Norman Facilities

Norman Facilities .

0 Minister of Supply and Services Canada 1981

Cat. No. En 105-18/1981

ISBN O-662-51 155-7 Government Gouvernement IJcl of Canada du Canada Environmental Examen des haluations Assessment Review environnementales

Hull, Quebec KlA OH3

The Honourable John Roberts, P.C., M.P. Minister of the Environment Ottawa, Ontario KlA OH3

Dear Minister:

In accordance with the Federal Environmental Assessment and Review Process, the Environmental Assessment Panel on the Norman Wells Project has completed a review of this two-part project. We are pleased to submit this report for your consideration.

The review has led to the conclusion that before the Norman Wells Project can be built within acceptable limits of environmental and socio-economic impact, important deficiencies in the Propo- nents' planning and in the preparedness of government need to be rectified. The Panel therefore recommends that the project not be proceeded with until 1982 at the earliest, in order that these deficiencies can be dealt with.

Sincerely yours,

Patrick Duffy Chairman Norman Wells Project Environmental Assessment Panel TABLE OF CONTENTS

EXECUTIVE SUMMARY ,....__,...... ,.._...... ,_._..._...... _.,...... ,,,...... ,.....,..,...... __...... 1

1. PROJECT PROPOSAL AND REGIONAL SETTING...... 5 1. 1 Introduction ...... 7 1.2 Norman Wells Oilfield Expansion ...... 9 1.3 Pipeline Construction ...... 9 1.4 Regional Setting...... 9

2. THE REVIEW PROCESS...... 13 2. 1 Introduction...... 15 2.2 The Environmental Impact Statement ...... 15 2.3 The Review of the Proposal ...... 17 2.3. 1 Community Visits and Information Programs...... 17 2.3.2 Public Meetings...... 17

3. POLITICAL ISSUES ...... 21 3.0 Political Issues...... 23 3. 1 Dene Land Settlement...... 23 3.2 Revenue Sharing...... 23

4. ENVIRONMENT AND ENGINEERING ...... _...... 27 4.0 Environment and Engineering ...... 29 4.1 Alternatives to the Proposed Project...... 29 4. 1.1 Alternative Scenarios...... 29 4. 1.2 Oilfield Development...... 30 4. 1 .3 Pipeline Alternatives ...... 30 4.2 Physical Environment and Engineering Concerns ...... 33 4.2. 1 Geotechnical Concerns, Pipeline Integrity and Permafrost...... 33 4.2.2 Water Crossings ...... 36 4.2.3 Island Construction...... 36 4.2.4 Related Structures and Activities...... 38 4.3 Biological Environment and the Land...... 38 4.3. 1 Fisheries and Wildlife ...... 39 4.3.2 Forests and Wildfires ...... 39 4.4 Oilspill Prevention and Countermeasures...... 4 1 4.5 Toxic Substances and Air Emissions...... 42 4.6 Water Use and Effluent Disposal...... 42 4.7 Archaeology...... 43 4.8 Associated Projects...... 43 4.9 Environmental Impact Management ...... 44

5. ECONOMY AND SOCIETY ...... 45 5.0 Economy and Society...... 47 5. 1 Economic Issues...... 47 5.1. 1 The Norman Wells Project in the National Setting...... 47 5. 1.2 Regional Economic Issues ...... 47 5.1.3 Effects on the Regional Economy...... 48 5. 1.4 Employment and Business Opportunities...... 54 5. 1.5 Programs to Assist the Regional Economy ...... 55 5. 1.6 Effects Upon Government Services ...... 56 5. 1.7 Effects on Transportation and Communications Facilities ...... 57 5.2 Social Concerns...... 58 5.2. 1 The Dual Society...... 59 5.2.2 The Project and Northerners Living on the Land...... 6 1 5.2.3 Social Benefits and Costs ...... 61 5.3 Managing Social and Economic impacts ...... 64 5.3. 1 The Need for Goals and Planning...... 64 5.3.2 Government Preparation for the Project...... 64 5.3.3 Government-Proponent Liaison ...... 65 5.3.4 The Role of Community Advice...... 65 5.3.5 Learning from Experience...... 65

6. NORTHWESTERN ALBERTA...... 67 6. 1 Introduction ...... 69 6.2 Concerns of the Native People...... 69

7. CONCLUSIONS AND RECOMMENDATIONS...... 71 7. 1 Conclusions...... 73 7.2 Recommendations ...... 75

8. APPENDICES ...... 83

Appendix I Metric-Imperial Conversion Table ...... 85 Appendix II Panel Biographies ...... 86 Appendix III Participants in the Public Review...... 88 Appendix IV Submissions to the Panel...... 92 Appendix V Technical Meetings Agenda ...... 97 Appendix VI Acknowledgements ...... 98 The Mackenzie River and Bear Rock at Norman, ,:’ \ /” /” /’ ./” ./’ i/IAN ./’

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Fig. 1 Regional Perspective Norman Wells Oilfield Expansion and Pipeline Project 3 -

EXECUTIVE SUMMARY be proceeded with until 1982 at the earliest, in order that these deficiencies The Norman Wells Environmental Assessment can be dealt with. Panel has reviewed the proposal by Esso Resources Canada Ltd.- and Interprovincial Pipe Lines (NJ.) Ltd. to expand oilfield Esso's oil field development plan at production at Norman Wells, N.&T. and to Norman Wells presents a number of unique construct a 324 mm diameter pipeline from technical questions. The Panel reviewed there to Zama, Alberta. Oilfield devel- potential problems associated with the opment would include construction of six construction of artificial islands in the artificial islands in the Mackenzie River Mackenzie River, fisheries and wildlife and the 866 km pipeline would transport concerns relating to island construction crude oil and natural gas liquids to and drilling operations, oilspill preven- markets in southern Canada. tion and counter-measures, toxic substances, air emissions, water use and The Proponents issued an Environmental drilling waste disposal. In the Panel's Impact Statement (EIS) in April 1980. opinion, additional time is required by The EIS and additional information Esso Resources Canada Ltd. to solve requested by the Panel served as the body potential problems of scour around the of information for the review of the artificial islands, filter cloth deterio- Project. ration, contingency planning for oilspills in ice-covered and ice-infested The Panel sought comments on the proposed water, oil-leak detection capability, as project from the public and from techni- well as storage, transportation and dis- cal reviewers. In August, 1980, the posal of toxic and hazardous materials, Panel held public meetings in 12 communi- including contaminated drilling wastes. ties in the project area. The Panel considered issues relating to the ratio- The proposed IPL pipeline is in the zone nale for the project, the potential of discontinuous permafrost from Norman impacts of both the physical environment Wells to Zama. The Panel concluded that on the project and the project on the IPL's thermal analysis raises questions physical and human environment, govern- of pipeline integrity and right-of-way ment preparedness and project monitoring. stability and the Panel has made recom- After carefully considering the informa- mendations for priority research in this tion presented, the Panel reached a subject. The Panel has also made recom- number of conclusions and made recomrnen- mendations on planning of river cross- dations which are contained in this ings, contingency planning in karst report. terrain, revegetation and erosion control, and on pipeline routing in the The Panel's review of the project has led vicinity of native communities. to the conclusion that before the Norman Wells Oilfield Expansion and Pipeline The Panel's assessment of economic and Project can be built within acceotableI social issues concentrated on the con- limits of environmental and socio- cerns of the residents and organizations economic impact, important deficiencies in the project area and the concerns of in the Proponents' planning and in the government agencies at the federal, preparedness of government need to be territorial and local levels. The Panel -rectified. This conclusion has led the concluded that the project will provide a Panel to recommend that the project not needed economic stimulus to the Mackenzie Valley. The recommendations are intended priorities to put programs and staff in to be carried out in a way to support place. this conclusion and, in particular, to insure that economic benefits are The report considers but does not recom- realized through local employment and mend on two over-riding political issues business opportunities. which have a major influence on the project, namely the Dene Land Settlement question and resource revenue-sharing The project impacts on society can be between governments. made to be within acceptable limits and the Panel recommendations are aimed at In its assessment of the project in minimizing social disruption. The Panel relation to the Indian people of north- has concluded that a 1982 start-up on the western Alberta, the Panel recommended project could provide time for undertak- that the Department of Indian Affairs and ings on inflationary effects on the Northern Development should take the economy, wage differentials, a data base initiative in identifying the agencies to for social and health care services, address terms and conditions put forward co-operation between the Proponents and by the Dene Tha Band, and in co- government, and adjustment of government ordinating the response to them.

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1.1 INTRODUCTION reviewed by Mr. Justice T.R. Berger in the Mackenzie Valley Pipeline Inquiry. On February 1, 1980, the Department of The 1977 Berger Report to the Government Indian Affairs and Northern Development of Canada concluded that even though it referred the Norman Wells Oilfield and was environmentally possible to establish Pipeline Project to the Federal Environ- an energy corridor and build a pipeline mental Assessment Review Office for a in the Mackenzie Valley, the social formal public review. The project is a impacts would have serious effects on the proposal by Esso Resources Canada Ltd. people there. A ten-year moratorium on . and Interprovincial Pipe Lines (NW) Ltd. development was recommended to allow for (henceforth called Esso and IPL) to settlement of native land claims, assess- expand oilfield production facilities at ment of frontier reserves, and the estab- Norman Wells and to construct an 866 km lishment of programs and institutions to long pipeline1 to carry crude oil and . permit comprehensive land use planning natural gas liquids (NGL) from Norman and orderly development. The Berger Wells to join with existing pipeline Report was received but not endorsed by facilities at Zama, Alberta. the Government of Canada. Later it was decided that neither the Canadian Arctic BACKGROUND Ga‘s nor the Foothills proposal would be proceeded with in the Mackenzie Valley. Along the Mackenzie River, natural oil Later in 1977, a decision was taken to seeps were cbserved by Alexander Macken- build a large-diameter gas pipeline along zie in 1789 and were reported by native the Alaska tiighway from Alaska to Alberta people prior to 1920, at which time and the USA. Imperial Oil Limited drilled the Norman Wells discovery Jell. Early production About the time the Gerger Report was was about 100 m 5 /d until the oilfield released the 1300 km-long, 1.22 m-diam- was expanded to serve the American armed eter Trans-Alaska Oil Pipeline began forces in Alaska during World War II. moving oil from Prudhoe Bay to Valdez, This was the Can01 Project, which Alaska. At the time, it was the largest included the construction of a 10 cm- oil pipeline to be built on permafrost. diameter surface oil pipeline from Norman Conventional buried pipeline construction Wells to Whitehorse in 1943-44. In 1945 could not be used in ice-rich permafrost the pipeline was abandoned. Since then terrain because of the risks of thawing production at Norman Wells has been of ground ice resulting in pipeline maintained at about 500 m3/d. subsidence and rupture. One half of the pipeline was elevated above ground to In 1974 Canadian Arctic Gas and Foothills reduce the danger of thaw-settlement. In Pipelines Ltd. tabled competing proposals other areas the pipeline was buried in for pipelines from the Arctic coast south permafrost using special design tech- along the Mackenzie Valley and into niques to eliminate risks of subsidence. Alberta. The 1.22 m diameter Canadian Arctic Gas line was to carry gas from The proposed Norman Wells Oilfield Prudhoe Bay, Alaska across the northern Expansion and Pipeline Project is not of Yukon to the Mackenzie Valley and south the same physical scale as the Trans- to the United States. The Foothills' Alaska Pipeline or the Mackenzie Valley application was for a 1.07 m-diameter gas pipeline proposals. However it does pipeline from the Mackenzie Delta to represent an opportunity to incorporate southern markets. Both proposals for useful design and construction experience large-diameter chilled pipelines were of these other projects.

1. A Metric-Imperial Conversion Table is in Appendix I......

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1.2 NORMAN WELLS OILFIELD EXPANSION would be buried along its entire length and would have a capacity of approximately 5 000 m3 of product per day. It Esso has proposed a secondary recovery would carry products at near ground tem- project for the entire field at Norman perature because the oil has a low vis- Wells to increase production rates from cosity and will flow at a low tempera- the c rrent level of 500 m3/d to ture. This reduces the potential for 4 000 mY /d. Initiation of an oil- problems of thaw settlement which are field reservoir waterflood scheme is associated with warm oil pipelines in expected to result in the increased permafrost. With additional pumping recovery of more than 42% of the original capacity at each station, pumping oil-in-place compared to 17% recovery if capability could be doubled. present techniques are employed. Facili- ties required for this purpose include The proposed pipeline route begins at 200 new oil and water injection we1 Is, Norman Wells and follows the east side of six artificial islands to serve as dril- the Mackenzie River to a crossing point ling platforms in the Mackenzie River, upstream of Fort Simpson and then south- facilities for an oil gathering system, east to the Zama terminal of the Rainbow and a central processing plant (the pipeline in north-west Alberta. Where fieldgate) on the mainland to condition possible the pipeline will follow exis- oil for pipelinp transmission. ting rights-of-way and cutlines where the land has - been disturbed by previous Since 60 percent of the reservoir is clearing. Three pumping stations will be under the Mackenzie River, six artificial required and these will be located near islands are proposed to give access to Norman Wells, Wrigley, and Fort Simpson. that portion of the reservoir. Each In addition several temporary wharves, island will have a working surface ot 80 stockpile sites and service roads need to by 45 m with a one-metre high dyke be built. surrounding the surface area. The islands will be earthfill structures IPL proposes to construct the pipeline composed of a sand core protected by during two consecutive winter seasons. filtercloth overlaid with three layers of The major river crossings would be com- limestone rock riprap of increasing pleted during the summer seasons. size. 1.4 REGIONAL SETTING A pipeline gathering system will carry oil production from the islands and land- Norman Wells is located on the east shore based wells to the fieldgate. The field- of the Mackenzie River, 145 km south of gate will contain equipment for water the Arctic Circle and 685 km northwest of disposal, gas processing, fresh water Ye1 lowknite (Figure 1). As the site of injection, and electrical power the only producing oilfield in Canada generation. north of 60"N latitude, Norman Wells is unlike other settlements on the Mackenzie 1.3 PIPELINE CONSTRUCTION River. It originated as the result of the oilfield development rather than as a IPL proposes to construct the 866 km long fur trading post. At present the popula- pipeline to transport the increased pro- tion of 360 is predominantly non-native. duction of crude oil and natural gas Most workers are employed at the Esso liquids from Norman Wells to markets in refinery and in transportation-related the south. The 324 mm diameter line occupations. SIMPSON

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Fig. 3 Proposed Pipeline Route 11 -

The proposed oilfield expansion and 19th century. Explorers such as Alexan- fieldgate facilities are to be situated der Mackenzie were agents of the fur on the mainland adjacent to the community trading companies seeking to expand of Norman Wells, and on nearby Goose and access to the rich furs of the Northwest. Bear Islands, and the artificial islands By the late 1800's the focus of the fur in the Mackenzie River. When the project trade was in the Mackenzie Valley. In is completed, the permanent population of turn the establishment of permanent Norman Wells is expected to grow by about trading posts and the expansion of Angli- 160 to 200 persons. can and Roman Catholic rnissionary activities contributed to the growth of new Where the pipeline route parallels the settlements in the region as the Dene Mackenzie Valley past the settlements of began to settle near them. Fort Norman, Wrigley and Fort Simpson, it follows a relatively narrow corridor Industrial development of the area began between the Franklin Mountains and the with the discovery of lead and zinc at Mackenzie River. The terrain is charac- Pine Point in 1898 oil at Norman Wells in terized by river terraces cut in glacial 1920, uranium near Great Bear Lake in till and lake clays, with tributary 1932, and gold at Yellowknife in 1934. rivers flowing in steep-sided valleys. These early developments followed by The corridor is covered partly by muskeg groirth of river and air traffic began to and partly by coniferous forest. have their impact on the people of the Mackenzie Valley. Major changes came South of Willo\rlal:e River, the pipeline later with a series of developments route cats across rolling country to the during and following World War II. These Mackenzie River crossing near Fort included the Canol Pipeline Project and Simpson. In this section there are airstrips, the DEW Line, building Inuvil;, extensive areas of organic soils, partic- construction of the Mackenzie Highway, ularly near the Mackenzie Piver. South and widespread petroleum exploration of the Mackenzie River, organic terrain activity. is again predominant, and the forest is interrupted by numerous bogs. At the native villages of Fort Norr,:an (population 280) and Wrigley (population Man in the Mackenzie Vallev 215) the people are largely dependent on hunting, trappiny and fishing as a \,ay of The Dene of the Flackenzie Valley have life. Fort Simpson (population 1000) is practised a hunting and gathering \ray of located at the confluence of the Liard life for at least 5,000 years according and Mackenzie Rivers. It is the oldest to archaeological evidence. Today the continuously occupied settlement on the importance of these traditional activi- Mackenzie River. Today it is a transpor- tics in many settlements is measured in tation centre, being the northern termi- terms of cultural identity, the level of nus of the llackenzie Highway and with subsistence and cash flow. major airline services. Fort Simpson serves as a base for mineral exploration The early contacts with Europeans and in the area and as the departure point Canadians came during the turn of the for flahanni National Park. 12 CHAPTER 2

THE REVIEW PROCESS - :1 -

BIII Pierce and Mike Arnett at the Proponents table at Public Meeting in Wngley, N. W.T.

Outslde the Community Hall at Fort Norman dunng a break in the Public Meetings 15 -

2.1 INTPODUCTION Dr. John Stager, Vancouver, B.C.

The federal Environmental Assessment and Biographies of the Panel Members are Peviell Process (EARP) was established in given in Appendix II. 1973 as a means of determining adverse environmental effects of federal proj- The Panel was assisted throughout' the ects, programs and activities while they revielf by the Panel Secretary, Mr. Robert are still in the conceptual or early Greyell. planning stages. The Minister of the Environment, through the Government Orga- 2.2 THE ENVIRONMENTAL IMPACT STATEMENT nization Act of 1979, is given the responsibility of assuring that nelf The Proponents (Esso and IPL) submitted a federal initiatives are assessed for joint Environmental Impact Statement potential adverse effects on the quality (CIS) to the Panel in early April, 1980. of the natural environment. This was before the Panel formation was completed. Because of this the Panel Federal departments and agencies, aided chose not to issue guidelines for the by screening guidelines, are initially preparation of an EIS. Instead the Panel responsible for the assessment of the decided to review the EIS and then issue project and the significance of environ- requests for additional information where mental impacts. As the Department of the CIS was found to be incomplete. Indian Affairs and Northern Development During the review period (May-September, is responsible for land use and adminis- 1980) four requests for additional infor- tration in the Northwest Territories and mation were issued by the Panel. for native affairs in Alberta, the Department determined that the proposed In April, 1980 the CIS was distributed to rlorman biells Oilfield and Pipeline should Federal and GWT agencies, public librar- be formally reviewed, because of the ies in N&T., Calgary, and Edmonton, potential for major significant impacts. band and settlement offices in the proj- The project was therefore referred to the ect area, and in the Yellowknife and Hay Federal Environmental Assessment Review River areas. In addition, newspaper Office in February 1980. Following the advertisements \Jere placed to announce referral, an Environmental Assessment the revie\J schedule and the availability Fanel kfas appointed to review the of the EIS in corrununity libraries and environmental and socio-economic aspects other locations. of the project proposal. The CIS consisted of four volumes: By May 1980, the follo\ling Panel \fas assembled to review and evaluate the Volume 1 - Overvie\/ Summary project: Volume 2 - EIS Oilfield Development Volume 3 (A,R,C) - EIS Pipeline Project Mr. tllayne Bryant, Yellotfknife, N.W. . Volume 4 - Regional Socio-Economic Impact Assessment Dr. Patrick Duffy 0airman), tiu11, Quebec These docutllents and 15 supporting consul- tant reports were the main information Mr. Alan tteginbottom, Ottawa, Ontar 0 documents that were assessed by the Panel alony \Jith briefs and interventions I, l- Mr. Arthur Look, Fort Providence, N.w.r. received at the public mectinys. - It, - 17 -

2.3 TIIE REVIEW OF THE PROPOSAL offices. Advertisements \/ere placed in local newspapers, a mailing program was After the distribution of the EIS in carried out, media announcements were April, the Panel arranged for a four- made, and notices were posted to announce month long public review period. During the times and locations of public r,leet- this period the Panel received several ings. In addition the Panel inspected briefs and submissions all of which were the pipeline route fror,l the air and distributed to interested parties prior visited the facilities at Norman Wells. to the community and technical meetings. A complete list of the submissions is 2.3.2 Public Neetings given in Appendix IV. The public meetings were part of the The material addressed in the EIS and review process and provided a forum for background documents ’ technically interested persons to comment on the CIS complex. Therefore, the i&e1 retained a and to express views on the project. small number of professional advisors Thus the Panel obtained further important from government agencies and consulting information on potential impacts. Two firms. The role of the advisors was to weeks of community meetings were held review the EIS and its supporting docu- follo\red by a week of technical meetings mentation and then to present the Panel in Yellowknife and one additional corru~~u- and the public meetings with appraisals nity meeting in High Level, Alberta. In of the information. all, the Panel conducted public meetings in twelve cor;iunities as follows: 2.3.1 Community Visits and Information Programs August 11 Fort JJorman August 12 Norman Wells To explain the scope of the project to August 13 Fort Good Hope the public, the Proponents made community August 14 Fort Franklin visits and distributed literature on August 15 Wrigley employment and business opportunities, August 17 Hay River - Band Office project benefits and construction tech- August 18 Hay River - Connunity niques. Advertising programs and orien- Centre tation tours at Norman Wells were also August 19 Fort Providence carried out for the public and the August 20 Fort Simpson - Band media. Meeting August 21 Fort Simpson - Community After the release of the EIS, Panel staff Centre undertook a public information program August 22 Fort Rae for communities near the proposed proj- August 24 Detah Village ect. The Panel staff developed and August 25 Yellowknife distributed information on the review September 1 Iii gh Level, Alberta process with the purpose of assisting the public to intervene in the review. Prior In a number of the communities, local to holding the public meetings, Panel interpreters provided translation in the members and staff visited the Mackenzie native language of the community (either Valley communities and High Level, Slavey or Dog Rib). Alberta at least once. During these visits the EIS was distributed and 'Technical meetings were held in Yellow- meetings were held in band and settlement knife from August 25 - 29, 1980. For Panei members Alan Hegtnbottom and John Stager dunng a break In the Public Meetings.

Fort Good Hope residents at the Public Meeting. - 19 -

these sessions a scheduled agenda of In all, over 140 presentations were heard issues was prepared and circulated prior by the Panel. Transcripts of the pro- to the meetings (Appendix V). The agenda ceedings (2100 pages) were produced and was adjusted by the addition of two morn- may be obtained through the Panel ing sessions in order to maintain the Secretary. meetings schedule.

Fort Rae, N.T.W. on the North Arm of Great Slave Lake. Herb Norwegian Dene Nation Vice President

Jim Antoine Chief, Fort Simpson, N.W.T.

Panel Chairman, Pat Duffy, talks with Dene Nation Vtce President, Herb Norwegian

“We believe the question of Federal-Territorial sharing of resource revenue to be a matter for negotiated agreement on the basis of all existing and potential non-renewable resource developments in the Territories rather than on an Individual project basis; and, therefore, that this project should not be delayed or placed under any moratorium on account of those negotiations.

We submit that the questions of aboriginal rights and Native land claims are matters for negotiated, just settlement simultaneously with the orderly progress of development in the Northwest Territo- ries, in order that the North not be further crippled economically by the necessarily lengthy process of achieving such settlement.”

Frances Hasey Hay River and Area Economic Development Corporation.

Bill Pierce discusses the pipeline with Francis Hasey of the Hay River and Area Economrc Development Corporation. - 23 -

3.0 POLITICAL ISSUES context the scale of the Norman Wells project was not an issue. The issue was Throughout the public meetings and from a land settlement which will give the written interventions, two over-riding Dene some control over the. lands and issues were repeatedly brought to the resources in the western NWT. Because of Panel's attention, namely Dene land the preoccupation with land settlement, settlement and revenue-sharing between the Dene did not examine or speak of the the GNWT and the Federal Government. EIS, and consequently their environmental These issues are of major importance to concerns were expressed without a full the people of the region and relate to understanding of the Proponents' plans. the environmental and socio-economic It was only at High Level, Alberta, when matters which are treated in this report. the Dene Tha Band made its presentation, Ultimately the issues of land settlement that reference was made to the EIS. and revenue-sharing may be resolved through the political process. Therefore The NWT Metis Association did not present the Panel will not make recommendations a brief to the Panel. The subject of on these matters, but rather describe land claims was addressed by many indi- them in relation to the other issues viduals who gave their views to the Panel raised during the review. at every community meeting. The advice ranged from strong support to outright 3.1 DENE LAND SETTLEMENT disagreement with the Dene Nation policy. Nevertheless, there was widespread agree- At most public meetings a representative ment that a settlement was necessary. of the Dene Nation stated the Dene policy Requests for a prompt resolution of this position that there should be no develop- problem also came in statements from ment before a land settlement is obtained elected members of the GNWT. It was made in the western NWT. In each community, clear that until the process of negotia- the band chiefs and councillors rein- tion is commenced and shows promise of forced this position. Reference was made success, the land settlement question to the Berger Report of 1977, which rec- will be a major barrier to beckoning ommended a lo-year moratorium in pipeline economic growth in the Mackenzie Valley. construction to provide time for a land settlement and other considerations. While the Government of Canada did not 3.2 REVENUE-SHARING adopt this recommendation, the Dene have perceived it as government policy. At With existing agreements and statutes, the public meetings there were expres- most of the revenues from the proposed sions of contusion and annoyance because Norman Wells Project would accrue to the the Norman Wells pipeline was proposed Federal Government and to the Proponents; before the lo-year period had expired. only a small part ,of the revenues would go to the GNWT. It is estimated that the Up to the present the Federal Government oil production will displace about $8 and the Dene Nation have made little bi I lion of foreign oil imports between progress towards a land settlement. At 1984 and 2008. The Proponents estimate the public meetings, the Dene called for that the project would gross roughly $250 time to negotiate an agreement on the million dollars per year at world oil land settlement question, after which prices. The Federal Government will development projects would have a frame receive roughly $172 million dollars per of reference for consideration. In this year from a one-third equity in the - 24 -

project, corporate income taxes and roy- that the GNWT needs an early and timely alties. By comparison, the estimated infusion of cash to serve project-related return to the GNWT from taxation is $6 requirements. million dollars per year or about 3% of the sum received by the Federal Govern- The analogy with provincial ownership of ment. resources provided the background against which proposals for a ditterent sharing The public review of this project was the arrangement were made. At this time the _ first to deal with the question of natu- issue of revenue-sharing is complex be- ral resource revenue-sharing between the cause of the future political course of GNWT and the Federal Government. Northern the GNWT in response to such developments political leaders, civil servants, and as the Drury Report and land settlement the public stressed concern about the negotiations. largest share of government revenue from the exploitation of natural resources The Panel concluded that the Norman Wells flowing to the federal treasury. project was drawn into the revenue- sharing debate because the review was coincident with other initiatives for The GNWT held that a better revenue- political change. It is the view of the sharing arrangement from this project Panel that the project should be sepa- would enable the government to meet its rated from the political questions. obligations with greater independence by Therefore, the Panel suggests that the developing and delivering service pro- Minister of Indian Affairs and Northern grams to communities impacted by the Development consider the establishment of project and, at the same time, maintain a trust fund for the revenue that tne its present programs without jeopardizing Federal Government wou Id receive from their existing effectiveness. It was both partial ownership in the Norman apparent also that most northerners seek Wells oil resource, and the taxable a larger share of resource revenues from income it would generate through existing this and future developments to provide statutes. The trust fund would then increased benefits and greater autonomy become part of the political decision- for their government. The Panel believes making process rather than the p!*ojec:.

ct7iefs and tnterpreter at the Public Meeting in Fort Rae N.W.T. Gabe Hardisty Chief, Wngley. N.W T

Frank T’Seleie Chref, Fort Good Hope, N.W.T.

“You are saying land claims are not settled yet. Cur rtghts have to be recognized first then we sit down with Esso Resources and negotiate anything. This is our land, our resources, that they are planntng to take out of here. So we are not clarming this land. This is our land it is a struggle for our rights recognrzed, is what it is.”

Frank Tselete Chief Fort Good Hope, NWT Esso lank farm and at Wells, - 29 -

4.0 ENVIRONMENT AND ENGINEERING (iii) movement of refined products by pipeline or by barge; and

This chapter addresses specific environ- (iv> a large diameter oil pipeline mental concerns which relate to the from the Beaufort Sea or Arctic integrity and environmental adequacy of Islands, or both, which would the project. also carry Norman Wells crude oil and NGL. The Panel regards some problems as significant and has chosen to make recommen- Factors considered in the discussion dations on them. Other problems are less included a possible review of the oil serious and can be resolved by good engi- production potential of the lower Macken- neering practices and monitoring. zie Valley and Beaufort Sea areas, the effects of a highway from southern Canada 4.1 ALTERNATIVES TO THE PROPOSED into Norman Wells and the need for subsi- PROJECT dized fuels.

From the perspective of the Proponents, Proponents of projects are expected to none of the alternatives could be shown consider and describe various alter- to be as financially and technically natives to their proposals, including efficient as the method proposed. The different modes, locations, methods and rate of crude oil production necessary to timing. The EIS for this project con- support the cost of providing access to tained only very brief discussions of the portion of the oilfield lying beneath alternatives. More information was made the Mackenzie River is 1 600 m3/d to available however, in response to written 2 000 m3/d over the current refinery questions from the Panel. capacity. Furthermore, the market needs are such that selected products would 4.1.1 Alternative Scenarios still have to be imported from Alberta. Thus, the crude oil pipeline to Zama, Alberta, is inseparable from the oilfield During the technical meetings, alternate expansion. Without an expanded market scenarios for development of the Norman the oil reserves under the river cannot Wells oilfield and the implications tar be economically recovered, and surplus the cost and availability of fuel prod- oil and natural gas fractions would ucts in the Mackenzie Valley were dis- continue to be burned off and so wasted. cussed. The alternate scenarios were: The present Norman Wells refinery is 0) staged development of the oil- important in this scenario. Esso plans field, with and without a crude to continue its operation for the fore- oil pipeline; seeable future. Without expansion of the oilfield the refinery can operate until ( ii > expansion of the Norman Wells the mid-1990's, after which insufficient refinery, or construction of a crude oil will be available. However, new refinery elsewhere in the with the oilfield expansion, the life of Mackenzie Valley, such as Hay the refinery could be prolonged well past River or Fort Simpson; the year 2000. 30 -

4.1.2 Oilfield Development because of poor access and numerous difficult river crossings of flashy, flood- The second volume of the EIS describes prone streams. the continuation of the present operation as the only alternative for the proposed Another route to the east of the Franklin development of the Norman Wells pool. Mountains was judged to be unsuitable Given the concern for the construction of because of the distance from the Macken- the artificial islands and the integrity zie River ,and highway and because new of those islands and associated produc- right-of-way access routes to that coun- tion facilities, the Panel requested that try would open areas that are otherwise the Proponents provide additional infor- undisturbed by industrial activities. mation on alternative methods of developing the oilfield. Esso subsequently The third alternative proposed would have described four alternate methods which the pipeline follow the Mackenzie Highway would not require artificial island con- east from Fort Simpson to Enterprise and struction. These are: south alongside the highway and the Great Slave Lake Railway into Alberta. This ( i > natural solution gas drive alternative was rejected by IPL because depletion; it would require some 150 km of additional pipeline and the construction of an (ii) flank water flooding; additional pumping station, at a consid- erable increase in capital costs. (iii) gas injection, and; On the basis of the information presented (iv) horizontal wells drilled from the at the meetings, the Panel is satisfied mainland and existing, natural that no major route alternatives are islands. available which would further reduce the potential environmental impacts. All were judged to be less effective, less efficient, and subject to undesir- On a local scale, the Panel recommends able technical risks. This conclusion that minor alternative routings be inves- was also reached by a petroleum consult- tigated so as to move the pipeline fur- ing firm from whom the Panel sought ther east from the settlements of Fort advice. The Panel concurs that Esso has Norman and Wrigley. selected the most logical alternative from an energy recovery perspective. Construction Mode and Schedule

4.1.3 Pipeline Alternatives: Routing Several alternative modes of oil transportation were discussed during the The route planned by IPL is very similar review of the project. These included to ones proposed by Canadian Arctic Gas barging, trucking, different forms of Pipeline Ltd. and Foothills Pipe Lines pipeline, and combinations of these Ltd. Three major route alternatives were alternatives. discussed during the public meetings. A route along the west bank of the Macken- None could be shown to be as efficient or zie River was suggested, so as to remove cost-effective as the pipeline proposed the pipeline from the vicinity of the by IPL. The single buried pipeline is settlements of Fort Norman and Wrigley. preferred to dual pipelines and above- However, a review of this alternative ground pipelines for technical and cost showed the route to be less favourable reasons.

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IPL plans to build most of the pipeline of its length it will overlie permafrost. during the winter months. This will Since the pipeline is being designed to avoid problems with wet or sensitive operate at ground temperature, the tem- terrain and is now the normal pipeline perature regime of the pipeline is ex- construction practice for northern pected to follow that of the surrounding Alberta. The possibility of summer pipe- ground. line construction was discussed, but the Panel recommends that summer construction Both the steel of the pipe and the oil should be permitted only in areas where inside are thermally conductive media, it can be clearly demonstrated that there and the moving oil can be expected to would be no greater impact than winter conduct heat or cold along the pipeline. construction in the same area. For instance, the oil could be cooled in extensive areas of frozen ground and in turn cause freezing of unfrozen ground 4.2 PHYSICAL ENVIRONMENT AND ENGINEERING further along the pipeline. If a supply CONCERNS of moisture is available, heaving of the pipe may develop. Likewise, areas of During both the technical and the commu- frozen ground downstream of extensive nity meetings, the Panel received consid- areas of unfrozen ground could be warmed erable comment on matters pertaining to to the point that thawing and settlement the engineering of the project and its of the ground and pipe could take place. interaction with the physical environ- Should thawing of ice-rich soil beneath ment. Those concerns which the Panel the pipe develop, and the pipeline considered to be significant are dis- subside, even deeper thaw and continued cussed in this section. pipe settlement may occur.

4.2.1 Geotechnical Concerns, Pipeline IPL has forecast and designed for a Intesritv and Permafrost maxium thaw settlement of 1 to 1.2 m. tiowever, the Panel was informed that in The proposed pipeline route is entirely addition the effects of right-of-way in the zone of discontinuous permafrost. preparation for the pipeline route and At the public meetings questions were other ground surface changes, such as raised on permafrost distribution, ground loss of vegetation due to forest fires, ice, frost heave, thaw settlement, con- could compound the situation and settle- trol of drainage and erosion, construc- ments of several meters might be ex- tion timing and climatic change. These pected. Thaw of frozen ground may also topics relate to the long-term stability result in loosening of the soil such that of the pipe once it is in the ground. the pipe would be inadequately supported, The Panel is concerned over the inter- and could be deformed, particularly at action of the pipeline and the ground in bends. Alternatively, repeated freezing which it is buried. and thawing of the active layer around the pipe could result in the pipe being Pipeline Integrity jacked up or lifted out of the ground. Movement of the pipe may result in its IPL proposes to bury the pipeline for its deformation, so that it cannot be full length with a minimum thickness of operated safely. one metre of soil above the pipe. The pipe will therefore be buried in the In the EIS, IPL has provided only a very active layer of the ground, and for much cursory analysis of the thermal regime of - 34 -

the ground, of the proposed pipeline, and route will follow existing seismic of their probable interaction over the lines. service life of the pipe?ine. The Panel is of the opinion that this brief The Panel learned that there may be prob- analysis is insufficient for an adequate lems with the general stability of the evaluation of the likelihood of any of pipeline right-of-way and surroundings. these problems developing, or of their Slope failures and subsidence due to land possible magnitude. clearing or excavation could affect the _ right-of-way and threaten the integrity The Panel was informed that slight of the pipeline. Frost heave or thaw changes in climate, particularly tempera- settlement on the right-of-way could ture, could cause significant changes in change surface and subsurface water the nature and distribution of perma- drainage. This could result in flows of frost. In the subarctic regions of the water along or across the right-of-way northern hemisphere, a warming of two to causing erosion and the deposition of three Celsius degrees could develop in sediment on land or in water bodies. In the next 30 to 50 years. Therefore the other cases, water may be ponded on the thermal analysis should take into account ground surface along or adjacent to the a warming or a cooling of several Celsius right-of-way. This could result in con- degrees. tinued thawing of the ground and, in some cases, the development of thermokarst The Panel recommends that before the terrain. Project is authorized, the Proponent undertake and publish the results of a A special problem may develop in the area more detailed thermal analysis. This southeast of Fort Simpson. This region analysis should model the behaviour of is characterized by an extensive mosaic the pipe in a variety of situations, of peat plateaux containing permafrost, including cleared and uncleared areas, and wet fens without permafrost, with a deep organic soils, frozen and unfrozen surface relief of about one metre. Con- ground at different temperatures and the siderable thaw-settlement may take place effects of one terrain or permafrost type in the peat plateau areas, and therefore upon others farther down the pipeline. provision must be made for differential The analysis should cover the service movement of the pipe. life of the pipeline, and should take into account the possibility of climatic If thaw settlement or erosion disrupt the change over time, particularly air ground along the right-of-way, then there temperatures. is potential for environmental disturbance during restoration by the pipeline Right-of-Way Stability operator. If there is serious failure of the pipeline or the right-of-way, repairs Where possible IPL proposes to use exis- will be made on an urgent basis, and pos- ting clearings or disturbed land and sibly at a difficult season of the year. rights-of-way for the pipeline route. Vehicle movement or engineering activity From Norman Wells to Fort Simpson, ap- along the right-of-way during the thaw proximately 60 per cent of the route will season may be unavoidable and consider- use existing cleared lines, including the able terrain damage may result. The abandoned route of the Canadian National Panel recommends that detailed and envi- Telecommunications telephone line. South ronmentally acceptable plans for the of Fort Simpson, about 10 per cent of the maintenance of the right-of-way and for - 35 -

the repair of pipeline failures be (i) intersection of a cavern during prepared prior to commissioning of the ditch excavation; pipeline. (ii) collapse of the right-of-way into It will be important to control surface an underlying cavern; and erosion on the pipeline right-of-way, at man-camps, facilities sites, and on (iii) problems related to anomalous access roads. Re-seeding of suitable underground drainage. vegetation cover and reliable erosion control plans are called for. The Panel Collapse of the right-of-way could lead learned that the Proponents have such to pipeline rupture, and the anomalous plans but that the specifics of species drainage could cause problems in con- composition, seeding rates, and schedules taining and cleaning up an oil spill. have not been determined. IPL has an ongoing field program to investigate the risks posed by potential The terrain in the project area and along caves in the limestone. the pipeline route is mainly flat or gently sloping and, given ordinary pre- The above geotechnical problems are well cautions, the revegetation operations documented, and it appears that IPL is should be effective. However in steep aware of them. In some cases, valid terrain, as at stream and river crossings remedial measures are known to exist. For and in the vicinity of Bear Rock near the others, avoidance is the best approach. Great Bear River, special precautions will be required to minimize erosion on The Panel recommends that in developing the pipeline right-of-way. This is espe- oilspill prevention and contingency cially important where thermal degrada- plans, IPL make special provisions for tion and channelling of water in the this area of limestone terrain. right-of-way is a risk. Recommendation The Panel recommends that terms and conditions for the project spell out a Experience has shown that in many areas, requirement for a revegetation and ero- but particularly in the field of trans- sion control program using species, tech- portation, savings of costs and effort niques and schedules shown to be adequate during design and construction have led for the task. to persistent maintenance problems during operation. All of the problems discussed Karst Terrain in this section are susceptible to this failing. The objective is a reliable A special geotechnical problem may exist pipeline, laid in a stable right-of-way, in the vicinity of Bear Rock. This is an with no significant problems left to be area of limestone and other soluble rocks solved during operation and maintenance. which has developed karst landforms in In achieving this objective, the design steep rugged terrain with caves and philosophy of the Proponent is of great caverns, and variable thicknesses of importance. overburden. The sinkholes near Vermilion Creek indicate the presence of caverns, The Panel recommends that IPL design, the roofs of which have collapsed. The plan and construct the pipeline so as to presence of a karst area poses three minimize the need for extensive mainte- risks with regard to the pipeline: nance or unscheduled repair activities. - 36 -

4.22 Water Crossings deficient in information on both the construction plans for these water cross- Two types of water crossings are required ings and on the fisheries information for for the construction of this project, evaluation of potential impacts. They those between the natural and artificial should be constructed at seasons which islands in the Mackenzie River and the will not adversely affect fish spawning mainland at Norman Wells, and the stream beds or migrating fish. With these and river crossings of the main pipeline points in mind the Panel recommends that along the route to Zama, Alberta. the construction plans and schedules for _ these streams be reevaluated by IPL in While it would appear that there are no cooperation with Department of Fisheries major technical problems with the cross- and Oceans to ensure that impacts on fish ings of the oi'lfield gathering-line and other aquatic organisms are mini- system, the Panel was advised of poten- mized. tial local scour. All will be buried in scour resistant materials; either in IPL informed the Panel that consideration bedrock or in stiff clay under river bed is being given to the use of a direc- sands. tional boring technique for the construction of some river crossings, notably the Some aspects of the water crossings along Mackenzie River crossing upstream of Fort the oil pipeline present more important Simpson. This could minimize impacts and questions. First, the locations of the disturbance on the stability of the bed river crossings had not been decided at and banks of the river, impacts on the time of the public meetings. Inter- aquatic life, and the need for particular venors said that the final locations timing of construction. should be chosen to facilitate the con- tainment and clean-up of oil spills and to minimize impacts of construction upon 4.2.3 Island Construction traditional fishing sites. Accordingly, the Panel recommends that river crossings The most technically innovative feature be located so as to minimize overall of the project is the construction of six environmental disruption. islands on the Mackenzie River to serve as drilling and production platforms for Secondly, the timing of crossing con- the oil field expansion. While the construction is important, particularly with cept of man-made islands as a drilling regard to the larger river and stream and production platform is not unique, crossings. The major river crossings their successful construction and opera- (the Great Bear and the Mackenzie) are to tion in a fast flowing northern river has be built in the most appropriate season yet to be demonstrated anywhere in the to minimize effects on migrating fish. world. At the public meetings the Panel Minor crossings (some 65 have been iden- and a number of intervenors paid consid- tified) will be built in winter as part erable attention to concerns related to of the general pipeline contruction, the design, construction and maintenance following normal pipelining practice for of the islands. These concerns are as northern Alberta. follows:

The Panel learned that there are five ( i 1 alternatives to islands in devel- intermediate size crossings. The EIS is oping the oilfield; - 37 -

(ii) impediments to river navigation by flood water and/or ice this would during and after construction of threaten the integrity of the islands and the islands; the oil well facilities. Esso responded to these concerns by stating that the (iii) entrainment of fish during the specification of 54 m is based upon: dredging phase of island construction; ( i > maximum water elevation in a 100 year flood predicted at 51 m; and ( iv > overtopping of the islands by flood or ice; (ii) examination of ice damage on 225-year old trees in the project ( 4 island integrity and stability; area showing no damage above 52.5 m. ( vi 1 life of the filter cloth compo- nent of the island construction; In addition a 7 m high dyke will be built on the perimeter of the island to (vii) ice jams due to artificial increase the available free board. To islands; and reduce ice pile-up on the islands, Esso intends to build a berm on the upstream (viii) the reduced river cross sectional sloping side so that any pile-up will area caused by the islands. develop at the berm and not on top of the islands. The Panel concluded that Esso For the most part, Esso responded in has satisfactorily addressed the concerns depth to the concerns raised. In the about overtopping by water or ice. matter of alternatives to the islands, the Panel is satisfied that the island The Panel reviewed the effects of ice concept is the most suitable one from an jamming on the islands and concluded that energy recovery point of view and that ice jams would not endanger the integrity Esso did thoroughly investigate other of the artificial islands and facilities. alternatives. The Ministry of Transport These islands will, however, create and the Northern Transportation Company additional jams further upstream. In this Limited advised the Panel that there respect, there were no significant envi- should be no future navigational problems ronmental concerns identified. in the river because of the artificial islands. This is provided that the Esso stated that the safety and integrity island construction conforms to the regu- of the artificial islands is ensured by a lations and requirements of the Navigable conservative design approach. The Panel Waters Protection Act. believes that the design of the islands is based on sound engineering practice With regard to dredging, the Panel is of but there are still problems requiring the opinion that with continuous monitor- resolution before approval is given. ing during dredging, the quantity of fish likely to be entrained by the dredge can First, the Panel finds that Esso has not be minimized. satisfactorily taken into account the effect and magnitude of scour around an Intervenors questioned the design crite- artificial island. Intervenors from the rion for the surface elevation of the Department of the Environment advised islands, i.e. 54 m above sea level. The that extensive scour would cause gradual concern was if the islands were covered collapse of the islands' protective - 38 -

riprap with subsequent subsidence and are planned for this project. These damage. Esso intends to carry out an include: three pump stations, each uti- annual monitoring program to determine lizing an area of one hectare of land; the extent of scour and necessary reme- four remote maintenance depots and eight dial measures. However, the Panel was major stockpile sites located on the not advised how this monitoring would pipeline route; a new permanent dock on take place and how the problem would be the mainland at Norman Wells; three corrected. The Department of the Envi- microwave towers; several concrete weight ronment recommended that local scour be manufacturing plants; two mobile work- fully evaluated by means of a model study camps of 30-man capacity and three porta- of the Mackenzie River in order to be ble mainline camps of 320-man capacity; a certain of the structural safety of the total of about 30 km of permanent and gathering lines and integrity of the temporary access roads and an undeter- islands. The Panel recommends that Esso mined number of borrow pits. implement such a study which would include the monitoring and repair proce- Information was not available on site- dures. The results of this work should be specific aspects of the design and final reviewed by government before the island location of many of these facilities. construction is authorized. The Panel concluded that potential major environmental impacts would not occur The second problem has to do with the use provided that: of filter cloth in the design of the islands. Filter cloth (used to contain ( i > facilities are located on existing the sand in the island core) could be cleared areas, where possible; damaged or ripped due to the movement and settlement of rip-rap material, which ( ii > the number and length of temporary might lead to erosion and subsidence of and permanent access roads is kept the island. Esso is aware of this risk to a minimum by utilizing winter and is undertaking studies to determine roads; if there is an alternative to the filter cloth which would be less susceptible to (iii) the right-of-way is used for damage. The Panel recommends that these access and storage; and studies be actively pursued with the objective of finding a material that will ( iv 1 refuse cleanup, land rehabili- ensure that no significant erosion of the tation and revegetation are islands can occur. carried out promptly at all construction sites. The Panel further recommends that final approval for the construction and opera- 4.3 BIOLOGICAL ENVIRONMENT AND THE LAND tion of the islands should not be given until the river scour and filter cloth Many submissions at the public meetings questions have been satisfactorily indicated a strong concern about the resolved. implications of pipeline and oilfield activities on the land and wildlife of the Mackenzie Valley. The Panel regards 42.4 Related Structures and Activities some of these concerns as significant and has chosen to make recommendations on Eesides the artificial islands, oilfield them. Others can be resolved using good development, and the processing plant, engineering practice, appropriate for the several other facilities and structures region and the season of activity. - 39 -

4.3.1 Fisheries and Wildlife winter game survey should be done in early 1981 with additional monitoring of The Panel was told by the Department of behavior, availability of game, and Fisheries and Oceans that there is a impact on trapping returns during the large amount of useful data on the aquat- construction and operation phases. ic resources of the Mackenzie Valley, and that, even though this information is The Norman Wells section of the Mackenzie available, it was not adequately treated River harbors important habitat for in the EIS. The Panel recommends that resting, staging, mating and feeding for the Proponents consult with the Depart- waterfowl populations enroute to northern ment of Fisheries and Oceans to address nesting sites. Esso has recommended any outstanding concerns and demonstrate mitigative measures to reduce the impact in their construction timing and tech- on waterfowl during migration. The Panel niques that they have properly used the recommends that construction and drilling available information and addressed the activity on the islands stop during the concerns. peak spring migration period that normally lasts one to two weeks and that Additionally, the Panel recommends that helicopter access to the islands be further site specific studies be under- restricted to only essential needs. taken to determine final alignment for Furthermore, no earth material or vegeta- river crossings and, that monitoring of tive cover should be removed from known dredging operations and construction at staging areas. stream crossings be carried out to prevent or minimize impacts on fish and In the event of a major oilspill during the aquatic environment. spring or fall migration, aircraft hazing and scare devices will be required to Concerns over impacts to wildlife fo- deter waterfowl from landing in the con- cussed on the pipeline effects on distri- taminated area. The Panel recommends bution and accessibility of game species that Esso develop a plan specifying the and on nesting sites of endangered necessary equipment and procedures to raptors. In addition, expanded oilfield keep large populations of waterfowl away development raised concerns about water- from an oilspill site. fowl staging and feeding areas on the natural islands of the Mackenzie River near Norman Wells. 4.32 Forests and Wildfires

There is a lack of current data on wild- Wildfires are a part of the northern life distribution, habitat, and behavior ecology in the project area. Recently, in the project area, and the level of use fire damage to trapping and hunting areas by hunters and trappers. The Panel was and to timberlands has been extensive. not advised on the importance and magni- This has drawn attention to the potential tude of project-related impacts on wild- for fire damage to the proposed oil pipe- life populations and on hunting and trap- line and the right-of-way. The Panel ping returns. The Panel recommends that learned that IPL will probably depend on IPL undertake baseline studies on hunted the government fire prevention and sup- and trapped species to provide informa- pression organization to protect the area tion aimed at both the assessment of the around the pipeline from wildfire. Where impact of the pipeline construction and ground fires occur near the pipe, IPL operation on wildlife, and the develop- expects to assume responsibility for fire ment of mitigation measures. An adequate control. - 40 -

"The proposed Project is premature because of the need for land use planning. Planning must include all interested parties and planning must develop from consensus. Evidence of the desirability of consensus is our Mackenzie Delta Contingency Plan which was attempted without general understanding and support and failed. The inevitable conclusion is that such plans must include all Northerners from the beginning."

Norman Simmons Department of Renewable Resources Gt4WT

“If such a land use plan was in effect before we came along and if this land use plan had considered where the cold oil line should be and what the best place for it would be, it would be my assumption that the land use plan would incorporate that right-of-way which our consultants have picked."

Bill Pearce Interprovincial Pipe Line (NW) Ltd.

"I am going to just add, Mr. Chairman, I think it is reasonable to guess that on our part the proponent is aware of these (previous studies) considering what is at stake both from the environmental point of view and the Con-qanies' point of view, it is &asonable to guess that the Companies are aware of problem areas and aware of what further studies are needed.

It is disturbing to me that a project of this magnitude has got to this point in the regulatory process and we are left essentially still assuming and guessing.

In my opinion, it should have been in the EIS.”

Jeff Stein Department of Fisheries & Oceans - 41 -

The Panel recommends that government and tracking oil in and under ice, and the IPL fire control responsibilities be recovery of oil from the Mackenzie River clarified prior to commencement of under all ice conditions. This program construction and operation of the should be in place before expanded pipeline. It is further recommended that production begins at Norman Wells. the government fire control program be augmented to provide protection to the At the technical meetings significant pipeline and, at the same time, that concerns were raised on the capability of there be no decrease in protection Esso and IPL to monitor leaks in the oil services to other sectors, such as gathering lines of the oilfield and in highways, settlements and traplines. the main pipeline. Esso advised the Panel that leak detection on the gathering sys- With respect to potential forest losses tem using the best available technology from the project, the Panel learned that would result in detection accurate within there will be minimal creation of new the range of + 3%. Such a loss without right-of-way for the pipeline. Existing detection for The oilfield project would telephone and seismic lines will be uti- be 70 m3/d. The volume of gas/oil lized along the route. Losses of mer- mixtures is difficult to measure accu- chantable timber are not expected to be rately. However, the Panel learned at the significant. Where cutting is required, technical meetings that the Soviet Union the Panel recommends that slash from the has developed technology to accurately right-of-way clearing operation be piled measure gas/oil mixtures to + 0.5%. IPL and burned on the right-of-way during the advised that instrumentation would be winter. installed on the main pipeline to detect leaks in the range of + 0.5%. Higher 4.4 OILSPILL PREVENTION AND accuracy is possible Because of the COUNTERMEASURES properties of the fluids being measured.

The threat of a continuing oil blowout The Panel has concluded that a potential was raised a number of times in the com- undetected loss of 3% from the Norman munity and technical meetings. The Wells oilfield is environmentally unac- "worst case" scenario would be a blowout ceptable. It is recommended that Esso occurring at an artificial island during investigate, design and install a more the spring break-up or fall freeze-up accurate leak detection system that would periods. Current technology in control- be consistent with the detection levels ling such a spill in a large ice- of the main pipeline. infested, fast-flowing river is quite limited. The Panel is not satisfied with Up to the time of the public meetings the the oil spill prevention and countermea- Proponents had not finalized oilspill sures put forward by Esso. contingency plans for the project. Even though Esso has developed oilspill sce- The Panel recommends that Esso be re- narios and countermeasures that could be quired to undertake an accelerated implemented, there is an important need research and technology program on oil- for a detailed contingency plan to be in spill countermeasures and equipment to place prior to the drilling phase of the deal with oilspills into or under ice- project and prior to construction of the covered and ice-infested river waters. pipeline. Such a plan is essential for The program should include solutions to this project to proceed in an environmen- current problems of detecting and tally acceptable manner. - 42 -

The Panel recommends that contingency The Panel was advised by the Department plans for both the construction and of Environment that Esso did not ade- operational phases of the project quately consider the environmental impact (oilfield expansion and pipeline) be of air-borne emissions from the oilfield developed, tested, evaluated and approved development project. Esso has stated by the responsible government authorities that air quality would be improved once prior to the start of construction. the new facility is in operation. This These plans should be readily available observation was made without supporting and understood by all key construction data or analysis. The Panel believes and operational personnel. The plan that Esso has been premature in arriving should be designed so that it would serve at this conclusion and therefore concurs not only as a principal reactive tool but with the points raised by the Department as a preventive one as well. of Environment.

4.5 TOXIC SUBSTANCES AND AIR EMISSIONS Accordingly, the Panel recommends that Esso commence a monitoring program for The Panel learned that the Proponents ground level concentrations of air emis- have not specifically identified and sions in the Norman Wells area and that described all of the types and quantities this monitoring continue during the of potentially toxic and hazardous chemi- course of the project. cals that would be required for the project and how those materials will be han- 4.6 WATER USE AND EFFLUENT DISPOSAL dled and disposed of. Up to sixteen different chemicals may be required by Esso has stated that large volumes of Esso for oil well stimulation and produc- water (a maximum of 6400 m3/d) will tion operations. These include chlorine be required for the water flooding activ- to prevent biological growth in the ity at Norman Wells. The Panel has found wells, hydrochloric acid for stimulating no evidence that this withdrawal would production from a carbonate reservoir, have a significant impact on the Macken- polyvinyl alcohol for further well stimu- zie River. Esso has stated that used lation, and radioactive tritium for use water from the oilfield which is contami- as a reservoir tracer. Esso has indi- nated with oil will all be reinjected cated that none of these chemicals will into the reservoir and will not be dis- enter the environment unless there is an charged to the Mackenzie River. From an accidental spill or rupture. The Panel environmental perspective, this is the has noted that in 1980, two large acid preferred method. spills into the Mackenzie River occurred while barging to Norman Wells. Thus, Water is also necessary for domestic there is a risk of chemicals entering the purposes, process and cooling water, and environment. pipeline testing. Such use should not pose any measurable impact on the water From the limited information provided, it resources of the project area. is evident that the Proponents do not have adequate contingency plans or Intervenors questioned the use of metha- procedures for the handling, storage, nol and water temperature changes during transportation, and disposal of toxic and hydrostatic testing procedures for the hazardous materials. The Panel recom- pipeline. IPL stated that neither metha- mends that such plans and procedures be nol nor any other chemicals will be used in place prior to the commencement of the in testing. However, hydrostatic testing project. water will be heated to a maximum of 36°C - 43 -

to prevent freezing during the tests. lost. IPL intends to undertake a compre- Owing to the relatively small amount of hensive survey of the cleared right-of- w ter required in each test (1250 way before trenching and laying of pipe. s m 19 the discharge of the warm water In addition a staff archaeologist will be to the surrounding environment should not on site during construction to assess any pose a significant problem. archaeological finds that may be discov- ered. It is the view of the Panel that For the oilfield expansion, Esso intends IPL has satisfactorily addressed the to drill approximately 200 we1 Is. For issues raised. each well, an average f 700 m3 of drilling waste and 37 ms of cuttings The Panel recommends that the responsible would be generated. For the wells Federal and NWTG agencies further review drilled from the artificial islands, ESSO the details of IPL's proposed archaeo- plans to dispose of the oil-free wastes logical program and monitor the potential directly into the Mackenzie River. The impact of this project on the archaeo- estimated quantity of was e fluids logical resources along the pipeline involved would be 56 000 m 5 . From route. the evidence presented to the Panel by Esso and the intervenors, the Panel has 4.8 ASSOCIATED PROJECTS concluded that this plan of direct disposal to the river is not During the public meetings, intervenors environmentally acceptable. Esso has stated that approval of the Norman Wells failed to provide any substantial project would act as a catalyst for more evidence that this procedure would not be and larger developments in the Mackenzie harmful to the environment and has failed Valley. The Panel is of the opinion that to describe how clean waste would be Esso and IPL have not adequately ad- segregated from oil contaminated drilling dressed this subject. For instance the wastes. Moreover, the Panel is concerned oil pipeline from Norman Wells to Alberta that if this activity were to be allowed, will probably accelerate exploration and it would set a precedent for the development of oilfields along the route. discharge of industrial wastes into the There is also the possibility of future Mackenzie River, Canada's last large looping of the oil line, completion of unpolluted waterway. the Mackenie Highway to Norman Wells, hydroelectric power generation, major The Panel recommends that no drilling base metal mining and coal development, wastes other than mixtures of water and and large diameter gas and oil lines bentonite be allowed to enter the Macken- being constructed along the Mackenzie zie River and that land disposal and Valley. The Panel learned that Esso and treatment sites be identified and IPL have not had discussions with other developed. energy developers with interests in the region concerning possible future oil 4.7 ARCHAEOLOGY transportation systems. Because of the lack of information and an adequate The Panel received a written intervention planning structure the Panel was unable from the Archaeological Survey of Canada to assess and evaluate the potential expressing concerns with IPL's lack of environmental impacts and interaction of detailed information on the archaeologi- this project with other possible resource cal resources that may be disturbed or developments in the Mackenzie Valley. - 44 -

4.9 ENVIRONMENTAL IMPACT MANAGEMENT indicated a wish for the protection of land, water, forests and wildlife.

Following the development of terms and In contrast to this, speakers at commu- conditions, the impact management process nity meetings in Hay River and Yellow- for this project should itself be moni- knife tended to assume that adequate - tored and evaluated. By comparing the environmental protection would be actual impacts of the project with the provided. They regarded the project as predicted impacts, important experience environmentally sound, and foresaw no - in impact evaluation and management can problems provided standard terms and be obtained. Published case histories conditions are applied. would aid in transferring the knowledge and experience gained in the management It is clear that people who live close to of this project to other, larger pipe- the land perceive the project as being lines which may be built in northern potentially harmful. Throughout the Canada. The Panel recommends that this meetings, the Panel found a general lack evaluation of the impact management pro- of understanding of the project and its cess be carried out with sufficient effects on the natural environment, of resources to support it. These resources the Proponents' proposed mitigation should be provided by the Federal Govern- measures and of the relationship of this ment. The actual work could be under- project to other developments in the taken in consultation with the GNWT by region. Because of this the Panel recom- the Department of the Environment, the mends that an effective, on-going public Department of Indian Affairs and Northern information program be established with Development or by a non-government agency the objective of responding to the under contract to one of those concerns of the residents of the Macken- departments. zie Valley. This program should be organized and funded jointly by the Proponents and both the Federal Govern- Environmental Concerns at the Community ment and GNWT and should use a wide Meetings variety of approaches and communications media. Provision should be made for Many speakers at community meetings in feedback of questions, concerns and the smaller settlements, whether in information from the communities. The favour of the project or opposed to it, Panel learned of the Alaska Oil Pipeline expressed concern for environmental pro- Impact Centre at Fairbanks. There local tection and the prevention of pollution. citizens managed the Centre with funds Some spoke from personal experience from government and industry. The Panel having seen oiled waterfowl, broken pipe- believes that this is a potentially lines and spilled oil, or having tasted useful model for the Norman Wells oil-tainted fish. All the intervenors project.

47 -

5.0 ECONOMY AND SOCIETY- Apart from this observation the Panel did not assess the project in 3 national At the request of the Department of Indi- context, because this is the role of the an Affairs and Northern Development the National Energy Board. Panel extended its assessment to include economic and social issues. The Panel 5.1.2 Regional Economic Issues--- sought advice on how the residents of the Valley felt about the project and what At the present time the economy in the steps might be taken to improve the con- western NWT is stalled with underemploy- sequences of such a development. Chapter ment and slow business activity in many 5 deals with the important economic and sectors. The five main economic issues social issues which stem from the pro- which were brought to the Panel's atten- posed project and which were discussed at tion follow from this situation. the public meetings. There are two issues which affect the 5.1 ECONOMIC ISSUES economy and which are indirectly related to the proposed project. First, the GNWT The Norman Wells Project proposal was presented strong arguments for altering reviewed mainly in the regional context. the resource revenue-sharing arrangements While the Panel did note implications to between the Territorial and the Federal the national economic setting, most of governments. Second, the Dene Nation its attention was devoted to the effects urged that the project be delayed until a of the development on the Mackenzie Val- land settlement is substantially com- ley economy. plete. Both issues have political implications as noted in Chapter 3 of this 5.1.1 The Norman Wells Project in the report. National Setting The third issue is a primary need for The Panel noted the importance of the regional planning to accomodate the proj- Norman Wells project to the Canadian ect. In spite of recommendations made in economy. As proposed it would deliver an the past and some attempts to make prog- additional 3 500 m3/d Per day of ress, there is not yet a comprehensive petroleum to the Canadian market. It has resource and land use plan for the proj- been estimated thgt the projected produc- ect area. Even a preliminary document tion of 4 000 m /d would bring rough- would give a focus and a framework for ly $250 000 000 per year at current world the orderly development of the project prices. This would have the effect of and subsequent undertakings. The absence contributing to a net reduction of for- of a land use plan has raised concern and eign oil imports and would be consistent doubts as to how the potential effects of with the present national energy policy development can be predicted and dealt according to the Department of Energy, with. Mines and Resources. On the fourth issue Mackenzie Valley It is noted that the projected Canadian residents questioned how the development content is high with roughly 95% of the of Norman Wells oil and gas could bring construction and materials purchased in price advantages to local consumers and Canada and 98% of the operating costs how security of fuel supplies could be benefiting Canadian business. assured in the future. - 48

The fifth issue is preference for north- needs to be drawn up by the ern hire and tendering to northern busi- Proponents, GNWT, and the Federal ness so that economic benefits accrue to Department of Employment and the NWT and do not flow out of the Immigration. region. The Panel noted that the overall employment potential from the two-part ( vi > The development of equitable project is not large. However the oppor- tendering opportunities for tunities to add hundreds of man-years to northern businesses and the the local wage economy are particularly development of policies to - important, given the slow economic pace stimulate the growth of these at present. In this regard several sug- businesses. gestions regarding local labor and northern business were urged upon the Panel. These issues are discussed further elsewhere in this Chapter and in Chapters 3 While there was wide support, for the and 7 of this report. proposed project from the business community, local governments, and some intervenors, the support was qualified by the 5.1.3 Effects on the Regional Economy recognition that these regional economic issues require priority attention in The potential effects of the Norman Wells planning the project. Project on the regional economy are difficult to determine because of a lack-of The Panel has concluded that to maximize information on the existing wage economy benefits to the North and to give the and the lack of a model or baseline economy encouragement and stability, the against which to measure change. How- following items need to be undertaken: ever, briefs to the Panel did make it clear that there will be some positive ( i 1 A review and restructuring of benefits for some northerners, but that sharing of project-related there may be negative effects on others. revenues. In monetary terms the following figures ( ii > Initiation of land settlement illustrate the scope of the project. In negotiations and substantial 1979 dollars, the total capital cost is progress made. estimated to be $600 million. Construc- tion wages paid for the oilfield develop- (iii) Preparation and implementation of ment are forecast at $89 million, while a land and resource plan for the those for the pipeline will be $39 project area to accommodate this million. Annual wages for project opera- project and others that may tions at Norman Wells are expected to be follow. $4.7 million and for the pipeline operation $1.2 million. As a comparison of ( iv 1 Development of a policy and scale, the GNWT expenditures for 1979 public information oil were $290 million. The figures for proj- products pricing and ass:gance of ect expenditures do not include the addi- oil supplies for northern tional revenues that would be generated' consumers. by regional supply and service industries. Since it is impossible to deter- ( V 1 Specific priorities must be mine the amount of cash from the project developed for the employment of uhat will stay in the North, or the northerners. A cooperative plan portion of wages paid out that will - 49 -

circulate within the northern economy, a Once approved, the project will link the net dollar value on the economic benefit welfare of the region more closely to to the region cannot be estimated. resource development, and will impose on government a special responsibility to The Panel has determined that there are protect Valley residents from postproject three potential negative economic effects depression and its economic and social to the project: consequences.

( i 1 risk of "Boom and Bust" Inflationary wage differentials represent situation; the second negative economic effect. New work opportunities for northern people at ( ii 1 increased inflation; and higher wages may draw workers away from existing employment in government and the (iii) disruption of traditional private sector. This could disrupt economic pursuits. existing government and business services because of an inflationary rise in The "Boom and Bust" situation was raised salaries and wages. The Panel recommends by intervenors in the business communi- that the planning and monitoring authorities of Norman Wells, Fort Simpson, Hay ties in the GNWT work with the Propo- River and Yellowknife. The project will nents to conduct a study of the conse- stimulate new economic growth in the quences of project-related wage differen- Mackenzie Valley bringing a much needed tials and then prepare to deal with positive economic thrust to a stagnant related employment problems which might and uncertain business climate. However, affect northerners already employed in during construction the influx of cash the region. The information should be from wages and purchase of goods and publicly available so that private agen- services could overheat the regional cies and governments have an opportunity economy, inflate prices and over- to prepare and plan for potential employ- accelerate the development of local ment problems. services. If the Norman Wells project is not followed by other major industrial A third concern is that new work opportu- developments, a "Bust" situation could nities will be attractive to northerners develop. The Panel was informed of the who are presently engaged in hunting and Alaskan oil pipeline experience and it trapping. Active trappers in the area was noted that even allowing for differ- would welcome additional employment to ences in scale, the risk is present in maintain trapping activities. Some indi- the Mackenzie Valley. Therefore, to viduals may choose to withdraw temporar- minimize this effect the Panel recommends ily from trapping; others may work part- that the Proponents liaise with govern- time at both activities. After the ment and prepare an assessment and construction phase is completed, employ- strategies for meeting the inflationary ment will decline and some workers may effects of the project. This should be return to trapping for a living. Experi- done before commencement of the project ence has shown that temporary absence is authorized. from trapping leaves some trappers without adequate equipment or funds to Additionally government must take immedi- resume trapping. The Panel recommends ate steps to assess the impact that the that the GNWT broaden its program of Norman Wells Project would have on future assistance to trappers who seek to become resource development and transportation re-established in trapping after a period initiatives in the Mackenzie Valley. of wage employment on the project. - 50 -

. ..there are certainly some very key issues as far as the Government of the Northwest Territories is concerned related to revenue-sharing and the settlement of claims and other issues which we consider to be very key.

We feel strongly on these issues, and we feel that it is not a problem for the proponents themselves, but it is going to be for Ottawa and ourselves; we feel very strongly that we must get a satisfactory solution to these problems."

Larry Elkin Department of Local Government GNWT

"The national energy policy, as referred to in the EMR brief, omits any reference to the future needs of Northerners or for that matter the future needs of Southern Canadians. It is not concerned with other land uses such as land claim settlements; it is not concerned with timeliness of this Project or how the Project may contribute or detract from developing a conservation ethic.

Surely a national energy policy as separate from an EMR policy must have goal beyond imnediate extraction and transportation of a non-renewable resource in the North to the South."

Carson Templeton Winnipeg

‘I . ..it is my contention that the price the people of the north will pay for a deliberate position of no development is greater by many factors than the social risks of controlled development."

J.R. Witty Manpower Development Division Department of Economic Development and Tourism.

Fort Franklin. on the shore Bear Lake - 52 -

"All afternoon and tonight I have listened to all the points mentioned. It is a great issue that we are talking about. When there is a big issue like this being discussed you should take it seriously.

A project like this is a big project. We, as Dene, feel we have already stated in our previous meetings where we said that we would wait until our land claims are settled. This is what we are going by.

. ..we expressed our feelings to Justice Berger, and said the same thing,...we would wait until our land claims are settled."

Paul Wright Chief Fort Norman, NWT

II . . . it is about time you pushed through the pipeline and never mind about all this arguing. I think the pipeline would be a good thing, not only for myself, but there are a lot of young people in the Mackenzie River Valley who would like to have some money, rather than all this talking that they are doing now; and it would benefit a lot of young people. Young people have to have work.

So I think the pipeline is a good thing. If you don't do this type of thing, then otherwise the full-time trapper would have to quit trapping; it takes a great deal of time, a lot of time, money, gas and oil to keep a skidoo running."

Archie Lennie Fort Norman, NWT

"A lot of people seem to think that we are against development. That is not so. We know that eventually, one of these days we will have to get into development of the resources that the land of the Native people hold; but some of the areas, like land claims, have to be resolved in our minds.

So it seems that we are dead against development, but if we knew where we stood as far as the Government was concerned, we would be open."

Joachim Bonnetrouge Chief Fort Providence - 53 - - 54 -

5.1.4 Employment and Business Several interventions stressed the need Opportunities for local hiring and northern employment priority for residents of the NWT to Several decades of change have made the protect against the in-migration of need for cash a central part of the lives southern workers. In this regard, the of most valley residents. The increase definition of a northerner was the sub- in population, both by natural increase ject of much discussion. The Panel con- and in-migration, has produced a capacity cluded that the GNWT definition of a and requirement for gainful employment northern resident as any person that has beyond the opportunities which presently resided in the NWT for one year or more exist. Employment and business opportu- is appropriate. The Panel recognizes nities are needed to stimulate the that the basis for a northern preference regional economy. The Panel sought and policy is to reduce unemployment in the obtained advice on how this project would region. It was noted that the project affect local participation and northern Proponents are aware of the importance of preference. recruiting in the project area. In this regard the Panel recommends that labour Employment recruitment take place close to the work sites. There is a clear need to increase job opportunities in the Mackenzie Valley. Some intervenors were concerned that Young people are leaving school with unions may control the delivery of increasingly higher qualifications and labour, and that union regulations could expectations, and many unemployed persons foreclose opportunities to local workers. are seeking training and jobs in the wage Esso noted that unionized contractors economy. The fact remains that most would likely construct the main pro- northerners would prefer to work in the cessing plant at Norman Wells, although North and not to have to move to southern unions would not be involved in drilling Canada to find employment. operations, field development and operating phases. IPL advised that until the The Panel heard from government agencies contract is let, it would not be known if responsible for employment and for the a unionized pipeline contractor would consequences of unemployment. It is build the main pipeline. Nevertheless, apparent that a monthly average of 525 both Proponents confirmed that in cases construction jobs and 120 permanent jobs of union contracts, access to jobs would at Norman wells and 29 permanent pipeline take account of the skills and interests jobs represents an important employment of workers in the project area. The package. Additional jobs in service Panel recommends that agreements with industries and government agencies sup- unionized contractors should be drawn up porting the project would also add sig- to accommodate this goal, as a first nificantly to employment. Apart from priority. direct employment, there will be substantial associated benefits to the service Business Opportunities industries, supply companies, construction contractors and manufacturers. Even The business community in the region though peak employment will be temporary strongly supports the project. Each during construction, the benefits from intervenor with business interests wage employment will be welcomed by many stressed the need for economic expansion potential workers and businesses in the and stability, and called for a mechanism north. to give equal opportunity to northern - 55 -

businesses in the tendering proces. public information program are not suffi- Northern businesses are not large enter- ciently developed to permit adequate prises and southern firms may have a benefits to flow to the economy. competitive advantage in many situations. Northern business is confident in its ability to deliver goods and services, First, the training and upgrading pro- but contracts for the project should be grams of the GNWT and of industry need to tendered in portions of a size that be focussed on the proposed project. For northern businesses can compete equi- example there will be a need for skilled tably. The Proponents are aware of the and semi-skilled workers in mechanical need to divide jobs on major assignments trades, drilling, welding, carpentry, into manageable portions. The Panel equipment operation, communications, as recommends that this be an essential well as in service and business offices undertaking if benefits to northern employing stenographers, clerks and businesses are to be realized. accountants. At present, there are few skilled northerners who are trained for Bonding requirements are of concern to work on the Project. Even though the contractors in the north. Some contrac- lead time for training may be short, the tors are small compared to southern com- Panel recommends that the GNWT and the petitors and could not post large bonds Fort Smith Vocational and Higher Educa- if required to do so. This could deny tion Centre work together with the Propo- entry to the tendering process. The nents to assure that the results of Proponents have indicated that in some project-related training efforts are cases they will waive the need for maximized. The Panel has concluded that bonding. The Panel concluded that this this collaboration is essential to measure is adequate and should result in achieve an upgrading of regional skills increased work for some northern in the oil industry and pipeline trades, businesses. not only for this project but also for new industrial initiatives in other parts Most northern contractors operate non- of the NWT. union businesses, and the requirements of union contracts could deny their participation. At Norman Wells, Esso will act as the general contractor and intends to The Panel was advised that Esso has made tender some work from non-union sub- important progress in training workers on contractors and businesses. IPL gave the job at Norman Wells. At present assurances that local non-union there are 30 to 40 full-time employees on businesses would find opportunities to programs related to the proposed oilfield bid on work apart from the main contract development. This on-site training has which may or may not be unionized. The the advantages of practical experience, a Panel recommends that the Proponents make wage income and rotational shifts allow- every effort to insure that some ing the trainee to maintain contact with contracts are tendered to non-union, the home environment. These factors ease northern business. the transition, with some life style changes, from unskilled to skilled work 5.1.5 Programs to Assist the Regional employment. The Panel recommends that Economy the on-site training programs of the Proponents become an integral part of the The Panel learned that training and construction and operation phase of the upgrading programs and a project-related project. - 56 -

IPL informed the Panel that because of NWT, and local governments because of the short pipeline construction period potential impacts of additional work (two go-day periods in two winter sea- loads and increased demands on existing sons) and the skilled labour require- environmental, technical, economic, and ments, most workers will be brought in social programs. New responsibilities, from the south. However such work as increased work loads and higher costs clearing and preparing of the right-of- will impact government agencies as they way could be done by local residents. respond to the project. Some new pro- Given the possible lead times on this grams will have to be mounted and others project, the Panel recommends that the augmented. GNWT and IPL make use of the existing or modified employment training schemes such as Hire North, so that as many local The time for planning and preparation is workers are involved in the pipeline con- very short and governments will be re- struction and operational activities as quired to respond promptly once a deci- is practicable. Skills developed on this sion is made to proceed with the project. pipeline project will be useful in other Furthermore, the workload will increase similar developments in the north. sharply during construction while the operating phase will continue over Secondly, a public information program several years. needs to be developed and maintained throughout the approval, planning, con- For the social and economic issues the struction and operation phases of this GNWT and the Federal Government are project. The Panel noted that there was clearly in the spotlight and certain a general lack of knowledge of the pro- departments will require some additional posed project, particularly in Mackenzie staff and funding. The Panel suggests Valley communities. This is partly due that there are at least four options to the complex nature of the subject available for government departments to matter and volume of material in the meet the new responsibilities: environmental impact statement and supporting documents. The Panel was advised ( i > second staff from one level of that the EIS was not reviewed thoroughly government to the other; in any native community except that of the Dene Tha Band near High Level, (ii) increase the public service Alberta. If the project is to go ahead, temporarily in some cases and it will be necessary now to develop an permanently in others, effective public information program which emphasizes the job situation and (iii) purchase expertise in planning, business opportunities and which provides managerial and technical skills advice to counter unwarranted enthusiasm where necessary; and and anticipation. The Panel recommends that the GNWT and the Federal Government ( iv > redirect existing resources and work with the Proponents to provide programs into others which are effective information to assist local related to the Norman Wells employment and business. project.

5.1;6 Effects Upon Government Services Because the project will require substan- _ tial effort at the beginning, the Panel The proposed project has raised the con- recommends that all of these options be cern of many departments of the federal, seriously considered. - 57 -

Several government programs will have 5.1.7 Effects on Transportation and additional requirements imposed by the Communications Facilities project, Briefs at public meetings pointed to the need for additional mental The proposed project will bring an in- health services, housing, school facili- crease in the use of transportation and ties, increased policing, and alcohol communication facilities. The major program development. The Panel recom- concern brought before the Panel was that mends that project-related requirements the present services to communities not be allowed to displace existing gov- should not be overtaxed to the point ernment programs and responsibilities and where project requirements would displace that government agencies be provided with requirements of other users. resources necessary to meet the demands from both the project and existing Transportation programs. The barge system on the Mackenzie River The Panel has concluded that in certain was upgraded in anticipation of the gas specific areas, the costs of incremental pipeline development proposed several programs and services could be borne by years ago. The system now has excess the Proponents. Both Proponents have capacity and the Northern Transportation acknowledged that company employees will Company Ltd. has confirmed that project- receive medical services and recreational related shipments can be made without facilities and programs at company interfering with existing barge expense. However, the added costs for services. the new infrastructure such as roads, communications, quarry development, and The Mackenzie Highway between Enterprise, building lot preparation (Norman Wells) NWT and Fort Simpson and the highway could be borne in whole or in part by the between Hay River and Enterprise will Proponents. This matter should be experience increased truck traffic during studied in the early planning stage of the construction phases of the project. the project and government agencies and Project supply and camp movements will the Proponents should determine whether generate traffic peaks, especially during such arrangements are necessary and nego- winter construction periods. For exam- tiable. In addition the construction ple, it is anticipated that there will be plans for temporary structures and physi- an average of one truck passage every cal facilities should be reviewed to half hour at a given point enroute. Camp determine if there is potential for use convoys may last for 2 to 3 weeks at the by community or local government agencies beginning and at the end of the construc- after the construction period. The Panel tion season. In addition there will be has concluded that these are appropriate increased light vehicle traffic asso- strategies to pursue and therefore ciated with supervision and deliveries. recommends them. All of this will have an effect upon road conditions and maintenance schedules and costs. The Panel recommends that the Finally, in concluding that these Proponents and the Federal and GNWT requirements for government services will Departments of Public Works prepare plans surely impact on government department to ensure that the normal truck and budgets, the Panel recommends that passenger vehicle traffic are not dis- realistic financing be assured and in placed and that the quality of the road place so that adequate programs exist for and driving conditions are preserved and planning and servicing the project and even enhanced, by highway upgrading in the needs of the northern residents. some cases and paving in others. - 58 -

The project may stimulate demand for the The Proponents are presently working with extension of the Mackenzie Highway north Northwestel to prepare for the needed to Norman Wells. Pipeline surveillance expansion. Demands for additional ser- and maintenance would be facilitated if vice and capacity may result from extra this were done, and con-rnunity interest in traffic by government agencies and other the road extension may grow. The Panel private users requiring increased commu- recomnends that the Federal and GNWT nications in direct or indirect response Departments of Public Works plan for the to the project. The Panel recommends possibility of extension of the Mackenzie that steps be taken to identify all _ Highway to Norman Wells should the proj- project-related communication needs and ect increase demand. to provide an adequate communications system so that there is no reduction of Air traffic will increase, particularly present services. between Yellowknife, Fort Simpson and Norman Wells. Construction labour for 5.2 SOCIAL CONCERNS the pipeline will be moved by corrrnercial carriers using extra flights at the The roots of the Mackenzie Valley society beginning and the end of the go-day con- are found both in the native land-based struction periods and at a Christmas economy and culture, and in the intruded rotation. The carrier expects this to industrial and urban lifestyle and value occur without disruption of normal ser- system of southern Canada. Because of the vice. There will also be added air intrusion, conflict, change and compro- travel by the rotational work scheme mise have been imposed on the native planned for the Norman Wells oilfield people. The result is that in economic construction project and operation. and material terms, they are at a dis- Forecasts of this traffic are required. advantage. Furthermore, they are dispro- Since there is a risk of overloading portionately represented in the statis- existing commercial air services which tics on medical, mental health, and presently have limited capacity, the social problems. The Norman Wells pipe- Panel recommends that the appropriate line project is an addition to the intru- regulatory authority monitor the licens- sion of the industrial and urban system ing conditions governing commercial air that brings further change and raises service to Mackenzie Valley communities social concerns in the native society. so that there will not be a decrease in Planning and control of the Norman Wells commercial air service to other northern project must work to assign more of the residents because of project demands. economic benefits and fewer of the social costs to these people. Communication Until now the native society has been Communication links are vital to widely constrained by government programs in separated Mackenzie Valley communities education, health and housing and by the which are distant from regional centres. lack of opportunity to work in wage The project will require dedicated and employment. Native leaders and the reliable communication facilities and native people have been left little or no these needs may invade the capacities decision-making, and with some excep- presently in place. The pipeline phase tions, neither the land-based lifestyle calls for expanded mobile and r*icrowave nor the wage economy has produced an service from the station at Hay River. adequate economic return for native . - 59 -

people. Recently, and for the first The proposed project both increases the time, the native people have begun devel- pressure and offers opportunities to this oping important options for themselves society in transition. The Panel was through their own organizations. Now, made aware of two potential effects on the Norman Wells project represents a new social conditions: economic proposal that has potential to bring some economic gain to members of (i> the effects on the native society the native society. of a temporary and long-term increase in numbers of white The white society in the region expects residents; and to see social change come from the project. Most white northerners regard the ( ii > the effects of new economic project in positive terms and they link opportunity upon the native this economic opportunity to their social people. betterment. They also recognize that social disbenefits can occur particularly The impact of the transient white resi- in relation to the effects of a transient dents will be felt first in the construc- population that will come to the region. tion of the pipeline and the oilfield development. During operations, an The Panel urges that this project be increased white population will remain in planned in a way that economic opportu- the larger centres of Norman Wells, and nity is used for the betterment of all to a lesser extent, Fort Simpson and Hay people who choose to participate in it. River. New tax revenues to government will afford the opportunity to strengthen Native intervenors are concerned about an social programs to deal with problems of imported workforce working on the pipe- the individuals and the communities in line and at Norman Wells. Workers could the area. This is only one way that arrive without an understanding of north- benefits can be made to flow to residents ern people and their land-based economy in the project area. and lifestyle. In short there is a fear of further disruption of the native society in the Mackenzie Valley. 52.1 The Dual Society Because of this concern, the Panel recommends that the Proponents take responsi- Intervenors in native communities told bility for providing an orientation pro- the Panel of the cultural importance of gram for all incoming southern workers. the land and of the traditional life The objective would be to instil an based on hunting, fishing and trapping understanding of northern working condi- and that it is becoming increasingly tions, including the physical and biolog- . difficult to depend on these activities ical environment and the northern society as the sole means of earning a living in and its value system. The program should the North. Thus the dual society seeks stress the importance of the land to the to live partly in the wage economy and native people and their culture and econ- partly on the land. Many, but not all of omy. The Panel believes that such a pro- the native people seek this divided life, gram would remove or reduce unfavorable and certain white northerners do like- contact or conflicts between the project wise. and the nearby communities. - 60 -

On the pipeline, many of the required represents a 60% increase in population. facilities will need concentrations of To accommodate this increase, planning worker activity, both large and small, for Norman Wells must deal with camp which will be potentially disruptive to sites and buildings, serviced permanent land-based activities of native people. housing, sewer and water, roads, quarry The project plan in the EIS describes the development, and all other physical many physical features of the project, requirements. Similar plans for social but does not assess the potential impacts services in education, health, recreation of concentrations of activity on the and law and order should also be in place normal native way of life near the right- before the project is proceeded with. of-way. The Panel recommends that detailed planning and location of main The Panel recommends that project-related work camps and work sites for the pipe- community facilities which are to be line be determined in consultation with built by Esso be planned to have lasting nearby community leaders. benefit to the community. For instance, Esso should contribute to new recre- The Panel further recommends that tempo- ational facilities to accommodate the rary camps be operated as self-contained influx of new residents to Norman Wells. units. The Proponents should take measures to provide comprehensive recreation Fort Simpson and Hay River are two other facilities for free-time activities and communities which will experience signif- should deny casual access to camp facili- icantly increased work and numbers of ties except in cases of emergency. The people, mainly during pipeline construc- Proponents and contractors will be re- tion. Although the impacts may be less sponsible for security and on-site than at Norman Wells, the Panel recom- conduct of camp personnel. mends that all aspects of project development which affect Fort Simpson and Hay River be planned and carried out in close The oilfield and fieldgate development cooperation with local authorities in will be in one place at Norman Wells. those communities. The Panel is concerned about a significant increase in population during and The second potential effect of the ‘proj- after construction and the resulting ect on social conditions has to do with effects on the present community infra- the effects of new economic opportunity structure and population. In the pro- on the native people. For many northern- posed three-year construction period at ers the workplace will be a new experi- Norman Wells, 400 to 500 workers will be ence. An orientation program would present during at least 12 months of the assist northerners to become adjusted to time. The workforce will peak at 600 for life in the camps and at the worksite. one summer. The Panel is satisfied that Orientation programs will be necessary to Esso is adequately prepared to provide describe the project organization, the physical facilities for this increase workers' responsibilities, safety and in population. Norman Wells intervenors teamwork. The Proponents should provide advised that the present community would this type of orientation. Some workers not experience significant social pres- may experience substantial and continuing sure from work camps. Greater concern cash earnings for the first time. It may was expressed about preparing for the be possible for the Proponents or govern- permanent increase of over 160 to 200 new ment to prepare literature to be used (on residents who are to live in Norman Wells a voluntary basis) to understand manage- once the project is operational. This ment of personal finances. - 61 -

The Panel recommends that the Proponents ment in court with legal aid may be provide orientation programs for new beyond the means of some Dene and white local workers, and that the Proponents or hunters and trappers. government provide literature and advice about the wage economy and in management The prospects of oilfield employment on a of personal finances; such literature to part-time basis appealed to some Dene and be used on a voluntary basis. The Panel white intervenors at the public meetings. further recorrrnends that community advi- This would require a rotation schedule of sors, government departments and the a certain number of weeks at work fol- Proponents collaborate in planning and lowed by time off at home. This would monitoring these orientation programs. avoid some of the turnover in work force and also relevant unnecessary relocation of families. Esso has already moved to 5.2.2 The Project and Northerners Living increase work opportunities for people on the Land from the outlying communities by institu- ting rotational work schedules in which The Dene people living in the Mackenzie two weeks of work are followed by two Valley include status and non-status weeks back in the settlements. Thus Indians and Metis. These people have a workers are able to participate in both common bond in an attachment to the land the wage economy, and in hunting, fishing and resources of the area. That is why and trapping. Esso intends to continue the natives in the Mackenzie Valley have and expand the rotational plan at Norman stressed that a land settlement must be Wells during the development and opera- achieved before resource development can tion of the project. be considered in the area. The Panel recommends the rotational work The construction and operation of the arrangement and the careful monitoring of Norman Wells Pipeline will lead to land results. Esso should be prepared to along the right-of-way being alienated introduce flexibility into the scheme if and altered. The project could result in adequate performance is maintained and, loss of assets, property and livelihood in the interests of increasing the work for Dene and white people who now use option to local people, Esso should be this land. There is a responsibility to prepared to extend the system geographi- provide for compensation to hunters and cally as needed. As well, efforts should trappers whose livelihood will be affect- be made to minimize transportation delays ed by such losses. This responsibility to and from the worksite in order to could be a condition of the issuing of protect the workers' time off. the land use permit by the Department of Indian Affairs and Northern Development. 5.2.3 Social Benefits and Social Costs

The Panel understands that compensation Benefits for such losses is a relatively new concept. An important factor in this The social benefits of the project will issue is that baseline data is not com- develop from increased economic opportu- pletely available on hunting and trapping nity and stability, income from employ- operations in and near the pipeline ment and an increase in community, social route. Therefore there may be difficulty and business services. These should in interpreting and settling claims for bring improvements in housing, nutrition, compensation. The pursuit of a settle- clothing and recreational opportunities. - 62 -

"Therefore it is our concern that if the project were to go according to the timetable now established that despite the best of intentions Interprovincial may have a few difficulties in implementing some of the policies to which it subscribes.

The greatest amount of concern in this area pertains to the preparation of such things as detailed training programmes, manpower delivery schedules, the preparation in ample advance time of the kinds of things which the Territorial Government and the Canada Manpower Cornnission need to fulfil1 their end of the bargain in trying to meet the Government responsibilities of helping provide local labour who might be interested in working on this project."

Sheila Meldrum Department of Indian Affairs & Northern Development.

"I would suggest to the proponents that they seriously examine the idea of "dry" camps, that alcohol use be discussed during pre-employment interviews, that recreation activities and facilities be included in the work area and that some controls be established regarding the social interaction between the wor,.ers and the residents of a conunity. This latter arrangement should be worked out with the corrrnunity councils."

Ron Crossley Deputy Minister Health and Social Services GNWT - 63 -

For individuals who choose to work on the The Panel further recommends that before project, family life and well-being could the project begins, these agencies pre- be more rewarding over the longer term. dict the needs in social and health ser- At present there is a high level of vices by developing plans for staff dependency on welfare support in the increments, for improvement of programs project area. This is necessary to and delivery and for both preventive and maintain a basic living standard and mitigative action. without development, there will be increased dependence on this form of support. Opportunities to work would The Panel learned that the most serious help to reverse the trend for some valley social problems in the region are a con- residents. sequence of misuse of alcohol. This has a profound effect upon family and commu- costs nity life in the Mackenzie Valley. Increased crime, violence, personal in- The project will bring with it worker jury, accident, and mortality are rooted irmnigration and relocation, cross- in heavy alcohol consumption. Inter- cultural pressures, more work and cash venors at the public meetings emphasized and more choice for individual activity. that increased wages, and more government Some real benefits will flow from this liquor outlets and drinking establish- but there will also be a potential in- ments can only lead to increased social crease in social problems. The NWT degradation in the project area. Spokes- Mental Health Association referred to men for the native people were especially serious social problems which developed concerned about this problem. The ill in Alaska during construction of the effects are close at hand and readily Trans-Alaska Oil Pipeline Project and observable. All native communities have which could be experienced in the Macken- held alcohol workshops and the GNWT has zie Valley in spite of the difference in an active public education program. In scale between the two projects. Some addition, several corrrnunities have voted problems which were cited are escalation to ban alcohol from local outlets. of family breakdown, juvenile crime, child neglect, suicide, homicide, racial The Panel recommends that GNWT agencies tension, and venereal and other corrununi- and local community leaders review liquor cable diseases. There are, of course, distribution practices to determine if Federal and GNWT agencies with responsi- licensing hours, rationed buying, or bility for preventing and alleviating other limiting conditions could be put in such problems. However, information on place as a measure to control liquor the types and levels of current and pro- accessibility, and to determine if these jected social problems is not available. or other measures are necessary and Therefore, the Panel recommends that practicable. Federal and Territorial government agencies responsible for social and health The Panel was made aware of NWT public matters prepare an adequate data base education alcohol awareness programs and against which project-related impacts can commends these and other rehabilitative be identified and measured, and that programs. The Panel recommends that these agencies move promptly to minimize these programs be adequately staffed and or remove anticipated problems by apply- funded to meet project-related ing mitigative measures. requirements. - 64 -

5.3 MANAGING SOCIAL AND ECONOMIC duplication are avoided and inter-agency IMPACTS coordination is facilitated.

A principal concern of the Panel is the 5.3.1 The Need for Goals and Planning lack of government preparedness and planning needed to administer the project The Panel noted that there is a need for within the time frames proposed by the a policy statement of socio-economic Proponents. Several intervenors at the goals and objectives for the western NWT. public meetings asked questions such as: - Such a statement should include reference to planning of land use and natural ( i > Who in government would be re- resources, employment and business devel- sponsible for managing the social opment, social and welfare assistance, and economic aspects of the community planning, and the transporta- project? tion network. The statement is necessary as a basis for overall planning of both ( ii > What agency will regulate con- socio-economic and natural resource struction and operation of the development programs in the project area. project to minimize environmental Both the policy statement and the plan- degradation? ning should be prepared in consultation with residents of the Mackenzie Valley in (iii) What planning programs are needed order that their aspirations for the kind and are in place? of future they want will be considered. If such a statement and regional plan had The Panel learned from Territorial Gov- been in place prior to the review of the ernment representatives that some key Norman Wells project, a more rigorous and agencies are presently quite unprepared effective assessment of the project would for the project. Requests were made for have ensued. additional time to staff offices, to obtain essential baseline information, to The Panel recommends that a policy state- prepare a land use plan for the project ment of socio-economic goals and objec- area and to upgrade current staff and tives be prepared for the western NWT and programs to cope with project monitoring that a comprehensive plan be prepared by and control. The Panel has concluded the GNWT to serve as a framework for that the GNWT and Federal Government will specific socio-economic and natural require some essential lead time to resource development programs associated prepare for the project. with the project. The Panel also learned of the need for 5.3.2 Government Preparation for the coordination of project-related activi- Project ties by agencies of the Federal and Territorial governments and local settle- Private development initiatives such as ment and band councils. At present there the Norman Wells project are subject to is no unit or office to monitor and laws, ordinances and regulations of the report on technical, social, economic and Federal and Territorial governments. planning aspects by different government tiowever, government planning arrangements agencies. The Panel has concluded that for the Norman Wells Project are appar- such a coordinating unit should be in ently not in place for the project such ,place before the project commences. The that overlapping responsibilities and unit should be organized with responsi- - 65 -

bility to provide the public in the ous liaison between the project Propo- project area with regular and nents and the communities is essential. comprehensive information on the progress of the project. In preparing for the expansion of the oilfield and the building of the pipe- 5.3.3 Government-Proponent Liaison line, the Proponents have held a series of information meetings in the smaller The Panel learned that there are several communities. However government agencies areas in which the Proponents will rely have, with some exceptions, not visited on government programs and services in communities for the express purpose of the course of the Norman Wells project. disseminating information on the project Examples are in manpower training and and obtaining feedback from residents. employment, housing and education, and in road and highway maintenance. Apparently The Panel recommends that liaison between a comprehensive liaison between the Pro- the communities in the project area and ponents and government has not yet been the Proponents should be formally orga- formed. The Panel recommends that an nized and should begin immediately. on-going consultative program be estab- Community consultation is necessary not lished and maintained at the initiative only in pre-construction planning and the of the GNWT, and include such Federal construction phases, but also in the agencies as required. The purpose of first few years of the operation of the this program would be to predict, identi- project. Each community should be fy and deal with opportunities and issues encouraged to identify a person or raised by the project and requiring coop- committee for this purpose, and GNWT erative action by government and the participation should also be assured. Proponents. 5.3.5 Learning from Experience 5.3.4 The Role of Community Advice The Norman Wells Project is not the first Communication between the Proponents and large resource development in the North, the settlements affected by the project but it is unique because of its techno- has at least two benefits: first, resi- logical requirements and the number of dents acquire an understanding of the communities that will be affected. It project and are better able to anticipate will be one more important step in the the proposed developments and second, the development of transportation systems and Proponents will receive advice about hydrocarbon resources in the western community needs, potential impacts and Arctic. Other pipelines may follow and mitigative measures all of which should development in the Mackenzie Valley could be taken into account as the project achieve a substantial momentum. proceeds. The Panel believes that the greatest potential changes will be felt The building of the 324 mm diameter line in the native communities because they from Norman Wells to Zama, Alberta, are not large and their society is less represents a scale of investment and directly oriented to an industrial/wage construction which will not result in the economy. However, all of the communities magnitude of impacts expected along the in the region will be exposed to some proposed Alaska Highway Gas Pipeline. economic opportunities, and experience However, some impacts are bound to occur some increased transient or in-migration and this project represents an opportu- population pressure. Therefore continu- nity to study and monitor the social, 66

economic and environmental consequences If this is done then the capacity to make at an acceptable level of risk. informed decisions on future pipeline nizing that some impacts will not be proposals will be substantially immediately apparent, the Panel improved. concluded that certain programs of monitoring and research should continue throughout the life of the project. Field bending of pipe during winter pipeline construction near Manning, Alberta. C:ild’s Lake #164A :I . ...* f***Hay Lake #219 \ : ; Boyer River #164 Beaver Ranch #163

l l Tallcree t 173A

LEGEND / . .Tallcree tt 173 Dene Tha’ E2 Little Red River . . . . . Carcajou Settlement # 187 Tallcree r 1 Boyer River I Pipe Line

Fig. 4 Northwestern Alberta - 59 -

6.1 INTRODUCTION (i) Alberta Government

In July 1980 the Panel was requested by ( ii > National Energy Board the Department of Indian Affairs and Northern Development to review the por- (iii) Department of Indian Affairs and tion of the pipeline proposal in north- Northern Development (DIAND) western Alberta as it relates to the Indian people. Of the four Indian Bands The Panel is not aware of an environmen- and fifteen reservations in the High tal or socio-economic review of the proj- Level District, the Dene Tha Band will be ect by the Government of Alberta. most directly affected by the project. Unlike the Dene people in the NWT, the DIAND is the agency which has responsi- Dene Tha are Treaty Indians who live on bility for the needs and aspirations of five of their seven reserves in the Hay reserve Indians in Alberta. Therefore Lakes, Zama Lake, Meander River and High the Panel concluded that DIAND should Level areas. carefully review concerns of the Dene Tha Band and then take the necessary initia- Prior to oil and gas discoveries in the tives to assist the Band in dealing with Rainbow Lake/Zama region the Dene Tha impact mitigation and in maximizing lived in relative isolation. The Panel benefits for its members. was informed that despite 15 to 20 years of oil industry exploration and produc- The Dene Tha Band declared that there are tion in the area, there are very few 25 terms and conditions which must be met positive benefits which have flowed to to gain its support for the pipeline the native people. Instead there has project. These terms and conditions need been an increase in alcoholism, unemploy- to be reviewed by the Proponents and by ment and welfare dependency. government agencies.

6.2 CONCERNS OF THE NATIVE PEOPLE After a review of the Dene Tha brief, the Panel is of the opinion that the follow- The Dene Tha Band is very aware of its . ing questions raised by the terms and past experience with oil development. conditions should be addressed and re- After reviewing the EIS it expressed solved by IPL. strong feelings and concerns at the public meeting held at High Level, Alberta. ( i > Compensation to individual hunters and trappers affected by the Some of the concerns were similar to project. those raised in the NWT. The Panel was told about the importance of the land and ( ii > Limited vehicle access in and resource harvesting to the native people around Dene Tha reserves and and of the need for compensation to restricted use of private vehi- hunters and trappers for losses incurred cles by project employees. as a result of the pipeline project. The importance of training, gainful employ- (iii) Employee possession of firearms, ment and new business opportunities was and hunting and trapping in the stressed as well. project area.

Three agencies have a major responsibil- ( iv > The use and sale of alcohol or ity for the pipeline in Alberta: drugs in camps. - 70 -

( v > The implications of a unionized able locally, IPL or its contractors project on native participation. should give every reasonable consider- _- ation to recruiting and contracting in ( vi > On the job employee orientation the project area. programs for both Indians and non-Indians. The Panel has decided that the remaining questions raised by the terms and condi- Unemployment among the region's native tions of the Dene Tha should be taken up people is high. It was noted by the by government agencies. The Panel noted Indian and Inuit Affairs Program of requests for manpower training, career DIAND that the EIS did not adequately education, counselling and an alcoholism address employment and business opportu- program for the Dene Tha. A number of nities for the Indian people of north- federal and provincial agencies must be western Alberta. In this regard the Dene involved in implementing an action plan Tha have requested the allocation of 35% to deal with these requests. The Panel of the employment and business opportuni- recommends that the Department of Indian ties on the entire pipeline project. The Affairs and Northern Development take the Panel suggests that the Dene Tha request initiative in identifying the agencies to should be limited to that portion of the address the terms and conditions raised project which is in northwestern Alberta. by the Dene Tha Band, and in co- Where equipment and expertise are avail- ordinating the responses to them.

- 73 -

7.1 CONCLUSIONS which should be in place prior to the start of drilling from artificial In its review of this project the Panel islands and construction of the pipe- has arrived at several conclusions in line. This plan should include this report, and only the most important provision for a more accurate oil- ones will be repeated here. leak detection system for the oilfield project. The contingency Main Conclusion plans should cover the construction and operational phases of the oil- Before the Norman Wells Oilfield Expan- field and pipeline project. The sion and Pipeline Project can be built plans should be developed, tested, within acceptable limits of environmental evaluated and approved by the respon- and socio-economic impact, the following sible government agency prior to the important deficiencies in the Proponents' start of construction. planning and in the preparedness of governments need to be rectified. The 5. IPL should carry out and publish the Panel has concluded this work could be results of a detailed thermal analy- done in time to start work on the project sis of the pipeline in different in 1982. The reasons for this overall terrain types in different seasons. conclusion are given below and specific The objective of the study is to recommendations on them are given in the understand the potential for thar, following section of this chapter. settlement and frost heave, ponding of water, and erosion of the pipeline Environmental ditch as well as ultimate repair and rehabilitation requirements. 1. Esso should undertake a model study of local scour on the artificial islands at Norman Wells to determine Economic and Social the potential for scour, the level of monitoring required, and the develop- The principal economic conclusion of the ment of remedial or contingency. Panel is that the project will provide a measures. needed economic stimulus to the Mackenzie Valley, and the recommendations are 2. Esso should study the alternatives to intended to insure that economic bene- the filter cloth design on the arti- fits, particularly for local employment ficial islands to ensure that erosion and business opportunities are realized. of the artificial islands is minimized. Although the social effects of the Norman Wells project are less easy to forecast 3. Esso should undertake an accelerated with accuracy, the Panel concluded that research and technology development the impact on society can be made to be program on oilspill countermeasures within acceptable limits. The nature of and for equipment to deal'with oil- the social effects will not be different spills into or under ice-covered or from the effects caused by accelerated ice-infested river waters. oil exploration programs of the past decade in the Mackenzie Valley and the 4. Esso and IPL should develop a Beaufort Sea areas. The scale of the detailed oilspill and toxic and construction phase would not be much hazardous materials contingency plan different than activity now experienced 74 -

in the Mackenzie Delta and Tuktoyaktuk (i) A review of sharing of project- region, although in this case, all the related revenues. settlements from Fort Good Hope south will be involved. The recommendations of (ii) Initiation of land settlement the report are aimed at anticipating, negotiations and substantial preparing for, and minimizing social progress made. disruption. (iii) Preparation and implementation The Panel has concluded that a 1982 of a land and resource plan for _ start-up on the project could provide the project area to accommodate time to assess the situation and carry this project and others that out necessary economic and social may follow. undertakings on such items as inflationary effects on the economy, wage differ- (iv) Development of a policy and entials, a data base for social and public information on oil health care services, cooperation between products pricing and assurance the Proponents and government, and of oil supplies for northern adjustment of government priorities to consumers. put programs and staff in place. Certain recommendations of this report specify (v) Development of specific priori- these and other items which could be ties for the employment of acted upon in the next year, in anticipa- northerners. A cooperative tion of a 1982 start-up. plan needs to be drawn up by the Proponents, GNWT, and the Federal Department of Employ- 1. Esso and IPL should prepare and ment and Imnigration. submit plans to show that for all project jobs in the NWT, they will (vi) The development of equitable endeavor to maximize local hiring. tendering opportunities for northern businesses and the 2. Esso and IPL should prepare and development of policies to submit plans to show that for all stimulate the growth of these contracts for work in the NWT, equal businesses. opportunity to tender on the work will be given to northern busi- Government Preparedness nesses. 1. DIAND should take the lead in pre- 3. IPL should prepare and submit plans paring a preliminary land use plan showing a detailed review of the for the Mackenzie Valley to provide a pipeline route with emphasis on route framework in which the proposed proj- changes to minimize project-related ect can be planned and evaluated. effects on the lives and activities of the native people in the Mackenzie 2. The GNWT should move promptly to Valley and in Alberta. insure that adequate staff and resources are available to accommodate 4. To maximize benefits to the North and the Norman Wells project. The coor- to give the economy encouragement and dination of Territorial and Federal- stability, the following need to be Government programs should be undertaken: assured. 75 -

.3 . A P’~blic information program needs to 4. It is recommended that deta iled and be planned and carried out expedi- environmentally acceptable plans for tiously in order to inform residents the maintenance of the right-of-way and Llorkers about the project and its and for the repair of pipeline fail- potential impacts and mitigation ures be prepared prior to conunission- measures, and also to obtain the ing of the pipeline. advice of Mackenzie Valley residents for the purposes of planning and It is recomrlended that terms and decision making. An impact informa- conditions for the pipeline project tion centre should be developed spell out requirements for a revege- similar to the Alaska Oil Pipeline tation and erosion control program centre at Fairbanks. The program using species, techniques and sched- should be under the leadership of the ules shown to be adequate for the GNCJT with local workers carrying out task. the on-site work. It is recommended that in developing 7.2 f?ECOMMENDATIONS oilspill prevention and contingency plans, IPL make special provisions ENVIl?ONMENT AND ENGINEERING for the karst terrain near Bear Rock. Pipeline Alternatives It is recomncnded that IPL design, 1. It is recommended that IPL investi- plan, and construct the pipeline so gate minor alternative routings to as to minimize the need for extensive keep the pipeline further east from maintenance or unscheduled repair the settlements of Fort !iorman and activities. Wrigley. Water Crossings Geotechnical Concerns, Pipelin+ Integrity and Permafrost 8. It is recommended that river crossings be located so as to minimize 2. It is recommended that pipeline overall environmental disruption. summer construction be permitted only in areas where it can be clearly 9. It is recommended that the construc- demonstrated that there would be no tion plans and schedules for interme- greater impact than winter construc- diate sized crossings be re-evaluated tion in the same area. bY IPL in cooperation with the Departmen,+ of Fisheries and Oceans to 3. It is further recommended that, ensure that impacts on fish and other before the project is authorized, IPL aquatic organisms are minimized. undertake and publish a more detailed thermal analysis of the pipeline to Island Construction predict more accurately the behavior of the pipe in a variety of terrain 10. It is recommended that Esso carry out and temperature regimes. The analy- a model study to fully evaluate local sis should cover the possibility of scour at the artificial islands in climatic change over the life of the order to be certain of the structural project. safety of the pipelines and integrity - 76 -

of the islands. The study should one to two weeks, and that helicopter include monitoring and remedial access to the islands be restricted repair procedures. The results to only essential needs. should be reviewed by government before the island construction is 16. It is recommended that Esso develop a authorized. plan specifying the necessary equipment and procedures to keep large 11. It is further recommended that populations of waterfowl away from an studies on alternatives to filter oilspill site. cloth protection be carried out to find a material that will ensure that Forests and Wildfires no significant erosion of the islands will occur. Results should be 17. It is recommended that government and reviewed by government before con- IPL fire control responsibilities be struction of the islands is autho- clarified prior to commencement of rized. construction and operation of the pipeline. It is further recommended Fisheries and Wildlife that the government fire control program be augmented to provide 12. It is recommended that the Proponents protection to the pipeline and, at consult with the Department of the same time, that there be no Fisheries and Oceans to address any decrease in protection services to outstanding fisheries concerns and other sectors, such as highways, demonstrate in their construction settlements and traplines. timing and techniques that they have used the available information and 18. It is recommended that slash from the addressed the concerns. right-of-way clearing operation be piled and burned on the right-of-way 13. It is recommended that further site during the winter. specific studies be undertaken to determine final alignment for river crossings to prevent or minimize Oilspills Prevention and Countermeasures impacts on fish and the aquatic environment. 19. It is recommended that Esso undertake an accelerated research and technol- 14. It is recommended that IPL undertake ogy development program on equipment baseline studies on hunted and and procedures to deal with oilspills trapped species to provide informa- into or under ice-covered and ice- tion aimed at both the assessment of infested river waters. This program the impact of the pipeline construc- should be in place before expanded tion and operation on wildlife, and production begins at Norman Wells. the development of mitigation measures. 20. It is recommended that Esso investigate, design and install a more 15. It is recommended that construction accurate oil-leak detection system at and drilling activity on the islands Norman Wells, one that would be con- stop during the peak spring waterfowl sistent with the detection levels of - migration period that normally lasts the IPL pipeline to Zama. 77 -

21. It is recommended that Esso and IPL Environment, DIAND or a contracted develop, test, and evaluate contin- non-government agency carry out an gency plans for the construction and evaluation of the impact management operation of both the oilfield process in order to improve on impact expansion and pipeline projects and evaluation and mitigation on the that these plans be revierred and Norman Wells and future projects. approved by government prior to the start of construction. 27. It is recormlended that the GNWT and Federal Government work with the Toxic Substances and Air Emissions Proponents to establish an effective and ongoing public information 22. It is recorrrnendcd that Esso prepare program to respond to concerns of contingency plans with methods and Mackenzie Valley residents. procedures for handling, storage, transportation and disposal of all ECONOMY AND SOCIETY toxic and hazardous materials and that such plans be in place prior to Effects on the f?egional Economy the corrrnencement of the project. 28. It is recommended that prior to 23. It is recorrrnended that Esso commence project authorization the Proponents a monitoring program for ground level 1 iaise with government and prepare an concentrations of air emissions in assessment of the predicted infla- the Norman Wells area and that this tionary effects of the project. monitoring continue throughout the life of the project. 29. It is recorrmended that planning and monitoring authorities in the GNWT Water Use and Effluent Disposal work with the Proponents to conduct a study of the consequences of projcct- 24. It is recommended that no* drilling related wage differentials which wastes other than mixtures of water might affect northerners already and bentonite be allowed to enter the employed in the region and then Mackenzie Piver and that land dispos- prepare to deal with related employ- al and treatment sites be identified ment problems. and developed. 30. It is recomnended that the GNWT Archaeology broaden its program of assistance to trappers who seek to become re- 25. It is recommended that the rcsponsi- established in trapping after a ble Federal and GfdWT agencies further period of \/age employment on the review the details of IPL's proposed project. archaeological program, and monitor the potential impact of this project Employment and Business Opportunities on the archaeological resotirces along the pipeline route. 31. It is recommended that labour recruitment take place close to the Environmental Impact Management work sites.

2G. It is recommended that, in consulta- 32. It is recommended that Esso and IPL tion with the CNWT, the Department of specify in any agreements with union - 78 -

contractors that access to jobs, as a following options in order to wet first priority, take into account the new project-related requirements: skills and interests of workers in the project area. (i) second staff from one level of government to the other, 33. It is recommended that contracts for the project be tendered in portions ( ii > increase the public service of a size that northern businesses temporarily in sortie cases and can compete equitably. permanently in others;

34. It is recommended that the Proponents (iii) purchase expertise in planning, make every effort to insure that some managerial and technical skills contracts are tendered to non-union, where necessary, and; northern businesses. (iv> redirect existing resources and Programs to Assist the Regional Economy programs into others which are related to the project. 35. It is recommended that the CNWT and the Fort Smith Vocational and Higher 40. It is recorrmended that, in connection Education Centre work together with with such government programs as men- the Proponents to assure that the tal health services, housing, school results of project-related training facilities, police services and efforts are maximized. alcohol programs, that project- related requirements not be allobred 36. It is recorrrnended that the on-site to displace existing government training programs of the Proponents programs and responsibilities and become an integral part of the con- that government agencies be provided struction and operation phases of the with resources necessary to meet the project. demands from both the project and from existing programs. 37. It is recorrmended that the GNWT and IPL make use of the existing or 41. It is recorrrnended that realistic modified employment training plans government financing be assured and such as Hire Darth, so that as many in place so that adequate prograw local workers are involved in the exist for planning and servicing the pipeline construction and operational project and the needs of northern activities as is practicable. residents.

38. It is recon-rnended that the GNWT and Federal Government work with the Effects on Transportation and Comnunica- Proponents to provide effective tion Facilities public information on the job situation and business opportunities, in 42. It is recommended that the Propo- order to assist local employment and nents, and the Federal and the GNWT participation by local businesses. Departments of Public Works prepare plans to insure that the normal truck Effects Upon Government Services and passenger vehicle traffic are not - displaced and that the quality of the 39. It is recorrrnended that government road and driving conditions are pre- departments seriously consider the served and even enhanced, by highway - 79 -

upgrading in some cases and paving in 49. It is recommended that, at Norman others. Wells, project-related community facilities which are to be built by 43. It is recommended that the Federal Esso be planned to have lasting and GNWT Departments of Public Works benefit to the community. For plan for the possibility of extension instance, Esso should contribute to of the Mackenzie Highway to Norman new recreational facilities to Wells should the project increase accommodate the influx of new demand. residents to Norman Wells.

44. It is recommended that the appropri- 50. It is recommended that all aspects of ate regulatory authority monitor the project development which affect Fort licensing conditions governing com- Simpson and Hay River be planned and mercial air service to Mackenzie carried out in close cooperation with Valley communities so that there will local authorities in those communi- not be a decrease in commercial air ties. service to other northern residents because of project demands. 51. It is recommended that the Proponents provide orientation programs for new 45. It is recommended that steps be taken local workers, and that the Propo- to identify all project-related comnents government provide munication needs and to provide an literaturirand advice in management adequate communications system so of personal finances and the wage that there is no reduction of present economy; such literature to be used services. on a voluntary basis. It is further recommended that community advisors, government departments and the SOCIAL CONCERNS Proponents collaborate in planning and monitoring these orientation The Dual Society programs.

46. It is recommended that the Proponents The Project and Northerners Living on the provide an orientation program for Land. all incoming southern workers to instil an understanding of northern 52. It is recommended that the Esso rota- working conditions and northern soci- tional work arrangement be encouraged ety and its value system. with careful monitoring of results. Esso should keep the arrangement 47. It is recommended that detailed plan- flexible, extend the system geograph- ning and location of main work camps ically as needed, and minimize and work-sites for the pipeline be transportation delays for rotating determined in consultation with workers. nearby community leaders. Social Benefits and Costs 48. It is recommended that temporary camps be operated as self-contained 53. It is recommended that Federal and units with full recreational facili- GNWT agencies responsible for social ties. Casual visitor access to camp and health matters prepare an ade- facilities should be denied. quate data base against which project - 80 -

related impacts can be identified and the GNWT, and include such Federal measured, and that these agencies agencies as may be required. move promptly to minimize or remove anticipated problems by applying The Role of Community Advice mitigative measures. 59. It is recommended that liaison 54. It is recommended that before the between the communities in the project begins, Federal and Territo- project area and the Proponents rial agencies predict the needs in should be formally organized and social and health services by devel- should begin immediately. This oping plans for staff increments, for community consultation is necessary improvement of existing programs and not only in pre-construction planning delivery, and for both preventive and and the construction phases, but also mitigative action. in the first few years of the operation of the project. The GNWT should 55. It is recommended that GNWT agencies participate in this consultation as and local community leaders review well. liquor distribution practices to determine if licensing hours, NORTHWESTERN ALBERTA rationed buying, or other limiting conditions could be put in place as a 60. It is recommended that the Department measure to control liquor accessibil- of Indian Affairs and Northern Devel- ity, and to determine if these or opment take the initiative in identi- other measures are necessary and fying the agencies to address terms practicable. and conditions raised by the Dene Tha Band, and in coordinating the 56. It is recommended that the NWT public responses to them. education alcohol awareness programs and other rehabilitative programs be 61. Finally, it is recommended that adequately staffed and funded to meet because of outstanding environmental project-related requirements. and socio-economic questions and the need for government preparation, the The Need for Goals and Planning Norman Wells Oilfield Expansion and Pipeline Project should not be 57. It is recommended that a policy commenced with until 1982 at the statement of socio-economic goals and earliest. The Panel believes that a objectives be prepared for the west- start-up in 1982 could provide time ern NWT and that a comprehensive plan for adequate safeguards and programs be prepared by the GNWT to serve as a to be planned and installed. framework for specific socio-economic and natural resource development pro- CLOSING COMMENT grams associated with the project. Before concluding, the Panel feels Government - Proponent Liaison obliged to comment on the unresolved land settlement of the Mackenzie Valley in 58. It is recommended that an on-going relation to the Norman Wells Pipeline consultative program be established project. As pointed out in this report and maintained at the initiative of the dominant position expressed at the - 81 -

public meetings by the Chiefs, Elders and northern society as a whole has called representatives of the Dene Nation was -- for a prompt and just settlement. 'No resource development before a land settlement'. The Panel concluded that The Panel, for reasons related directly any resource development proposal would to the Norman Wells project itself, has face the same opposition, and therefore, recommended that the project not be declined to make a recommendation which commenced until 1982. The opportunity linked land settlement to the Norman thus exists for the Minister of Indian Wells project. Affairs and Northern Development, and the native leadership of the Dene people to For the Dene the subject of land settle- open land settlement negotiations and to ment is not only a political thrust make substantial progress before develop- requiring a political response, but also ment goes ahead. The issue is serious a chance for a new beginning, with con- and the timing is critical. The Panel trols and choices in their own hands for strongly urges that the opportunity not their own lives, and a more assured be lost; an orderly and optimistic future future for their children. Moreover, for the region depends upon it.

The Environmental Assessment Panel for the Norman Wells Project

Patrick Duffy, Chairman

A. L. Look

J. A. Heginbottom APPENDICES - 85 -

APPENDIX I - METRIC - IMPERIAL CONVERSION TABLE

Although metric units were used throughout the EIS and have been used in this report, the Panel has included this conversion table for the convenience of readers.

Distances, lengths of pipelines, roads, etc.

Length of proposed Norman Wells to Zama oil pipeline 866 km 540 mi. Additional length for route along Mackenzie Highway 250 km 155 mi. Length of access roads to be built =30 km =20 mi. Length of Trans-Alaska oil pipeline 1300 km 800 mi. Norman Wells, south of Arctic Circle 145 km 90 mi. Norman Wells, northwest of Yellowknife 685 km 425 mi.

Dimensions of pipelines

Diameter of Canol Pipeline 10 cm 4 inch Diameter of proposed Norman Wells to Zama oil pipeline 324 mm 12 inch Diameter of Trans-Alaska oil pipeline 1.22 m 48 inch Diameter of proposed Arctic Gas natural gas pipeline 1.22 m 48 inch Diameter of proposed Foothills natural gas pipeline 1.07 m 42 inch

Dimensions of oilfield and pipeline facilities

Size of top of proposed artificial islands 80 x 45 m 260 x 150 ft. Elevation of top of proposed artificial islands 54 m 177 ft. Elevation of loo-year flood of Mackenzie River 51 m 167 ft. Maximum elevation of ice scars on trees on Bear Island 52.5 m 172 ft. Height of dyke around proposed artificial islands lm 3 ft. Depth of burial of pipeline lm 3 ft. Predicted amount of thaw settlement of pipeline l- 1.2 m 3-4 ft. Area of pump station site 1 ha 2.5 acre

Oil production rates, pipeline capacities, etc.

Historic oil production rates at Norman Wells 100; 500 m3/d 630; 3000 b/d Proposed production rate with oilfield expansion 4000 m3/d 25,000 b/d Capacity of proposed pipeline - 5000 m3/d 32,000 b/d Production rate excess over refinery capacity 1600-2000 m3d lo-12,500 b/d Potential undetected oil leakage rate 70 m3/d 440 b/d

Water use, waste production

Daily volume of water for water-flooding oil field 6400 m3/d 1.4 mill. gals/d Volume of drilling wastes per well 700 m3 150,000 gal3. Volume of cuttings per well 37 m3 1300 ft. Total quantity of waste fluids at Norman Wells 56,000 m3 15 mill. gals. Unit volume of water for pipeline hydrostatic testing 1,250 m3 275,000 gals. - 86 -

APPENDIX II - PIOGRAPHIES OF PANEL Columbia (1968-1970), permafrost and MCMBEl?S terrain studies in the Mackenzie Delta and lower Mackenzie Valley region (1969- 1974) and geomorphology studies in the PATRICK DUFFY - PANEL CHAIRMAN central Arctic Islands (1977-1979). He was appointed Head, Geomorphic Processes Mr. Duffy is from Vancouver where he Section, Terrain Sciences Division in obtained a forestry degree from the April, 1978. University of British Columbia in 1955. He holds a Master of Forestry degree from In 1973-1975, he was involved with the Yale University and a Doctor's degree in environmental assessment of the design of land classification from the University the Mackenzie Highway. From 1975 until of Minnesota. 1977, he was seconded to the Department of Indian Affairs and Northern Develop- From 1956-1968, he was research forester ment as a staff advisor to Mr. Justice in the Alberta-Yukon-N.W.T. Region of the T.R. Berger and the Mackenzie Valley Canadian Forestry Service, working in Pipeline Inquiry. forest land productivity studies. From 1968-1972, Mr. Duff-y co-ordinated the Canada Land Inventory, Forestry Sector, ARTHUR LOOK on a national basis. In 1972, he chaired an Environment Canada task force which Mr. Look was born in Portland, Oregon, in drafted the Federal Environmental Assess- 1914 and lived in the Edmonton area ment and Review Process, created by before moving to Eocher River, Northwest Cabinet Decision in 1973. Territories, in 1921. He trapped there until 1946 when he moved to Yellowknife In 1974, Mr. Duffy undertook a two-year where he worked as a private contractor assignment to manage a consulting firm in and later for Cominco as a mill British Columbia, carrying out environ- mechanic. mental planning work in Western Canada and overseas. Since 1977, he has been a Mr. Look joined the Department of member of the Federal Environmental Northern Affairs and National Resources Assessment Review Office. At present, he in 1954 with the Game Service. The Game is Director, Panel Operations, Northern Service transferred to the Territorial Region with responsibilities for the Government in 19G7, and Mr. Look retired Environmental Assessment and Review in 1975 after 21 years of government Process in N&T., Yukon and the Prairie service. Provinces. Mr. Look has worked and lived in the JOHN ALAN HEGINBOTTOM Central and Eastern Arctic and the Mackenzie Valley. He is now living in Mr. Heginbottom was born in South Wales Fort Providence, NWT and earns his living and attended school in England. He by trapping. graduated in Geography from London University (B.Sc.) and did graduate work JOHN K. STAGER at McGill (M.Sc.). He joined the Geolog- ical Survey of Canada in 1968. Dr. Stager was born in Preston, Ontario - now Cambridge - and received his Bachelor His field work has included mapping of Arts degree in Honours Geography at surficial geology in central British McMaster University in 1951. Following a - 87 -

period of employment with the Geograph- try from Dalhousie University in 1966 and ical Branch in the Federal Department of his Bachelor of Science in chemical engi- Mines and Technical Surveys, he did neering in 1971 from Queen's University. graduate work at the University of British Columbia and then took a teaching Mr. Bryant, under the Regular Officer's appointment at the University of Training Program, received his commission Edinburgh. He received his Ph.D. from in 1966 and began his career with the Edinburgh University in 1962 with a Department of National Defense. During dissertation on the Historical Geography his tenure with the Armed Forces, he was of the Mackenzie Valley 1750-1850. Dr. seconded for two years to the Defense Stager has been a member of the Geography Research Board at Valcartier where he was Department of the University of British engaged in basic chemical engineering Columbia since 1957 where he holds the research on explosives and pyrotechnics. rank of professor and is Associate Dean in the Faculty of Arts. In 1972, Mr. Bryant moved to Winnipeg where he began his career in the environ- In 7952, Dr. Stager began his field mental field as a pollution control studies in the north on Cornwallis Island engineer with the Department of Fish- and subsequently did work in Mould Bay eries. In 1973, he was appointed senior 1952, the Mackenzie Delta area 1954, 1963 project engineer with the Department of and 7964 with numerous subsequent short Environment in Edmonton where he was excursions to the Delta region. His responsible for implementing federal pubfications include work on permafrost water pollution regulations and guide- features, historical aspects of the lines in western and northern Canada western arctic and social and economic pertaining to the oi7 and gas, mining and conditions in northern Canada. In 1972 pulp and paper industries. he completed a study of the Reindeer Industry and prepared a socio-economic In 1975, Mr. Bryant was appointed as the report on Old Crow, Y.T., in 1974 for the Northwest Territories District Director Environmental Social Committee on of the Environmental Protection Service Northern Pipelines in preparation for (EPS) based in Ye77owknife, a position he Berger hearings on the Mackenzie Valley currently holds. In this capacity, Mr. Pipeline. Dr. Stager took part in the Bryant is responsible for the management overview hearings for the Berger Inquiry and implementation of all EPS activities bY discussing the social/historical in the N.W.T. which includes enforcement background of the Lower Mackenzie region. of a number of federal environmental He has al so prepared socio-economic statutes, ecologicai impact assessments, baseline studies of Baker Lake, N.W.T., air pollution control, environmental and was joint author for a similar study emergencies, waste management, water of Chesterfield Inlet, N.W.T. conservation and pollution control. These activities have directly involved Mr. Bryant in all the major development WAYNE J. BRYANT activities that'are currently of regional and national importance, such as northern Mr. Bryant was born in Winnipeg and pipelines, and Beaufort Sea oil explora- educated in eastern Canada. He received tion. Mr. Bryant also serves as a member his Bachelor of Science degree in chemis- of the N.W.T. Water Board. - 88 -

APPENDIX III - PARTICIPANTS IN THE Father Denis PUBLIC REVIEW D. Duncan Individuals E. Fabian F. Andrew R. Fabian J. Antoine Chief, Fort Simpson J. Gauthier

G. Antoine G. Godt

A. Arrowmaker G. Grandjambe Chief, Snare Lake R. Gruenewegen B. Barradell J.B. Gully B. Bassett G. Hardisty J. Blondin Chief, Wrigley

3. Bonnetrouge P. Hardisty Chief, Fort Providence R. Hardy L. Boucane C. Hopkins G. Boyd W. Irwin D. Cardinal L. Jackson A. Cazon W. Jackson B. Cazon E. Jumbo 3. Charlo Sub-chief, Trout Lake

C. Chisaakay E. Kakfwi

H. Chonkolay G. Kodakin Chief, Dena Tha Band Chief, Fort Franklin High Level, Alberta W. Konestista E. Comerford Sub-chief, Nahanni Butte

B. Cooper A. Lacorne

B. Deedza B. Lafferty

H. Deneron A. Lafferty Chief, Fort Liard R. Larsen - 89 -

S.V.C. Latour C. Templ eton

A. Lcnnie J. Thom

R.11. MacQuarrie G. Tobac MLA Yellowknife Centre F. T'Selcie P. Martel Chief, Fort Good Hope Chief, Hay River Dene Band I. T'Setta F. Martel Chief, Yellowknife

V. Menacho R. Whitford

D. Menicoche F. Widow

B. rlenicoche P. Wright Chief, Fort Norman R. Michaud E. Yakalaya J. Migwi Chief, Fort Rae A. Yallee

B. Moffat Government (Federal, Territorial, Municioal) I I G. Monuik M.R. Ballantyne J. rJeyelle Mayor City of Yellowknife B. Uiziol M. Barnett D. Prima Environmental Assessment Div is ion Northern Affairs Program D. Proctor Indian and Northern Affairs

D. Rose G. Braden Minister of Economic Development A. Seniantha and Tourism GNWT A. Sexsnith S. Brooks J. Shae Counsellor Town of Hay f?iver N. Sibbeston MLA Mackenzie Liard J. Cinq-Mars Archaeological Survey of Canada D. Sonfrere R. Crossley L. Sorensen Deputy Minister MLA Yellowknife South Health and Social Services GNWT - 90 -

T.M. Dick V. Schilder Hydraulics Division Cnvironnental Assessment Division National Kater Research Institute Northern Affairs Program Environment Canada Indian and Northern Affairs

L. Elkin P. Scott [7eputy Minister Federal Environmental Assessment Local Government Review Office GNU (Reading brief submitted by Energy, Mines & Resources) H. Lawler Pcgional Director General 5.3. Sgguin Fisheries and Oceans Director General Arctic Transportation Directorate M. Lawcnce Transport Canada Freshwater Institute Fisheries and Oceans R.G. Skinner Head, Environmental Affairs A.Ii.Macpherson Energy, Mines & Resources Canada l?egional Director General Environment Canada N. Simmons Assistant Deputy Minister F. McFarland Department of Renewable Resources Environmental Assessment Division GNWT r-lorthern Affairs Program Indian and Northern Affairs 3. Stein Freshlrater Institute S. Meldrum Fisheries and Oceans Assessment Officer Northern Pipelines 0. Watsyk Indian and Northern Affairs Mayor, Fort Simpson

R. Moore E. Weick Environmental Protection Service Chief, Assessment Division Environment Canada Northern Pipelines Indian and Northern Affairs t?. Morrison Deputy Minister D. Weisbeck Economic Development & Tourism Chief, Planning p1 Resource GNWT Development Division Economic Development and Tourism KG. Morrison GNWT Chief Environmental Assessment Division J. Whelly Northern Affairs Program Administrative Assistant Indian and Northern Affairs Town of I-lay River

F. Norwegian E. Wilson Manager Research Meteorologist Canada Employment Centre Atmospheric Environment Service Environment Canada - 91 -

J.R. Witty D. McNeil1 Chief, Manpower and Development Division President Economic Development and Tourism Hay River Chamber of Commerce GNWT W. McTaggart S.C. Zoltai Metis Association Canadian Forestry Service Norman Wells Local 59 NWT Environment Canada H. Norwegian Groups, Associations, & Industry Vice President, Dene Nation

M.C. Arnett W.M. Pierce Project Manager Project Manager Esso Resources Canada Ltd. Interprovincial Pipe Line (N.W.) Ltd.

J. Blackstock J. Sexsmith NWT Grade Stamping Agency Circle 3. Ltd. Norman Wells R. Coulthard Norwel Developments Technical Advisors to Panel Norman Wells Kloepfer, Coles, Nikiforuk, Pennell T.D. Daniels Associates Limited NWT Chamber of Mines Petroleum Consultants, Calgary Yellowknife, NWT D. Sherstone S. Dean National Hydrology Research Institute Stan Dean and Sons Ltd. Environment Canada

L. Dodman M.W. Smith Metis Association Peter 3. Williams & Associates Limited Hay River Local 51 J. K. Torrance G. Erasmus Peter J. Williams & Associates Limited President Dene Nation R.O. Van Everdingen National Hydrology Research Institute F. Hasey Environment Canada Hay River and Area Economic Development Corporation P.J. Williams Peter 3. Williams and Associates Limited R. Hill Inuvik and District Chamber of Commerce H.B. Hawthorn

J. MacQuarrie Canadian Mental Health Association Northwest Territories - 32 -

APPENDIX IV - ERIEFS SUBMITTED TO THE 4. Presentation to the EARP Hearings by ENVIRONMENTAL ASSESSMENT 1iic Coulthard, ijorwel Developments PANEL NORMAN WELLS PROJECT Limited, Norman Wells, N.W.T.

1. A Compendium including: 5. Submission by Mrs. Dora Duncan. a) A Summary of Issues on which the Panel Requests Further Informa- G. Submission by Mr. Barney Cooper. tion. 7. Submission by Mrs. Georgie Monuik. b) Peter J. Williams & Associates Limited, Ottawa, Ontario, memo- 8. Submission by S.V.C. Latour, resident randum regarding Deficiencies in of Hay River, N.W.T., August 18, Environmental Impact and Other 1980. Documentation Submitted to Panel. 9. Submission to the Environmental Assessment Panel from the Hay River c) Jacques Cinq-Mars, Chairman, and Area Economic Development Rescue Archaeology Programme, Corporation, Hay River, N.W.T. Archaeological Survey of Canada, August 18, 1980. National Museums Canada, initial comments on Historical Resources: 10. Presentation to the Environmental Archaeology. Assessment Panel submitted by the Town of Hay River, N.W.T., August 18, d) Dr. R.O. van Everdingen, Hydrol- 1980. 0~ Research Division, National Hydrology Research Institute, 11. A petition from the citizens of Hay Calgary, Alberta, comments on the River and surrounding areas. Environmental Impact Statement for the Norman Wells Oil Field 12. Submission for the Northwest Territo- Expansion and Pipeline Projects. ries Grade Stamping Agency, John R. Elackstock, Secretary Manager, Hay e) D. Sherstone, Senior Advisor on River, N.W.T. August 18, 1980. Ice Conditions, Northern tiydrol- ogy Section, Snow and Ice Divi- 13. Submission by Alex Cazon. sion, N.H.R.I., Environment Canada. 14. Submission by the Village of Fort Simpson, August 20-21, 1980. 2. Esso Resources Canada Limited and Interprovincial Pipe Line (NW) 15. Government of the Northwest Territo- Limited response to Norman Wells ries Position Paper on the Norman Oilfield and Pipeline Environmental Wells Expansion Project presented by Assessment Panel on: "A Summary of the Honourable George Braden, Leader, Issues on which the Panel Requests Elected Executive, August 21, 1980. Further Information". 16. An Additional Request from the Panel 3. Draft presentation to the EARP Panel for Further Information on the Proj- at Fort Norman, N.W.T., August 11, ect, August 22, 1980. 1980, by Rodcrick A. Hardy. - 93 -

17. Csso Resources Canada Limited, Mr. Department of Fisheries and Oceans, M.C. Arnett, -Response to Additional July 4, 1980. Request from the EAR? Panel for Information on Product Marketing and 2G. Submission on the Application of SUPPlY* Interprovincial Pipe Line (W Limited of an Oil Pipeline from 18. Presentation to EARP Hearing, Norman Wells, N.W.T. to Zama, Yellowknife, N.W.T., by Bob Alberta, by Carson tf. Templeton, OC, MacQuarrie, August 25, 1980. P. Eng.

19. Canadian Mental Health Association, 27. Presentation to the Norman Wells EARP Northlrest Territories Brief presented Panel, Opening Statement on the EIS, to the Environmental Assessment Volume 4, DIAND, August 25, 1980. Reviecr Panel by Jo MacQuarric, Yelloklknife, N.W.T., August 25, 28. Department of Fisheries and Oceans re 1980. two changes made to their Position Statement, Dr. H. Lawlcr, 20. Inuvik and District Chamber of Yellowknife, N.W.T., August 25, Com;lerce submission to the Norman 1980. We 1 1 s Pipeline Environmental Assessment Panel by Dick Hill. 29. Department of Fisheries and Oceans, synopsis of Opening Statement. 21. Submission to the Environmental Assessment Review Panel by Lynda 30. Department of Fisheries and Oceans Sorenson, Member Legislative Opening Statement to the Environ- Assembly, Yellobrknife South, mental Assessment Panel on the Norman August 25, 1980. Wells Oilfield Expansion and Pipeline Project, Yellowknife, August, 1980. 22. Submission to the Norman Wells Pipeline Environmental Assessment 31. Amplification of the Revielcr of the Panel by the City of Yellowknife. EIS submitted by the Department of the Environment and the Department of 23. Presentation to the EARP Panel by Rod Fisheries and Oceans on July 4, 1980, Morrison, Alternate Chairman of the P.M. Dick, National Water Research Resource Development Committee, Institute. C.N.W.T. 32. Presentation Regarding Employment as 24. Opening Statement to the Environ- it Pertains to the Development/Non- mental Assessment Panel on the Norman Development of the Norman Wells Oil Wells Oilfield and Pipeline Project Field by J.R. Witty, Manpower by A.H. MacPherson, Regional Director Development Division, GNWT, August General, Environment Canada, It'estern 28, 1980. and Northern Region. 33. Presentation to the Environmental 25. Reviekr of the EIS submitted in sup- Review Panel on the Norman Wells port of the Norman Wells Oil Field Expansion Project presented by Don Expansion and Pipeline Project, Weisbeck, Chief, Planning 8 Resource Department of the Environment and Development Division, Department of - 94 -

Economic Development ?t Tourism, 42. Address and Report to the Environ- Government of the Northwest Territo- mental Impact Assessment Review! Panel ries, August 28, 1980. Hearing, Yellowknife, N.W.T., by Peter J. Williams Y; Associates Lim- 34. Submission of the Departments of ited, August 2G, 1980. Health and Social Services, Govern- ment of the Northwest Territories, to 43. Presentation by Rod Morrison, Deputy the Norman Wells Oilfield and Pipe- Minister of Economic Development and line Environmental Assessment Panel Tourism to the Environmental Assess- . by Ron Crossley, Deputy Minister of ment Revie\/ Panel. Health and Social Services, Yello~knife, N . W. T . , August 29, 44. Presentation to the Environmental 1980. . Assessment Review Panel made by Mayor M.A. Ballantyne, City of Yello\lknife, 35. Submission of the Department of Local August 29, 1980. Government, Government of the N.W.T., to the Florman Wells and Pipeline 45. Analysis of the Socio-Economic State- Environmental Assessment Panel by ment of the Norman Wells Oilfield Larry Elkin, Deputy Minister of the Expansion and Pipeline Project by Department. Indian and Inuit Affairs Program, Department of Indian Affairs and 36. Interprovincial Pipe Line 0~~ 4 > Northern Development, July 31, 1980. Limited Socio-Economic Summary Statement, Yellocrknifc, August 29, 46. Brief submitted to the Environmental 1980. Assessment Panel by R.G. Skinner, Head, Office of Environmental 37. RevieiJ of the Socio-Economic Impact Affairs, Energy, Mines and Resources, Statement of the Norman Wells Project Canada. by H.R. Hawthorn. 47. Erief submitted to the Environmental 38. Letter received from L.R. Montpetit, Assessment Panel by Kloepfer Coles Northern Transportation Company Uikiforuk Pcnnell Associates Limited, Limited, Edmonton, Alberta, re the Petroleum Consultants, Calgary, EIS Norman Wells Pipeline Project. Alberta.

39. F?oyal Canadian Mounted Police 48. Supplementary Statement to the tnvi- submission by A.H. Ruttler, Chief ronmental Assessment Panel by the Superintendent, CorrPnanding Officer. Environmental Protection Service, Environment Canada. 40. Department of Indian Affairs and Northern Development - Opening 49. Closing Statement to the Environ- Remarks, Dr. R. Morrison, August 14, mental Assessment Panel by the 1980. Department of the Environment, Yellowknife, N.W.T., August 29, 41. Review Corrments on the Environmental 1980. Impact Statement for the Norman Wells Oilfield Expansion and Pipeline Proj- 50. Review Corrments on the Regional _ ect by Northern Affairs Program, Socio-Economic Impact Assessment for Department of Indian Affairs and the Norman Wells Oilfield Expansion Northern Development, July 29, 1980. and Pipeline Project by Northern - 95 -

Affairs Program, Department of Indian Government of 1Jorthwest Territories, Affairs and !Jorthern Development. Yellowknife, N.W.T.

51. Questions from the Norman Wells 59. N.W.T. Chamber of Mines, Yellowknife, Environmental Assessment Panel, N.W.T., brief by T.D. Daniels, August August 28, 1980. (Esso response, 27, 1980. August 29, 1980, at the technical meeting). 60. Additional comnents on the iJorman Wells EIS - Historical Resources: 52. Interprovincial Pipe Line (NW) Archaeology, Jacques Cinq-Mars, Limited Geotechnical Summary State- Archaeological Survey of Canada, ment read to the Panel, August 27, August 29, 1980. 1980. 61. Archaeological Concerns, Interprovin- 53. Letter from 3. Jacques SGguin, cial Pipe Lines (NW) Limited reply to Director General, Arctic iransporta- letter and telex from Jacques tion Directorate, Transport Canada, Cinq-Mars, Chairman, Rescue Archaeol- on the iiorman Wells Oilfield and ogy Prograrrme, Archaeology Survey of Pipeline Project. Canada, June 24 and August 29, 1980.

54. Submission of the Department of G2. Submission on behalf of the Atmo- Renewable Resources, Government of spheric Environment Service of the the N.W.T., to the Norman Wells Department of the Environment, and Oilficld Expansion Pipeline Environ- Esso Resources Canada Limited mental Assessment Panel by Norman Response to the Atmospheric Environ- Simmons, Assistant Deputy Minister of ment Service submission. the Department. 63. Esso Resources Canada Ltd. Response 55. Additional Request for Information to Submission on Behalf of the Atmo- from the Norman Wells Environmental spheric Environment Service of the Assessment Panel, August 1980. Department of the Environment to the Norman Wells Oilfield Expansion and 56. Esso Resources Canada Limited and Pipeline Project Environmental Interprovincial Pipe Lines (NW) Lim- Assessment Panel. ited response to: EARP Panel Request for Additional Information of the G4. Statement by C.H. Templeton on the Norman Wells Project, August 11, subject of the Energy, Mines and 1980. Resources brief submitted to the Panel. 57. Interprovincial Pipe Lines w>I Limited Response to Request for 65. Final Statements from the Department Additional Information from the of Renewable Resources to the Norman Panel, August 1980. Wells Oilfield Expansion/Pipeline Environmental Assessment Panel. 58. Potential Impacts on the Community by M.C. Arnett of Esso Resources Canada 66. Interprovincial Pipe Lines (NN ) Limited, to Mr. A.A. Menard, Chief, Limited, Environmental Summary State- Town Planning and Lands Division, ment, W.M. Pearce, Yellowknife, Department of Local Government. N.W.T., August 29, 1980. - 96 -

67. Letter from M.C. Arnett, Esso Request for Additional Information .on Pesources Canada Limited rc: DOE Toxic & Hazardous Materials Including Intervention Dealing with the F4cthods of Handling SI Disposal of Integrity of Artificial Islands - Dr. These Substances, September 9, 1980. T. Milne Dick. 72. Response to the Panel's Questions to 68. Letter from J.J.A. de Jong, P. Eng., the Department of Reneirable for M.C. Arnett, P. Eng., Esso Resources, G.N.W.T., October 1980. Resources Canada Limited, re: DOE Intervention by Dr. T. Milne Dick. 73. Hay River and Area Economic Develop- ment Corporation, Supplementary 69. Submission made to the Panel by Remarks to August 18, 1980, Harriette Ahnassay, Assumption, Submission. Alberta, September 1, 1980.

70. Letter from W.M. Pearce, Interprovin- All of the above Submissions to the Panel cial Pipe Lines (NW) Limited, re: and the Panel's Requests for Further Dene Tha Meeting, September 15, 1980, Information are available from the at High Level, Alberta. Federal Environmental Assessment Revie\J Office, Hull. 71. Esso Resources Canada Ltd. Supple- mentary Response to EARP Panel - 97 -

APPENDIX V

TECHNICAL MEETINGS AGENDA NORMAN WELLS ENVIRONMENTAL ASSESSMENT PANEL EXPLORER HOTEL, YELLOWKNIFE, N.W.T.

Monday, August 25 7:30-10:00 P.M. Opening Statements and Overview! Briefs

Tuesday, August 26 1:30-5:oo P.M. Geotechnical and Terrain Subjects

7:30-10:00 P.M. Hydrology, Ice Conditions

Wednesday, August 27 1:30-500 P.M. Land Use, Wildlife

7:30-10:00 P.M. Fisheries

Thursday, August 28 1:30-5:OO P.M. Contaminants and Pollution Control, Oil Spill Clean-up, Noise Issues

7:30-1O:OO P.M. Socio-economic Issues

Friday, August 29 1:30-5:00 P.M. Socio-economic Issues

7:30-10:00 P.M. Socio-economic Issues and Closing Statements - 98

APPENDIX VI - ACKNOWLEDGEMENTS Environmental Protection Service, Yellowknife for their co-operation, The Panel wishes to thank all those who assistance and logistical support during participated in the public review of the its review of the project. Norman Wells Oilfield Expansion and Pipe- line Project. The information the Panel Credit for the photographs used in the received from the public, Federal and report are listed below: Territorial Government agencies, community councils, Panel Advisors and The Hub, Hay River, N.W.T. Proponents was appreciated. Bobbi Lambright Bob Greyell The Panel wishes to thank the representa- Alan Heginbottom tives of the media for the radio and newspaper coverage during the public Finally, the Panel thanks its staff, meetings. Reporting in the Slavey and technical advisors and the administra- Dogrib languages allowed people in the tive, clerical and secretarial staff of native communities to follow the meetings the Federal Environmental Assessment and was especially appreciated. Review Office for their dedicated assistance in carrying out this review. The Panel also wishes to thank the Department of Information, GNWT and the