already been provided by another authorizing agency. Typically, EISC will contact
       DFO to ask whether it has any particular concerns regarding fish or fish habitat, and will take DFO’s
       comments into consideration in the Screening determination.

       For general information on the IFA Environmental Impact Screening and Review Process, refer to
       Chapter 4 and CHARTS EISC and EIRB. For authoritative information on requirements:

       Contact:   Secretary, Environmental Impact Screening Committee
       Reference: IFA Environmental Impact Screening and Review Process




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18 – Department of Fisheries and Oceans                                       Regulatory Agencies and Processes


F-16    Final CEAA Determination
        The ultimate outcome of the CEAA Environmental Assessment process (which may include a stage of
        further Review) is a decision on whether federal authorities may take action to enable the project to
        proceed. Legislation allows for some coordination between CEAA and IFA processes, however if no
        formal substitution or coordination occurs the results of the EISC Screening and the EIRB Review (if
        undertaken) can be taken into account in the CEAA determinations.

        If the project’s environmental effects are considered Not Justifiable F-17 no further action may be
        taken.

F-18    DFO May Proceed with Regulatory Authorizations
        If the decision is that there are no significant aderse environmental effects or that such effects are likely but
        are justifiable, the RA may continue the regulatory process towards issuing permits or authorizations and
        shall ensure that mitigation measures are implemented.

F-19    DFO-FHM Prepares Fisheries Act Authorization and Negotiates Compensation
        Agreement
        DFO-FHM drafts then finalizes a Fisheries Act Authorization under subsection 35(2) using the form
        provided in Schedule VII of the Fishery (General) Regulations with mitigation measures and conditions
        specific to the project. The authorization is signed by the Area Director for the Western Arctic Area in
        Yellowknife. Generally, the authorization includes requirements for follow-up reporting and monitoring.

        To achieve “No Net Loss of Fish Habitat,” DFO may negotiate a Habitat Compensation Agreement
        with the Applicant. Compensation involves replacing damaged habitat with newly created habitat or
        improving the productive capacity of some other natural habitat. The Habitat Compensation Agreement
        normally forms a condition of the Fisheries Act Authorization. DFO may require the posting of a
        performance bond as part of the Agreement.

F-20    DFO-FHM Issues Fisheries Act Authorization With Terms and Conditions

F-21    Activities May Proceed
        Once this and other necessary authorizations are obtained, activities may proceed. Fishery Officers from
        the DFO Area Office will carry out inspections, and work with the Area Habitat Biologist to ensure that
        conditions of the authorization are met.




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Regulatory Agencies and Processes                                                      19 – Environment Canada




19.0 ENVIRONMENT CANADA

The mandate of Environment Canada is defined by the Department of the Environment Act (1970). This Act
establishes Environment Canada as a department of the Federal government and delegates responsibility to the
Minister for:
    preservation and enhancement of the quality of the natural environment, including water, air and soil quality;
    renewable resources, including migratory birds and other non-domestic flora and fauna;
    water;
    meteorology;
    enforcement of Regulations made by the International Joint Commission regarding the management of trans-
    boundary waters between Canada and the U.S.;
    coordination of federal policies and programs as they relate to the preservation and enhancement of the quality
    of the natural environment; and
    advisory role to other departments and agencies on environmental quality issues and the potential
    environmental effects of new development projects.

Environment Canada is also the lead department in promoting various policies and strategies on behalf of the
Government of Canada, among them:
    Sustainable Development Strategy;
    Federal Policy for Pollution Prevention;
    Toxic Substances Management Policy;
    Canada’s National Action Program on Climate Change;
    Canadian Bio-diversity Strategy;
    A Wildlife Policy for Canada;
    Federal Policy on Wetland Conservation; and
    Federal Water Policy.

Environment Canada also performs roles in a number of international agreements, including:
    Kyoto Protocol on Climate Change;
    North American Agreement on Environmental Cooperation (under NAFTA);
    Canada-US Transboundary Air Quality Agreement; and
    United Nations Convention on Priority Organic Pollutants.

Environment Canada’s role in assessment and regulatory processes for oil and gas activities in the ISR, both
onshore and offshore, derive from these mandates and from specific authorities under various statutes, in particular:
    enforcement of the pollution prevention provisions regarding the deposit of deleterious substances into water
    frequented by fish (Fisheries Act);
    protection of migratory birds and migratory bird sanctuaries (Migratory Birds Convention Act) and issuance of
    permits for activities within sanctuaries;
    protection of wildlife (Canada Wildlife Act, and proposed legislation for Species at Risk);
    Responsible Authority or Federal Authority under Canadian Environmental Assessment Act; and
    control of toxic substances pursuant to Canadian Environmental Protection Act, including in the offshore
    authority over issuance of permits for disposal at sea.

These authorities are summarized on TABLE 19-1.



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19 – Environment Canada                                                            Regulatory Agencies and Processes



Table 19-1: ENVIRONMENT CANADA: ACTS AND REGULATIONS

         ACTS and REGULATIONS                               ROLE                           REFERENCE and CONTACT

 Department of the Environment Act (1970)   Defines mandate and responsibilities      For further detail on mandate:
                                                                                      www.ec.gc.ca
                                            EC provides information on weather,
                                            sea-states and ice movement               Meteorological Services of Canada

 Canadian Environmental Protection Act      Management and regulation of toxic        Northern Division, Environmental
 (CEPA)                                     substances                                Protection Branch (EPB)
                                            Requirements for reporting of releases    Yellowknife
                                            (spills)                                  (1) Neil Scott, Head, Enforcement
                                            Enforcement of Act and Regulations             Mark Dahl, Senior Contaminants
                                            (1)                                            Biologist
                                            In offshore, issuance of Disposal At      Note: “User’s Guide to the Application
                                            Sea Permits (2)                                Form for Ocean Disposal” 1995

 Canadian Environmental Assessment Act      Responsible Authority for Disposal at     (1) Paula Pacholek
 (CEAA)                                     Sea Permits (1) and Sanctuary                 Environmental Assessment
                                            Permits (2)                                   Coordinator
                                                                                          Northern Division
                                            As a Federal Authority, providing             Environmental Protection Branch
                                            specialist expert information                 (EPB), Yellowknife

                                                                                      (2) Paul Latour
                                                                                          Habitat Biologist
                                                                                          Environment Conservation Branch
                                                                                          (ECB), Yellowknife

 Fisheries Act, Section 36                  Enforcement of pollution prevention       Neil Scott
                                            provisions                                Head, Enforcement
                                                                                      Northern Division
                                                                                      Environmental Protection Branch (EPB)
                                                                                      Yellowknife

 Migratory Birds Convention Act             Establishment of Migratory Bird           Canadian Wildlife Service
 Migratory Bird Regulations                 Sanctuaries, and issuance of              Environmental Conservation Branch,
                                            Sanctuary Permits                         Yellowknife

 Canada Water Act                           Enables development of national
                                            water quality objectives and guidelines

 Proposed Species at Risk Legislation       Roles of responsible parties to be        Canadian Wildlife Service
 (SARA)                                     determined                                Environmental Conservation Branch,
                                                                                      Yellowknife




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Regulatory Agencies and Processes                                                          19 – Environment Canada


19.1 Responsibilities under the Fisheries Act (1985)
The Environmental Protection Branch administers subsection 36(3) of the Fisheries Act, which prohibits the
deposit of a deleterious substance into waters frequented by fish, on behalf of DFO.

         Contact:      Neil Scott, Head, Enforcement, Northern Division
                       Environmental Protection Branch, Yellowknife


19.2 Migratory Birds Convention Act (MBCA)
The Migratory Birds Convention Act (MBCA) and Migratory Bird Regulations contain provisions that prohibit
the disturbance, destruction or taking of a migratory bird, or its nest, egg, or nest shelter, or the possession of the
above, except under the authority of a permit. The Regulations also prohibit the deposition of oil, oil wastes or
other substances harmful to migratory birds in any waters or any area frequented by migratory birds.

Migratory Bird Sanctuary Regulations govern the establishment and management of migratory bird sanctuaries.
There are five Migratory Bird Sanctuaries in the ISR, listed on TABLE 12-2. Sanctuaries protect migratory
birds and their habitat. Depending on the nature of a proposed activity in a Migratory Bird Sanctuary, an
Operator may require a Sanctuary Permit issued by the Canadian Wildlife Service. Such a permit may impose
restrictions as to the timing of the activity and equipment to be used. The process followed by Environment
Canada in the issuance of Migratory Bird Sanctuary Permits follows a similar sequence to that described on
CHART EC for Disposal at Sea Permits under CEPA.

Application for a Migratory Bird Sanctuary Permit would be screened first by the EISC and could be referred by
EISC for further review by the EIRB or another body. The Canadian Wildlife Service takes the results of these
determinations into consideration when deciding on whether to issue a Sanctuary Permit and, if so, under what
operating conditions. Each application for a Sanctuary Permit is examined on its own merit, depending on the type
of activity, seasonal timing, and potential for damage to birds and their habitat.

Developers should be aware of a risk here: even if initial activities are approved, there are no guarantees that
further work will be permitted. For example, even though an Operator may receive a Sanctuary Permit for a
geophysical survey with limited footprint at the right time of year, he may not be issued a second Sanctuary Permit
to do more intensive work to follow up any finds. Work that would anticipate development activities that are seen as
being incompatible with the values protected by the Sanctuary may not be allowed.

Physical activities referred to in paragraph 3(2)(b) or subsection 10(1) of the Migratory Bird Sanctuary
Regulations that require a permit under subsection 9(1) of those Regulations are noted in part VIII section 49 of
the Inclusion Regulations under CEAA.

The time to process an application and issue a Migratory Bird Sanctuary Permit typically takes 40 days, however
public or environmental concerns that may be raised during the review of the application could increase the time
requirement. If the permit is part of a larger project then the time required for issuance of the permit is controlled by
the Environmental Assessment process under CEAA and by the IFA EISRP. No permit may be issued until a
CEAA determination is reached and agreed upon by RAs.

In addition to Sanctuaries, the CWS has identified Key Habitat Sites for migratory birds, that are areas of
important bird habitat that warrant special care when planning activities in the area. Operators planning activities
in the ISR should contact the CWS for current listing of Key Habitat Sites, and further information on



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19 – Environment Canada                                                      Regulatory Agencies and Processes


recommendations for planning of activities, including minimum flying altitudes over bird nesting, concentration or
migratory staging areas.
         Contact:   Habitat Biologist, NWT
                    Northern Conservation Division, Canadian Wildlife Service, Yellowknife
         Reference: Migratory Birds Convention Act and Migratory Bird Regulations
                    Key Migratory Bird Terrestrial Habitat Sites in the NWT, Occasional Paper 71

Note that Inuvialuit co-management groups have also released directives on overflights, with recommended altitudes
over annual bird congregations and staging areas.
         Contact:   Wildlife Management Advisory Council NWT (WMAC(NWT)), Inuvik
         Reference: Recommended minimum flight altitudes


19.3 Canada Wildlife Act
The Canada Wildlife Act and Wildlife Area Regulations also bear on activities affecting wildlife. This Act provides
for establishment of National Wildlife Areas and measures to be taken to protect any species of wildlife in danger
of extinction. One such measure was the establishment in 1977 of the Committee on the Status of Endangered
Wildlife in Canada (COSEWIC), which is a standing committee responsible for coordinating national wildlife
conservation efforts.

At present, there are no National Wildlife Areas in the ISR. For information on prudent measures that should be
taken in the interests of wildlife protection, contact the CWS.
         Contact:   Habitat Biologist, NWT
                    Northern Conservation Division, Canadian Wildlife Service, Yellowknife
         Reference: Canada Wildlife Act, Proposed legislation on Species at Risk


19.4 Proposed Species at Risk Bill (SARA)
The Minister of Environment recently tabled new Species At Risk legislation, intended to form one of three parts
of a federal strategy to protect wildlife species at risk, in fulfilment of Canada’s obligations under the 1992 United
Nations Convention on Biological Diversity and the 1996 National Accord for Protection of Species at Risk.

It is intended that this new legislation be based upon classifications established by COSEWIC, and its listings of
threatened, endangered, or species of special concern.

Broadly, the intent of the Bill is:
    to prevent Canadian indigenous wildlife species (including birds, plants, fish, reptiles, amphibians, molluscs,
    mammals and insects) and distinct populations of wildlife from becoming extinct or lost from the wild;
    to provide for recovery of endangered or threatened species, through protection of their “residence” and
    “critical habitat;” and
    to encourage the management of other species to prevent them from becoming at risk.

The Bill is the product of extensive stakeholder consultation. It would create various prohibitions and provide for
development of recovery strategies, development of management plans, conservation agreements, issuance of
permits authorizing activity, and for the attachment to permits of terms and conditions to protect listed species or



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Regulatory Agencies and Processes                                                         19 – Environment Canada


critical habitat. The maximum term of permits or licences would be three years: alternatively, an agreement
between the Minister and Developer could stand for five years.

The definition of “environmental effect” under CEAA would be expanded to include effects on listed species,
critical habitat or residence.

At time of writing, there remain several points to be clarified and processes to be worked out. It is not clear for
instance how this new legislation would be implemented, how it would be integrated into Environmental
Assessment processes, nor how it would apply in land claim settlement areas. Implementation would have to be
consistent with land claim settlement legislation, which enjoys constitutionally protected status and a major purpose
of which is wildlife protection.

         Contact:      Kevin McCormick
                       Manager, CWS, Environmental Conservation Branch, West Arctic Region, Yellowknife

Although it is not possible to be specific at the time of writing about the implications of new Species at Risk
legislation for oil and gas activities in the ISR, it is important for Developers to take into account the presence of
species at risk in their planning and operations. For information on whether there are any species identified as
endangered, threatened or vulnerable, and for advice on ways to avoid and protect these species, contact the
Canadian Wildlife Service.

         Contact:   Habitat Biologist, NWT
                    Northern Conservation Division, Canadian Wildlife Service, Yellowknife
         Reference: Canada Wildlife Act, Proposed legislation on Species at Risk


19.5 Responsibilities under Canadian Environmental Assessment Act
Environment Canada is subject to the requirements of CEAA, both as a Responsible Authority for those
authorizations that it issues and to which CEAA applies, and as a source of expert information. As well,
Environment Canada is often called upon as a Federal Authority to provide specialist information in its areas of
expertise, namely: water quality and quantity, air quality, climatology, ice, meteorology, wildlife (endangered and
migratory species); contingency planning and emergencies; toxic chemicals, pollution prevention and control and
environmental engineering.

Related to its role as a Federal Authority for CEAA and in environmental protection, Environment Canada has an
interest in “best practices” for environmental management in resource and industrial activities. Work is underway
(led by the Northern Division) on describing “best practices” for oil and gas activities in northern Canada. When
complete, reference materials will be provided on EC’s web-site.

As noted in Chapter 13, CEAA is currently under review and proposed legislative amendments, if passed, may
result in changes to requirements and processes.




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19 – Environment Canada                                                      Regulatory Agencies and Processes


19.6 Canadian Environmental Protection Act
The Canadian Environmental Protection Act provides authority to protect the environment and human health by
controlling sources of toxic substances entering the environment. The Act provides for:
    management and regulation of toxic substances throughout the “life cycle” of the substance, from the
    development and manufacturing of toxic substances, through to ultimate disposal;
    collection of data, conduct of research, and formulation of objectives, guidelines, and codes of practice to
    protect environmental quality;
    requirements for reporting of release incidents; and
    management and regulation of disposal at sea activities.

Substantial fines can be levied against Operators for violations. The Environmental Protection Branch provides
advice to the NEB and to other departments/agencies on waste discharges from exploration, development and
production activities.

         Contact:      Neil Scott, Head, Enforcement, Northern Division,
                       Environmental Protection Branch, Environment Canada


19.7 Disposal At Sea Permits under CEPA
Certain oil and gas activities in the offshore may require a Disposal at Sea Permit. These permits are issued by the
federal Minister of the Environment through Environment Canada’s Environmental Protection Branch, under
subsection 127(1) of CEPA.

“Disposal” is defined in detail by subsection 122(1) of CEPA. “Disposal” includes deliberate disposal of a
substance at sea or on sea ice from a ship, an aircraft, a platform or another structure, of dredged material, or of a
structure. The definition explicitly excludes direct discharge or storage activities during exploration and
development of offshore sea bed mineral resources (s. 122(1)(j)).

The oil and gas activities most likely to require a Disposal at Sea Permit are those associated with
decommissioning of offshore structures (artificial islands, platforms, underwater well heads, etc.), installation and
decommissioning of pipelines or disposal of dredged materials associated with development. Operators planning
offshore work should contact Environment Canada directly on the requirements and limitations on substances that
may be considered for disposal. A helpful document on application for a Disposal At Sea Permit is available from
EC in Yellowknife. The “User’s Guide to the Application Form for Ocean Disposal,” 1995 is available upon
request.

         Contact:      Mark Dahl, Senior Contaminants Biologist, Northern Division,
                       Environmental Protection Branch, Environment Canada

Steps in the assessment and review process are depicted on CHART EC.

A period of 120 days is generally required for evaluation and assessment of each application for a Disposal at Sea
Permit and to publish the permit in the Canada Gazette, Part I. Issuance of a Disposal at Sea Permit is on the
Inclusion List under CEAA, and therefore both CEAA and IFA requirements must be met. If public or
environmental concerns are flagged in the course of these processes, then the timeframe for issuance of a Permit
may increase.




19-6                                                                                                       June 2001
Regulatory Agencies and Processes                                                    19 – Environment Canada




CHART EC – Disposal At Sea Permit

EC-1 Consultation with Inuvialuit Communities and Organizations
       Obtain Advice from EISC on Project Description and from EC on Requirements
       The authorization process must meet the Environmental Assessment requirements of both CEAA and the
       IFA, i.e. Environmental Assessment under CEAA, and Environmental Screening and possibly Review
       under the IFA.

       Screening under both processes requires the Applicant to consult widely, under the IFA with
       HTCs, communities and co-management bodies as appropriate, and under CEAA with “interested
       parties.”

EC-2 Company Prepares and Submits Project Description to EISC and Application to
     Minister of the Environment
       Operators planning offshore work that may require a Disposal at Sea Permit should contact Environment
       Canada directly regarding requirements and limitations on substances that may be considered for disposal.
       The Environmental Protection Branch (EPB) can also advise on information requirements, application
       and monitoring fees, and on probable lead times for particular applications.

       The Operator must apply to the federal Minister of the Environment for a permit authorizing the loading
       for disposal and disposal of waste or other matter (s. 127(1), CEPA).

       The application for a Permit must:
            be in the prescribed form;
            contain information as required by Schedule 6, CEPA;
            include the prescribed fees (including a $2500 non-refundable application fee); and
            include evidence of publication of the application as required.

       Depending on the nature of the activity, other authorizations may also be required, for instance from DFO
       or Coast Guard. The Operator should confirm the full range of requirements early on so that design and
       scheduling can take them into account from the outset.

       The time required to review an application and issue a Disposal at Sea Permit will vary with the
       complexity of the project and the amount of information provided. There is a period of five weeks
       necessary for Canada Gazette publication and public comment, and more time may be needed for
       Environment Canada to gather information and to consult with other agencies. Operators are advised to
       apply at least three months prior to the desired starting date, and for more complex projects at least six
       months prior.

EC-3 EC Notifies EISC and Other RAs
       The permit application review and review of any request for a permit amendment takes place under
       CEPA, CEAA and the IFA.




June 2001                                                                                                     19-7
19 – Environment Canada   Regulatory Agencies and Processes




19-8                                             June 2001
Regulatory Agencies and Processes                                                       19 – Environment Canada




       The dumping of any substance for which a Permit is required under the Canadian Environmental
       Protection Act is noted in Part VI section 40 of the Inclusion List under CEAA. As a Responsible
       Authority under CEAA, EC consults with other government departments having regulatory roles or
       pertinent expertise. Pursuant to the Federal Coordination Regulations under CEAA, EC will notify other
       Responsible Authorities and the EISC of the receipt of the application.


EC-4 Assessment of Application by EC Pursuant to CEPA
       Before issuing a permit, the Minister will review all factors that he/she considers necessary, including
       public comments. Environment Canada must also meet the requirements of the Canadian Environmental
       Assessment Act.

       Assessment begins with an evaluation of the types, amounts and relative hazard of waste or other matter
       generated, the production process and sources of waste, and feasibility of the waste reduction or
       prevention. In general, if this evaluation reveals that opportunities exist for waste prevention at source, the
       Applicant shall formulate and implement a waste prevention strategy, in collaboration with relevant local
       and national agencies. The waste prevention strategy would include specific waste reduction targets and
       provision for further waste prevention audits to ensure that targets are being met. Permit issuance or
       renewal shall be subject to compliance with this requirement (s. 3, Schedule 6, CEPA).

       Detailed information on the composition, properties, persistence and accumulation characteristics of the
       waste proposed for disposal will be required by EPB to enable it to evaluate whether the waste may be
       disposed of at sea. A National Action List is being developed by EC as a mechanism for Screening
       candidate wastes on the basis of their effects on human health, and on the marine environment. EPB will
       also review features of the disposal site, and environmental, economic, and operational effects of disposal.

       A permit to dispose of waste (or other matter) shall be refused if opportunities exist to re-use, recycle, treat
       or otherwise dispose of the waste without undue risks to human health or the environment or
       disproportionate costs. The practical availability of other means of disposal shall be considered in the light
       of comparative risk assessment (s. 6, Schedule 6, CEPA).

       An analysis of each disposal option shall be considered in light of a comparative assessment of human
       health risks, environmental costs, hazards (including accidents), economics and exclusion of future uses.

EC-5 Requirements Under IFA Section 11 for EISRP Must Be Met
       Under the IFA subsection 11(31), no licence or approval shall be issued that would enable a
       development to proceed before the provisions of IFA Chapter 12, the Environmental Impact Screening
       and Review Process, have been dealt with. Refer to CHARTS EISC and EIRB for steps that must be
       followed to satisfy IFA requirements for environmental impact assessment.

       The outcome of Screening is a determination by the EISC whether in the EISC’s opinion:
            development will have No Significant Negative Impact, may proceed without further review; or
            development has Deficiencies that warrant termination of its consideration and submission of
            another Project Description, in which case the Applicant may choose to alter plans and refile; or
            development could have Significant Negative Impact, and Will be Subject to Further
            Review under the IFA.


June 2001                                                                                                        19-9
19 – Environment Canada                                                    Regulatory Agencies and Processes



        In the case of referral for further assessment, the EISC may refer the project to further Review, typically by
        the EIRB. Refer to CHART EIRB for detailed steps in Review processes. Based on the Review, the
        Review Panel recommends whether a proposed development should proceed, and if so under what terms
        and conditions. This decision is sent to the authority competent to authorize the development, in this case
        EC.

EC-6 Requirements for Environmental Assessment under CEAA Must Be Met
        The type of Environmental Assessment to be conducted under CEAA will vary depending on the nature
        of the disposal. Refer to CHART CEAA in Chapter 13 for steps in the CEAA process.

        Options under CEAA for the decision following a Screening or Comprehensive Study are:
            Project Not Justified; or
            Project Not Likely to Cause Significant Adverse Environmental Effects: Authorization
            Processes May Proceed/Resume; or
            Project Subject to Further Environmental Impact Review.

EC-7 Final EA Determination under CEAA
        If the project is referred for further assessment under CEAA, the Minister of Environment decides
        whether to refer the project on to a Panel Review or Mediation, typically a Panel Review. Once complete,
        the Minister of the RA, in this case Environment Canada, takes into account the report of the panel or
        Mediator, and decides, with the approval of the Governor In Council whether the authorization process
        may proceed or not, and under what terms and conditions. Either:
             The Project Is Not Justified; or
             Authorizations May Proceed/Resume, subject to terms and conditions.

EC-8 Provisional Decision by Minister to Issue/Refuse Permit
        If the Minister’s assessment is that a Disposal at Sea Permit is appropriate given the circumstances and
        information provided, the Minister will issue a provisional Disposal at Sea Permit. This issuance is
        conditional on the results of the 30-day public review of the proposed disposal at sea.

EC-9 Publication of Permit
        Once the decision has been made to issue the Permit, the Minister requires that the particulars of the
        Permit be published in the Canada Gazette for a 30-day public consultation.

EC-10 Final Decision by Minister to Issue/Refuse Permit
        Following the 30-day consultation period, the Minister will make a final decision to grant or to refuse to
        grant (EC-11) the Disposal at Sea Permit.

EC-12 Disposal at Sea Permit Issued with Conditions
        If approved, the Permit will be signed by the Minister. Each Disposal at Sea Permit will be valid for a
        particular date or dates or for a particular period to the maximum of one year. Each Permit will contain
        information on the types and sources of materials to be disposed of, the location and method of disposal
        and monitoring and reporting requirements. The Permit will also contain any conditions the Minister
        considers necessary for the protection of marine life, any legitimate uses of the sea or human life.


19-10                                                                                                    June 2001
Regulatory Agencies and Processes                                                    19 – Environment Canada




EC-13 Monitoring and Reporting Requirements
       Upon issuance of an Disposal at Sea Permit the Applicant will be responsible for short-term monitoring
       as outlined by the Permit.

       If monitoring fees, as stipulated by CEPA, are a requirement of the Permit, Environment Canada will use
       these fees to conduct long term monitoring programs for dredged spoil disposal sites pursuant to “Disposal
       Site Monitoring Guidelines.” The results of the various monitoring programs will be assessed to determine
       whether the disposal sites conform to expected/predicted impacts and will contribute to decisions regarding
       the continuance or modification of the sites. Knowledge gained through these studies will also be used to
       refine the criteria which are used to screen proposals for selecting of future disposal sites.

       There are severe penalties for illegal disposal of substances at sea. These include: up to $300,000 or six
       months imprisonment or both on summary convictions, and up to $1 million or three years imprisonment
       or both on indictment.




June 2001                                                                                                  19-11
19 – Environment Canada   Regulatory Agencies and Processes




19-12                                            June 2001
Regulatory Agencies and Processes                                20 – Government of the Northwest Territories



20.0 GOVERNMENT OF THE NORTHWEST TERRITORIES

The IFA stipulates that laws of general application apply throughout the ISR. In addition to the requirements of
federal law, oil and gas activities in the ISR are also subject to the full range of laws and regulations of the
Government of the Northwest Territories (GNWT).


20.1 Ownership of Non-Renewable Resources
In Canada, the authority to pass laws and regulations in relation to lands and resources is held by the Crown,
specifically by the federal government and, south of 60, by provincial governments. An important difference
between the provinces and the northern territories is that unless a resource-sharing accord has been achieved, as for
example in the Yukon, the federal Crown owns and controls most of the lands and resources, and retains authority
over mineral and oil and gas rights and activities.

Although there have been discussions for many years between the governments of Canada and the Northwest
Territories toward an accord on oil and gas, at time of writing ownership and management of lands and sub-surface
resources in the Northwest Territories remain either with the federal Crown, or in specified areas with
organizations established under land claim settlement legislation.


20.2 Role of the GNWT in Oil and Gas Activities
Although the Government of the Northwest Territories (GNWT) does not at this time issue authorizations for oil and
gas activities or for land and water use, the Government and its component departments participate actively in these
processes. Proposals for resource activities are reviewed in the context of overall government direction, legislative
mandates and policies of the GNWT. Ensuring that development promotes the economic and social well-being of
residents is a policy interest of the GNWT, and is a principal objective of GNWT review of proposals. Concerns
identified are raised in the course of both internal and public review components of federal processes.

It is therefore important for resource Developers planning application for federal resource and land use
authorizations to consult with the departments of the GNWT to ensure that its legal and policy interests are taken
into account in the design of the project proposal. For instance, the GNWT mandate for management of wildlife
and certain aspects of transportation such as ice roads can have serious implementations for timing and logistics of
proposed operations.

As important as this indirect role, are the direct authorities of the GNWT in legislative matters that have been
devolved from the federal government. Authorizations are required for a range of activities that are intrinsic to
resource activities, for example business registration, research, payment of payroll tax and workers compensation
dues, and timber cutting. The GNWT also administers territorial legislation that parallels or complements federal
legislation, for instance in environmental and safety matters. These functions and policy mandates are described in
the following section under departmental headings. NWT legislation is summarized on TABLE 20-1.

The GNWT has in addition a specific role in relation to activities undertaken in the ISR. The GNWT is a
signatory to the Inuvialuit Final Agreement. This binds the GNWT to ensure that the stipulations of the IFA are
met before it issues authorizations that would allow developments to proceed. Therefore, while authorizations
issued by the GNWT are not subject to CEAA, they are subject to Screening by the EISC and to Review by the
EIRB if that is required.



June 2001                                                                                                        20-1
20 – Government of the Northwest Territories                                Regulatory Agencies and Processes


The terms of the IFA also require the participation of the GNWT in the appointments for co-management
institutions, in particular the EISC, EIRB, FJMC, and WMAC (NWT). The GNWT members appointed to
co-management institutions serve as individuals not as representatives of the GNWT interest.


20.3 Departmental Responsibilities Related to Oil and Gas
The Aurora Research Institute administers the Scientists Act and Scientists Act Administration Regulations
(Western NWT) and so has authority for issuance of Scientific Research Permits.

A Scientific Research Permit is required for any environmental or other scientific research (except for wildlife or
archaeological research) that may be conducted in relation to the oil and gas activities proposed. Permits require
that plain-language reports on research results be submitted upon completion of the research work. The purpose of
the requirements is to ensure that communities are aware of the research projects taking place, and will have access
to the results of that research.
         Contact:     Science Licensing Officer, Aurora Research Institute, Inuvik

The Department of Education, Culture and Employment provides support systems to people to aid them
in pursuing education, training and employment opportunities. In addition, the department analyzes labour force
development and implements responsive strategies to achieve meaningful employment for northerners.

The Department of Finance administers legislation on the NWT payroll tax, which must be paid by employers
of workers in the NWT. The Department of Finance also administers the Income Tax Act: every corporation
maintaining a permanent establishment in the NWT at any time during the year is required to pay corporate
income tax to the Government of the NWT. The base tax rate is 14% of taxable income earned in the NWT.

The Department of Health and Social Services ensures eligible residents have access to health, social
programs and services, and assists people affected by family violence, addictions and other health and social
problems. In addition, it is responsible for monitoring and evaluating people’s physical well-being, ensuring people
are protected from environmental hazards and providing facilities for both health and social programs and services.
In particular, the Department regulates health at camp facilities under the Camp Sanitation Regulations, and
Health Inspectors are authorized to enter camp premises, conduct inspections, and order any deficiencies to be
rectified.

The Department of Justice administers legislation on business registration, certain labour matters, and
securities. In order to conduct business in the NWT, and in order to apply to the ILA for rights, a corporation
must register under the Business Corporations Act (NWT) within 30 days of starting work in the territory.
         Contact:     Registrar of Corporations, Legal Registries
                      Department of Justice, Government of the NWT, Yellowknife

The Department of Municipal and Community Affairs (MACA) administers the Commissioner’s Lands
Act and Regulations. It is responsible for the development and maintenance of community government, ongoing
funding to help communities plan, construct and deliver a range of services, and infrastructure including land
development, sewer and water systems, land fills and public buildings. Oil and gas activities involving the use of
Commissioner’s Lands are reviewed by MACA and subject to such review, MACA may issue instruments such as
Land Lease or Land Use Permits. For more information refer to Chapter 9 of this Guide.




20-2                                                                                                     June 2001
Regulatory Agencies and Processes                               20 – Government of the Northwest Territories


NWT Workers Compensation Board is responsible for the administration of the NWT Workers Compensation Act
(NWT). All employers operating in the NWT must register within ten days of commencing business operations.
Employers are required to pay assessments based on estimated payrolls for all employees in the NWT.
     Contact:         Assistant Director, Revenue, NWT Workers Compensation Board, Yellowknife

 The WCB is also responsible for issuing Explosives Permits, which are required for any use of explosives other
than on a mine site.

The Prince of Wales Northern Heritage Centre is formally within the Department of Education, Culture
and Employment, and has roles in the implementation of both territorial and federal legislation for the protection of
heritage resources. In respect of this legislation, the PWNHC provides advice to regulatory bodies, land claim
authorities, industry and public on management and protection of archaeological sites and Archeologist Permits
(Heritage Resources Act (NWT). Refer also to s. 11.1.5 regarding requirements that Operators must meet.
    Contact:      Territorial Archaeologist, Prince of Wales Northern Heritage Centre

The Department of Resources, Wildlife and Economic Development’s mandate is to promote economic
self-sufficiency and growth through the sustainable development of natural resources and to enhance the creation of
new sustainable opportunities in the traditional and wage economies. In particular RWED is responsible for the
management of wildlife, environmental protection, and for issues of non-renewable resource investment and
development.

    Pursuant to the Wildlife Act, RWED manages wildlife populations in their habitats for the purpose of
    sustaining them for human use and/or enjoyment in perpetuity.

    Contact:      Supervisor, Wildlife Management Division, RWED, Inuvik

    RWED is consulting with Inuvialuit organizations and with other claim institutions on the creation of a new
    NWT Wildlife Act that incorporates land claim agreements and Species at Risk legislation.

    RWED is also working on draft wildlife co-management plans, for populations in the ISR. In particular, work
    is continuing on the draft Joint Co-management Plan for the Cape Bathurst-Bluenose-Bluenose-West Caribou
    Herd, and a draft Joint Co-management Plan for Fur Bearing Mammals.

    Contact: Supervisor, Wildlife Management Division, RWED, Inuvik

    All Operators and sub-contractors are encouraged to contact Fish and Wildlife for the Inuvik Region before
    starting any field work. The Manager can advise on appropriate defence and protection measures for any
    wildlife encounters.

    Contact: Manager, Fish and Wildlife, RWED, Inuvik Region

    Under the Wildlife Act (NWT), RWED is responsible for issuing Wildlife Research Permits. A Wildlife
    Research Permit is required to conduct any research on wildlife or related to wildlife (for example, habitat) in
    the NWT. The purpose of this requirement is to ensure that communities and government know what is
    happening on the land and that the knowledge gained from research is disseminated. Because the review
    process involves consultation with a range of interests, it is important for an Applicant to apply early and to
    complete consultation in time to incorporate the feedback of communities into the application.

    Contact: Director, Wildlife and Fisheries, RWED, Yellowknife


June 2001                                                                                                       20-3
20 – Government of the Northwest Territories                               Regulatory Agencies and Processes


   Pursuant to the Forest Management Act and Regulations, RWED manages forests, including maintenance of
   bio-diversity, inventory of forest types and monitoring and assessment of effects of development. RWED issues
   Timber Cutting Licences and Timber Cutting Permits pursuant to the Forestry Act and Regulations. These
   are not normally required for oil and gas developments, however if an Operator plans to transport timber off
   the Land Use Permit area, he may be required to obtain a Timber Transport Permit.

   Proponents should be aware that under the Forest Protection Act much of the summer season is declared a
   “closed” season by the Superintendent of Forests. During this time, use of internal combustion engines in
   forested areas is restricted. For small engines, the Act requires that fire extinguishing equipment be on site and
   available at all times. For larger engines, the ACT requires that engines be equipped with spark arrestors in
   the exhaust system. The Forest Management Division is developing a guide for fire suppression for industrial
   activities that should be publicly available in the near future.

   RWED is responsible for the application of the NWT Policy of Sustainable Development in the review of
   project proposals.

   Pursuant to the Environmental Protection Act and Regulations, RWED ensures that waste management
   procedures, emission levels and environmentally acceptable disposal methods are maintained. The Act comes
   into effect where no other Regulatory Authority is taking action with respect to the management, disposal or
   discharge of contaminants. For example, the GNWT Spill Contingency Planning and Reporting Regulations
   are only applied if no other authority requires a spill contingency plan.

   RWED is a party to a Memorandum of Understanding among RWED, DIAND, NEB, EC, ILA, and
   DFO on a coordinated response to spills. The responsibility for operation of the Spills Line circulates among
   the parties to this MOU. Currently, the Environmental Protection Services Division of RWED maintains a
   24-hour spill reporting telephone number. All spills of contaminants or hazardous substances must be
   reported to:

   Contact: Spills Line (867) 920 8130

   The Pesticide Act prohibits the use of pesticides without first obtaining a Pesticide Application Permit from
   Environmental Protection Services Division of RWED.

   In addition to protection of the environment and wildlife, RWED has a mandate to develop economic
   opportunities to support people in the North. This is done through strategies to increase economic
   development growth and employment, and through the promotion, diversification and development of wage
   and traditional economies and value-added sectors. The Minerals, Oil and Gas Division of RWED based in
   Yellowknife is responsible for promoting non-resource development in the NWT, and specifically for oil and
   gas investment and development issues. For information:

   Contact: Director, Minerals, Oil and Gas Division, RWED, Yellowknife.
   Contact: Regional Petroleum Advisor, RWED, Inuvik

   The Department of Transportation administers the Public Highways Act and Motor Vehicles Act with
   respect to vehicle weights and dimensions and load restrictions on roads. In addition, it is responsible for
   planning, constructing, operating and maintaining public transportation infrastructure (all weather and winter
   roads, airports and docks) in a safe and reliable condition. The department also administers the Transportation
   and Dangerous Goods Act for controlled products and certain wastes.



20-4                                                                                                     June 2001
Regulatory Agencies and Processes                               20 – Government of the Northwest Territories


Table 20-1: GOVERNMENT OF THE NORTHWEST TERRITORIES: LEGISLATION

                           LEGISLATION                                     RESPONSIBLE DEPARTMENT
 Annual Vacation Regulations                                    Department of Justice
 Wages Regulations                                              Labour Services Section
 Labour Standards Act

 Fair Practices Act                                             Department of Justice
                                                                Fair Practices Office

 Apprentices and Tradesmen Act                                  Department of Justice
 Business Corporations Act                                      Legal Registries
 Mechanics Lien Act
 Mechanics Lien Forms Regulations
 Securities Act
 Securities Regulations
 Securities Fees Regulations

 NWT Worker’s Compensation Act                                  NWT Workers Compensation Board

 Explosives Use Act                                             NWT Workers Compensation Board
 Explosives Regulations                                         Prevention Services
 Fire Prevention Act
 Fire Prevention Regulations
 Propane Cylinder Storage Regulations
 Safety Act
 General Safety Regulations
 Work Site Hazardous Materials Information System Regulations

 Environmental Protection Act                                   Resources, Wildlife and Economic Development
 Environmental Protection Regulation
 Spill Contingency Planning and Reporting Regulations
 “Air Quality Guidelines”
 Environmental Rights Act
 Forest Management Act
 Forest Management Regulation
 Forest Protection Act
 Territorial Parks Act
 Territorial Parks Regulations
 Wildlife Act
 Certification and Disposal of Wildlife Regulations
 Critical Wildlife Areas Regulations

 Motor Vehicles Act                                             Department of Transportation
 Exemption - Motor Vehicles Act                                 Motor Vehicles Section
 Hours of Service Regulations
 Large Vehicle Control Regulations
 Motor Vehicle Equipment Regulations
 Public Highways Act
 Seasonal Highway Regulations
 Trip Inspection Regulations
 Transportation of Dangerous Goods Act
 Transportation of Dangerous Goods Regulations

 Payroll Tax, 1993, Act                                         Department of Finance
 Payroll Tax Regulations
 Income Tax Act




June 2001                                                                                                      20-5
20 – Government of the Northwest Territories                             Regulatory Agencies and Processes



                            LEGISLATION                              RESPONSIBLE DEPARTMENT
 Boilers and Pressure Vessels Act                          Department of Public Works and Services
 Gas Protection Act
 Electrical Protection Act
 Electrical Protection Regulations

 Public Health Act                                         Department of Health and Social Services
 Camp Sanitation Regulations
 Medical Care Act
 Coroner’s Act
 Emergency Medical Aid Act

 Commissioner’s Land Act (federal)                         Municipal and Community Affairs
 Commissioner’s Land Regulations
 Municipal Land Act
 Area Development Act
 Planning Act

 Engineering, Geological and Geophysical Professions Act   NWT Association of Professional Engineers, Geologists and
                                                           Geophysicists

 Historical Resources Act                                  Prince of Wales Northern Heritage Centre
 Historical Sites Declaration Regulations

 Scientists Act                                            Aurora Research Institute
 Scientists Act Administration Regulations - Western NT


For GNWT Current Statutes and Regulations see: http://legis.acjnet.org/TNO/index_en.html




20-6                                                                                                    June 2001
Authorizations by Stage of Activity                                                                                                   Table of Contents


PART IV – AUTHORIZATIONS BY STAGE OF ACTIVITY

21.0   RIGHTS TO EXPLORE AND TEST..................................................................................................... 21-1

22.0   AUTHORIZATIONS FOR EXPLORATION ....................................................................................... 22-1

23.0   RIGHTS TO THE RESOURCE ............................................................................................................. 23-1

24.0   DEVELOPMENT PLAN APPROVALS................................................................................................ 24-1

25.0   OIL AND GAS PRODUCTION.............................................................................................................. 25-1

26.0   TRANSBOUNDARY PIPELINE APPROVALS IN THE ISR ............................................................ 26-1

27.0   COORDINATION.................................................................................................................................... 27-1
        27.1        COORDINATION OF EA WITH ADJACENT SETTLEMENT AREAS ................................................... 27-1
                    27.1.1 Transboundary Considerations in the Inuvialuit Final Agreement .............................. 27-2
                    27.1.2 Gwich’in Private Lands within the ISR ......................................................................... 27-2
                    27.1.3 Nunavut Territory ......................................................................................................... 27-2
                    27.1.4 Mackenzie Valley Resource Management Act (MVRMA)............................................. 27-3
        27.2        COORDINATION OF ENVIRONMENTAL ASSESSMENT .................................................................... 27-3
        27.3        COORDINATION OF EA WITH REGULATORY PROCESSES .............................................................. 27-5
        27.4        COORDINATION OF EA PROCESSES FOR AN INTER-JURISDICTIONAL PIPELINE............................. 27-5
        27.5        COORDINATION OF EA PROCESSES FOR FIELD DEVELOPMENT .................................................... 27-6

LIST OF CHARTS IN PART IV
CHART 1:            RIGHTS TO EXPLORE AND TEST ON FEDERAL CROWN LANDS AND
                    INUVIALUIT 7(1)(B) LANDS IN THE ISR ..............................................................................21-1
CHART 2:            RIGHTS TO EXPLORE AND TEST ON INUVIALUIT 7(1)(A) LANDS................................21-5
CHART 3:            GEOPHYSICAL OR DRILLING AUTHORIZATIONS ON FEDERAL CROWN
                    LAND IN NWT (ISR) .................................................................................................................22-1
CHART 4:            APPLICATION FOR GEOPHYSICAL OR DRILLING AUTHORIZATIONS ON
                    ILA 7(1)(A) AND 7(1)(B) LANDS .............................................................................................22-7
CHART 5:            RIGHTS TO THE RESOURCE ON FEDERAL CROWN LANDS IN ISR AND ON
                    INUVIALUIT 7(1)(B) LANDS ONSHORE AND OFFSHORE ................................................23-1
CHART 6:            RIGHTS TO THE RESOURCE ON INUVIALUIT 7(1)(A) LANDS DECLARATION
                    OF DISCOVERY.........................................................................................................................23-5
CHART 7:            DEVELOPMENT PLAN APPROVAL BY THE NEB IN THE NWT ONSHORE AND
                    OFFSHORE ISR..........................................................................................................................24-1
CHART 8:            SURFACE DEVELOPMENT PLAN APPROVALS BY ILA ON INUVIALUIT 7(1)(A)
                    AND 7(1)(B) LANDS..................................................................................................................24-5
CHART 9:            PRODUCTION AUTHORIZATIONS ON FEDERAL CROWN LANDS IN THE
                    ISR (NWT)...................................................................................................................................25-1
CHART 10:           PRODUCTION AUTHORIZATIONS ON INUVIALUIT 7(1)(A) AND 7(1)(B) LANDS
                    IN THE ISR (NWT).....................................................................................................................25-7
CHART 11:           AUTHORIZATION FOR TRANSBOUNDARY PIPELINE UNDER S. 52 OF NEB ACT.......26-2




June 2001                                                                                                                                                          i
21 – Rights to Explore and Test   Authorizations by Stage of Activity




ii                                                        June 2001
Authorizations by Stage of Activity                                                   21 – Rights to Explore and Test



21.0 RIGHTS TO EXPLORE AND TEST


CHART 1 - Rights to Explore and Test on Federal Crown Lands and
          Inuvialuit 7(1)(b) Lands in the ISR

CHART 1 describes the process by which the federal government posts tracts of Crown land in the ISR and
issues formal rights to explore and test for petroleum resources. Following public and community consultation in the
ISR, the federal government undertakes a nomination and bidding procedure that culminates in the award of an
exploration licence.

These processes apply to federal Crown lands in the NWT part of the onshore ISR, the ISR offshore, NWT
Commissioner’s Lands, and Inuvialuit-Owned 7(1)(b) Lands.

Exploration Licence (s. 22 CPRA)

An Exploration Licence confers certain rights relating to oil and gas exploration on the identified parcel of
land, over the specified term of the licence, specifically:
      the right to explore for, and the exclusive right to drill and test for, petroleum;
      the exclusive right to develop the lands for petroleum production; and
      the exclusive right to obtain a production licence

An Exploration Licence is not required to apply for approvals for geophysical operations.

An Exploration Licence may be issued for a maximum term of nine years, which is usually divided into two
periods. These may vary in length depending upon location. The length of the first period recognizes the time
necessary to undertake an exploration program culminating in the drilling of a well. In areas where operating
seasons are curtailed by ice, access across sensitive terrain or other factors, the first period of the licence will be
longer.

Period I of the Term: The drilling of a well in Period I qualifies the licence holder to retain the licence for
Period II of the term. Any work or activity undertaken during Period I is credited against the work deposit and
refunded in accordance with the schedule of allowable expenditures which forms part of the licence. Since the work
deposit is only 25% of the work proposal bid, approved expenditures are credited at the rate of $1 for every $4
spent.

Period II of the Term: Escalating rentals on a per hectare basis are applicable during Period II of the term.
Rentals are required in full at the beginning of each year in Period II and are fully refundable as allowable
expenditures are incurred.

1-1       Expression of Interest by Applicant to the Minister (DIAND)
          Rights issuance begins with an expression of interest by the industry (usually an individual Company or
          “Applicant”) and/or community. This first contact should be a written expression of interest directed to
          the federal Minister of DIAND.




June 2001                                                                                                                 21-1
21 – Rights to Explore and Test   Authorizations by Stage of Activity




21-2                                                      June 2001
Authorizations by Stage of Activity                                              21 – Rights to Explore and Test




1-2    Public/Community Consultation by DIAND
       Federal Crown lands in the ISR are frontier lands under the CPRA, and sub-surface rights to these lands
       are issued at the discretion of the Minister of DIAND. The first step for DIAND is consultation with
       potentially affected interests. The form of consultation may vary from time to time and from community to
       community. Consultation usually involves a range of agencies, stakeholders and public interests and must
       be sensitive to local requirements.

       The first order of consultation will be with the Inuvialuit organizations. The Inuvialuit Game Council is
       consulted and notified before any lands in Inuvialuit traditional areas are opened for oil and gas
       exploration. All comment is weighed by the federal Minister and consideration is given to any expressed
       opposition. The intent of the consultation process is contained in “Canada’s Energy Frontiers - A
       Framework for Investment and Jobs,” available at www.inac.gc.ca.

       Consultation is a requirement of policy rather than of legislation. This allows flexibility and adaptation to
       local needs that is difficult to achieve in legislation. In practice, rights issuance decisions depend upon the
       federal Minister being satisfied that adequate community consultation has occurred. Usually the rights
       issuance process will not go ahead until the federal Minister has written support from the community,
       although this is not a legislated requirement. Consultation can take considerable time.

1-3    Decision by the Minister to Call for Nominations
       Based on the results of consultation, the Minister of DIAND may decide to proceed with the rights
       issuance process and issue a Call for Nominations. The Call provides the industry with the opportunity to
       identify specific tracts of land that it would like to see posted for bidding. The Minister may decide to
       exclude certain areas based on environmental or community concerns raised during the consultation, or
       1-4 Proposal for Issuance May be Rejected.

1-5    Call for Nominations Issued by Minister (DIAND)
       A Call for Nominations is generally open for a period of one to three months. All nominations received
       through this process are considered in a succeeding Call for Bids. The Call for Nominations document
       sets out anticipated terms and conditions, including form of licence(s) and Call for Bids document.

       These terms and conditions normally include:
            closing date, after which no bids will be considered;
            bid selection criterion - the dollar amount of work proposed in the first period of the licence;
            minimum bid requirement - typically, a minimum work proposal of $1 million is required;
            bid deposit - a refundable deposit of 25% of the work proposal bid must accompany the bid and is
            returned if the bid is unsuccessful;
            work deposit where applicable;
            issuance fees - $250 per grid or portion thereof to be submitted with the bid;
            applicable Environmental Studies Research Fund levies;
            term of licence - maximum 9 years under legislation;
            work requirements - typically, drilling of a well within Period 1of the licence;
            rentals applicable in the second period of the licence;
            allowable expenditures for exploration activities;
            conditions relating to the environment;



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21 – Rights to Explore and Test                                             Authorizations by Stage of Activity


           northern benefits requirements - industrial benefits, employment and training, consultation,
           compensation and annual report requirement; and
           considerations relating to the IFA.

1-6    Interested Companies Nominate Configurations of Desired Parcels
       Interested Companies submit to DIAND expressions of interest in specified blocks of land that they want
       to see posted for bidding.

1-7    Decision by Minister(DIAND) to Issue a Call for Bids.
       The Minister of DIAND decides whether to issue a Call for Bids on exploration rights. If the Minister
       decides that there should be 1-8 No Call for Bids on particular parcels, these parcels may still be
       offered in the future.

1-9    Call for Bids Issued by DIAND
       A Call for Bids on exploration rights to specific blocks is required by the CPRA before Crown lands may
       be released for oil and gas exploration. The Act requires that a Call for Bids remain open for a minimum
       of 120 days unless otherwise provided by the Minister. Each call states the requirements to be met for
       acceptance of a bid, the terms and conditions to be contained in the Exploration Licence, a sample bid
       submission form and attachments related to benefits requirements and relevant land claim provisions.

1-10   Bids Submitted by Interested Companies
                In the case of a work proposal bid, a work deposit is required when submitting the bid that is
                equivalent to 25% of the bid amount submitted.

1-11   Bids Opened and Assessed by DIAND
       Upon closing of the bid period, all bids received are assessed against the single quantifiable bidding
       criterion, as required by CPRA. This is typically the value of the work proposal but may be cash, or some
       other criterion as stated in the call.

1-12   Selection of Highest Bid by Minister
       The highest bid is selected. Process may take one to several days.

1-13   Bid Unsuccessful

1-14   Successful Bidder Notified
       The outcome of a successful call for bids is the issuance of an Exploration Licence to the successful bidder
       on each block.

1-15   DIAND Awards Exploration Licence
       The issuance of an Exploration Licence is the automatic result of a successful bid.




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Authorizations by Stage of Activity                                              21 – Rights to Explore and Test


1-16    Planning for Exploration Proceeds. Go to CHART 3
        Once rights are issued and an Exploration Licence is awarded, a developer must obtain operational
        authorizations for exploration on federal Crown Lands, as described in CHART 3. Processes for
        exploration on Inuvialuit 7(1)(a) and 7(1)(b) lands are described on CHART 4.

CHART 2 - Rights to Explore and Test on Inuvialuit 7(1)(a) Lands
This Chart describes the process by which the Inuvialuit Regional Corporation issues sub-surface rights to oil and
gas on Inuvialuit-Owned 7(1)(a) lands. These processes are set out in the Inuvialuit Land Administration (ILA)
Rules.

Inuvialuit-Owned 7(1)(a) lands constitute 12,900 sq km (5,000 sq mi) of sub-surface oil, gas and mineral rights
in the ISR. All of these lands are onshore, in the Northwest Territories part of the ISR, and consist of blocks of
land generally located close to communities. These lands are owned by the Inuvialuit Land Corporation (ILC), a
wholly-owned subsidiary of Inuvialuit Regional Corporation (IRC), and are administered by the Inuvialuit Land
Administration (ILA).

Refer to Chapter 7 for an explanation of 7(1)(a) lands, and to Chapter 14 regarding ILA processes.

Typical Terms of Concession Agreements (based on those issued in May 2000)

    Under the Concession Agreements, ILC grants to the Lessee, in respect of the lease area:
    −   the right to explore for, develop, operate, produce, win, take and remove oil and gas;
    −   the right to store, treat and transport (within the Lease Area), or sell and dispose of oil and gas;
    −   the exclusive right to inject for production, conservation or disposal purposes; and
    −   the non-exclusive right to conduct geophysical operations.

    The initial term of the Lease is ten years, and continues for as long as any leased lands are included in a
    Productive Acreage Block. The Lessee has the option to extend the Lease for two additional five-year terms,
    for land that the Lessee is not required to relinquish. There is also provision to extend the Lease for longer to
    allow for production to be tied into transportation facilities.

    Relinquishment: On or before the expiry of the Initial Term and the First Renewal Term, the Lessee must
    relinquish to ILC a portion of up to 50% of the original lease area for the First Renewal Term, and up to
    25% of the original lease area for the Second Renewal.

    Inuvialuit reserve the right to acquire up to 25% working interest financed by the Concession Holder.
    Royalties are set on the gross value of oil and gas at an escalating rate, and fees are specified.

    The Concession Holder is required to enter into agreements with IRC/ILC/ILA:
    −   Operating Agreement governing all petroleum operations in the lease area;
    −   Comprehensive Cooperation and Benefits Agreement with IRC, to coordinate activities to
        enhance cooperation and to advance the objectives of the IFA; and
    −   Participation/Access Agreement with the ILA.




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21 – Rights to Explore and Test                                                Authorizations by Stage of Activity



      The Lessee/Operator must conduct operations in accordance with Good Oilfield Practice and must abide by
      ILA Rules and Procedures. Note that in a conflict between ILA Rules and Procedures and the IFA, the
      IFA prevails.

      The Lessee must provide compensation for damages, develop and maintain contingency plans, and maintain
      insurance. Before a Lessee can undertake Commercial Development, he must obtain approval of a Surface
      Development Plan from the ILA.

CHART 2 illustrates the steps in the process to acquire Rights to Explore and Test for oil and gas on 7(1)(a)
lands. This description is based on the process used in the Call for Bids of February 2000, and may be varied in
future, provided the procedures remain consistent with the IFA.

2-1       Expression of Interest in Lands by Industry
          The process is begun with an expression of interest by industry to the IRC and ILA. IRC may also solicit
          such interest. IRC undertakes consultation within Inuvialuit communities.

2-2       IRC/ILC Decision to Call For Bids
          According to ILA Rules and Procedures 7(76) the bid procedures must follow a Prescribed Form, the
          Chief Regional Councillor must approve minimum conditions of the bid, and the ILC will establish bid
          evaluation criteria. IRC/ILA may also choose to issue No Call For Bids 2-3.

2-4       IRC Announces Bidding Procedure: Call for Bids
          The announcement of the opportunity to bid contains a description of the rights, the deadline for bids (a
          minimum of 2 months later), the date for selection, the Prescribed Form, minimum conditions, Bid
          Evaluation Criteria, information that must be provided by the Applicant and the amount of the guarantee
          payable. In preparing a bid, an Applicant is required to comply with the ILA Rules and Procedures.

          The Bid Package of February 2000 contained descriptions of the six parcels on offer, information
          requirements on technical experience and financial situation, and a stipulation that a deposit of 10% of the
          bonus be submitted to IRC at the time of conditional approval of the bid.

          In particular, the Bid Package attaches a model form of Oil and Gas Concession Agreement, which set
          out the model terms for the Lease including: rights, term and work obligations, relinquishment, Inuvialuit
          working interests, fees and royalties, operating terms, wildlife compensation, ownership of assets, and local
          use rights. Work obligations are set for each parcel, with some variation from one parcel to another.
          These obligations stipulate timing of first and subsequent wells, seismic programs, and include option to
          pay in lieu of drilling.

2-5       Companies Prepare and Submit Bids to IRC

2-6       Bids Opened And Reviewed by Review Committee
          A Bid Review Committee comprised of representatives of the Community Corporations and IRC is
          formed to review and make recommendations to the IRC. This Committee may also undertake
          negotiations with the winning bidder or bidders.




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Authorizations by Stage of Activity   21 – Rights to Explore and Test




June 2001                                                       21-7
21 – Rights to Explore and Test                                             Authorizations by Stage of Activity



       A factor in the evaluation may be the bidder’s willingness to accept the Concession Agreement without
       changes and without conditions.

2-7    Bids Selected. IRC May Negotiate Some Terms with Bidders
       IRC/ILC reserves the right to accept, reject, or negotiate with the bidders.

2-8    Bids May Be Rejected on Certain Lands
       IRC/ILC is not bound to accept or recommend the highest bid submitted. In April 2000 for instance,
       although bids were received on all six parcels, IRC accepted only four.

2-9    IRC Announces Conditional Approval of Concessions: Successful Bidders Notified
       By a specified date, IRC advises successful bidders of approval, subject to ratification by the applicable
       Community Corporation and to payment to IRC of 10% of bonus payment.

2-10   Successful Bidder Makes Presentation to Affected Inuvialuit Community Corporation
       For each conditionally approved Lease, the corporation whose bid has been selected makes a presentation
       to the Inuvialuit Community Corporation (CC) for the community closest to the lands. The CC must
       ratify the concession before any Concession Agreement is executed.

2-11   Inuvialuit Community Corporation Holds Ratification Meeting
       A Special General Meeting of the Community Corporation is held to decide upon ratification of the
       Concession. Ratification requires a two-thirds majority of the members present. If the outcome of the vote
       at the Special General Meeting is negative, the Concession Agreement May Not be Executed
       2-12.

2-13   Execution of Concession Agreement
       Upon ratification, the Lessee executes and delivers to IRC a copy of the Concession Agreement. Failure
       by the Lessee to execute and deliver the Agreement results in forfeiture of deposit. Delivery of related
       payments, including balance of bonus payments, becomes due.

       In the event of any conflict between the Rules and Lease, terms of Lease prevail (Article 26.5 of the
       Concession Agreement).

2-14   Implementation
       The Lessee must meet the stipulations in the Lease, including the negotiation of agreements is required.

2-15   Planning for Exploration May Proceed: Go to CHART 4




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Authorizations by Stage of Activity                                         22 – Authorizations for Exploration



22.0 AUTHORIZATIONS FOR EXPLORATION


CHART 3 – Geophysical or Drilling Authorizations on Federal Crown Land in
          NWT (ISR)

This chart describes authorization processes for geophysical programs and drilling operations. Geophysical
programs refer to seismic, gravity, electromagnetic and airborne magnetometer surveys. Drilling operations refer to
the drill hole, sump, camp and lay-down yard. These activities are included together in this section because the
processes to acquire regulatory approvals are the same.

CHART 3 illustrates the steps in the process for obtaining exploration approvals on federal Crown lands in the
ISR, specifically to the NWT part of the ISR.

There are additional requirements for offshore operations under Regulations under COGOA, the Federal Real
Property Act, and other legislation, as described in Chapter 9. For processes in the Yukon part of the ISR, refer
to Chapter 10.

3-1     Company Plans Geophysical Programs
        The following procedures apply to holders of an exploration licence for specific land parcels and to
        Operators undertaking speculative geophysical activities that do not require an exploration licence.

        Note that if a Company, having begun a geophysical program pursuant to an authorization, decides to
        shoot additional geophysical, the extension may have to go through another round of screening. Whether
        or not this is necessary will depend on factors such as the size of the incremental program and whether the
        target area is significantly different from that of the original program.

3-2     Company Plans Drilling and Identifies Targets
        After geophysical programs are completed, a Company may decide either to suspend the project or to
        identify drilling targets.

3-3     Prerequisites

        Before a Company can apply for authorizations for oil and gas activities in the NWT, certain operational
        prerequisites must be met:
             registration under Business Corporations Act (NWT) (refer to Chapter 20);
             registration as an employer with the NWT Workers Compensation Board (refer to Chapter 20);
             and
             an NEB Operating Licence (refer to Chapter 14).

3-4     Consultation
        Consultation is an important element in the planning and conduct of industrial operations in the NWT,
        and certainly in the ISR. Applicants should initiate consultations with Inuvialuit communities and
        organizations as early as possible and should maintain effective contact throughout the implementation
        phase of the project.


June 2001                                                                                                      22-1
22 – Authorizations for Exploration                                                    Authorizations by Stage of Activity




       For a large format version of this chart, see Appendix B – Summary of Charts.




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Authorizations by Stage of Activity                                         22 – Authorizations for Exploration



       As discussed in Chapter 5, consultation is not explicitly required by legislation to obtain authorizations
       however it has an important role in engaging public awareness, understanding and support for
       development activities. The ability to demonstrate due diligence in consultation efforts and responses to
       public issues is an important factor for agencies when considering applications, for instance:
            COGOA requires that an approved Benefits Plan be in place prior to issuance of authorizations;
            the NEB requires a reporting of due diligence in community consultation efforts, issues and solutions
            as part of the application for NEB authorizations; and
            IFA-EISC encourages Applicants to consult with local Hunters and Trappers Committees, and if
            this is not done, the IFA Screening process may be delayed.

       Obtain Advice from EISC, Departments/Agencies, GNWT and ILA
       The Applicant must also contact the departments and agencies involved in the authorization process to
       identify the full range of approvals required for the activity and the regulatory requirements for each, so
       that these considerations are taken into account in the design of the project from the outset.

       Discussions with Community Corporations and IRC/ILA Regarding Benefits
       Although the EISRP process under the IFA does not formally require consultation of Inuvialuit corporate
       interests, there is a requirement under COGOA for approval of a Benefits Plan (see 3-19 below).
       Development of a Benefits Plan will require consultation with Inuvialuit corporate interests and
       community corporations.

3-5    Obtain Permission for Access to Lands
       Consent for access to unoccupied federal Crown Lands is implied, and explicit permission other than in
       the form of a Land Use Permit is not required.

       However, proposed programs requiring access onto or through private lands require the Applicant to
       obtain consent of the land owner. Before applying for Land Use Authorizations, an Applicant must
       obtain permission for access to or across from the landowner. Processes for obtaining such permission from
       the Inuvialuit Land Administration on 7(1)(a) or 7(1)(b) lands are described in Chapter 15 and
       CHART ILA.

3-6    Company Prepares and Submits Project Description and Applications to Agencies
       To undertake a geophysical program anywhere in NWT, an Operator requires a Geological/Geophysical
       Operation Authorization from the NEB. Depending on the intensity of the activity in relation to
       thresholds in legislation, several other authorizations may be required. Final applications for authorizations
       may be submitted later in the process, but consultation with the agencies will be needed at an early stage to
       clarify requirements that would affect planning of the project.

       After consultation with HTCs, other co-management bodies and EISC, the Applicant must prepare a
       Project Description according to EISC Operating Guidelines and Procedures. Refer to Chapter 4,
       CHART EISC. The Project Description can also be used in support of applications to other
       departments/agencies for authorizations, and can be used as the basis for the EA determination required
       under COGOA.




June 2001                                                                                                       22-3
22 – Authorizations for Exploration                                        Authorizations by Stage of Activity


3-7    Company Applies to NEB for Geophysical Operations Authorizations or Approval to
       Drill a Well (COGOA)
       COGOA requires that authorization be obtained from the NEB for geological/geophysical operations to
       proceed in NWT. Refer to Chapter 14 and CHART NEB for steps. Note that issuance of such
       authorizations under COGOA is a trigger for the Canadian Environmental Assessment Act (CEAA).

       An Approval to Drill a Well (ADW) permits the Operator to drill a particular well within an approved
       drilling program, using the drilling and evaluation procedures and the drilling equipment described in the
       application for a drilling program approval. The Operator is required to apply to the NEB for an ADW
       a minimum of 21 days prior to the requested spud date for the well. Application forms are available from
       the NEB.

       A Drilling Program Authorization is usually not required from the NEB for onshore programs that use a
       conventional land drilling rig, but would be required for offshore programs.

3-8    Company Applies to DIAND for Land Use Permit
       DIAND is responsible for reviewing applications and issuing Land Use Permits pursuant to the
       Territorial Lands Act. Refer to Chapter 16 and CHART LUP for information on thresholds and
       requirements.

3-9    Company Applies to NWT Water Board for a Water Licence
       Depending on the nature of the activities proposed, an NWT Water Licence may be required. The
       NWT Water Board is responsible for reviewing applications and issuing Water Licences pursuant to the
       NWT Waters Act. Refer to Chapter 17 for information on thresholds for permits and to CHARTS
       WA (for a Type A Licence) and WB (for a Type B Licence).

3-10   Company Applies to DFO for Fisheries Act Authorization
       Depending on the nature of the proposed operation, an authorization under subsection 35(2) of the
       Fisheries Act may be required. These authorizations are coordinated through the Yellowknife office of the
       DFO. Refer to Chapter 18 and CHART DFO for information on the application process, information
       required from the Applicant and processes.

3-11   Other Authorizations May Be Required
       Depending on the nature of activities proposed, the Company may have to apply for further
       authorizations, including but not limited to:
           NWPA Permit from DFO-CCG;
           Migratory Bird Sanctuary Permits from EC; and
           Wildlife Research Permit from GNWT, etc.

       Processes for obtaining these authorizations are not described in this Guide, but would follow a parallel
       process, waiting on the results of the Environmental Assessment stage before proceeding to a regulatory
       decision on issuance. It is up to the Applicant to identify all the authorizations required. General
       assistance in this regard is available from the Manager, Petroleum Development and Benefits Division,
       DIAND, Yellowknife.




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Authorizations by Stage of Activity                                      22 – Authorizations for Exploration


3-12   Responsible Authority (RA) Notifies EISC
       The IFA requires that the EISC screen a development before the government can issue an authorization
       allowing work to proceed. Pursuant to the FCR the RA will notify the EISC that an application has been
       received. In practice, it is often the EISC, having received the Project Description, that notifies the RA
       first.

3-13   Requirements Under IFA Section 11 EISRP

3-14   EISC Screening and Determination
       The report of the EISC will indicate whether in the EISC’s opinion:
            development will have No Significant Negative Impact, may proceed without further Review
            under the IFA;
            development has Deficiencies that warrant termination of its consideration and submission
            of another Project Description, in which case the Applicant may choose to alter plans and
            refile; or
            development could have significant negative impact, and will be Subject To Further Review
            under the IFA.

3-15   EIRB Review and Decision
       The EISC may refer the development to further Review either by the EIRB or by another body that in its
       opinion will encompass the Review requirements under the IFA. Typically, the referral is to the EIRB.
       Refer to Chapter 4, CHART EIRB for the detailed steps in IFA Review processes.

       Based on the Review, the Review Panel recommends whether a proposed development should proceed,
       and if so under what terms and conditions (such as mitigative measures, remediation, and wildlife
       compensation). The decision is sent to the governmental authority competent to authorize the
       development, which in the case of oil and gas activities in the ISR (excepting the Yukon North Slope) is
       the National Energy Board.

3-16   Requirements for Environmental Assessment under CEAA
       Exploration projects may hit several triggers under CEAA, entailing screening responsibilities for several
       Responsible Authorities (RAs). In addition to the CEAA trigger for the NEB under the COGOA, there
       are triggers for DIAND with the issuance of a Land Use Permit or Water Licence, and for DFO for
       issuance of a Fisheries Act Authorization, and there may be others. For example issuance of a permit
       under the Navigable Waters Protection Act by DFO-CCG is also a trigger for CEAA. As well, offshore
       drilling is on the Comprehensive Study List (Chapter 13).

       Coordination among departments will be pursuant to Federal Coordination Regulations (FCR). Refer to
       Chapter 13 and to CHART CEAA for the steps that must be followed by the RA.

       An EISC Determination, and an EIRB Decision (if undertaken) will be taken into account by the RA
       when making EA determinations under CEAA.




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22 – Authorizations for Exploration                                       Authorizations by Stage of Activity


       The decision following a Screening or Comprehensive Study may be:
           Project Not Justified; or
           Project Not Likely to Cause Significant Adverse Environmental Effects, in which case
           Authorization Processes May Proceed/Resume; or
           Project Subject to Further Review under CEAA, by Panel or Mediator, but typically by
           Panel.

       In the event that further Review under CEAA is called for, coordination will be pursuant to the Federal
       Coordination Regulations. In the event that both the EISC and the Minister of the Environment, on the
       recommendation of an RA, consider that further Review by Panel is necessary, the possibility of
       substitution of an EIRB Panel Review for a CEAA Panel Review will be considered, pursuant to the
       EIRB-CEAA Memorandum of Understanding.

3-17   Final CEAA Determination by RA/Minister
       In the event that a project goes to Panel Review, the Minister of the Responsible Authority (or in the case
       of an authorization under COGOA, the NEB), subject to approval by the Governor in Council, makes
       the decision on whether the project should proceed and under what conditions. Either:
           The Project is Not Justified; or
           Authorization Processes May Proceed/Resume.

3-18   NEB Reviews Application for COGOA Authorization
       At this stage, the review of the application for an authorization under COGOA may proceed/resume.
       The specific steps in the process are described in Chapter 14 and CHART NEB. Ultimately, the
       Chief Conservation Officer of the NEB decides whether to issue an authorization, and under what terms
       and conditions.

3-19   Minister (DIAND) Approved Benefits Plan Required
       Under COGOA, the NEB cannot issue an authorization until the DIAND Minister has approved (or
       waived the requirement for) the Applicant’s Benefits Plan. Refer to Chapter 16 and CHART BEN
       for steps in the process.

3-20   Land Use Authorization Process Proceeds
       DIAND’s review of the Land Use Permit application resumes. Following the process described in
       Chapter 16 and CHART LUP, DIAND proceeds to a decision on whether to issue a Land Use
       Permit, and if so, under what terms and conditions.

3-21   Water Licensing Process Proceeds
       At the same time, review of the Water Licence application resumes, Refer to Chapter 17 and
       CHARTS WA and WB for steps in the process. The NWT Water Board decides whether to issue a
       Water Licence and under what conditions, including a decision on whether and in what amount security
       may be required.




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Authorizations by Stage of Activity                                         22 – Authorizations for Exploration


3-22    DFO Reviews Applications for Fisheries Act Authorization (FAA)
        Refer to Chapter 18 and CHART DFO for the process undertaken by DFO. DFO will proceed to a
        decision on whether to issue an FAA, and if so, under what terms and conditions, including a decision on
        whether and in what manner compensation is required.

3-23    Other Authorization Processes As Required

3-24    Geophysical Program or Drilling Can Start Once All Necessary Authorizations
        Obtained



CHART 4 – Application for Geophysical or Drilling Authorizations on ILA
          7(1)(a) and 7(1)(b) Lands
Geophysical programs refer to seismic, gravity, electromagnetic and airborne magnetometer surveys. Drilling refers
to the drill hole, sump, camp and lay-down yard. These activities are included together in this section because the
processes to acquire regulatory approvals are the same.

4-1     Company Plans Geophysical Programs
        These procedures apply to holders of Concessions for specific Inuvialuit 7(1)(a) lands and to those
        undertaking “speculative” geophysical activities on lands not held by Concession, but which require an
        ILA Reconnaissance Permit.

        Note that if a Company decides to shoot additional geophysical, the program may have to go through
        another round of screening. Whether or not this is necessary will depend on factors such as the size of the
        program and whether the target area is significantly different from that of the original program.

4-2     Company Plans Drilling: Identifies Targets
        After geophysical programs are completed, a Company may decide to either suspend the project or to
        proceed with identifying drilling targets.

4-3     Prerequisites
        Before a Company can apply for authorizations for oil and gas activities, certain operational prerequisites
        must be met:
             registration under Business Corporations Act (NWT) (refer to Chapter 20);
             registration as an employer with the NWT Workers Compensation Board (refer to Chapter 20);
             and
             obtain an NEB Operating Licence under COGOA (refer to Chapter 14).

4-4     Consultation
        Consultation is an important element in the planning and conduct of industrial operations in the NWT,
        and certainly in the ISR. Applicants should initiate consultations as early as possible and maintain
        effective contact throughout the implementation phase of the project. For activities on 7(1)(a) and 7(1)(b)
        lands, Applicants must consult with the ILA, CC, as well as the HTCs and federal agencies.



June 2001                                                                                                      22-7
22 – Authorizations for Exploration                                             Authorizations by Stage of Activity




For a large format version of this chart, see Appendix B – Summary of Charts.



22-8                                                                                                    June 2001
Authorizations by Stage of Activity                                         22 – Authorizations for Exploration


       As discussed in Chapter 5 consultation is not explicitly required by legislation to obtain authorizations
       however it has an important role in engaging public awareness, understanding and support for
       development activities. The ability to demonstrate due diligence in consultation efforts and responses to
       public issues is an important factor for agencies when considering applications:
            COGOA requires that an approved Benefits Plan be in place prior to issuance of authorizations;
            the NEB requires a record of public involvement and results; and
            IFA-EISC encourages Applicants to consult with local Hunters and Trappers Committees; if this is
            not done, the IFA Screening process may be delayed.

       Obtain Advice from ILA, EISC, NEB, Departments/Agencies
       The Applicant must also contact the departments and agencies involved in the authorization process to
       identify the full range of approvals required for the activity and the regulatory requirements for each, so
       that these considerations are taken into account in the design of the project from the outset.

       Discussions with CC and IRC/ILA Regarding Benefits Plan
       Discussions with CC and IRC/ILA will be necessary both as a basis for Cooperation/Benefits
       Agreements and Participation/Access Agreements, and to meet the Benefits Plan requirements under
       COGOA.

4-5    Company Prepares and Submits Project Description and Applications to ILA,
       Departments/Agencies
       A Concession-holder will have to apply for a Land Use Licence and possibly Rights-of-Way from the
       ILA, as well as for other authorizations from Crown agencies, depending on the nature of the activity.

       An Applicant who is not a Concession-holder will have to apply for a Reconnaissance Permit, a Land
       Use Licence and perhaps Rights-of-Way from ILA.

       To undertake a geophysical program anywhere in the NWT and the offshore ISR, an Operator requires
       a Geological/Geophysical Operation Authorization from the NEB. Depending on the intensity of the
       activity in relation to thresholds in legislation, other authorizations may be required, for instance a Water
       Licence and a Fisheries Act Authorization.

       Authorizations other than those issued by ILA will have to meet the requirements of the IFA EISRP.
       The Proponent will have to prepare and submit a Project Description to EISC according to the EISC
       Operating Guidelines and Procedures.

4-6    Company Negotiates Cooperation and/or Benefits Agreements, Participation/Access
       Agreements as Required
       Applicants for a Reconnaissance Permit for a non-exclusive right to explore 7(1)(a) lands are advised to
       negotiate Cooperation, Participation/Access Agreements in advance of applying for an authorization, in
       order to expedite processing of the application. Application may be made without these Agreements being
       negotiated, but Agreements must be in place before an authorization is issued.

       A Concession-holder will already have negotiated some or all of these Agreements pursuant to the terms
       of the Concession Agreement (CHART 2).




June 2001                                                                                                       22-9
22 – Authorizations for Exploration                                         Authorizations by Stage of Activity


4-7     Company Applies to ILA for Land Use Authorizations and other
        Rights/Authorizations as Required
        Activities that exceed the thresholds set out in the ILA Rules and Procedures require a Land Use
        Licence or Permit, and possibly rights-of-way. The Reconnaissance Permit confers a non-exclusive right
        to explore on a Block of 7(1)(a) lands. A Reconnaissance Permit is not required for a Concession-holder.
        Application is made to the ILA pursuant to the ILA Rules and Procedures, refer to Chapter 15 and
        CHART ILA.

        Contact the ILA directly to discuss whether any specific exploration activity on 7(1)(a) lands will require
        a Reconnaissance Permit or not.

4-8     Company Applies to NEB for Geophysical Operations Authorization or Authority to
        Drill a Well (COGOA)
        COGOA requires that authorization be obtained from the NEB for geological/geophysical operations to
        proceed in NWT. Refer to Chapter 14 and CHART NEB.

        Approval to Drill a Well (ADW) permits the Operator to drill a particular well within an approved
        drilling program, using the drilling and evaluation procedures and the drilling equipment described in the
        application for a Drilling Program Approval. Note that a Drilling Program Approval is usually not
        required for onshore programs that use a conventional land drilling rig.

        The Operator is required to apply to the NEB for an ADW a minimum of 21 days prior to requesting
        spud date for the well. Application forms are available from the NEB.

4-9     Company Applies to NWT Water Board for a Water Licence If Required
        The NWT Water Board, based in Yellowknife, is responsible for reviewing applications and issuing
        Water Licences. Refer to Chapter 17 and CHARTS WA and WB.

4-10    Company Applies to DFO for Fisheries Act Authorization
        Depending on the nature of the proposed operation, an authorization under the Fisheries Act may be
        required. These authorizations are coordinated through the Yellowknife office of the DFO. Refer to
        Chapter 18 and CHART DFO for steps in the application process.

4-11    Other Authorizations May be Required
        Depending on the nature of activities proposed, the Company may have to apply for further
        authorizations, including but not limited to a NWPA Permit from DFO-CCG; Migratory Bird
        Sanctuary Permit from EC; Wildlife Research Permit from GNWT-RWED, etc. It is the responsibility
        of the Proponent to identify all the authorizations required.

        Processes for obtaining these other authorizations are not shown in this Guide, but would follow a parallel
        process, waiting on the results of the Environmental Assessment stage before proceeding to a regulatory
        decision on issuance. It is up to the Applicant to identify all the authorizations required. General
        assistance in this regard is available from the Manager, Petroleum Development and Benefits Division,
        DIAND, Yellowknife.




22-10                                                                                                  June 2001
Authorizations by Stage of Activity                                       22 – Authorizations for Exploration


4-12   ILA Reviews Application
       The ILA reviews these applications pursuant to General Evaluation Procedures. Refer to Chapter 15
       and CHART ILA for steps.

4-13   ILAC Decides Whether Screening by EISC Required for ILA Authorizations
       ILA Rules and Procedures provide for the possible referral by ILAC of the application for IFA
       Environmental Impact Screening and Review, for purposes of issuance of ILA authorizations..

4-14   RAs Notify EISC of Receipt of Application
       If authorizations are required from the NWT Water Board or other federal departments, then the
       Responsible Authority will notify the EISC that an application has been received, and that a Screening is
       required before the government can issue an authorization allowing work to proceed.

4-15   Requirements under IFA Section 11 EISRP

4-16   EISC Screening and Determination
       The report of the EISC will indicate whether in the EISC’s opinion:
            development will have No Significant Negative Impact, may proceed without further review;
            development has Deficiencies that warrant termination of its consideration and submission of
            another Project Description, in which case the Applicant may choose to alter plans and refile; or
            development could have significant negative impact, and will be Subject To Further Review
            under the IFA.

4-17   EIRB Review and Decision
       The EISC may refer the development to further Review either by the EIRB or by another body that in its
       opinion will encompass the Review requirements under the IFA. Typically, the referral is to the EIRB.
       Refer to Chapter 4, CHART EIRB for detailed steps in Review processes. Based on the Review, the
       Review Panel recommends whether a proposed development should proceed, and if so under what terms
       and conditions (such as mitigative measures and remediation, and wildlife compensation). The decision is
       sent to the governmental authority competent to authorize the development, which in the case of oil and
       gas activities in the ISR (excepting the Yukon North Slope) is the National Energy Board.

4-18   Requirements for Environmental Assessment under CEAA
       Exploration projects may hit several triggers under CEAA, entailing screening responsibilities for various
       Responsible Authorities (RAs). Coordination among departments will be pursuant to Federal
       Coordination Regulations (FCR). Refer to Chapter 13 and CHART CEAA for the steps that the
       RAs must follow. Under CEAA, each RA is responsible for making its own decision on the EA.

       The EISC Determination or EIRB Decision is taken into account by the RA when making EA
       determinations under CEAA.




June 2001                                                                                                  22-11
22 – Authorizations for Exploration                                       Authorizations by Stage of Activity


        The decision following a Screening or Comprehensive Study may be:
            Project Not Justified; or
            Project Not Likely to Cause Significant Adverse Environmental Effects, in which case
            Authorization Processes May Proceed/Resume; or
            Project Subject to Further Environmental Impact Review under CEAA.

        Should further Review under CEAA be required, coordination will be pursuant to the Federal
        Coordination Regulations. In the event that both the EISC and the Minister of the Environment, on the
        recommendation of an RA, consider that further Review by Panel is necessary, the possibility of
        substitution of an EIRB Panel Review for CEAA Panel Review will be considered pursuant to the
        EIRB-CEAA Memorandum of Understanding.

4-19    Final CEAA Determination by RA/Minister
        The Minister for the RA, or in the case of a COGOA authorization, the NEB, subject to approval by the
        Governor in Council, makes the decision on whether the project should proceed and under what
        conditions. The Minister may decide either that :
            The Project is Not Justified; or
            Authorization Process May Resume/Proceed, 4-20.

4-21    NEB Reviews Application for COGOA Authorization
        At this stage, the review of the application for an authorization under COGOA may resume/proceed.
        The specific steps in the process are described in Chapter 14 and CHART NEB. Ultimately, the
        Chief Conservation Officer of the NEB decides whether to issue an authorization, and under what terms
        and conditions.

4-22    Minister (DIAND) Approved Benefits Plan Required
        Under COGOA, NEB cannot issue an authorization until the DIAND Minister has approved the
        Applicant’s Benefits Plan. Refer to Chapter 16 and CHART BEN for steps in the process.

4-23    ILAC Decision on Rights/Authorizations
        ILA evaluation procedures resume, and the ILAC decides whether or not to issue rights and
        authorizations applied for, and if so, under what terms and conditions, 4-24. Refer to Chapter 15 and
        CHART ILA.

4-25    Water Licensing Process Proceeds
        Review of the Water Licence application also proceeds. Refer to Chapter 17 and CHARTS WA and
        WB. The NWT Water Board decides whether to issue a Water Licence and under what conditions,
        including a decision on whether and in what amount security may be required.

4-26    DFO Reviews Applications for Fisheries Act Authorization (FAA)
        Refer to Chapter 18 and CHART DFO for the process undertaken by DFO. DFO will proceed to a
        decision on whether to issue an FAA, and if so, under what terms and conditions, including a decision on
        whether and in what manner compensation is required.




22-12                                                                                                June 2001
Authorizations by Stage of Activity                       22 – Authorizations for Exploration


4-27   Other Authorization Processes As Required

4-28   Geophysical Program or Drilling Can Start Once All Necessary Authorizations
       Obtained




June 2001                                                                             22-13
22 – Authorizations for Exploration   Authorizations by Stage of Activity




22-14                                                         June 2001
Authorizations by Stage of Activity                                                23 – Rights to the Resource



23.0 RIGHTS TO THE RESOURCE


CHART 5 – Rights to the Resource on Federal Crown Lands in ISR and on
          Inuvialuit 7(1)(b) Lands Onshore and Offshore
                          Declaration of Significant Discovery
                          Significant Discovery Licence
                          Declaration of Commercial Discovery
                          Production Licence

The CPRA sets out requirements for application and issuance of the above rights to the resource on frontier lands,
i.e. to the onshore of the NWT part of the ISR and the offshore of both the NWT and Yukon parts of the ISR.
This specifically excludes the onshore Yukon, which is covered by the Yukon Oil and Gas Act (Chapter 11) and
Inuvialuit-Owned 7(1)(a) lands (CPRA s. 10(2)).

CHART 5 illustrates the procedures, and the headings below correspond to the steps on the Chart.

5-1     Based on Exploration Results Company Decides Whether to Proceed to Production
        If the results of exploration are successful, a Company may choose to hold the rights to develop lands for
        petroleum production under a Significant Discovery Licence and/or proceed with commercial production
        approvals.

5-2     Application to NEB for Declaration of Significant Discovery
        The CPRA and NEB Act provide that, when exploration results in a petroleum discovery, an application
        may be made to the NEB for a Declaration of Significant Discovery (Part II.1, s. 28.2 of the NEB Act;
        Part III s. 28 and Part IV s. 35 of CPRA). The Declaration of Significant Discovery defines the areal
        extent of the discovery and is required prior to making application to DIAND for a Significant Discovery
        Licence(s) covering the extent of the discovery.

        The declaration process, administered by the NEB, confirms a hydrocarbon discovery which satisfies
        specific technical criteria and describes the area over which the discovered resources extend. Under current
        practice, a Declaration of Significant Discovery is not restricted to substance or geological formation, and
        includes all oil and gas accumulations within the lands described from surface to basement.

5-3     Application to NEB for Declaration of Commercial Discovery
        Once a Company has determined a discovery can be commercially produced, an application may be made
        for a Declaration of Commercial Discovery (Part II.1, s. 28.2 of the NEB Act: Part III s. 28 and part
        IV s. 35 of the CPRA). The Declaration of Commercial Discovery defines the areal extent of what is to
        be developed and is required before applying for a production licence.

        Contact the NEB for information on application requirements, process and timing.




June 2001                                                                                                     23-1
23 – Rights to the Resource   Authorizations by Stage of Activity




23-2                                                  June 2001
Authorizations by Stage of Activity                                                23 – Rights to the Resource




5-4    NEB Notifies DIAND-NOGD of Application
       The NEB notifies DIAND-NOGD when an application for Declaration of Significant Discovery or a
       Declaration of Commercial Discovery is received.

5-5    NEB Conducts Technical Review of Application
       The technical review of the application typically takes 90 days unless the application is incomplete or
       unclear.

5-6    Applicant May be Asked for Further Information
       If the review team finds that information in the application requires clarification, an Information Request
       (IR) may be sent to the Applicant. Deficient applications may be returned to the Applicant.

5-7    NEB Decision On Extent of Discovery
       Decision on Extent of Discovery is taken by the Board of the NEB.

5-8    NEB Issues Notice of Intent to Make a Decision and Report

5-9    NEB Notifies DIAND-NOGD of Intent

5-10   NEB Notifies Directly Affected Persons and Applicants
       After the Notice of Intention to make a Decision and Report is issued, “Directly Affected Persons” have
       a 30-day period within which to request a hearing.

5-11   Hearing May be Requested by Directly Affected Persons

5-12   NEB May Issue Hearing Order
       If a hearing is requested, the NEB may issue a Hearing Order.

5-13   NEB Conducts Hearing
       The hearing will examine existing or new evidence from the “Directly Affected Persons.”

5-14   NEB Decision on Extent of Discovery
       Decision on Declaration of Significant Discovery or of Commercial Discovery is taken by the Board of the
       NEB.

5-15   NEB Issues a Declaration of Significant Discovery or Commercial Discovery
       If there are no requests for a hearing within the 30-day period 5-11, the NEB will issue a Declaration of
       Significant Discovery or of Commercial Discovery. A copy of the Declaration is also sent to DIAND-
       NOGD.




June 2001                                                                                                        23-3
23 – Rights to the Resource                                                   Authorizations by Stage of Activity


       If a hearing is conducted, the NEB will then make a decision and issue a Declaration, with conditions
       attached as appropriate.

5-16   NEB Notifies Directly Affected Persons and DIAND-NOGD

5-17   Company May Apply for Significant Discovery Licence (SDL) from DIAND
       The Significant Discovery Licence(SDL) is a unique feature of the oil and gas regulatory regime under
       the CPRA and is issued by DIAND upon approval by the NEB of an application for a Declaration of
       Significant Discovery. It rewards successful exploration by providing indefinite tenure. The Significant
       Discovery Licence replaces the exploration licence over the significant discovery area.

       The Significant Discovery Licence provides:
           the right to explore for and the exclusive right to drill and test for petroleum;
           the exclusive right to develop the lands for petroleum production; and
           the exclusive right to obtain a Production Licence.

5-18   DIAND Issues Significant Discovery Licence
       There is no time limit on an SDL, reflecting the reality that a discovery may be of size and in a location
       that is uneconomic to develop in the short term. This allows the Developer to decide when to initiate
       development and apply for a Production Licence, for example, when markets improve, when other
       discoveries are made in the region or when new infrastructure is developed 5-19 Company May Apply
       for a Commercial Discovery Declaration at a Future Date.

5-20   Company May Apply for a Production Licence from DIAND
       Application for a Production Licence from DIAND can be made at any time following the issuance of a
       Commercial Discovery Declaration. It replaces the SDL over the commercial discovery area and is issued
       by DIAND. Refer also to CHART 9.

       The rights conferred by the Production Licence under the CPRA are in relation to the commercial
       discovery area and include:
           The right to explore for and the exclusive right to drill and test for petroleum;
           The exclusive right to develop the lands for petroleum production;
           The exclusive right to produce petroleum from those lands; and
           Title to the petroleum produced.

       A Production Licence is issued for a term of 25 years. Extensions are automatic if commercial production
       is underway at the end of that term. If production has ceased but it is possible that production might
       recommence at some time in the future the licence qualifies for extension.

5-21   Company May Apply to NEB for Approval of Development Plan
       COGOA subsection 5 (1) requires the approval by the NEB of an approved Development Plan outlining
       the proposed development at the concept stage. An approved Development Plan is also required prior to
       applications being approved for operational authorizations from DIAND, DFO or other regulators.
       Refer to CHART 7.




23-4                                                                                                  June 2001
Authorizations by Stage of Activity                                                23 – Rights to the Resource




CHART 6 – Rights to the Resource on Inuvialuit 7(1)(a) Lands
          Declaration of Discovery

Productive Acreage Block is defined as all Sections which cover Productive Acreage and all Sections which
are, in whole or in part, within two km surrounding such Productive Acreage including all geological formations
down to the base of the productive formation of the Discovery attributed to Productive Acreage. The Block must
have at least one well capable of or deemed capable of commercial production.

6-1     Based on Exploration Results, Company Decides to Declare Discovery
        Based on exploration results, the Company/Lessee may decide to prepare for production. This assumes
        that the Company has entered into an Operating Agreement in keeping with the terms of the Concession
        Agreement (Article 14).

6-2     Lessee Requests IRC/ILC Agreement that Discovery has been Made
        Lessee notifies IRC/ILC of intent to make a Declaration of Discovery, reference Articles 4 and 5 of
        Concession Agreement. Lessee must provide Lessor with information on the proposed Productive
        Acreage Block, with backup information, as necessary to enable assessment of magnitude and extent of the
        discovery.

6-3     IRC/ILC Decision on Discovery and Productive Acreage Block
        Upon receipt of this information IRC assesses the case for a Declaration, and may call upon other
        agencies or independent advice for assistance. IRC then notifies the Lessee whether it agrees that a
        Discovery has been made and whether it agrees with the configuration of the proposed Productive
        Acreage Block. IRC has 60 days to agree, then 60 days to decide whether to elect to participate. If IRC
        does not agree, a second 60-day period is allowed to enable discussions toward agreement, and if
        successful, another 60 days for IRC to decide whether to elect to participate. The Lessor will notify the
        Lessee whether it agrees that a Discovery has been made and whether it agrees with configuration of the
        proposed Productive Acreage Block.

6-4     Lessor Agrees: Lessee makes Declaration of Discovery
        If the Lessor agrees, a Declaration of Discovery shall be considered to have been made as of the date the
        lessor communicates its agreement to the Lessee “Date of Declaration of a Discovery.”

6-5     Lessor Does Not Agree: Parties Seek Agreement
        If not, the Lessee and Lessor have 60 days to reach agreement, after which the issues shall be referred to
        arbitration.

6-6     Arbitration under the Inuvialuit Final Agreement (IFA)
        Arbitrations will be by the Arbitration Board referred to in section 18 of the IFA, as set out in the
        Concession Agreement or ILA Rules and Procedures. The decision of the Arbitration Board is binding
        on all parties.

6-7     Lessee Can Proceed to Plan for Development Drilling and/or Commercial
        Production. Go to CHART 8.


June 2001                                                                                                     23-5
23 – Rights to the Resource   Authorizations by Stage of Activity




23-6                                                  June 2001
Authorizations by Stage of Activity                                            24 – Development Plan Approvals




24.0 DEVELOPMENT PLAN APPROVALS


CHART 7 – Development Plan Approval by the NEB in the NWT Onshore and
          Offshore ISR

COGOA (s. 5.1) requires the approval by the National Energy Board (NEB) of a Development Plan outlining
the proposed development at the concept stage. The Development Plan provides an overview of the planned
development early on and allows for direction to be provided by the NEB with respect to requirements for
development authorizations and environmental planning early in the process, before final engineering decisions are
taken.

A Development Plan has two parts:

Part 1 is a description of the general approach to development of the pool or field, and provides details on:
      Scope, purpose, location, timing and nature of the proposed development;
      the production rate, evaluations of the pool or field, estimated amounts of oil or gas proposed to be recovered,
      reserves, recovery methods;
      production monitoring procedures, costs and environmental factors in connection with the proposed
      development; and
      production system and any alternative production systems that could be used for the development of the pool or
      field.

Part 2 provides all technical or other information and proposals, as may be prescribed or necessary for a
comprehensive review and evaluation of the proposed development. Part 2 requires Companies to provide
reservoir information, which is held in confidence indefinitely and is not publicly available.

The Development Plan approval requirements under COGOA apply throughout the NWT onshore and the
offshore ISR. These requirements apply equally to activities on Crown lands and those on Inuvialuit-Owned lands.

Activities on Inuvialuit-Owned lands must meet a similar set of requirements for approval of a Surface
Development Plan obtained by application to the ILA. The focus of the ILA review of the Surface Development
Plan is on the surface manifestation of the development. The ILA process is described on CHART 8.

There is no precedent at present for the practical operation of these two processes. Probably the NEB would hold
its decision on the Development Plan under COGOA until the ILA has issued approval of the Surface
Development Plan. It will be very important for the NEB, ILA and the Proponent to consult and to co-ordinate
processes to ensure that this overlap of mandates does not cause unnecessary delay.

CHART 7 illustrates the process for obtaining NEB approval of a Development Plan.

7-1       Consultation with Inuvialuit Communities and Organizations
          Applicants should initiate consultation with Inuvialuit communities and organizations as early as possible
          to ensure that concerns are taken into consideration in planning from the outset.




June 2001                                                                                                       24-1
24 – Development Plan Approvals                                            Authorizations by Stage of Activity


       Obtain Advice from NEB, EISC and Government Departments/Agencies
       The Company should undertake pre-application discussion with both Inuvialuit and federal agencies to
       understand the requirements of their respective processes, and to produce an application that can
       anticipate, to the extent possible, the full range of requirements and concerns. Contact should be made
       with the NEB and other federal departments whose responsibilities could be affected by the development,
       as well as the EISC and IRC.

       On Inuvialuit-Owned Lands, Contact ILA re: Surface Development Plan Approval
       Proponents of development on lands that include Inuvialuit-Owned land should contact the ILA
       regarding requirements for ILA approval of the Surface Development Plan to ensure that the
       application/Project Description meets ILA information requirements as well.

       Negotiate Agreements with ILA As Required for Inuvialuit-Owned Lands
       Consult With Community Corporations for Crown Lands
       Discussions with Inuvialuit Corporate interests and with CCs will be necessary both to secure
       Cooperation/Benefit Agreements and Participation/Access Agreements, and to meet the Benefits Plan
       requirements under COGOA

7-2    Company Prepares and Submits Application to NEB for Development Plan Approval
       and Project Description
       The NEB reviews and approves a Development Plan pursuant to COGOA. Before approval can be
       issued, the NEB as RA must meet the requirements of CEAA. As a matter of practice, NEB would
       notify EISC that an application has been received.

7-3    NEB Notifies DIAND-NOGD and EISC
       NEB notifies DIAND-NOGD when an application for Approval of Development Plan is received.
       DIAND-NOGD is responsible for review and approval of the Benefits Plan.

       As RA for Approval of Development Plan, the NEB also notifies EISC.

7-4    NEB Conducts Technical Review
       The NEB typically completes its technical review of the plan within 90 days unless the application is
       incomplete or the contents unclear.

7-5    Applicant May Be Asked for Further Information
       If the NEB review team finds that information in the application requires clarification, an Information
       Request (IR) may be sent to the Company. Deficient applications may be returned to the Applicant.

7-6    Requirements under IFA section 11 EISRP
       The IFA requires that the EISC screen a development before the government can issue an authorization
       allowing work to proceed.

       After consultation with HTCs, other co-management bodies and EISC, the Applicant must prepare a
       Project Description according to EISC Procedures. Refer to Chapter 4, CHART EISC.



24-2                                                                                                  June 2001
Authorizations by Stage of Activity                                             24 – Development Plan Approvals




For a large format version of this chart, see Appendix B – Summary of Charts.




June 2001                                                                                                 24-3
24 – Development Plan Approvals                                           Authorizations by Stage of Activity


7-7    EISC Screening and Determination
       The report of the EISC will indicate whether in the EISC’s opinion:
           development will have No Significant Negative Impact, may proceed without further review;
           development has Deficiencies that warrant termination of its consideration and submission of
           another Project Description, in which case the Applicant may choose to alter plans and refile; or
           development could have significant negative impact, and will be Subject To Further Review
           under the IFA.

7-8    EIRB Review and Decision
       The EISC may refer the development to further review either by the EIRB or by another body that in its
       opinion will encompass the Review requirements under the IFA. Typically, the referral is to the EIRB.
       Refer to Chapter 4, CHART EIRB for the detailed steps in EIRB Review processes. Based on the
       Review, the Review Panel recommends whether a proposed development should proceed, and if so under
       what terms and conditions (such as mitigative measures and remediation, and wildlife compensation). The
       decision is sent to the governmental authority competent to authorize the development, which in the case of
       oil and gas activities in the ISR (excepting the Yukon North Slope) is the National Energy Board.

7-9    Requirements for Environmental Assessment under CEAA
       The purpose of the NEB review of the Development Plan is to allow an early consideration of the project
       concept, so that necessary changes can be made early in planning. Nevertheless, Development Plan
       Approval is identified as a trigger under CEAA in section 19 of the Inclusion List and the Law List. At
       this stage, there are no other Responsible Authorities besides the NEB that must issue an authorization
       for a Development Plan. Refer to Chapter 13 and CHART CEAA for the steps that the NEB must
       follow.

       The EISC Determination or EIRB Decision is taken into account by the NEB when making EA
       determinations under CEAA.

       The decision following a Screening or Comprehensive Study may be:
           Project Not Justified; or
           Project Not Likely to Cause Significant Adverse Environmental Effects, in which case
           Authorization Processes May Resume/Proceed; or
           Project Subject to Further Environmental Impact Review under CEAA.

       In the event that further Review under CEAA is called for, further Review is typically by Panel Review.
       In the event that both the EISC and the Minister of the Environment, on the recommendation of the
       NEB, consider that further Review is necessary, there will be consideration given to substitution of the
       CEAA process by the EIRB Panel Review pursuant to the EIRB-CEAA Memorandum of
       Understanding.

7-10   NEB Decision on Environmental Assessment Under CEAA
       The NEB makes its CEAA determination; either:
           The Project is Not Justified, and the Application for Development Plan is Rejected 7-11; or
           Authorization Processes May Proceed/Resume 7-12.




24-4                                                                                                  June 2001
Authorizations by Stage of Activity                                         24 – Development Plan Approvals


7-13    Minister (DIAND) Approved Benefits Plan Required
        Under COGOA, NEB cannot approve the Development Plan until the DIAND Minister has approved
        (or waived the requirement for) the Applicant’s Benefits Plan. Refer to Chapter 16 and CHART
        BEN for steps in the process.

7-14    NEB Decision on Whether to Approve Development Plan
        The Board of the NEB makes a preliminary decision whether to approve the Development Plan and
        either does not approve the application with reasons (in which case decision can be appealed), or if
        recommending approval, the NEB refers it for Governor in Council consent to Part I of the Development
        Plan.

7-15    Governor in Council Consent to Part 1

7-16    NEB Approval of Development Plan
        Following Governor in Council consent for Part 1, the NEB can approve Part 2 of the Development
        Plan, issue the approval, attaching conditions it considers appropriate or that may be prescribed.

7-17    Applications for Pipelines and Facilities Construction Approvals Can Proceed
        The Applicant may now proceed to make applications for pipelines and facilities consistent with the
        approved Development Plan. Go to CHART 9.


CHART 8 – Surface Development Plan Approvals by ILA on Inuvialuit 7(1)(a)
          and 7(1)(b) Lands
The Concession Agreement between the Developer and IRC imposes requirements for a Surface Development
Plan as a condition of application to the ILA for rights and authorization. The Surface Development Plan must
provide a complete description of facilities, and the ILA must be satisfied that development will take place in
accordance with the Surface Development Plan.

The focus of the ILA review of the Surface Development Plan is on the surface manifestation of the development,
and therefore overlaps in part with the NEB’s responsibility to review the Development Plan under COGOA. As
mentioned on CHART 7, the NEB would most likely hold its decision on the Development Plan under COGOA
until the ILA has issued approval of the Surface Development Plan. It will be very important for the NEB, ILA
and the Proponent to consult and to co-ordinate processes to ensure that this overlap of mandates does not cause
unnecessary delay.

8-1     Company/Lessee Decides to Proceed to Development Drilling and Commercial
        Production

8-2     Company Enters into Agreements with ILA as Required
        Under a Concession Agreement, the Company will have already negotiated a Cooperation and Benefits
        Agreement. The Company may have to enter new Participation or Access Agreements, depending on the
        terms of past Agreements. This may require further consultation with the ILA, Community Corporations
        and IRC.



June 2001                                                                                                     24-5
24 – Development Plan Approvals   Authorizations by Stage of Activity




24-6                                                      June 2001
Authorizations by Stage of Activity                                         24 – Development Plan Approvals


8-3    Company Develops Surface Development Plan Application and Project Description

8-4    Consultation With Inuvialuit Communities and Organizations to Anticipate Design
       Issues
       Applicants should initiate consultations with Inuvialuit communities and organizations as early as possible
       to ensure that concerns are taken into consideration in planning from the outset.

       With Community Corporations and IRC/ILA
       The Proponent will have to consult the Inuvialuit Corporate interests and CCs to secure
       Cooperation/Benefits Agreements and Participation/Access Agreements as may be required.

       Obtain Advice from ILA, EISC, NEB and Other Government Agencies/Departments
       on Requirements
       The Company should undertake pre-application consultation with both Inuvialuit and federal agencies to
       understand the requirements of their respective processes, and to produce an Application that can
       anticipate, to the extent possible, the full range of regulatory requirements and concerns. Consultation
       should include the NEB and other federal departments whose responsibilities could be affected by the
       development, as well as ILA, IGC, HTCs, EISC, and IRC.

8-5    Company Applies to ILA for Approval of Surface Development Plan
       According to ILA Rules and Procedures, subsection 7(24), a Surface Development Plan must contain a
       complete description of the facilities, buildings or any works to be constructed or expanded, environmental
       and safety studies as well as impacts on employment, business and the Inuvialuit Communities. The
       Surface Development Plan is also a requirement of Concession Agreements under Article 16.

8-6    ILA Reviews Surface Development Plan under General Evaluation Procedures
       Refer to Chapter 15 and CHART ILA for steps that the ILA follows to review the Surface
       Development under General Evaluations Procedures.

8-7    ILAC Decides Whether Surface Development Plan Will Be Screened by IFA EISC

8-8    Requirements Under IFA section 11 EISRP
       After consultation with HTCs, other co-management bodies and EISC, the Applicant must prepare a
       Project Description according to EISC Procedures. Refer to Chapter 4, CHART EISC.

8-9    EISC Screening and Determination
       The report of the EISC will indicate whether in the EISC’s opinion:
            development will have No Significant Negative Impact, may proceed without further review; or
            development has Deficiencies that warrant termination of its consideration and submission of
            another Project Description, in which case the Applicant may choose to alter plans and refile; or
            development could have significant negative impact, and will be Subject to Further Review
            under the IFA.




June 2001                                                                                                    24-7
24 – Development Plan Approvals                                           Authorizations by Stage of Activity


8-10   EIRB Review and Decision
       The EISC may refer the development to further Review either by the EIRB or by another body that in its
       opinion will encompass the Review requirements under the IFA. Typically, the referral is to the EIRB.
       Refer to Chapter 4, CHART EIRB for the detailed steps in Review processes. Based on its Review,
       the Review Panel recommends whether a proposed development should proceed, and if so under what
       terms and conditions (such as mitigative measures and remediation, and wildlife compensation).

       The decision is sent to the ILAC and to the governmental authority competent to authorize the
       development, which in the case of oil and gas activities in the ISR (excepting the Yukon North Slope) is
       the National Energy Board.

8-11   ILAC Decides Whether to Approve the Surface Development Plan

8-12   Applicant May Alter Development Plan and Resubmit to ILA
       If ILAC rejects the Surface Development Plan, the Applicant may alter the Plan and re-submit to the
       ILA.

8-13   ILAC Issues Approval of Surface Development Plan and Advises Applicant
       Note Article 16 of Concession Agreement, regarding drilling of development wells, construction or
       expansion of facilities, or change to a previously approved Surface Development Plan. No activities shall
       be initiated unless the ILA is satisfied that the proposed development will take place in accordance with
       the Surface Development Plan approved in accordance with the Rules and Procedures.

       No commercial production can begin until the Lessor has verified that the project has been developed in
       accordance with the surface development plan.

8-14   NEB Waits on ILA Approval Before Deciding on COGOA Development Plan
       Approval




24-8                                                                                                  June 2001
Authorizations by Stage of Activity                                                    25 – Oil and Gas Production



25.0 OIL AND GAS PRODUCTION


CHART 9 – Production Authorizations on Federal Crown Lands
          in the ISR (NWT)

This chapter describes the steps for obtaining the authorizations necessary to proceed to develop and produce oil
and gas on federal Crown lands in the ISR, NWT.

In theory, a Company will first obtain a Development Plan Approval from the NEB (CHART 7) before
applying for the specific activity authorizations that are needed to proceed to production, so that the overall concept
is approved before applications are submitted. In this model, there will have been a CEAA and IFA EISRP
consideration of the proposed Development Plan and a report issued on appropriate terms and conditions. In
theory, the results of these earlier reviews will be taken into consideration in the EA and Screening of the
subsequent authorizations, to avoid duplication of review between the two phases. There remains therefore a risk
that the project could be subjected to a second, duplicate round of assessment, depending on scoping and the terms
of reference for the project. As well, if substantial changes have been made in the Development Plan as a result of a
directive from a department or agency, other RAs may find it necessary to re-assess the impacts of the project.

In practice, the two phases (CHART 7 and CHART 9) may run partly in parallel. Strictly the requirement is
that the NEB may not issue authorizations pursuant to COGOA paragraph 5(1)(b), until a Development Plan
has been approved. A Company may apply for a Development Plan Approval before or in parallel with the
development and submission of applications for specific activities. If application for Development Plan Approval is
made in parallel, the EA phase under CEAA and the IFA EISRP would consider the proposed development
both in concept and in detail at the same time.

Clearly, close attention needs to be paid to the coordination of processes at this stage, both to ensure that the
proposal receives a full and fair review, and to avoid replication of effort.

9-1      Company Develops and Submits Project Description and Applications for
         Authorizations
         The authorizations required will be determined by the nature, scope and scale of the facilities and
         construction activities applied for. If a Development Plan Approval is in hand or well underway, the main
         design features of the project will have already been determined and the main features of environmental
         management worked out.

         The principal requirements will be for authorizations from the NEB, pursuant to COGOA, however there
         will be other authorizations required from other RAs.

         In order to meet the requirements under IFA section 11 for Environmental Impact Screening and Review,
         the Proponent will have to prepare a Project Description according to EISC Operating Guidelines and
         Procedures.




June 2001                                                                                                           25-1
25 – Oil and Gas Production                                                 Authorizations by Stage of Activity


9-2    Consultation with Inuvialuit Communities and Organizations (HTCs, IGC, FJMC,
       WMAC if Required)
       By the time the Proponent applies for production authorizations, it is assumed that extensive consultation
       will already have been done with Inuvialuit organizations and communities and that a relationship will be
       well-established. The consultation requirement at this stage should be an incremental one: to discuss
       concerns related to this stage of activity, the specific activities proposed, and the timing of activities.

       Obtain Advice from Departments/Agencies on Issues and Requirements
       The Proponent is responsible for identifying the regulatory authorizations required, and should contact
       each federal or territorial department or agency and the EISC to obtain advice on requirements and
       processes for obtaining authorizations.

       Contact ILA to Obtain Permission for Access Across Inuvialuit Lands if Required
       Access may be required across or possibly to Inuvialuit-Owned lands in order to conduct the proposed
       activities. Consent for such access must first be obtained from the ILA, through application for a right,
       negotiation of an agreement in relation to the right, and the ILA must be notified before the right is
       exercised (Chapter 15, CHART ILA).

9-3    Company Applies to NEB for Construction Authorization and Production Operations
       Authorizations
       A Construction Authorization, issued under paragraph 5 (1)(b) of COGOA, allows the Applicant to
       construct production and pipeline facilities. The Production Operations Authorization, issued under
       section 9 of the Canada Oil and Gas Production and Conservation Regulations allows the Applicant to
       begin production.

9-4    Company Applies to DIAND for Land Use Permits and/or Surface Tenure
       DIAND is responsible for reviewing applications and issuing Land Use Permits, Licences of
       Occupation, Land Leases and Access Road Rights-of-Way, pursuant to the Territorial Lands Act and
       Regulations. Refer to Chapter 16 for thresholds for permits and procedures.

9-5    Company Applies to NWT Water Board for Water Licence
       The NWT Water Board is responsible for reviewing applications and issuing Water Licences in the
       NWT part of the ISR. Refer to Chapter 17 for thresholds for licences and to CHARTS WA & WB
       for procedures. In Yukon, water licence applications are made to the Yukon Water Board in Whitehorse.

9-6    Company Applies to DFO for Fisheries Act Authorization
       Depending on the nature of the proposed operation, authorization(s) under the Fisheries Act may be
       required. These authorizations are coordinated through the Yellowknife office of the DFO. Refer to
       Chapter 18.




25-2                                                                                                   June 2001
Authorizations by Stage of Activity                                             25 – Oil and Gas Production




For a large format version of this chart, see Appendix B – Summary of Charts.



June 2001                                                                                             25-3
25 – Oil and Gas Production                                                Authorizations by Stage of Activity


9-7    Other Authorizations May be Required
       Depending on the nature of activities proposed, the Company may have to apply for further
       authorizations. In addition to those shown on the chart, there may be others, such as:
           Sea Bed Leasing Authority under the FRPA (in the case of offshore activities);
           Navigable Water Protection Act Permit;
           Disposal at Sea Permit;
           Migratory Bird Sanctuary Permit; and
           Other authorizations as necessary.

       Processes for obtaining these authorizations are not described in this Guide, but would follow a parallel
       process, waiting on the results of the Environmental Assessment stage before proceeding to a regulatory
       decision on issuance. It is up to the Applicant to identify all the authorizations required. General
       assistance in this regard is available from the Manager, Petroleum Development and Benefits Division,
       DIAND, Yellowknife.

9-8    Responsible Authority Notifies EISC that an Application has been Received
       The IFA requires that the EISC screen a development before the government can issue an authorization
       allowing work to proceed.

9-9    Requirements of IFA EISRP Must Be Met

9-10   EISC Screening and Determination
       The report of the EISC will indicate whether, in the EISC’s opinion:
           development will have No Significant Negative Impact, may proceed without further review; or
           development has Deficiencies that warrant termination of its consideration and submission of
           another Project Description, in which case the Applicant may choose to alter plans and refile; or
           development could have significant negative impact, and will be Subject To Further Review
           under the IFA.

9-11   EIRB Review and Decision
       The EISC may refer the development to further Review either by the EIRB or by another body that in its
       opinion will encompass the Review requirements under the IFA. Typically, the referral is to the EIRB
       (Chapter 4, CHART EIRB). Based on the Review, an EIRB Review Panel recommends whether a
       proposed development should proceed, and if so under what terms and conditions (such as mitigative
       measures and remediation, and wildlife compensation).

9-12   Requirements for Environmental Assessment under CEAA
       Hydrocarbon developments will hit several triggers under CEAA, entailing screening responsibilities for
       several RAs. Coordination will be pursuant to Federal Coordination Regulations. Refer to Chapter 13
       and to CHART CEAA for detail on the steps that the RAs must follow. Under CEAA, each RA
       makes its own Screening decision. Upon completion of Screening, where no referral is made for an
       Environmental Assessment, and the requirements of regulatory agencies have been met, licences, permits
       or authorizations for a development can be issued.




25-4                                                                                                   June 2001
Authorizations by Stage of Activity                                              25 – Oil and Gas Production


       The EISC Determination and EIRB Decision may be taken into account by the RA in any level of EA
       Determination.

       The decision following a Screening or Comprehensive Study may conclude:
            Project Not Justified; or
            Project Not Likely to Cause Significant Adverse Environmental Effects:
            Authorization Processes May Proceed/Resume; or
            Project Subject to Further Review under CEAA by Panel or Mediator, but typically by
            Panel.

       Any one or more of the federal RAs may indicate that further Environmental Impact Assessment is
       warranted. As well, the EISC may determine that further Review under the IFA is required. The
       Minister of Environment decides whether to refer the project on, and to which track.

       In the event that further review under CEAA is called for, coordination will be pursuant to the Federal
       Coordination Regulations. In the event that both the EISC and the Minister of the Environment, on the
       recommendation of an RA, consider that further review is necessary, pursuant to the EIRB-CEAA
       Memorandum of Understanding.

9-13   Final EA Determination Under CEAA
       In the case of further review, the Minister of the RA or in the case of COGOA authorizations the NEB,
       subject to approval by the Governor in Council, makes the decision on whether the project should proceed
       and under what conditions. Either:
            The Project is Not Justified; or
            Authorization Processes May Proceed/Resume.

9-14   Review of Land Use and Tenure Application by DIAND
       At this point, the review of the application for either Land Use or Land Tenure may resume. Following
       the process described in Chapter 16 and CHART BEN, DIAND proceeds to a decision on whether
       to issue an authorization, and if so, under what terms and conditions.

9-15   Review of Water Licence Application by NWT Water Board
       At the same time, review of the Water Licence application resumes. Refer to Chapter 17 and
       CHARTS WA and WB. The NWT Water Board decides whether to issue a Water Licence and
       under what conditions, including a decision on whether and in what amount security may be required.

9-16   Review of Application for Fisheries Act Authorization (FAA) by DFO
       Refer to Chapter 18 and CHART DFO for the process undertaken by DFO. DFO will proceed to a
       decision on whether to issue an FAA, and if so, under what terms and conditions, including a decision on
       whether and in what manner compensation is required.

9-17   Other Authorization Processes as Required




June 2001                                                                                                  25-5
25 – Oil and Gas Production                                                 Authorizations by Stage of Activity


9-18   NEB Reviews Application for Production Authorizations (COGOA)
       A positive outcome of the decision based on the EA under CEAA permits an RA to “exercise any power
       or perform any duty or function that would permit the project to be carried out in whole or in part…”
       (CEAA s. 37(1)(a)). The NEB will have been working on its review of the Application for Construction
       Authorization while the IFA and CEAA processes were underway. At this point, the NEB will complete
       the review process and may proceed to a decision.

9-19   Minister (DIAND) Approved Benefits Plan Required
       Under COGOA, NEB cannot issue Construction Authorization and Production Operations Approvals
       until a Benefit Plan is approved. Normally, the Benefits Plan submitted and approved at the development
       plan approval stage covers both the construction and operations periods. Refer to Chapter 16 and
       CHART BEN for steps in the process.

9-20   Development Plan Approval Required
       A Development Plan Approval is required from the NEB before Authorization under COGOA
       paragraph 5(1)(b) can be issued. (CHART 7 for process).

9-21   NEB Decision on Issuance of Construction Authorization
       The Chief Conservation Officer makes the decision on whether to issue the Construction Authorization so
       the Applicant can proceed with construction. Authorization carries conditions, for instance that the facility
       be built as designed.

9-22   Applicant Proceeds with Construction of Facility
       If there are changes in design made during the construction, application must be made to the Chief
       Conservation Officer for amendment to the Construction Authorization.

9-23   NEB Verification: Does Facility Conform to Construction Authorization?
       Inspection conducted to confirm whether the facility conforms to the Construction Authorization, and that
       the facility is safe to operate, if so, a Declaration of Facility of Integrity is issued.

9-24   NEB Reviews Production Operations Approval Application
       Before the NEB can issue a Production Approval, the Applicant must file:
           Environmental Protection Plan;
           Safety Plan;
           Letter of Declaration of Fitness (from the NEB); and
           Production Licence (from DIAND-NOGD pursuant to CPRA. Refer to Chapter 22,
           CHART 3.)

9-25   NEB Decision on Production Operations Approval Application

9-26   Production Licence Required from DIAND Prior to Start of Production

9-27   Production May Commence
       Production may being after all relevant licences, permits and authorizations have been obtained.


25-6                                                                                                   June 2001
Authorizations by Stage of Activity                                                    25 – Oil and Gas Production




CHART 10 – Production Authorizations on Inuvialuit 7(1)(a) and 7(1)(b)
           Lands in the ISR (NWT)

This chapter describes the steps for obtaining authorizations to develop and produce oil or gas on Inuvialuit-
Owned 7(1)(a) and 7(1)(b) lands in the ISR.

As in the case of Crown lands, in theory, a Company will first obtain a Development Plan Approval from the
NEB (CHART 7) and a Surface Development Plan Approval from the ILA (CHART 8) before applying for
the specific activity authorizations that are needed to proceed to production, so that the overall concept is approved
before applications are submitted.

In practice, the three phases (CHART 7, 8 and 9) may run partly in parallel. Strictly the requirement is that the
NEB may not issue authorizations pursuant to COGOA s. 5(1)(b), until a Development Plan has been approved.
A Company may apply for a Development Plan Approval before or in parallel with the development and
submission of applications for specific activities. The EA phase under CEAA and the IFA EISRP will consider
the proposed development both in concept and in detail at the same time.

Clearly, close attention needs to be paid to the coordination of processes at this stage, both to ensure that the
proposal receives a full and fair review, and to avoid replication of effort.

10-1     Company Develops and Submits Project Description and Applications for
         Authorizations
         The authorizations required will be determined by the nature, scope and scale of the facilities and
         construction activities applied for. If a Development Plan Approval is in hand, or well underway, the main
         design features of the project will have already been determined and the main features of environmental
         management worked out.

         The principal requirements will be for authorizations from the NEB pursuant to COGOA, however there
         will be other authorizations required from other RAs. In addition to those shown on the chart, there may
         be others. Refer to 10-6 below.

         The ILAC may or may not decide to refer the project for Screening by the EISC, although for a project
         of this scale, referral would be very likely. In any event, the requirements of IFA section 11 for
         Environmental Impact Screening and Review will have to be met before government can issue any of the
         other authorizations that may be required. In order to meet the requirements under IFA section 11, the
         Proponent will have to prepare a Project Description according to EISC Operating Guidelines and
         Procedures.




June 2001                                                                                                           25-7
25 – Oil and Gas Production                                                     Authorizations by Stage of Activity




For a large format version of this chart, see Appendix B – Summary of Charts.




25-8                                                                                                    June 2001
Authorizations by Stage of Activity                                                25 – Oil and Gas Production


10-2   Consultation with Inuvialuit Organizations and Communities (HTCs, IGC, FJMC,
       WMAC, IRC, CCs)
       By the time the Proponent applies for production authorizations, it is assumed that extensive consultation
       will already have been done with Inuvialuit organizations and communities and that a relationship will be
       well-established. The consultation requirement at this stage should be an incremental one: to discuss
       concerns related to this stage of activity, the specific activities proposed, and the time of activities.

       Discussions with Community Corporations and IRC
       Discussions with CC and IRC/ILA will be necessary both as a basis for Cooperation/Benefits
       Agreements and Participation/Access Agreements, and to meet the Benefits Plan requirement under
       COGOA (refer to 10-18).

       Obtain Advice from the ILA, NEB, EISC and Department/Agencies on Issues and
       Requirements
       The Proponent is responsible for identifying the regulatory authorizations required, and should contact
       each federal or territorial department or agency and the EISC to obtain advice on requirements and
       processes for obtaining authorizations.

10-3   Company Applies to NEB for Construction Authorization and Production Operations
       Authorization
       A Construction Authorization, issued under paragraph 5 (1)(b) of COGOA, allows the Applicant to
       construct facilities and pipelines. The Production Operations Authorization, issued under section 9 of the
       Canada Oil and Gas Production and Conservation Regulations allows the Applicant to begin production.

10-4   Company Applies for a Water Licence from NWT Water Board
       The NWT Water Board is responsible for reviewing applications and issuing Water Licences in the
       NWT part of the ISR. Refer to Chapter 17 for information on thresholds for permits and procedures.
       In the Yukon part of the ISR, Water Licence applications are made to the Yukon Water Board.

10-5   Company Applies to DFO for Fisheries Act Authorization
       Depending on the nature of the proposed operation, authorization(s) under the Fisheries Act may be
       required. These authorizations are coordinated through the Yellowknife office of the DFO. Refer to
       Chapter 18 and CHART DFO.

10-6   Other Authorizations May be Required
       Depending on the nature of activities proposed, the Company may have to apply for further
       authorizations, including but not limited to:
            NWPA Permit from DFO-CCG;
            Migratory Bird Sanctuary Permits from EC; and
            Wildlife Research Permit from GNWT, etc.

       Processes for obtaining these other authorizations are not described in this Guide, but would follow a
       parallel process, waiting on the results of the Environmental Assessment stage before proceeding to a
       regulatory decision on issuance. It is up to the Applicant to identify all the authorizations required.



June 2001                                                                                                        25-9
25 – Oil and Gas Production                                               Authorizations by Stage of Activity


        General assistance in this regard is available from the Manager, Petroleum Development and Benefits
        Division, DIAND, Yellowknife.

10-7    Responsible Authority (RA) Notifies EISC
        The IFA requires that the EISC screen a development before the government can issue an authorization
        allowing work to proceed.

10-8    Company Applies to ILA for Land Use and Occupancy
        Applications for Leases and Rights-of-Way are made to ILA in Tuktoyaktuk, pursuant to ILA Rules
        and Procedures, refer to Chapter 15 and CHART ILA. Generally, the necessary Agreements will
        already be in place through the Surface Development Plan approval process on CHART 8.

10-9    ILA Reviews Applications under General Evaluation Procedures

10-10 ILAC Decides Whether Project Will Screened by EISC

10-11 Requirements of IFA EISRP

10-12 EISC Screening Determination
        The report of the EISC will indicate whether, in the EISC’s opinion either:
            development will have No Significant Negative Impact, may proceed without further review; or
            development has Deficiencies that warrant termination of its consideration and submission of
            another Project Description, in which case the Applicant may choose to alter plans and refile; or
            development could have significant negative impact, and will be Subject To Further Review
            under the IFA.

10-13 EIRB Review and Decision
        The EISC may refer the development to further Review either by the EIRB or by another body that in its
        opinion will encompass the Review requirements under the IFA. Typically, the referral is to the EIRB.
        Refer to Chapter 4, CHART EIRB for the detailed steps in Review processes. Based on the Review,
        the Review Panel recommends whether a proposed development should proceed, and if so under what
        terms and conditions (such as mitigative measures and remediation, and wildlife compensation).

        The decision is sent to the ILAC and to the governmental authority competent to authorize the
        development, which in the case of oil and gas activities in the ISR (excepting the Yukon North Slope) is
        the National Energy Board.

10-14 ILAC Decision
        If the ILAC decision is to approve the application, the ILA will proceed to issue the Rights, Leases and
        other authorizations applied for, 10-15.

10-16 Requirements for Environmental Assessment under CEAA
        Developments will hit several triggers under CEAA, entailing screening responsibilities for DIAND,
        NEB, DFO and other departments. Coordination will be pursuant to Federal Coordination Regulations.


25-10                                                                                                 June 2001
Authorizations by Stage of Activity                                              25 – Oil and Gas Production


       Refer to Chapter 13 and CHART CEAA for steps the RA must follow. Under CEAA, each RA is
       responsible for making its own decision on the EA.

       Typically, the EISC determination would be taken into account by the RA when making this decision.
       An EIRB Decision can be taken as input to any level of EA under CEAA.

       The decision following a Screening or Comprehensive Study takes one of three options:
            Project Not Justified; or
            Project Not Likely to Cause Significant Adverse Environmental Effects, in which case
            Authorization Processes May Proceed/Resume; or
            Project Subject to Further Environmental Review under CEAA, by Panel or Mediator,
            but typically by Panel.

       In the event that further review under CEAA is called for, coordination will be pursuant to the Federal
       Coordination Regulations. In the event that both the EISC and the Minister of the Environment, on the
       recommendation of an RA, consider that further review is necessary, the possibility of substitution of
       EIRB Panel Review for a CEAA Panel Review will be considered pursuant to the EIRB-CEAA
       Memorandum of Understanding.

       Upon completion of Screening, where no referral is made for an Environmental Assessment, and the
       requirements of regulatory agencies have been met, licences, permits or authorizations for a development
       can be issued.

10-17 Final EA Determination Under CEAA
       The NEB, subject to approval by the Governor in Council, makes the decision on whether the project
       should proceed and under what conditions. Either:
            The Project is Not Justified; or
            Authorization Process May Proceed/Resume.

10-18 Minister (DIAND) Approved Benefits Plan Required Before NEB Can Issue
      Authorizations
       Under COGOA, NEB cannot issue Construction Authorization and Production Operations Approvals
       until a Benefit Plan is approved. Normally, the Benefits Plan submitted and approved at the development
       plan approval stage covers both the construction and operations periods. On ILA lands, the terms of
       Agreements negotiated with the ILA will generally be accepted as meeting requirements. Refer to
       Chapter 16 and CHART BEN for steps in the process.

10-19 Review of Water Licence Application by NWT Water Board
       At the same time, review of the Water Licence application resumes. Refer to Chapter 17 and
       CHARTS WA and WB. The NWT Water Board decides whether to issue a Water Licence and
       under what conditions, including a decision on whether and in what amount security may be required.




June 2001                                                                                                 25-11
25 – Oil and Gas Production                                                  Authorizations by Stage of Activity


10-20 Review of Applications for Fisheries Act Authorization (FAA) by DFO
        Refer to Chapter 18 and CHART DFO for the process undertaken by DFO. DFO will proceed to a
        decision on whether to issue an FAA, and if so, under what terms and conditions, including a decision on
        whether and in what manner compensation is required.

10-21 Other Authorization Processes as Required

10-22 NEB Reviews Application for Construction Authorizations

10-23 NEB Decision on Issuance of Construction Authorization
        The Chief Conservation Officer makes the decision on whether to issue the Construction Authorization so
        the Applicant can proceed with construction. Authorization carries conditions, for instance that the facility
        be built as designed.

10-24 Applicant Proceeds with Construction of Facility
        If there are changes in design made during the construction, application must be made to the Chief
        Conservation Officer for amendment to the Construction Authorization.

10-25 NEB Verification: Does Facility Conform to Authorization?
        Inspection conducted to confirm whether the facility conforms to the Construction Authorization, and that
        the facility is safe to operate.

10-26 NEB Reviews Production Operations Approval Application
        Before the NEB can issue a Production Approval, the Applicant must file:
            Environmental Protection Plan;
            Safety Plan; and
            Letter of Declaration of Fitness (from the NEB).

10-27 NEB Decision on Issuance of Production Operations Approval

10-28 Production May Commence
        Production can start once all relevant licences, permits and authorizations have been obtained.




25-12                                                                                                     June 2001
Authorizations by Stage of Activity                                      26 – Transboundary Pipeline Approvals



26.0 Transboundary Pipeline Approvals in the ISR


Reader’s Caution:     The specific review process for a transboundary pipeline application will be determined on a
                      project-by-project basis. Discussions are underway among the National Energy Board, the
                      Canadian Environmental Assessment Agency, Indian and Northern Affairs, Inuvialuit co-
                      management bodies and the Mackenzie Valley Environmental Impact Review Board with
                      respect to opportunities for coordination and cooperation on environmental review processes for
                      a Mackenzie Valley pipeline application.

                      It is not possible to speculate on the outcome of discussions toward coordination of processes.
                      This Chapter deals with a more limited case. These requirements described here are those for a
                      pipeline located in the ISR as generated by legislation applicable within the ISR, without
                      consideration of coordination with other jurisdictions into which a pipeline may extend.

As noted in Chapter 14 for the National Energy Board, transmission pipelines in the ISR are regulated under
either the Canada Oil and Gas Operations Act (COGOA) or the National Energy Board Act (NEB Act). In
general, proposed pipelines that are located wholly within the NWT are regulated under COGOA. Trans-
boundary pipelines that run between the NWT and a neighbouring province or territory or the United States are
regulated under the NEB Act. Pipelines regulated under COGOA are subject to the process set out in CHART
NEB, Chapter 14. Contact the NEB for advice on the legislative and regulatory requirements for any particular
pipeline proposal.

The Development Plan approval requirements under COGOA apply throughout the NWT onshore and the
offshore ISR. These requirements apply equally to activities on Crown lands and those on Inuvialuit-Owned lands.

Activities on Inuvialuit-Owned lands must meet a similar set of requirements for approval of a Surface
Development Plan obtained by application to the ILA. The focus of the ILA review of the Surface Development
Plan is on the surface manifestation of the development. The ILA process is described on CHART 8.

There is no precedent at present for the practical operation of these two processes. Probably, the NEB would hold
its decision on the Development Plan under COGOA until the ILA has issued approval of the Surface
Development Plan. It will be very important for the NEB, ILA and the Proponent to consult and to coordinate
processes to ensure that this overlap of mandates does not cause unnecessary delay.

Proposed pipelines greater than 40 km in length would require a Certificate under section 52 of the NEB Act.
Under section 58 of the Act, pipelines 40 km or less may be exempted from this and related requirements.
Whether a proposed pipeline is subject to section 52 or section 58 of the NEB Act will influence the NEB
process.

In general, applications made for a Certificate of Public Convenience and Necessity pursuant to section 52 of the
NEB Act require a NEB hearing and Governor in Council (GIC) approval. Applications for an Order pursuant
to section 58 of the NEB Act usually do not require a NEB hearing and do not require GIC approval, but
otherwise are subject to similar steps and principles of review as for a section 52, with due regard for the scope and
nature of the proposed project.

The location of the origin and terminus of the proposed pipeline will also influence the Environmental Assessment
and approvals processes. Transboundary pipelines originating in, or passing through the ISR would be subject to


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26 – Transboundary Pipeline Approvals                                        Authorizations by Stage of Activity


both the IFA and CEAA. If a proposed pipeline should extend south into the Mackenzie Valley, it would also be
subject to the MVRMA.

For each proposed project, the NEB would consider the pertinence of any proposed upstream and downstream
facilities with respect to the jurisdiction of the NEB Act, scope of the project, scope of the Environmental
Assessment and cumulative effects. Pre-application meetings to identify permitting requirements and potential
Environmental Assessment triggers are recommended. Refer to CHARTS EISC and EIRB on environmental
processes under the IFA, and CHART CEAA for the CEAA process.

CHART 11 illustrates the steps in the review process for section 52 transboundary pipelines, respectively.
Numbered headings correspond to the boxes in the charts and describe each process step in the process.


CHART 11 - Authorization for Transboundary Pipeline under s. 52 of NEB Act

11-1    Public Consultation by Applicant
        Applicants for a pipeline project are required to consult directly with potentially affected persons prior to
        making formal application for project approval to the NEB. Consultation should continue throughout the
        application review process and if the proposal is approved, through the lifespan of the project.

        The requirement for meaningful and comprehensive consultation early in the project planning and design
        stages is spelled out in the NEB’s “Guidelines for Filing Requirements.” Beyond this, the regulated
        companies are expected to consult potentially affected persons through all phases of a project life cycle,
        which includes the planning, construction, operations and abandonment phases. Consultation can occur in
        a number of ways, such as personal contacts, community visits, media advertising, mail outs, news releases,
        brochures, open houses, meetings and advisory groups.

        Maintaining a complete record of consultation efforts and results is essential to demonstrating meaningful
        consultation. This record should identify parties contacted, contact methods, dates, location and nature of
        consultation(s), and concerns and issues raised and discussed. The Applicant must also identify, in its
        application, if and how the development proposal was changed or altered to address public concerns
        should that be the case and must disclose any unresolved or outstanding issues and ongoing actions to deal
        with these.

11-2    Consultation with Inuvialuit
        Applicants for pipeline authorizations with the ISR would be expected to consult with Inuvialuit as part of
        the public consultation required by the NEB. In addition, processes under the IFA require that Inuvialuit
        communities and organizations be thoroughly consulted before development is initiated. Applicants should
        consult with the Hunters and Trappers Committees of the communities potentially affected, the EISC,
        and with IGC, FJMC, and WMAC. Where ILA lands are involved, the Applicant would have to
        negotiate with ILA regarding terms for permission of access to the land.

        Contact should be made as early as possible and should be maintained through both the application and
        implementation phase of the project.




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Authorizations by Stage of Activity                                             26 – Transboundary Pipeline Approvals




For a large format version of this chart, see Appendix B – Summary of Charts.


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26 – Transboundary Pipeline Approvals                                      Authorizations by Stage of Activity


11-3   Consultation with Government
       The NEB recommends that an Applicant meet with Board staff to identify permitting requirements and
       potential Environmental Assessment triggers prior to submitting an application. Typically, pipeline
       construction will require a range of authorizations from departments and agencies other than the NEB. It
       is important for the Applicant to consult widely with government, both federal and territorial, to ensure
       that all authorizations are identified and anticipated in the development of the applications. The record
       and result of these consultations should also be included in the application.

11-4   Applicant Develops Activity Plan and Prepares Applications for Licences, Permits
       and Authorizations
       By consulting early in the process, the Applicant will be able to incorporate public and government input
       into the design and routing of the pipeline.

       In addition to NEB approval, several licences, permits or authorizations may be required for a
       transboundary project from territorial, provincial or other federal agencies. Once applications have been
       filed, the triggers for CEAA will be identified.

11-5   Application Submitted for Section 52 Authorization Under of the NEB Act.
       An application in the form of regulatory filing with the NEB will initiate both the environmental process
       and the regulatory review. For projects subject to a CEAA Screening, this is the normal procedure. For
       projects subject to a CEAA Comprehensive Study, an application does not need to be filed at this stage.
       By submitting a Project Description (as required by EISC) or a Preliminary Information Package, the
       Applicant will enable departments/agencies to initiate the EA process under CEAA. However, a
       complete application is required prior to the NEB proceeding with its regulatory review and, if required,
       public hearing process.

       In the event of a pipeline emergency, projects that would otherwise require an exemption order from the
       Board pursuant to section 58 of the NEB Act may proceed without such order. Circumstances would
       include projects that are carried out in response to a national emergency for which special temporary
       measures are being taken under the Emergencies Act, or in response to pipeline emergencies as defined in
       the Canadian Standards Association code Z662.

       In addition to the application for section 52 or section 58 approval, applications may be required
       depending on the design and routing of the pipeline for other authorizations, for instance:
           to DIAND under the Territorial Lands Act or Federal Real Property Act for land use, right of way or
           tenure;
           to ILA under the Inuvialuit Final Agreement, for authorities to use or have access to the surface of
           Inuvialuit 7(1)(a) or 7(1)(b) lands;
           to the NWT Water Board under the NWT Waters Act for Water Licence;
           to DFO for Fisheries Act Authorization; and
           to NEB pursuant to section 108 of the NEB Act for pipeline crossings of a navigable waterway.

11-6   NEB Reviews the Application for Completeness
       Once an application for a transboundary pipeline is made under the NEB Act, the NEB examines the
       completeness of the application, taking into account its “Guidelines for Filing Requirements.” The
       Applicant may provide supplemental information.


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Authorizations by Stage of Activity                                    26 – Transboundary Pipeline Approvals



       In all cases, the NEB gives close consideration to environmental, safety and socio-economic matters. In
       addition, for larger scale projects, the NEB evaluates project economics and finances, tariffs and tolls, and
       gas/oil supply matters. If the application is deficient, the NEB will return the application to the Applicant
       or request supplemental information.

       At this stage, there is an opportunity for coordination with EISC regarding the completeness of
       information provided, and any requirements for further information.

11-7   Requirements for Environmental Assessment under CEAA
       Both section 52 and section 58 applications under the NEB Act are triggers under the CEAA and the
       NEB is a federal responsible authority. A proposed transboundary pipeline would be subject to a CEAA
       Environmental Assessment process. The scope of the CEAA Environmental Assessment would be
       determined by the NEB and other federal authorities, as required by section 15 of the CEAA.

       Refer to Chapter 13, CHART CEAA for more precise information on CEAA process. The following
       is a simplified outline.

11-8   Federal Coordination Regulations: Notification of other RAs and EISC
       Pursuant to the Federal Coordination Regulations under CEAA, the NEB notifies other Responsible
       Authorities (RAs) and the EISC.

       After consultation as described in 11-2, the Applicant must prepare a Project Description according to
       EISC Operating Guidelines and Procedures. Refer to Chapter 4, CHART EISC. The Project
       Description can also be used in support of other principal applications.

11-9   EISC Screening and Determination
       The report of the EISC will indicate whether in the EISC’s opinion:
            development will have No Significant Negative Impact, may proceed without further review;
            development has Deficiencies that warrant termination of its consideration and submission of
            another Project Description, in which case the Applicant may choose to alter plans and re-file; or
            development could have significant negative impact, and will be Subject To Further Review
            under the IFA.

11-10 EIRB Review and Decision
       The EISC may refer to development to further Review either by the EIRB or by another body that in its
       opinion will encompass the Review requirements under the IFA. Typically, the referral is to the EIRB.
       Refer to Chapter 4, CHART EIRB for the detailed steps in Review processes.

       Based on the Review, the Review Panel recommends whether a proposed development should proceed,
       and if so under what terms and conditions (such as mitigative measures and remediation, and wildlife
       compensation). The decision is sent to the governmental authority competent to authorize the
       development, which in the case of section 52 and section 58 applications is the National Energy Board.




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26 – Transboundary Pipeline Approvals                                        Authorizations by Stage of Activity


11-11 Determination: Is A Comprehensive Study Required
       A determination must next be made on whether a Comprehensive Study is required under CEAA.

       A s. 52 pipeline that requires more than 75 km of new right-of-way or, for example, that is proposed in a
       protected wildlife area or bird sanctuary, would be subject to a Comprehensive Study under the CEAA
       (as set out in the Comprehensive Study List Regulations). “New right-of-way” means land that is subject
       to a right-of-way that is proposed to be developed for an electrical transmission line, an oil and gas
       pipeline, a railway line, or an all-season public highway and that is not alongside and contiguous to an
       existing right of way.

       In the case of a project that does not require a Comprehensive Study, CEAA Screening requirements are
       met through the NEB public hearing process for a section 52 application and for section 58 applications
       that are subjected to public review.

11-12 Yes: Comprehensive Study is Conducted and Report Prepared
       The current NEB practice is to delegate the preparation of the Comprehensive Study Report (CSR) to
       the Proponent. The Comprehensive Study would be conducted by the Proponent in advance of the
       section 52 application to the NEB. NEB staff participate in the process of developing the CSR along
       with other possible federal regulators and the CEA Agency to ensure that all relevant environmental
       issues are considered and regulatory requirements are met.

       There is also an opportunity for coordination with, or consideration of, the Environmental Assessment
       requirements of the EISC or the EIRB. Any reports or determinations of the EISC or EIRB with
       respect to the proposed project would be submitted to the NEB during this stage.

11-13 CSR Sent to Minister of Environment for Decision
       When the CSR is deemed complete, the NEB forwards it to the Minister of Environment for a decision.
       Upon receipt, the CEA Agency will ask for public comments by a specified date on the conclusions and
       recommendations of the CSR (s. 22(1)). Based upon the CSR and comments received, the Minister
       takes one of the following courses of action:

11-14 After Public Comment, Minister Refers Project to RA
       Under CEAA subparagraph 23(a)(i), where the project is not likely to cause significant adverse
       environmental effects, the Minister refers the project to the RA. This allows the NEB to proceed with its
       regulatory process and hold a public hearing with respect to the application. This approach allows for the
       completion of the federal environmental review in a timely fashion prior to commencement of the NEB
       public hearing processes.

       Under CEAA subparagraph 23.(a)(ii), where the project is likely to cause significant adverse
       environmental effects that cannot be justified, the Minister also refers the project to the RA.

11-15 After Public Comment, Minister Refers Project to Mediator or Panel Review
       Under CEAA 23(b), where likelihood of significant effects is uncertain, or there are significant effects but
       it is not yet determined that such effects cannot be justified, or if warranted by public concern, the Minister
       may refer the project to Mediator or Panel Review but typically to Panel Review. The outcome of further
       review is a Decision Taken by the NEB Based on the Report of Panel/Mediation 11-16 either


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Authorizations by Stage of Activity                                    26 – Transboundary Pipeline Approvals


       that the Project Is Not Justified or that the Authorization Process May Proceed/Resume.
       Refer to CHART CEAA for further detail on the process.

11-17 No: CEAA Screening is Initiated
       If a Comprehensive Study is not required, a CEAA Screening is undertaken by the NEB at this stage.
       As with Comprehensive Studies, a coordinated review may be undertaken. Any reports or determinations
       of the EISC or EIRB with respect to the proposed project would be submitted to the NEB prior to the
       commencement of the public hearing. Following the public hearing, the NEB would prepare the
       Screening Report.

11-18 NEB Public Hearing
       The NEB must, pursuant to the NEB Act, hold a public hearing for all section 52 applications.
       Although not typically done, the NEB may, at its discretion, hold a public hearing for a section 58
       application. The public hearing is a quasi-judicial process which provides all parties with the opportunity
       to pursue issues of interest, submit evidence and present their views to the NEB. A wide range of matters
       are typically considered during a public hearing, including environmental aspects. Other significant
       components, such as socio-economic practices, project economics and finances, the supply and demand for
       hydrocarbons, and the safety and integrity of the proposed facilities are also considered during the hearing
       process.

       At the beginning of a public hearing process, the NEB issues a Direction on Procedures (DOP). The
       DOP lays out the schedule of events including the dates, times and locations of the hearing, instructions to
       interested persons on how and when to participate and, where appropriate, a preliminary list of issues
       identifying the specific subject matter to be examined at a hearing. The DOP complements the NEB’s
       Rules of Practice and Procedures, 1995, which sets out the procedural requirements under which the
       NEB operates.

       If a Comprehensive Study has been conducted, the CSR would typically be entered into and become part
       of the hearing record.

11-19 (CSR) NEB Makes the CEAA Determination
       In the case of both a Comprehensive Study and a Screening, the NEB would make its CEAA
       determination with respect to the significance of the potential environmental effects of the proposed project
       prior to making its regulatory decision under the NEB Act.

       In the case of a Comprehensive Study, the NEB may make one of two CEAA determinations, either:
            project is Likely To Cause No Significant Adverse Environmental Effects (CEAA
            s. 37(1)(a)(i)), or is Likely To Cause Significant Adverse Environmental Effects That
            Can Be Justified in the circumstances (CEAA s. 37(1)(a)(ii)); or
            project is likely to cause Significant Adverse Environmental Effects That Cannot Be
            Justified in the circumstances (CEAA s. 37(1)(b)).




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26 – Transboundary Pipeline Approvals                                         Authorizations by Stage of Activity


11-20 (Screening) NEB Prepares Screening Report and Makes CEAA Determination
       In the case of a Screening, the NEB may make either of the above determinations, or may request (under
       CEAA s. 25) that the Minister of Environment refer the project to a Mediator or Panel Review (under
       CEAA s. 29).

       Although it is possible that a project may be referred at this stage to Panel or Mediator, it is highly
       unlikely. Concerns that might warrant a referral would more likely be identified earlier, and a request for
       referral to Mediator/Panel made prior to the NEB Public Hearing, i.e. at 11-18.

11-21 NEB Regulatory Decision and Reasons for Decision
       The NEB would make a decision with respect to the proposed project based on all aspects of the public
       interest and taking into account recommendations from the Environmental Assessment stage. The decision
       would be accompanied by Reasons for Decision.

11-22 Governor in Council Decision
       If the NEB makes a decision to approve the proposed project, it would then forward this recommendation
       to the GIC.

11-23 NEB Issues Certificate of Public Convenience and Necessity
       Upon GIC approval, the NEB issues to the Applicant a Certificate of Public Convenience and
       Necessity, attached to which are any conditions the Company would be required to fulfill.

       The Certificate of Public Convenience and Necessity is the key approval required for a section 52
       pipeline, however there are further requirements, in particular for approval of the final, detailed route of
       the pipeline, and after construction for Leave to Open.

       The NEB Act requires that the Applicant file a series of site-specific plans, referred to as Plans, Profiles
       and Books of Reference (PPBORs) following project approval and prior to construction. These detail
       the precise location of the pipeline, specify the land that will be crossed, the type of land rights that will be
       required by the Company, and the landowners and occupiers who would be affected. Once PPBORs are
       filed, the Applicant must serve notices on all landowners whose lands or land rights are required for the
       pipeline. The Applicant must also place a public notice in at least one issue of a newspaper that is
       circulated in the affected areas. The public notice must include a detailed description of the proposed
       route, along with the procedure people have to follow to present any objections to the NEB.

       Landowners and other persons who anticipate that their lands may be affected and who oppose the
       proposed route may file a written statement with the NEB explaining their interest and the grounds for
       their opposition. If no objections to the detailed route are received, the NEB may approve the PPBORs
       and further public hearings are not required. If an objection is received, a public hearing, termed a
       Detailed Route Hearing, must be held in the local area. Strict time lines apply for notification and filing
       of objections. For more information, please contact the NEB.




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Authorizations by Stage of Activity                                      26 – Transboundary Pipeline Approvals


       Companies applying for section 58 Orders may seek an exemption from the requirement to file PPBORs.
       If granted, the Detailed Route Hearing process may not be required.

       After reviewing all the evidence, the NEB decides whether to approve the Applicant’s PPBORs, and
       hence the final detailed route, and if so, will also decide upon conditions to be attached. If all or part of
       the route is rejected, the Company must submit a revised plan. The process of determining the detailed
       route may be repeated for those areas where changes are made.

       Once construction and the required testing of the pipeline are completed, the Applicant may apply to the
       NEB for Leave to Open the pipeline for transmission of hydrocarbons under section 47 of the NEB Act.
       The Board will issue Leave if it is satisfied that the pipeline may be safely opened for transmission.




June 2001                                                                                                         26-9
26 – Transboundary Pipeline Approvals   Authorizations by Stage of Activity




26-10                                                           June 2001
Authorizations by Stage of Activity                                                               27 – Coordination



27.0 COORDINATION


The purpose of this Guide is to document existing processes under current legislation (mid-2001) for authorizing
oil and gas activities in the Inuvialuit Settlement Region. The resulting picture is complicated, with some
uncertainties in particular regarding coordination to reduce the potential for duplication among processes.

While there is definitely work to be done, there are also good reasons for optimism that such concerns will be dealt
with:
    These are early stages of activity in the ISR. Practice can evolve quickly.

    Familiarity will help. Efficiency will improve as both developers and agencies become familiar with the
    processes that apply in the ISR. With consultation and education, the needs of Proponents and the regulatory
    realities of working in the ISR will become better understood.

    There is capacity in legislation and regulation for coordination, both between jurisdictions and
    between processes for Environmental Assessment. This Guide describes processes as they operate without
    coordination, because it is difficult to predict how negotiations over coordination will conclude.

    Regulators are taking action to address concerns about coordination. Progress has been
    demonstrated by the conclusion of Memoranda of Agreement among various agencies, setting out principles
    and practices for coordination.

    And finally, there is “institutional knowledge” at the federal level of the oil and gas industry.
    The National Energy Board regulates oil and gas and pipeline development, and has extensive experience
    both with the petroleum industry and with environmental matters associated with industry operations.

Over the year that this Guide has been in preparation, there have been extensive discussions among regulators,
Inuvialuit institutions and Developers regarding regulatory requirements and processes, as well as options for
coordination. There is much greater awareness of the regulatory challenges involved in assessing and regulating oil
and gas activity in the ISR. Nevertheless, because of all the legislative and administrative changes since the last
round of Beaufort activity, these are new activities to the assessors and regulators in the North. Each successive
application may raise new issues, require new approaches to be developed.

In this context, it is especially important for lines of communication between government and industry to be open
and for timely, constructive consultation to take place. Developers planning activities must be sure to consult
thoroughly and early with regulators and Inuvialuit institutions, to clarify requirements, to find opportunities for
coordination, so that every effort is made in advance to avoid duplication and unnecessary expense.


27.1 Coordination of EA With Adjacent Settlement Areas
Statutes pursuant to land claim settlement agreements prescribe distinctly different processes for Environmental
Assessment in the Inuvialuit Settlement Region, in Nunavut, and in the Mackenzie Valley. Most applications for
development in the ISR will entail effects confined to the ISR and will not require coordination of Environmental
Assessment processes. Larger projects with potential for transboundary effects may have to meet requirements both
under the IFA and under other claim legislation.



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27 – Coordination                                                             Authorizations by Stage of Activity


A Proponent of a development that could have environmental impacts or effects on wildlife (for example, affecting
caribou that migrate across the boundaries of the ISR) should consult with claims institutions and communities in
adjacent areas well in advance, so that any transboundary issues can be dealt with in good time.

27.1.1       Transboundary Considerations in the Inuvialuit Final Agreement
The possibility that effects of a project in the ISR might have implications across a jurisdictional boundary was
anticipated in the IFA. It was not a matter that could be ignored, with the Gwich’in claiming lands in and around
two Inuvialuit communities, Inuvik and Aklavik. The processes and institutions of the IFA acknowledge this joint
interest in several ways.
    a nominee of the adjacent claims area can be appointed to a Screening Panel of the EISC or a Review Panel
    of the EIRB, provided that jurisdiction offers reciprocal opportunities for the Inuvialuit. It is up to the IRC to
    determine whether this requirement is satisfied;
    “Dene/Metis” (i.e. Gwich’in and Sahtu) can request Screening of a proposal that they consider likely to affect
    their harvesting; and/or
    EISC canvasses the views of the Gwich’in Land and Water Board and the Gwich’in Renewable Resources
    Board when making its determinations on relevant developments.

27.1.2       Gwich’in Private Lands within the ISR
There is a block of Gwich’in private lands situated within the ISR just to the west of the community of Aklavik.
Pursuant to the Gwich’in Land Claim Agreement (s. 27.2.8), the Gwich’in hold both surface and subsurface
rights to these lands.

The “Overlap Agreement Among the Gwich’in Tribal Council and the Inuvialuit Game Council and the
Inuvialuit Regional Corporation,” when referring to the Aklavik ISR lands, states that “Environmental Screening
and Review will be dealt with by the bodies and procedures set out under section 11 of the IFA” (s. 6.01(d)).
Projects would be subject to the IFA Environmental Screening and Review Process, and the recommendations of
the Screening and Review process then provided to the Gwich’in authority responsible for issuing the right or
approval.

27.1.3       Nunavut Territory
Division of the Northwest Territories occurred formally on April 1, 1999, creating the new territory of Nunavut.
A resource management regime for the territory has been put in place in fulfilment of the terms of the Nunavut
Land Claim Settlement Act. Proposals for development are screened and reviewed by the Nunavut Impact Review
Board (NIRB), with final decisions made by the Minister of DIAND.

Section 11 of Part 12 of the Nunavut Land Claim Settlement Act provides for joint reviews of transboundary
environmental effects with neighbouring jurisdictions. NIRB, upon request by government or a designated Inuit
organization, may review project proposals located outside of Nunavut that may have significant adverse eco-
systemic or socio-economic effects on Nunavut. Additionally the federal and territorial governments, with the
assistance of NIRB, can negotiate agreements with other jurisdictions to collaborate on reviews of projects that may
have significant transboundary effects.

Additionally, discussions on a Northern Canada Convention on Environmental Impact Assessment to provide a
process for assessment of transboundary environmental effects have occurred between NIRB, the EIRB and
MVEIRB, however agreement has not yet been reached.




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Authorizations by Stage of Activity                                                             27 – Coordination


 Failing an agreement on a protocol for coordination, options for coordination will be considered case-by-case,
depending on the features of the proposed development. For a Proponent, there is a risk that separate review
processes (whether concurrent, parallel or sequential) could result in conflicting recommendations to the Minister.

It is important for developers whose projects may be perceived to have transboundary effects to consult with the
agencies of both areas and with the federal government in order to coordinate processes as much as possible and so
avoid duplication and waste of time.
        Contact:        Executive Director, Nunavut Impact Review Board
        Contact:        Secretary, Environmental Impact Review Board
        Contact:        Chief Operating Officer, Inuvialuit Regional Corporation (regarding negotiation)
        Contact:        Environment and Conservation, DIAND, Yellowknife

27.1.4       Mackenzie Valley Resource Management Act (MVRMA)
The Mackenzie Valley Resource Management Act, proclaimed in December 1998, created a new regime for all the
lands outside the ISR and within the western Northwest Territories. The MVRMA replaces CEAA in the area
defined as the Mackenzie Valley, excepted in limited circumstances. Specific sections in the Act provide the
Mackenzie Valley Environmental Impact Review Board with certain authorities for coordination with
environmental review authorities in adjacent regions. In the specific case of a development proposed for outside the
Mackenzie Valley that might have a significant adverse impact on the environment in the Mackenzie Valley, the
MVEIRB may (but not must) enter into an agreement with the authority responsible for environmental review to
provide for the participation of the MVEIRB in the examination of the environmental effects by the other
authority.

Processes in the Mackenzie Valley have been described in detail in “Oil and Gas Approvals in the Northwest
Territories - Southern Mackenzie Valley,” published October 2000, the first publication of the Regulatory
Roadmaps Project.

In recognition of the merits of coordination, the Mackenzie Valley Environmental Impact Review Board and the
National Energy Board concluded a Memorandum of Understanding in December 2000 on the relationship
between the Boards and negotiation of project-specific agreements for Environmental Assessment and reviews of
projects within NEB jurisdiction.

        Contact:      Executive Director, Mackenzie Valley Environmental Impact Review Board


27.2 Coordination of Environmental Assessment
The IFA predated the Canadian Environmental Assessment Act (CEAA) by ten years, with the result that there is
not a simple fit between the two. The IFA is explicit that nothing in section 11, i.e. the Screening and Review
provisions, restricts the power of the Crown to carry out Environmental Impact Assessment and Review under the
laws of Canada. Therefore CEAA applies fully to the ISR.

Application of CEAA to the ISR is not disputed by Inuvialuit. Nevertheless, section 11 of the IFA requires that
developments requiring an authorization from government be subject to the IFA Environmental Impact Screening
and Review Process.




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27 – Coordination                                                               Authorizations by Stage of Activity


At the same time, oil and gas activities in the ISR are subject to COGOA and the mandate of the National Energy
Board. The NEB’s mandate includes environmental protection and this is taken into consideration as part of that
agency’s process.

Agencies, departments and Inuvialuit institutions can expect the pace of applications for oil and gas exploration to
accelerate over the next five years. Lessees have agreed to substantial work commitments as conditions of rights-
issuance, and these will entail a growing stream of applications for exploration, and possibly for subsequent
development.

For these applications to be dealt with in an effective and timely manner, Environmental Assessment (EA)
processes must be well coordinated among departments, agencies and Inuvialuit institutions with responsibilities
over activities in the ISR. Coordination will be important both on Inuvialuit-Owned lands and on Crown lands,
because both CEAA and COGOA are in effect throughout the ISR.

In practice to date dealing with applications for relatively small oil and gas projects, the Responsible Authority has
typically accepted the IFA Screening as a contribution to the EA required by CEAA. CEAA (s.17) enables an
RA to delegate the Screening or Comprehensive Study to another body or to the Proponent. Coordination will be
more of a challenge for a larger scale project for which effects are seen as being potentially significant and negative.
There may be several CEAA “triggers” for a large project, imposing an EA requirement on various Responsible
Authorities.

Fortunately, there are provisions in CEAA, the Federal Coordination Regulations, COGOA, and the IFA that
offer means for coordination among agencies:
    A specified purpose of CEAA (s. 4(b)(1)) is to ensure that RAs carry out their responsibilities in a
    coordinated manner with a view to eliminating unnecessary duplication in the EA process. Federal
    Coordination Regulations (1997) provide direction to RAs on procedures and scheduling of decisions by the
    RAs involved by an application.

    CEAA allows for deemed substitution of processes (CEAA, s. 4(b)(1), 5, 12(1), 40, 41,43, 48). Provided a
    substitute process deals with all of CEAA’s requirements, there is capacity under CEAA so that an RA
    MAY cooperate with other jurisdiction regarding Environmental Screening or Assessment.

    A Memorandum of Understanding between the Minister of the Environment and the EIRB agrees that the
    EIRB Review process may be considered to be a substitute process to CEAA under s. 43(1). The Minister
    of the Environment will consider the possibility of substitution on a case-by-case basis. Such substitution would
    be considered in instances where the EISC recommends further Review under the IFA, and the development
    has been referred to further Review under CEAA.

    The IFA requires that the EISC, when Screening to determine whether a proposed development could have a
    significant negative environmental impact, must take into account any prior governmental development or
    Review process that, in its opinion, adequately encompassed the Assessment and Review function (IFA
    s. 11(4)).

    Where EISC is of the opinion that another process adequately encompasses or will encompass the Assessment
    and Review function, it can refer the proposal to the body carrying out that Review process.

    CEAA allows for delegation of Screening or Comprehensive Study. A Responsible Authority may delegate
    Screening to a body established pursuant to a land claims agreement, provided the RA takes the actual



27-4                                                                                                        June 2001
Authorizations by Stage of Activity                                                                27 – Coordination


    decision on the course to be taken as a result of this screening process. Both the determinations of the EISC
    and of the EIRB can be submitted to any level of Environmental Assessment under CEAA.

    Both CEAA and the Operating Procedures of the EIRB allow for the declaration and use of “class
    Screenings.”

There is capacity under these provisions to coordinate processes so that only one Screening, and if required, one
Environmental Review shall be conducted on a project. At the moment, while legislation allows for coordination of
processes, such arrangements are negotiated among agencies case-by-case, for each application based on its
particular features. There is no established protocol or mechanism for coordination.

This raises for Proponents (and as well for regulators) the risk of duplication of requirements, and more seriously
the possibility of duplicate or multiple reviews. Such duplication incurs substantial costs, time lost, but as well could
yield conflicting recommendations to the same or different Ministers. When this has happened elsewhere in
Canada, the cause has often been difficulties in coordinating RAs where there are many triggers for a project and
where departmental processes proceed at different paces. Amendments to CEAA introduced in Parliament this
spring are intended to strengthen the role of the CEA Agency in coordination of inter-jurisdictional reviews.

Neither Proponents, nor regulators, nor the public interest can afford multiple, reiterative processes. This is an
accepted principle of governance reflected in many national initiatives, including the “Canada-Wide Accord on
Environmental Harmonization (1998),” which includes a sub-agreement on Environmental Assessment.


27.3 Coordination of EA with Regulatory Processes
Meeting Environmental Assessment requirements under CEAA and the IFA is a necessary but not sufficient
condition for obtaining regulatory authorizations. A positive outcome of Environmental Assessment merely allows
the authorization process to proceed or conclude. It does not ensure that a project will obtain the necessary
authorizations in the end or that authorizations will be issued with terms and conditions that are technically feasible
or economically viable for the developer. The EA phase deals with planning and design implications for
environmental effects; the project must still meet the detailed and specific requirements of regulators, for instance
for safety, design, public interest, conservation of supply and specific environmental protection requirements.

Unless regulatory agencies use the opportunities under their governing statutes to avoid duplication with previously
undertaken EA(s), serious repetition and delays can result. Such delays can be serious and costly in the North,
where missing brief seasonal windows for instance for winter road operation can cost a development a year.

At the moment it is up to the Proponent to be proactive in encouraging regulators to keep processes moving
forward, and to coordinate regulatory information requirements and processes with EA processes.


27.4 Coordination of EA Processes for an Inter-Jurisdictional Pipeline
In recognition of the resource opportunities presented by a northern pipeline application, the federal government
has established an Inter-departmental Task Force on Northern Oil and Gas Development. This Task Force has
brought together federal authorities to consider options for coordination in dealing with a northern pipeline
application. A series of meetings are underway among federal departments and agencies and claim institutions in
the interest of an effective process. The Environmental Assessment and Regulatory Working Group of the Task
Force is considering in particular, coordination of EA and regulatory processes.



June 2001                                                                                                          27-5
27 – Coordination                                                               Authorizations by Stage of Activity



The focus of the Task Force has been on the coordination challenges posed by an application to build an inter-
jurisdictional natural gas pipeline connecting northern gas resources to southern markets. Such an application raises
coordination issues across the boundaries of settlement areas, and across the boundary between NWT and
Alberta. A transboundary pipeline of this scale and significance also raises issues of the role for CEAA in
Environmental Assessment and how to coordinate with processes under land claims. The main legislative
instrument for authorizing and regulating inter-jurisdictional pipelines is the National Energy Board Act,
administered by the National Energy Board.

As has been the experience with inter-jurisdictional pipeline applications dealt with in other parts of Canada, the
negotiation of a coordinated process can be onerous and slow. Multiple assessment and regulatory requirements
must be met by a coordinated process, involving many RAs, territorial governments, as well as claim institutions,
each with a different mandate, process, and schedule to be examined and accommodated in the process.
Nevertheless, coordination efforts are worthwhile. While an agreement on a coordinated process may take
considerable effort up-front, this initial commitment pays off substantially in the effectiveness of subsequent
implementation of the process agreed to, in effort and time saved, and in clearer focus.

Agencies, departments and Inuvialuit institutions have been discussing options for coordination of the
Environmental Assessment phase of a pipeline application process. In March 2001, the chairs of the boards and
agencies with responsibility for assessing and regulating energy developments in the NWT released an “Agreement
on Preliminary Information Package for Gas Development in the Northwest Territories,” that outlines the
information needed from an Applicant to enable a timely evaluation of options for coordination of Review
processes.

Further progress was announced on May 24, 2001, in an agreement among the chairs, boards and agencies to
develop a draft framework for a single Environmental Assessment process for pipeline proposals.


27.5 Coordination of EA Processes for Field Development
Field exploration and development and pipeline feasibility evaluation are interdependent. Processes to review and
authorize field development must proceed if the rationale for a pipeline is to be justified. Until reserves are
confirmed, a pipeline will not be viable, and without a pipeline, reserves must wait.

In the case of a single large project application, the coordination task, while very complicated to work out, is at least
focussed. Quite different are the coordination issues connected to authorization of exploration and field
development. This is both because of the nature of these activities, and because of the different regulatory
authorities and processes involved.

Field exploration, delineation and development will entail a large number of applications for activities, as prospects
are identified, examined, discarded or pursued. Each step in the process will yield information that may
substantially alter the sequence or nature of subsequent activities

Exploration, delineation and development of reserves in the ISR will be largely contained within the ISR. These
projects will therefore be subject to the IFA, CEAA and COGOA. Environmental issues related to seismic,
exploration drilling and development will be quite different from those for a large scale, linear transportation
development.




27-6                                                                                                        June 2001
Authorizations by Stage of Activity                                                               27 – Coordination


Regulators have a substantial task to build the capacity, in resources, personnel and expertise, to ensure that the
requirements of both a major pipeline application as well as multiple applications for exploration and development
can be dealt with effectively and in time. It is important for Proponents to advise regulators early about their plans
so that regulators can anticipate the volume and nature of applications fairly when making internal decisions about
capacity and organization.




June 2001                                                                                                         27-7
27 – Coordination   Authorizations by Stage of Activity




27-8                                        June 2001
                                                                                                                           Appendices


APPENDICES

APPENDIX A   -   LIST OF MAPS................................................................................................. A-1 to A-12

APPENDIX B   -   SUMMARY OF CHARTS ................................................................................ B-1 to B-33

APPENDIX C   -   REFERENCES ..................................................................................................... C-1 to C-4

APPENDIX D   -   CONTACTS......................................................................................................... D-1 to D-9

APPENDIX E   -   CHECKLISTS...................................................................................................... E-1 to E-5




June 2001                                                                                                                Appendices-i
Appendices




Appendices-ii   June 2001
                                                                                                                          Appendix A - Maps



APPENDIX A - LIST OF MAPS


MAP 1       Inuvialuit Settlement Region: Inuvialuit-Owned Lands and Crown Lands........................................ A-3
                      Source: Joint Secretariat - GIS

MAP 2       Protected Areas in the Inuvialuit Settlement Region......................................................................... A-4
                     Source: Joint Secretariat - GIS

MAP 3       Environmental Sensitivity Map, Inuvialuit Settlement Region ........................................................... A-5
                    Source: Indian Affairs and Northern Development, March 1998

MAP 4       Sachs Harbour: Inuvialuit-Owned Lands ....................................................................................... A-6
                    Source: Joint Secretariat - GIS

MAP 5       Holman: Inuvialuit-Owned Lands.................................................................................................. A-7
                   Source: Joint Secretariat - GIS

MAP 6       Inuvik and Aklavik: Inuvialuit-Owned Lands.................................................................................. A-8
                     Source: Joint Secretariat - GIS

MAP 7       Tuktoyaktuk: Inuvialuit-Owned Lands ........................................................................................... A-9
                    Source: Joint Secretariat - GIS

MAP 8       Paulatuk: Inuvialuit-Owned Lands............................................................................................... A-10
                     Source: Joint Secretariat - GIS

MAP 9       Yukon North Slope ...................................................................................................................... A-11
                   Source: Inuvialuit Final Agreement, Annex E

MAP 10      Outline of Community Conservation Planning Areas in the Inuvialuit Settlement Region................. A-12
                     Source: Joint Secretariat – GIS




June 2001                                                                                                                                          A-1
Appendix A - Maps




A-2                 June 2001
                                                                    Appendix A - Maps


MAP 1 – INUVIALUIT SETTLEMENT REGION: INUVIALUIT-OWNED LANDS AND CROWN LANDS




June 2001                                                                        A-3
Appendix A - Maps


MAP 2 – PROTECTED AREAS IN THE INUVIALUIT SETTLEMENT REGION




A-4                                                           June 2001
                                                                       Appendix A - Maps


MAP 3 – ENVIRONMENTAL SENSITIVITY MAP – INUVIALUIT SETTLEMENT REGION




June 2001                                                                           A-5
Appendix A - Maps


MAP 4 SACHS HARBOUR – INVUVIALUIT-OWNED LANDS




A-6                                             June 2001
                                          Appendix A - Maps


MAP 5 – HOLMAN – INUVIALUIT-OWNED LANDS




June 2001                                              A-7
Appendix A - Maps


MAP 6 – INUVIK AND AKLAVIK – INUVIALUIT-OWNED LANDS




A-8                                                   June 2001
                                               Appendix A - Maps


MAP 7 – TUKTOYAKTUK – INUVIALUIT-OWNED LANDS




June 2001                                                   A-9
Appendix A - Maps


MAP 8 – PAULATUK – INUVIALUIT-OWNED LANDS




A-10                                        June 2001
                            Appendix A - Maps


MAP 9 – YUKON NORTH SLOPE




June 2001                               A-11
Appendix A - Maps


MAP 10 – OUTLINE OF COMMUNITY CONSERVATION PLANNING AREAS IN THE ISR




A-12                                                                   June 2001
                                                                                        Appendix B – Summary of Charts



APPENDIX B - SUMMARY OF CHARTS

AGENCY PROCESSES FOR ASSESSING APPLICATIONS

CHART EISC     Environmental Impact Screening Committee Process (IFA)...................................... B-3
CHART EIRB     Environmental Impact Review Board Process (IFA) ................................................ B-4
CHART SSD      EIRB Small Scale Development Procedure.............................................................. B-5
CHART SPR      EIRB Standard Public Review Procedure ............................................................... B-6
CHART CEAA     Canadian Environmental Assessment Act Process ..................................................... B-7
CHART NEB      COGOA Authorization Process in the ISR .............................................................. B-8
CHART ILA      Inuvialuit Land Administration Application Review Process .................................... B-9
CHART LUP      DIAND Approval Process for Land Use Permits on Federal Crown Lands
               in the ISR............................................................................................................. B-10
CHART BEN      DIAND Approval Process for Benefits Plans Required Under COGOA .............. B-11
CHART WA       NWT Water Board: Application for a Type A Water Licence .............................. B-12
CHART WB       NWT Water Board: Application for a Type B Water Licence ............................... B-13
CHART DFO      DFO Authorization Under the Fisheries Act .......................................................... B-14
CHART EC       Disposal at Sea Permit .......................................................................................... B-15


PROCESSES BY STAGE OF ACTIVITY
CHART 1        Rights to Explore and Test on Crown Lands and Inuvialuit 7(1)(b) Lands
               in the ISR............................................................................................................. B-17
CHART 2        Rights to Explore and Test on Inuvialuit 7(1)(a) Lands ......................................... B-18
CHART 3        Geophysical or Drilling Authorizations on Federal Crown Lands in NWT (ISR) ... B-19
CHART 4        Application for Geophysical or Drilling Authorizations on ILA 7(1)(a) Lands
               and 7(1)(b) Lands................................................................................................ B-21
CHART 5        Rights to the Resource on Crown Lands in ISR and on Inuvialuit 7(1)(b) Lands
               Onshore and Offshore .......................................................................................... B-23
CHART 6        Rights to the Resource on Inuvialuit 7(1)(a) Lands – Declaration of Discovery ....... B-24
CHART 7        Development Plan Approval by the NEB in the NWT Onshore and
               Offshore ISR ........................................................................................................ B-25
CHART 8        Surface Development Plan Approvals by ILA on Inuvialuit 7(1)(a)
               and 7(1)(b) Lands................................................................................................ B-27
CHART 9        Production Authorizations on Federal Crown Lands in the ISR (NWT) ................ B-29
CHART 10       Production Authorizations on Inuvialuit 7(1)(a) Lands and 7(1)(b) Lands
               in the ISR (NWT) ............................................................................................... B-31
CHART 11       Transboundary Pipeline Under s. 52 of the NEB Act ............................................ B-33




June 2001                                                                                                                            B-1
Appendix B – Summary of Charts




B-2                              June 2001
            Appendix B – Summary of Charts




June 2001                             B-3
Appendix B – Summary of Charts




B-4                              June 2001
            Appendix B – Summary of Charts




June 2001                             B-5
Appendix B – Summary of Charts




B-6                              June 2001
            Appendix B – Summary of Charts




June 2001                             B-7
Appendix B – Summary of Charts




B-8                              June 2001
            Appendix B – Summary of Charts




June 2001                             B-9
Appendix B – Summary of Charts




B-10                             June 2001
            Appendix B – Summary of Charts




June 2001                            B-11
Appendix B – Summary of Charts




B-12                             June 2001
            Appendix B – Summary of Charts




June 2001                            B-13
Appendix B – Summary of Charts




B-14                             June 2001
            Appendix B – Summary of Charts




June 2001                            B-15
Appendix B – Summary of Charts




B-16                             June 2001
            Appendix B – Summary of Charts




June 2001                            B-17
Appendix B – Summary of Charts




B-18                             June 2001
                                                        Appendix B – Summary of Charts




For a large format version of this chart, click here.


June 2001                                                                        B-19
Appendix B – Summary of Charts




B-20                             June 2001
                                                        Appendix B – Summary of Charts




For a large format version of this chart, click here.



June 2001                                                                        B-21
Appendix B – Summary of Charts




B-22                             June 2001
            Appendix B – Summary of Charts




June 2001                            B-23
Appendix B – Summary of Charts




B-24                             June 2001
                                                        Appendix B – Summary of Charts




For a large format version of this chart, click here.



June 2001                                                                        B-25
            Appendix B – Summary of Charts




June 2001                            B-27
                                                        Appendix B – Summary of Charts




For a large format version of this chart, click here.



June 2001                                                                        B-29
Appendix B – Summary of Charts




B-30                             June 2001
                                                        Appendix B – Summary of Charts




For a large format version of this chart, click here.



June 2001                                                                        B-31
Appendix B – Summary of Charts




B-32                             June 2001
                                                        Appendix B – Summary of Charts




For a large format version of this chart, click here.


June 2001                                                                        B-33
                                                                                    Appendix C – References



APPENDIX C – REFERENCES

FEDERAL GOVERNMENT PUBLICATIONS

On the Inuvialuit Final Agreement (DIAND)
The Western Arctic Claim. A Guide to the Inuvialuit Final Agreement. Ottawa 1984
The Western Arctic Claim. The Inuvialuit Final Agreement. Ottawa, 1985

On Jurisdictional Responsibilities (DIAND)
Jurisdictional Responsibilities for Land Resources, Land Use and Development in the Yukon Territory and
Northwest Territories. Land Management Division, Northern Affairs Program. Nov 13, 1997
Book Two:       Northwest Territories Inuvialuit Settlement Region Lands.
Book Three: Yukon Inuvialuit Settlement Region Lands
Book Four: Other Yukon Territory Federal Lands

Guidelines for Resource Activities in the Northwest Territories (DIAND)
Natural Resource Development in the NWT: Requirements, Procedures and Legislation, DIAND
A Guide to Territorial Land Use Regulations, Land Resources, Northern Affairs Program, DIAND 1994
Guide to Completing Application for a Land Use Permit Pursuant to the Territorial Land Use Regulations,
available from Land Administration, DIAND
How to Obtain Rights in the Northwest Territories, DIAND
Reclamation Guidelines for Northern Canada. Prepared by Hardy BBT Ltd. For Land Resources, Northern
Affairs Program. Ottawa. 1987
Land Use Guidelines Access Roads and Trails. Prepared by Hardy Assoc. For Land Resources, Northern
Affairs Program. Ottawa, 1994
Environmental Operating Guidelines: Access Roads and Trails, DIAND
Land Use Guidelines: Mineral Exploration Yukon and NWT. Prepared by Hardy Associates. For Land
Resources, Northern Affairs Program. Ottawa. 1994
Environmental Guidelines, Pits and Quarries. For Land Resources, Northern Affairs Program. Ottawa, 1994
Guidelines for the Discharge of Treated Municipal Wastewater in the NWT, 1992
Guidelines for Tailings Impoundment in the NWT, February 1987
Guidance for Northern Aquatic Effects Monitoring, Water Resources Division, DIAND, October 1997
Guidelines for Contingency Planning, January 1987
Guidelines for Abandonment and Restoration Planning for Mines in the NWT, September 1990
Guidelines for Acid Rock Drainage Prediction in the North
Water Licensing in the Northwest Territories: Summary of Procedures and Information Requirements, January
1996, Revised: January 1997
Information and Procedures: Developing the Inuvialuit Settlement Region. Ottawa, 1988.
Environmental Sensitivity Map, Inuvialuit Settlement Region, DIAND, Revised: March 1998
Canada’s Energy Frontiers: A Framework for Investment and Jobs
Canada Wide Accord on Environmental Harmonization, 1998




June 2001                                                                                                   C-1
Appendix C – References


Guidelines for Fisheries Published by Department of Fisheries and Oceans
Freshwater Intake End-of-Pipe Fish Screen Guidelines, 1995
Policy for Management of Fish Habitat
Habitat Conservation and Protection Guidelines, 1998
Directive on the Issuance of Subsection 35(2) Authorizations, 1995
Guidelines for Attaining No Net Loss, 1995
Canada’s Fish Habitat Law (brochure)
Decision Framework for the Determination and Authorization of HADD of Fish Habitat, 1998 Guidelines for the
Use of Explosives In or Near Canadian Fisheries Waters

Guidelines Published by National Energy Board Related to Frontier Oil and
Gas Activities
Guidelines Respecting Physical Environmental Programs During Petroleum Drilling and Production Activities on
Frontier Lands
Offshore Waste Treatment Guidelines
Contingency Plan Guidelines
Guidelines for Use of Oil-Based Drilling Muds
Geophysical and Geological Programs on Frontier Lands
Guidelines for Approvals and Reports
Guidelines Concerning Financial Responsibility

OTHER SOURCES
Key Migratory Bird Terrestrial Habitat Sites in the NWT, Occasional Paper Number 71, Canadian Wildlife
Service, Alexander Ferguson, McCormick
The Integration of Land Claims Environmental Processes with National Energy Board Processes, Judith B.
Hanebury, Canadian Institute of Resources Law, 1996
Doing Business in the Inuvialuit Settlement Region, Inuvialuit Regional Corporation and Inuvialuit Development
Corporation, Presentation Document, Calgary, November 23, 2000
Report on the Challenge of Community Relations, Prospectors and Developers Association of Canada, Toronto,
1997
Guidelines for Developers for Protection of Archaeological Resources in the NWT, Draft November 2000
Memorandum of Understanding Between MVEIRB and the NEB, December, 2000.
Memorandum of Understanding on Preliminary Information Package for Gas Development in the NWT,
March 2001
Memorandum of Understanding Between EIRB and Minister of the Environment Concerning Approvals for
Substitution of Process, March 9, 2000
Environmental Regulatory Framework for the Upstream Petroleum Industry, Second Edition, October 1996,
CAPP Publication 1996-0017




C-2                                                                                                 June 2001
                                                                                       Appendix C – References


PUBLICATIONS OF THE GOVERNMENT OF THE NORTHWEST TERRITORIES

Department of Resources, Wildlife and Economic Development
NWT Protected Areas Strategy (PAS): Protecting Special Natural Areas in the NWT, Draft 4, 23 Sept 1998.
NWT Protected Areas Strategy (PAS): Protected Areas Toolkit, 1997.
A Guide to Legislation Affecting Exploration and Mining in the NWT, Energy Mines and Petroleum Resources
(Now Resources, Wildlife and Economic Development) November 1991
Co-Management Plan for Grizzly Bear in the Inuvialuit Settlement Region. Yukon Territory and Northwest
Territories. Department of Resources, Wildlife, and Economic Development, GNWT. Inuvik, NWT. 1998


INUVIALUIT PUBLICATIONS
General Publications
Publications Available from the Joint Secretariat. Joint Secretariat. Inuvik, NWT. 1996.
Co-management in the Western Arctic and Yukon North Slope. pamphlet
IFA Implementation Coordinating Committee, Annual Report 1999-2000

Environmental Impact Screening Committee
Environmental Impact Screening Committee, Annual Activity Report. Published annually.
Environmental Impact Screening Committee. Operating Guidelines and Procedures. February 1999.

Environmental Impact Review Board
Environmental Impact Review Board. Operating Procedures, October 30, 1997.
Environmental Impact Review Board. Annual Activity Report. Published annually.

Community Conservation Plans
Paulatuk Community Conservation Plan: A Plan for the Conservation and Management of Renewable Resources
and Lands around Paulatuk, Northwest Territories, 2000. Community of Paulatuk, Wildlife Management
Advisory Council (NWT) and Joint Secretariat. Inuvik, NWT.
Aklavik Inuvialuit Community Conservation Plan, A Plan for the Conservation and Management of Renewable
Resources and Lands within the Inuvialuit Settlement Region in the Vicinity of Aklavik, Northwest Territories,
2000, Community of Aklavik, Wildlife Management Advisory Council (NWT) and Joint Secretariat. Inuvik,
NWT
Inuvik Inuvialuit Community Conservation Plan, A Plan for the Conservation and Management of Renewable
Resources and Lands within the Inuvialuit Settlement Region in the Vicinity of Inuvik, Northwest Territories, 2000.
Community of Inuvik, Wildlife Management Advisory Council (NWT) and Joint Secretariat. Inuvik, NWT
Olokhaktokmiut Community Conservation Plan, A Plan for the Conservation and Management of Renewable
Resources and Lands within the Inuvialuit Settlement Region in the Vicinity of Holman, Northwest Territories,
2000. Community of Holman, Wildlife Management Advisory Committee (NWT) and Joint Secretariat. Inuvik,
NWT
Sachs Harbour Community Conservation Plan. A Plan for the Consevation and Management of Renewable
Resources and Lands within the Inuvialuit Settlement Region and in the Vicinity of Banksland, 2000. Community
of Sachs Harbour, Wildlife Management Advisory Committee (NWT) and Joint Secretariat. Inuvik, NWT.




June 2001                                                                                                       C-3
Appendix C – References


Tuktoyaktuk Community Conservation Plan. A Plan for the Conservation and Managment of Renewable Resources
and Lands around Tuktoyaktuk, Northwest Territories, 2000. Community of Tuktoyaktuk, Wildlife Management
Advisory Committee (NWT) and Joint Secretariat. Inuvik, NWT.

Conservation and Management Plans
Inuvialuit Renewable Resource Conservation and Management Plan. Prepared by WMAC (NWT) and FJMC.
Available from WMAC (NWT). April 25, 1988
Yukon North Slope. The Land and the Legacy. Yukon North Slope Wildlife Conservation and Management Plan
Volume 1: Environmental Overview. WMAC (NS) Secretariat. Whitehorse, Yukon. 1996
Beaufort Sea Beluga Management Plan, Third Printing. Fisheries Joint Management Committee. Joint Secretariat.
Inuvik, NWT. 1998

Inuvialuit Land Administration
Inuvialuit Land Administration Rules and Procedures. Inuvik, NWT. April 1, 1986.
A Brief Summary of the Inuvialuit Land Administration Rules and Procedures. Inuvik, 1986




C-4                                                                                              June 2001
                                                                                                  Appendix D – Contacts



APPENDIX D - CONTACTS REFERRED TO IN THIS GUIDE

INUVIALUIT ORGANIZATIONS

     ORGANIZATION                      TITLE                       NUMBERS                           MAIL ADDRESS

                                    INUVIALUIT BENEFICIARY CORPORATIONS

Inuvialuit Regional             Chief Operating      Tel: (867) 777-2737                          IRC
Corporation (IRC)               Officer              Fax: (867) 777-2135                          Box 2120
                                                     info@irc.inuvialuit.com                      Inuvik, NT X0E 0T0


Inuvialuit Land                 Land Administrator   Tel: (867) 977-2202                          ILA
Administration (ILA)                                 Fax: (867) 977-2467                          Box 290, Tuktoyaktuk, NT
                                                                                                  X0E 1C0
                                                     ilainfo@irc.inuvialuit.com
                                                     http://www.inuvialuit.com/irc/ilandad.html


Inuvialuit Development          President            Tel: (867) 777-2419                          107 Mackenzie Road
Corporation (IDC)                                    Fax: (867) 777-3256                          Bag 7, Inuvik, NT
                                                     idc.inuvialuit.com                           X0E 0T0


Inuvialuit Game Council         Chairman             Tel: (867) 777-2828                          Inuvialuit Game Council
(IGC)                                                Fax: (867) 777-2610                          Box 2120, Inuvik, NT
                                                     igc-c@jointsec.nt.ca                         X0E 0T0

                               INUVIALUIT HUNTERS AND TRAPPERS COMMITTEES

Inuvik Hunters and Trappers     Chairman             Tel: (867) 777-3671                          Box 1720,
Committee                                            Fax: (867) 777-2478                          Inuvik, NT
                                                     inu-htc@jointsec.nt.ca                       X0E 0T0

Aklavik Hunters and Trappers    Chairman             Tel: (867) 978-2723                          Box 133,
Committee                                            Fax: (867) 978-2661                          Aklavik, NT
                                                     akt-htc@jointsec.nt.ca                       X0E 0A0

Olokhaktomiut (Holman)          Chairman             Tel: (867) 396-4808                          Box 161,
Hunters and Trappers                                 Fax: (867) 396-3025                          Holman, NT
Committee                                                                                         X0E 0S0

Paulatuk Hunters and            Chairman             Tel: (867) 580-3004                          General Delivery Paulatuk,
Trappers Committee                                   Fax: (867) 580-3404                          NT
                                                                                                  X0E 1N0

Sachs Harbour Hunters and       Chairman             Tel: (867) 690-3028                          Box 79
Trappers Committee                                   Fax: (867) 690-3616                          Sachs Harbour NT
                                                                                                  X0E 0Z0

Tuktoyaktuk Hunters &           Chairman             Tel: (867) 977-2457                          Box 286,
Trappers Committee                                   Fax: (867) 977-2433                          Tuktoyaktuk NT
                                                                                                  X0E 1C0




June 2001                                                                                                                   D-1
Appendix D - Contacts




      ORGANIZATION                    TITLE                      NUMBERS         MAIL ADDRESS

                                   INUVIALUIT COMMUNITY CORPORATIONS

Aklavik Community             Corporate Manager      Tel: (867) 978-2414      Aklavik Community Corp
Corporation                                          Fax: (867) 978-2815      Box 119, Aklavik, NT
                                                                              X0E 0A0

Inuvik Community              Corporate Manager      Tel: (867) 777-2603      Inuvik Community Corp
Corporation                                          Fax: (867) 777-4422      Box 1365, Inuvik, NT
                                                                               X0E 0T0

Holman Community              Corporate Manager      Tel: (867) 396-4701      Holman Community Corp
Corporation                                          Fax: (867) 396-3284      Box 127, Holman, NT
                                                                              X0E 0S0

Paulatuk Community            Corporate Manager      Tel: (867) 580-3601      Paulatuk Community
Corporation                                          Fax: (867) 580-3508      Corporation
                                                                              Gen. Del. Paulatuk, NT
                                                                              X0E 1N0

Sachs Harbour Community       Corporate Manager      Tel: (867) 690-3025      Sachs Harbour Community
Corporation                                          Fax: (867) 690-4905      Corporation
                                                                              Box 59, Sachs Harbour,
                                                                              NT X0E 0Z0

Tuktoyaktuk Community         Corporate Manager      Tel: (867) 977-2390      Tuktoyaktuk Community
Corporation                                          Fax: (867) 977-2504      Corporation
                                                                              Box 290, Tuktoyaktuk NT
                                                                              X0E 1C0

                                            CO-MANAGEMENT INSTITUTIONS
Joint Secretariat             Receptionist           Tel: (867) 777-2828      Joint Secretariat
                                                     Fax: (867) 777-2610      Box 2120, Inuvik, NT
                                                     adminjs@jointsec.nt.ca   X0E 0T0

Fisheries Joint Management    Resource Biologist     Tel: (867) 777-2828      FJMC
Committee (FJMC)                                     Fax: (867) 777-2610      Box 2120, Inuvik, NT
                                                     fjmc@jointsec.nt.ca      X0E 0T0

Environmental Impact          Secretary              Tel: (867) 777-2828      EISC
Screening Committee (EISC)                           Fax: (867) 777-2610      Box 2120, Inuvik, NT
                                                     eisc@jointsec.nt.ca      X0E 0T0

Environmental Impact Review   Secretary              Tel: (867) 777-2828      EIRB
Board (EIRB)                                         Fax: (867) 777-2610      Box 2120, Inuvik, NT
                                                     eirb@jointsec.nt.ca      X0E 0T0

Wildlife Management           Resource Person        Tel: (867) 777-2828      WMAC (NWT)
Advisory Council (WMAC)                              Fax: (867) 777-2610      Box 2120, Inuvik, NT
NWT                                                  wmacnwt@jointsec.nt.ca   X0E 0T0

Wildlife Management           Secretariat            Tel. (867) 633-5476      WMAC (North Slope)
Advisory Council (North                              Fax (867) 633-6900       Box 5928, Whitehorse,
Slope)                                               wmacns@web.net           Yukon Y1A 5L9




D-2                                                                                         June 2001
                                                                                      Appendix D – Contacts


GOVERNMENT OF CANADA

General Information Number: (800) 667-3355               Web: http//canada.gc.ca



     ORGANIZATION                    CONTACT                         NUMBERS          MAILING ADDRESS

                     DEPARTMENT OF INDIAN AFFAIRS AND NORTHERN DEVELOPMENT

 Department of Indian and   Director, Northern Oil and        Tel: (819) 997-8788   Indian and Northern Affairs
 Northern Affairs           Gas Directorate                   Fax: (819) 953-5828   Canada
                                                                                    Les Terrasses de la Chaudiere
                                                                                    Sixth Floor
                                                                                    10 Wellington Street, Hull,
                                                                                    Quebec

                                                                                    Postal Address: Ottawa
                                                                                    Ontario K1A 0H4

                            Manager, Land Programs,           Tel: (819) 994-7464
                            Land and Water Division           Fax: (819) 997-9623
                            Natural Resources and             gowanb@inac.gc.ca
                            Environment Branch

 Department of Indian and   Director, Renewable               Tel: (867) 669-2647   DIAND
 Northern Affairs, NWT      Resources and the                 Fax (867) 669-2707    (Bellanca Building)
                            Environment                                             Box 1500, Yellowknife, NT
                                                                                    X1A 2R3
                            Manager,                          Tel: (867) 669-2589
                            Environment and Conservation      Fax: (867) 669-2701   Central numbers:
                                                                                    Tel: (867) 669-2500
                            Manager,                          Tel: (867) 669-2651   Fax.(867) 669-2709
                            Water Resources                   Fax (867) 669-2716
                                                                                    Service en francais:
                            Director,                         Tel: (867)-669-2571   1-800-567-9604
                            Mineral and Petroleum             Fax: (867)-669-2725
                            Resources

                            Manager                           Tel: (867) 669-2618
                            Petroleum Developments and        mahnicb@inac.gc.ca
                            Benefits Division

                            Director                          Tel: (867) 669-2630
                            Operations

                            Manager,                          Tel: (867) 669-2671
                            Land Administration               Fax (867) 669-2713

                            Manager,                          Tel: (867) 669-2756
                            Contaminants                      Fax (867) 669-2721

 DIAND Inuvik               District Manager                  Tel: (867) 777-3361   DIAND Inuvik Office
                            North Mackenzie District          Fax: (867) 777-2090   Box 2100, Inuvik, NT
                            Northern Affairs Program                                X0E 0T0

 NWT Water Board            Executive Assistant               Tel: (867) 669-2772   NWT Water Board
                                                              Fax: (867) 669-2719   Box 1500 Yellowknife, NT
                                                                                    X1A 2R3



June 2001                                                                                                      D-3
Appendix D - Contacts



      ORGANIZATION                     CONTACT                    NUMBERS                 MAILING ADDRESS

                              Chair, Regional              Tel: (867) 667-3860          DIAND Yukon
DIAND Yukon                   Environmental Review                                      345-300 Main St
                              Committee                                                 Whitehorse, Yukon,
                                                                                        Y1A 2B5
                              Director, Development        Tel: (867) 667-3175          Main Numbers:
                              Assessment Process                                        Tel. (867) 667-3161/3232
                                                                                        Fax (867) 667-3214
                              Regional Manager             Tel: (867) 667-3170
                              Land Resources

                              Regional Manager             Tel: (867) 667-3145
                              Water Resources

Yukon Territory Water Board   Chair                        Tel: (867) 667-3980          Yukon. Water Board,
                                                           Fax: (867) 668-3628          419 Range Road, Whitehorse,
                                                                                        Yukon
                                                                                        Y1A 3V1

Yukon Surface Rights Board    Chair                        Tel: (867) 667-7695          Yukon Surface Rights Board,
                                                           Fax: (867) 668-5892          Box 31201,
                                                                                        Whitehorse, Yukon
                                                                                        Y1A 5P7

                              OTHER FEDERAL GOVERNMENT DEPARTMENTS

      ORGANIZATION                     CONTACT                    NUMBERS                 MAILING ADDRESS

Parks Canada                  Northern Parks Advisor       Tel: (867) 669-2821          Parks Canada
                                                           Fax: (867) 669-2829          Box 1166, Yellowknife, NT
                                                                                        X1A 2N8

Canadian Wildlife Service     Chief, North Conservation    Tel: (867) 669-4760          Canadian Wildlife Service
                              Division                     Fax: (867) 873-8185          301-5294 50 Avenue
                                                           kevin.mccormick@ec.gc.ca     Yellowknife, NT X1A 1EZ


Fisheries and Oceans Canada   Area Habitat Biologist,      Tel: (867) 669-4912          DFO
                              Western Arctic Region        Fax: (867) 669-4941          Box 2310
                                                                                        Yellowknife NT X!A 2P7
                                                                                        Street Address:
                                                                                        Suite 101, 5204 50th Ave.
                                                                                        Yellowknife

                              Inuvik District              Tel. (867) 777-3314          Fisheries and Oceans
                              Western Arctic Region        Fax: (867) 777-7501          Box 1871
                                                                                        Inuvik NT X0E 0T0

Environmental Protection      Manager, Northern Division   Tel: (867) 669-4725          301-5204 50 Avenue
Branch, Environment Canada                                 Fax: (867) 873-8185          Yellowknife NT
                                                           Laura.Johnston@ec.gc.ca       X1A 1E2
                                                           Spill Line: (867) 920-8130

Human Resources                                            Tel: (867) 669-5037          5020 48th Street
Development Canada                                                                      Box 1170
                                                                                        Yellowknife NT X1A 2N8




D-4                                                                                                      June 2001
                                                                                              Appendix D – Contacts



    ORGANIZATION                       CONTACT                      NUMBERS                   MAILING ADDRESS

Canadian Coast Guard          Inspector Supervisor           Tel: (519) 383 1863            Canadian Coast Guard
                                                             Fax: (519) 383 1989            201 Front Street North
                                                             email: mcleanr@dfo-mpo.gc.ca   Sarnia ON
                                                                                            N7T 8B1

Canadian Coast Guard                                         Tel: (780) 495-3701            Central and Arctic Region
                                                             Fax: (780) 495-7022            Navigable Waters Protection
                                                                                            Marine Program
                                                                                            9021 – 46th St.
                                                                                            Edmonton, AB T6B 3B2

National Energy Board         Environmental Assessment       Tel: (403) 292-6614            National Energy Board
                              Officer, Operations Business   Fax: (403) 292-5876            444 Seventh Avenue SW
                              Unit                                                          Calgary, AB
                                                                                            T2P 0X8
                              Secretary to the NEB           Tel: (403) 299-2731
                                                             Fax: (403) 292-5503            1-800-899-1265
                                                                                            Local: 292-4800
                              Frontier Information Office    Tel: (403) 299-3111

                              Chief Conservation Officer     Tel: (403) 299-2792

                              Professional Leader            Tel: (403) 292-4800
                              Environmental

Transport Canada              Western Region                 Tel: (204) 983-3152            Transport Canada
                              (General Reception)            Fax: (204) 983-5048            Box 8550
                                                                                            344 Edmonton Street
                              General Aviation, Western      Tel: (204) 983-4341            Winnipeg MN R3C 0P6
                              Region                         Fax: (204) 984-2069

                              Regional Director,             Tel: (204) 983-2991
                              Surface, Western Region        Fax: (204) 983-8992

                              Administration,                Tel: (604) 666-2607            Transport Canada
                              Harbours and Ports             Fax: (604) 666-2692            Suite 600, 800 Burrard St
                                                                                            Vancouver, BC V6Z 2J8

                              Coasting Trade Advisor         Tel: (613) 998-1854            Transport Canada
                              Marine Policy                  Fax: (613) 998-1845            25th Floor, Place de Ville
                                                                                            Ottawa, ON K1A 0N5

Canadian Transportation       Manager                        Tel: (819) 999-8354            Canadian Transportation
Agency                        Marine Complaints and          Fax: (819) 953-5686            Agency
                              Investigations                                                15 Eddy Street
                                                                                            Hull, PQ K1A 0N9

Natural Resources Canada      Director, Office of            Tel: (613) 995-3420            580 Booth Street
                              Environmental Affairs          Fax: (613) 995-5719            Ottawa ON K1A 0E4

Canadian Environmental        Pacific and Northern Region    Tel: (604) 666-2431            Suite 320
Assessment Agency                                            Fax: (604) 666-6990            757 West Hastings St.
                                                                                            Vancouver, BC V6C 1A1

Transportation Safety Board                                  Tel: (819) 994-3741            Place du Centre
                                                                                            200 Promenade du Portage
                                                                                            4th Floor
                                                                                            Hull, PQ K1A 1K8



June 2001                                                                                                                D-5
Appendix D - Contacts




GOVERNMENT OF THE NORTHWEST TERRITORIES
Main Switchboard Number: (867) 873-7500


      ORGANIZATION                      CONTACT                    NUMBERS             MAILING ADDRESS

Resources, Wildlife and   Director, Wildlife and Fisheries   Tel: (867) 920-8064     Resources, Wildlife and
Economic Development                                                                 Economic Development
(RWED)                    Director of Environmental          Tel: (867) 873-7654     Government of NWT
                          Protection Services Division                               Box 1320
                                                                                     Yellowknife NT
                          Spill Line:                        Tel: 1-867-920-8130     X1A 2L9

                          Director, Minerals Oil & Gas       Tel: (867) 920-3214     The phone directory for the
                                                             Fax: (867) 873-0254     department is available at
                                                                                     www.gov.nt.ca/utility/directory/
                          Manager,                           Tel: (867) 873-7905     index.html
                          Legislation and Enforcement        Fax: (867) 873-0563

                          Director                           Tel: (867) 873-7902
                          Parks and Tourism                  Fax: (867) 873-0163

                          Regional Superintendent            Tel: (867) 777-7286     Resources, Wildlife and
                          Inuvik Region                      Fax: (867) 777-7321     Economic Development
                                                                                     Inuvik Region
                          Petroleum Advisor                  Tel: (867) 777-7101     Bag Service #1
                                                             Fax: (867) 777-7321     Inuvik NT
                                                             ian_butters@gov.nt.ca   X0E 0T0

                          Manager, Fisheries and Wildlife    Tel: (867) 777-7230
                                                             Fax: (867) 777-7231
                                                             john_nagy@gov.nt.ca

                          Supervisor, Wildlife Management    Tel: (867) 777-7102
                                                             Fax: (867) 777-2418
                                                             john_nagy@gov.nt.ca

                          Director, Forest Management        Tel: (867) 872-7705     Forest Fire Centre
                                                             Fax: (867) 872-2077     Box 7
                                                                                     Fort Smith NT X0E 0P0

                          Forest Fire Emergency Officer      Tel: (867) 777-3333     RWED Inuvik Region
                                                                                     Bag Service #1
                                                                                     Inuvik NT X0E 0T0




D-6                                                                                                     June 2001
                                                                                               Appendix D – Contacts




    ORGANIZATION                        CONTACT                       NUMBERS                  MAILING ADDRESS

Prince of Wales Northern    Territorial Archaeologist          Tel: (867) 873-7551           Prince of Wales Northern
Heritage Centre                                                Fax: (867) 813-0205           Heritage Centre
                                                               tom_andrews@govt.nt.ca        Box 1320
                                                                                             Yellowknife NT X1A 2L9
                            Sub-Arctic Archaeologist           Tel: (867) 873-7688
                                                               http://pwnhc.learnnet.nt.ca

Municipal and Community     Senior Environmental Planner       Tel: (867) 920-8038           MACA, GNWT
Affairs (MACA)              Community Operations               Fax: (867) 920-6343           Box 1320
                                                               mdavy@maca.gov.nt.ca          Yellowknife NT X1A 2L9

                            Senior Lands Officer               Tel: (867) 777-7362           MACA
                            Inuvik Regional Office             Fax: (867) 777-7352           Bag Service #1
                                                                                             Inuvik NT X0E 0T0

                            Community Planner                  Tel: (867) 777-7122           MACA
                            Inuvik Regional Office                                           Bag Service #1
                                                                                             Inuvik NT X0E 0T0

Aurora Research Institute   Manager, Scientific Services       Tel: (867) 777-4029           Aurora Research Institute
Science Institute West                                         Fax: (867) 777-4624           P.O. Box 1450
                                                                                             Inuvik X0E 0T0

Northwest Territories       Assistant Director, Revenue        Tel: (867) 920-3862           NWT WCB
Workers Compensation                                                                         Box 8888
Board                       Chief Safety Officer               Tel: (867) 669-4403           Yellowknife NT
                                                                                             X1A 2R3

                                                                                             Main: (867)920-3888
                                                                                             1-800-661-0792
                                                                                             Fax: (867)873-4596

Department of Justice       Head of Labour Services            Tel: (867) 873-7486           GNWT
                                                                                             Box 1320
Municipal and Community     Fire Marshall                      Tel: (867) 920-7469           Yellowknife NT
Affairs                                                        Fax: (867) 873-0260           X1A 2L9

Department of Health and    Manager of Health Protection       Tel: (867) 920-3241
Social Services                                                Fax: (867) 873-0442

Legal Registry              Registrar of Corporations          Tel: (867) 873-7492
Department of Justice

Department of               Transportation Planning Division   Tel: (867) 873-7103           GNWT
Transportation                                                                               Box 1320
                                                                                             Yellowknife NT
                                                                                             X1A 2L9




June 2001                                                                                                                D-7
Appendix D - Contacts




GOVERNMENT OF YUKON
General Enquiries Number           1-867-667-5811


      ORGANIZATION                       CONTACT                  NUMBERS                     MAILING ADDRESS

Yukon Territory              Manager,                    Tel: (867) 667-5026                Department of Economic
Department of Economic       Oil and Gas Resources       Fax: (867) 393-6262                Development
Development                                                                                 Box 2703, Whitehorse, Yukon
                             Director                    Tel: (867) 667-3566                Y1A 2C6
                             Oil and Gas Business        Fax: (867) 393-6944
                             Development

Department of Corporate      Registrar of Corporations   Tel: (867) 667-5005                Corporate Affairs
Affairs                                                  Fax: (867) 393-6251                Box 2703, Whitehorse
                                                         email: richard.roberts@gov.yk.ca   Yukon Y1A 2C6

Workers Compensation Board   Secretary                   Tel: (867) 667-3424                Workers Compensation Board
                                                         http://wcb.yk.ca                   401 Strickland Street
                                                                                            Whitehorse, Yukon
                                                                                            Y1A 5N8
                             Occupational Health and     Tel: (867) 667-3424
                             Safety                      email:
                                                         richard.zral @gov.yk.ca
                                                         http://wcb.yk.ca




D-8                                                                                                         June 2001
                                                                                     Appendix D – Contacts




OTHER CONTACTS

    ORGANIZATION                          CONTACT           NUMBERS                  MAILING ADDRESS

Gwich’in Renewable            Executive Director    Tel: (867) 777-3428            GRRB
Resources Board                                     Fax: (867) 777-4260            105 Distributor Street
                                                                                   Inuvik, NT
                                                                                   X0E 0T0

Gwich’in Land and Water       Executive Director    Tel: (867) 777-4954
Board                                               glwbpermit@inuvik.net

Sahtu Land and Water Board    Executive Director    Tel: (867) 598-2413            Box 1
                                                    sahtuadm@netcom.ca             Fort Good Hope
                                                                                   NT X0E 0H0

Sahtu Renewable Resources     Executive Director    Tel: (867) 588-4040            SRRB
Board                                               Fax: (867) 588-3324            Box 134
                                                                                   Tulita NT
                                                                                   X0E 0K0

Nunavut Impact Review Board   Secretary             Tel: (867) 983-2593            NIRB
                                                    Fax: (867) 983-2594            Box 2379
                                                    jahmad@polarnet.ca             Cambridge Bay (Ikaluktutiak)
                                                                                   Nunavut Territory
                                                                                   X0E 0C0

Mackenzie Valley              Executive Director    Tel: (867) 873-9636            MVEIRB
Environmental Impact Review                         Fax: (867) 920-4671            Box 938
Board                                                                              Yellowknife NT
                                                    mveirwg@internorth.com         X1A 2N7
                                                    http://users.internorth.com/
                                                    ~mveirwg

Mackenzie Valley Land and     Executive Director    Tel: (867) 669-0506            MVLWB Working Group
Water Board                                         Fax: (867) 873-6610            Box 2130 (?2310)
                                                                                   Yellowknife NT
                                                                                   X1A 2P6

Canadian Association of       Manager               Tel: (403) 267-1100            CAPP
Petroleum Producers (CAPP)    Northern Canada and   Fax: (403) 266-3214            Suite 2100
                              Pipelines                                            350 Seventh Avenue
                                                                                   Calgary, AB
                                                                                   T2P 3N9




June 2001                                                                                                    D-9
Appendix D - Contacts




D-10                    June 2001
                                                                                   Appendix E- Checklists



APPENDIX E – CHECKLISTS
Checklist 1: Summary of Licences, Permits and Authorizations

    Issuing                  Instrument                       Legislative Base                Term
   Authority
DIAND NWT        Type A & B Land Use Permits               Territorial Lands Act          2 years
DIAND NWT        Type A & B Water Licences                 NWT Water Act                  Up to 25
Water Board                                                                               years
DIAND-NOGD       Call for Nominations                      CPRA                           30-90 days
DIAND-NOGD       Call for Bids                             CPRA                           120 day min.
DIAND-NOGD       Exploration Licence                       CPRA                           prescribed
DIAND-NOGD       Significant Discovery Licence             CPRA                           no time limit
DIAND-NOGD       Commercial Discovery Licence              CPRA                           no time limit
DIAND-NOGD       Production Licence                        CPRA                           25 years
DIAND-NOGD       Benefits Plan Approval                    COGOA                          prescribed
DIAND            Land Lease                                Territorial Lands Act          prescribed
DIAND            Licence of Occupation/Right of Way        Federal Real                   20 - 25 years
                                                           Property Act
DIAND            Sea Bed Leasing Authority                 Federal Real                   prescribed
                                                           Property Act
NEB              Section 58 Order to Construct             NEB Act                        prescribed
                 Pipeline Facilities
NEB              Leave to Open (s. 47)                     NEB Act                        prescribed
NEB              Operating Licence                         COGOA                          annual
NEB              Geological/Geophysical Operations         COGOA                          prescribed
                 Authorization
NEB              Authority to Drill a Well                 COGOA                          prescribed
NEB              Authority to Alter Condition of a Well    COGOA                          prescribed
NEB              Commercial Discovery Declaration          CPRA                           indefinite
NEB              Significant Discovery Declaration         CPRA                           indefinite
NEB              Construction and Operations               COGOA                          prescribed
                 Authorization
NEB              Certificate of Public Convenience and     NEB Act                        prescribed
                 Necessity (s. 52)
NEB              Development Plan                          COGOA                          prescribed
NEB              Plans Profiles and Books of Reference     NEB Act                        prescribed
NEB              Pipeline Operations Approval              NEB Act                        prescribed
NEB              Pipeline Abandonment and Reclamation      NEB Act                        prescribed
                 Plan
DFO-FHM          Fisheries Act Authorization               Fisheries Act                  prescribed
DFO-FHM          Licence to Fish for Scientific Purposes   Fisheries Act                  prescribed
DFO-CCG          Navigable Waters Protection Act           NWPA                           prescribed
                 Permit




June 2001                                                                                                 E-1
Appendix E - Checklists


      Issuing                    Instrument                  Legislative Base              Term
    Authority
Environment Canada   Disposal at Sea Permit               Canadian Environmental       prescribed
                                                          Protection Act
Environment Canada   Migratory Bird Sanctuary Permit      Migratory Bird Sanctuary     prescribed
                                                          Act
GNWT-Dept. of        Northwest Territories Registration   NWT Companies                prescribed
Finance                                                   Ordinance
GNWT-RWED            Wildlife Research Permit             NWT Wildlife Act             prescribed
Aurora Research      Scientific Research Permit           Scientists Act               prescribed
Institute                                                 Administration Regulations
PWNHC                Archaeologist Permit                 Northwest Territories Act    prescribed
                                                          Archaeological Sites
                                                          Regulations
NWT WCB              NWT WCB Registration                 NWT WCB Act                  annual
ILA                  Land Use Licence                     ILA Rules and Procedures     up to 1 year
ILA                  Land Use Permit Class A, B, C        ILA Rules and Procedures     up to 2 years
ILA                  Reconnaissance Permit                ILA Rules and Procedures     up to 2 years
ILA                  Commercial Lease                     ILA Rules and Procedures     up to 30 years
ILA                  Quarry Concession                    ILA Rules and Procedures     up to 10 years
ILA                  Quarry Licence                       ILA Rules and Procedures     up to 1 year
ILA                  Permanent Right-of-way               ILA Rules and Procedures     up to 30 years
ILA                  Temporary Right-of-way               ILA Rules and Procedures     up to 2 years
ILA                  Well Site Lease                      ILA Rules and Procedures     up to 30 years
IRC/ILC              Call for Bids                        ILA Rules and Procedures     two month
                                                                                       minimum
IRC/ILC              Concession Agreement                 ILA Rules and Procedures     prescribed
IRC/ILC              Significant Discovery Licence        ILA Rules and Procedures     indefinite
IRC/ILC              Commercial Discovery Licence         ILA Rules and Procedures     indefinite




E-2                                                                                         June 2001
                                                                                                                          Appendix E- Checklists


   Checklist 2: Matrix of Regulatory Approvals and Rights for Oil and Gas Projects




                                                                                                Geophysical Exploration




                                                                                                                                                                                      Chapter Reference in
                                                                                                                           Exploration Drilling


                                                                                                                                                                Interjurisdictional
                                                            Source or




                                                                                                                                                  Development
Y - Always Required                                         Issuer on          Source or




                                                                                                                                                                                      this Guide
                                                                                                                                                                Pipeline
M - May be required in specific                             Inuvialuit         Issuer on
circumstances                                               7(1)(a)            Crown
                                                            Lands              Lands

OPERATIONAL PREREQUISITES

Operating Licence                                           NEB                NEB                  Y                          Y                    Y                 Y                    22

GNWT Registration                                           GNWT               GNWT                 Y                          Y                    Y                 Y                    22

NWT WCB Registration                                        NWT WCB            NWT WCB              Y                          Y                    Y                 Y                    22

OIL AND GAS RIGHTS

Exploration Licence                                         IRC/ILA            DIAND-             Y                          Y                     --                --                    21
                                                                               NOGD

Significant Discovery Licence                               IRC/ILC            DIAND-             --                         --                    Y                 --                    23
                                                                               NOGD

Production Licence                                          IRC/ILC            DIAND-             --                         --                    Y                 --                    23
                                                                               NOGD

Concession Agreement                                        IRC/ILA                  --           --                         Y                     Y                 --                    23

BENEFITS PLAN APPROVAL                                      DIAND-             DIAND-             Y                          Y                     Y                 --                    16
                                                            NOGD               NOGD

ENVIRONMENTAL ASSESSMENT                                    RA                 RA                 Y                          Y                     Y                 Y                     13
UNDER CEAA

IFA ENVIRONMENTAL IMPACT                                    EISC/EIRB∗         EISC/EIRB          Y                          Y                     Y                 Y                       4
SCREENING AND REVIEW PROCESS
(Requires preparation of Project
Description)

PARTICIPATION/ACCESS                                        IRC/ILA                  --           Y                          Y                     Y                 Y                     15
AGREEMENT (on Inuvialuit lands only
unless explicitly agreed)


   ∗
       On ILA lands, required for authorization issued by government, or if referred by ILAC.


   June 2001                                                                                                                                                                              E-3
  Appendix E - Checklists




                                                                                  Geophysical Exploration




                                                                                                                                                                       Chapter Reference in
                                                                                                            Exploration Drilling


                                                                                                                                                 Interjurisdictional
                                                         Source or




                                                                                                                                   Development
Y - Always Required                                      Issuer on    Source or




                                                                                                                                                                       this Guide
                                                                                                                                                 Pipeline
M - May be required in specific                          Inuvialuit   Issuer on
circumstances                                            7(1)(a)      Crown
                                                         Lands        Lands

COOPERATION/BENEFITS                                     IRC/ILA            --      Y                         Y                     Y                 Y                     15
AGREEMENT (on Inuvialuit lands only
unless explicitly agreed)

OIL & GAS AUTHORIZATION [COGOA                           NEB          NEB           Y                         Y                     Y                 --∗                   14
5(1)(B)] GEOPHYSICAL OPERATIONS
AUTHORIZATION, AUTHORITY TO
DRILL A WELL

LAND USE PERMIT                                          ILA          DIAND         Y                         Y                     Y                 Y                     16

WATER LICENCE                                            NWT WB       NWT WB        M                         M                     M                 M                     17

QUARRY PERMIT/LICENCE/                                   ILA          DIAND         --                        M                     M                 M                15/16
CONCESSION

SURFACE LAND TENURE/LAND                                 ILA          DIAND         --                        --                    Y                 -                15/16
LEASE

LICENCE OF OCCUPATION/RIGHT-OF-                          ILA          DIAND         --                        --                    Y                 Y                15/16
WAY

DEVELOPMENT PLAN APPROVAL                                NEB          NEB           --                        --                    Y                 --                    24
[COGOA 5.1(4)]

SURFACE DEVELOPMENT PLAN                                 ILA          N/A           --                        --                    Y                 Y                     24
APPROVAL (on 7(1)(a) and 7(1)(b)
Lands only)

WELLSITE LEASE                                           ILA          N/A           --                        M                     Y                 --

SIGNIFICANT DISCOVERY                                    IRC/ILC      NEB           --                        --                    Y                 --                    23
DECLARATION and/or COMMERCIAL
DISCOVERY DECLARATION



  ∗
      Certain pipelines may require a COGOA authorization.


  E-4                                                                                                                                                     June 2001
                                                                                          Appendix E- Checklists




                                                                Geophysical Exploration




                                                                                                                                                      Chapter Reference in
                                                                                           Exploration Drilling


                                                                                                                                Interjurisdictional
                                  Source or




                                                                                                                  Development
Y - Always Required               Issuer on       Source or




                                                                                                                                                      this Guide
                                                                                                                                Pipeline
M - May be required in specific   Inuvialuit      Issuer on
circumstances                     7(1)(a)         Crown
                                  Lands           Lands

FISHERIES ACT AUTHORIZATION       DFO-FHM         DFO-FHM         M                          M                     M                 M                     18
[ss. 32 or 35(2)]

NWPA PERMIT                       DFO-CCG         DFO-CCG         M                          M                     M                 M                     18

SEA-BED LEASING AUTHORITY (for          --        DIAND           --                         M                     Y                 Y                     16
offshore)

SCIENTIFIC RESEARCH LICENCE       In order to undertake the environmental studies necessary to
(Aurora Research Institute)       assess project impacts, a Developer or the sub-contractor may
ARCHAEOLOGISTS PERMIT (PWNHC)     have to obtain any or all of these authorizations.
WILDLIFE RESEARCH PERMIT
(RWED- GNWT)
LICENCE TO FISH FOR SCIENTIFIC
PURPOSES (DFO)




  June 2001                                                                                                                                               E-5

				
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