Participant Funding Program – Aboriginal Funding Envelope
Funding Review Committee's Report - Addendum

Allocation of Federal Funds for the Environmental Assessment of the Jackpine Mine Expansion and Pierre River Mine Projects

The Participant Funding Program (PFP) is established pursuant to subsection 58(1.1) of the Canadian Environmental Assessment Act, which states: "For the purposes of the Canadian Environmental Assessment Act, the Minister shall establish a participant funding program to facilitate the participation of the public in comprehensive studies, mediations and assessments by review panels". The PFP also includes an Aboriginal Funding Envelope (AFE) to strengthen the ability of Aboriginal groups to participate in federal or joint federal–provincial environmental assessment (EA) processes and in related consultation activities.

A Funding Review Committee (FRC), independent of the EAs, was established for the Jackpine Mine Expansion and Pierre River Mine Projects (the Projects), which is being conducted by means of a Joint Review Panel (the Panel). The Panel is being established through an agreement between the Canadian Environmental Assessment Agency (the Agency) and the Alberta Energy Resources Conservation Board (ERCB). The FRC's purpose was to assess the funding application received under the PFP – AFE for the Projects, and to provide recommendations to the President of the Canadian Environmental Assessment Agency (the Agency) on whether funding should be provided, and if so, in what amount.

Under the AFE for the Projects, initially a total of $633,000 was made available to support Aboriginal participation and related consultation activities in the EA, including:

• input and participation into the panel review processes;
• review of available documentation, including the environmental impact assessment (EIA) documents, and any additional information that may be requested by the Panel; and
• preparation for and participation in the hearings, including pre-hearing engagement or consultation activities with the federal government that are linked to the EA.

The deadline to submit an application was April 15, 2011. Four applications were received for a total funding request of $2,867,306. On April 26, 2011, the FRC met to review the applications and recommended allocating a total of $636,500 to the four applicants. However, on July 6, 2011, the PFP was advised by the Crown Consultation Coordinator (CCC) in the Alberta and Northwest Territories Region that the list of Aboriginal groups to be consulted on the Projects had to be modified to include the Fort McMurray First Nation. On July 29, 2011, an additional $100,000 was made available to support the participation of this group. The application from the Fort McMurray First Nation was received on September 19, 2011, requesting a total of $110,025.

On September 23, 2011, the FRC met to review the application from the Fort McMurray First Nation. The FRC members were: Mr. Paul Scott, retired Regional Director of the Agency's Pacific and Yukon office, acting as Committee Chairperson; Ms. Jan Bloomfield, Environmental Assessment Consultant; and Mr. Jeff Gilmour, Environmental Assessment Consultant.

Background

Jackpine Mine Expansion Project

Shell Canada Limited (the proponent) is requesting to amend its Jackpine Mine Expansion Project – Phase 1 approval to access additional mining areas on oil sand leases located adjacent to the Jackpine Mine Expansion Project – Phase 1 (the Project). The Project would add another 100,000 barrels of bitumen production per day. This would increase the total bitumen production capacity to 300,000 barrels per day. This expansion would include additional mining areas and associated processing facilities, utilities, and infrastructure. The Project is located approximately 70 kilometres (km) north of Fort McMurray on the east side of the Athabasca River.

The project components which are part of the scope of this assessment include:

• expansion of the project area on the eastern part of Lease 13 and extending mining activities to additional northern leases;
• open-pit, truck and shovel mine;
• construction of ore handling, conditioning and bitumen extraction facilities and a high-temperature froth treatment facility at the project site;
• construction of a cogeneration plant at the project site and adding new or augmenting existing utility systems; and
• constructing a new external tailings disposal area at the southern end of Lease 88 to accommodate the additional volume of tailings produced.

The process facilities would include:

• crushers and conveyors;
• slurry conditioning and ore preparation;
• extraction;
• tailing handling and treatment;
• froth treatment;
• tailings solvent recovery;
• asphaltene recovery; and
• fish habitat compensation and any required infrastructure.

All related works and activities including all temporary facilities required for the construction and operation of the above-mentioned facilities, namely:

• any access roads, work camps, electrical power supply lines or power;
• supply for camps and worksites (new or modified);
• drinking water supply for camps;
• water supply for the Project, including water storage facilities;
• temporary control structures and diversion works;
• treatment of wastewater and waste management;
• construction worksites and storage areas;
• management of excavation material; and
• handling and storage of petroleum products and hazardous materials.

Pierre River Mine Project

The Pierre River Mine Project proposed by the proponent includes the construction, operation, and reclamation of an oil sands surface mine and bitumen extraction facilities in the Fort McMurray area. The proposed mining project is to be located approximately 90 km north of Fort McMurray on oil sands leases on the west side of the Athabasca River. The proposed development includes an open pit truck and shovel mine, ore handling facility, bitumen extraction facilities, tailings processing facilities, support infrastructure, water and tailings management plans, and an integrated reclamation plan, as well as the construction of a bridge across the Athabasca River.

The Pierre River Mine Project is designed to produce a total of 31,800 cubic metres (200,000 barrels) per day of bitumen.

The project components which are part of the scope of this assessment include:

• open pit, truck and shovel mine;
• ore preparation and handling facility;
• bitumen extraction facilities;
• bitumen froth treatment plan;
• bitumen products storage facilities;
• tailings management and processing facilities;
• fish habitat compensation and any required infrastructures; and
• co-generation facility.

All related works and activities including all temporary facilities required for the construction and operation of the above-mentioned facilities, namely:

• permanent and temporary access roads (new or modified);
• construction or modification of any airstrip;
• permanent and temporary work camps;
• all temporary or permanent electrical power supply lines;
• drinking water supply for camps;
• water supply for the Project, including water storage facilities;
• all temporary or permanent power supply for camps and worksites;
• temporary control structures and diversion works;
• treatment of wastewater and waste management, as well as the infrastructure required for this management;
• any bridges and watercourse crossings (new or modified);
• borrow pits and quarries;
• construction worksites and storage areas;
• management of excavation material; and
• handling and storage of petroleum products and hazardous materials.

Eligibility

Under the PFP - AFE, funding may be provided to Aboriginal groups to support their input to an EA and/or to support their engagement in consultation activities with the federal government. These activities must be linked to the EA of a proposed project through a comprehensive study, mediation or review panel.

Eligible recipients must plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of the proposed project, and must be able to demonstrate that they meet at least one of the following eligibility criteria:

• have a direct, local interest in the proposed project, such as a residence in the area or historical or cultural ties to the area likely to be affected by the proposed project;
• community knowledge or Aboriginal traditional knowledge relevant to the EA; or
• expert information relevant to the anticipated environmental effects of the proposed projects.

The applicant was deemed to have met the eligibility criteria.

Under the PFP - AFE, applicants can request funding for costs related to:

• professional fees;
• staff salaries and benefits;
• travel expenses;
• honoraria for Elders and Chiefs to attend meetings and functions;
• ceremonial offerings related to receiving traditional knowledge;
• administration and reporting;
• other expenses related to local collection and distribution of information;
• office supplies and telephone charges;
• rental of office space and meeting rooms;
• legal fees;
• general media, and advertising and promotion; and
• purchase of information material.

Rationale for Allocation

In reviewing the application received and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors, including the following:

• engagement in consultation activities with the federal government that are linked to the EA of a proposed project through a comprehensive study (CS), mediation or review panel;
• Aboriginal groups who could demonstrate that they had met at least one of the eligibility criteria were eligible for participant funding under the program;
• the quality, clarity and content of the application, particularly with respect to the relationship between specific project components and the applicant's traditional lands and resources, and the applicant's proposed EA participation work plan;
• advice received from the Agency regarding which Aboriginal groups are expected to be participants in the EA, and the role that these groups may play in the review;
• the ability of the applicant to represent the interests of Aboriginal communities that might be impacted by the Project;
• presence/absence of specific project components within each applicant's traditional lands. ;
• project impacts on traditional lands and resources, and on the related interests and asserted rights and title of the Aboriginal communities represented by each applicant; and
• the limitation of funds available under the PFP - AFE.

Recommendation

The FRC recommends allocating $77,600 of the available AFE funding to the Fort McMurray First Nation.

The FRC further recommends that a condition of any funding award be that the funding recipient must provide input to the EA on both Projects.

The Participant Funding Review Committee
For The Jackpine Mine Expansion And The Pierre River Mine Projects
Aboriginal Funding Envelope

________________________________________
Paul Scott, Committee Chairperson, Retired Regional Director of the Agency's Pacific and Yukon Office

________________________________________
Jan Bloomfield, Environmental Assessment Consultant

________________________________________
Jeff Gilmour, Environmental Assessment Consultant

Recommended Participant Funding Allocations - Updated
For the Jackpine Mine Expansion and the Pierre River Mine Project
Aboriginal Funding Envelope

Applicant	Total allocation amount recommended
Fort McKay First Nation & Metis Local 63	$192,000
Athabasca Chipewyan First Nation	$187,000
Mikisew Cree First Nation	$175,000
Metis Association Regional Council Zone #1	$82,500
Fort McMurray First Nation.	$77,600
TOTAL	$714,100