Teck Resources Limited Responses to Joint Review Panel Information Request Package 5 – Socio-economics May 2017

Teck Resources Limited Responses to Information Request Frontier Oil Sands Mine Project Joint Review Panel Package 5

Table of Contents

INFORMATION REQUEST 5.1 ...... 5-1 Response 5.1a ...... 5-2 Response 5.1b ...... 5-10

INFORMATION REQUEST 5.2 ...... 5-14

INFORMATION REQUEST 5.3 ...... 5-24 Response 5.3a ...... 5-24 Response 5.3b ...... 5-39

INFORMATION REQUEST 5.4 ...... 5-48 Response 5.4a ...... 5-50 Response 5.4b ...... 5-52 Response 5.4c ...... 5-54 Response 5.4d ...... 5-54

INFORMATION REQUEST 5.5 ...... 5-55 Response 5.5a ...... 5-56 Response 5.5b ...... 5-61

INFORMATION REQUEST 5.6 ...... 5-96 Response 5.6a ...... 5-97 Response 5.6b ...... 5-100 Response 5.6c ...... 5-103

INFORMATION REQUEST 5.7 ...... 5-106 Response 5.7a ...... 5-108 Response 5.7b ...... 5-118 Response 5.7c ...... 5-118

INFORMATION REQUEST 5.8 ...... 5-120 Response 5.8a ...... 5-120 Response 5.8b ...... 5-121 Response 5.8c ...... 5-125

INFORMATION REQUEST 5.9 ...... 5-125 Response 5.9a ...... 5-126 Response 5.9b ...... 5-126 Response 5.9c ...... 5-130 Response 5.9d ...... 5-132

INFORMATION REQUEST 5.10 ...... 5-137 Response 5.10a ...... 5-137 Response 5.10b ...... 5-142

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Response 5.10c ...... 5-142 Response 5.10d ...... 5-143

INFORMATION REQUEST 5.11 ...... 5-144 Response 5.11a ...... 5-145 Response 5.11b ...... 5-145

INFORMATION REQUEST 5.12 ...... 5-145 Response 5.12a ...... 5-146 Response 5.12b ...... 5-148 Response 5.12c ...... 5-150 Response 5.12d ...... 5-151

INFORMATION REQUEST 5.13 ...... 5-155 Response 5.13a ...... 5-156 Response 5.13b ...... 5-162 Response 5.13c ...... 5-163 Response 5.13d ...... 5-163 Response 5.13e ...... 5-164

INFORMATION REQUEST 5.14 ...... 5-166 Response 5.14a ...... 5-166 Response 5.14b ...... 5-176

INFORMATION REQUEST 5.15 ...... 5-177 Response 5.15a ...... 5-177 Response 5.15b ...... 5-177 Response 5.15c ...... 5-177 Response 5.15d ...... 5-177

List of Tables Table 5.1a-1: Economic Scenarios with Current Alberta and Federal Carbon Pricing – Phase 1 ...... 5-7 Table 5.1a-2: Economic Scenarios with Current Alberta and Federal Carbon Pricing – Phase 2 ...... 5-8 Table 5.1a-3: Economic Scenarios with Current Alberta and Federal Carbon Pricing – Phase 1 and Phase 2 ...... 5-9 Table 5.1b-1: Economic Scenarios without Current Alberta and Federal Carbon Pricing – Phase 1 ...... 5-11 Table 5.1b-2: Economic Scenarios without Current Alberta and Federal Carbon Pricing – Phase 2 ...... 5-12 Table 5.1b-3: Economic Scenarios without Current Alberta and Federal Carbon Pricing – Phase 1 and Phase 2 ...... 5-13 Table 5.2-1: Effects of the 2016 Fort McMurray Wildfire on Regional Socio-Economic Conditions ...... 5-16 Table 5.4a-1: Reclamation and Closure Cost Detail ...... 5-51

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Table 5.4b-1 Cost Estimate for Maximum Liability Scenario (Mine Closure in 2037) ...... 5-53 Table 5.5a-1: Topics of Interest to Potentially Affected Indigenous Communities Addressed in the Assessment and SIR/SOC Responses ...... 5-58 Table 5.5b-1: Information Provided by Public Service Providers Related to Key Socio- Economic Concerns and Interests ...... 5-61 Table 5.5b-2: Socio-Economic Areas of Interest and Sources of Information ...... 5-63 Table 5.5b-3: Health and Social Services and Identified Concerns in the Region ...... 5-65 Table 5.5b-4: Community Health Concerns Related to Oil Sands Activity...... 5-68 Table 5.5b-5: Potential Effects of Increased Participation in the Wage Economy ...... 5-69 Table 5.5b-6: Education Service Delivery and Identified Issues in the Region ...... 5-72 Table 5.5b-7: Accountability Pillar Survey Results (Three-Year Average) ...... 5-76 Table 5.5b-8: NAABA Member Companies by Community ...... 5-78 Table 5.5b-9: Labour Force and Business Development Services and Identified Issues in the Region ...... 5-81 Table 5.5b-10: Households Income, Income Sources and Distribution in the RSA ...... 5-88 Table 5.6a-1: Value of Country Foods to Indigenous Communities ...... 5-98 Table 5.6b-1: Summary of Country Food Usage by Indigenous Communities in the RSA...... 5-101 Table 5.8-1: Updated Project Phase 1 Traffic Estimates ...... 5-123 Table 5.8-2: Updated Project Traffic Effects ...... 5-124 Table 5.12b-1: Issue or Barrier to Female Employment and Teck’s Approach to Addressing the Issue ...... 5-148 Table 5.12c-1: Licensed Child Care Spaces Fort McMurray ...... 5-150 Table 5.13a-1: Potential Impacts of FIFO Arrangements ...... 5-158 Table 5.14a-1: Project Mitigation, Management and Monitoring – Housing ...... 5-167 Table 5.14a-2: Project Mitigation, Management and Monitoring – Social Infrastructure ...... 5-167 Table 5.14a-3: Project Mitigation, Management and Monitoring – Transportation ...... 5-169 Table 5.14a-4: Project Mitigation, Management and Monitoring – Municipal Infrastructure and Services ...... 5-170 Table 5.14a-5: Project Mitigation, Management and Monitoring – Employment, Business, and Training Opportunities ...... 5-171 Table 5.14a-6: Project Mitigation, Management and Monitoring – Fly-in/Fly-Out ...... 5-173 Table 5.14a-7: Project Mitigation, Management and Monitoring – Culture ...... 5-174

List of Figures Figure 5.1a-1: World Oil Demand and Price by Scenario ...... 5-4 Figure 5.3a-1: Band Housing as a Proportion of Total Housing ...... 5-27 Figure 5.3a-2: Homeownership Rates ...... 5-30 Figure 5.3a-3: Households in Crowded Conditions ...... 5-32 Figure 5.3a-4: Incidence of Indigenous Households in Older Housing Stock ...... 5-33 Figure 5.3a-5: Incidence of Households in Dwellings Requiring Major Repair ...... 5-34 Figure 5.3a-6: Incidence of Households in Unsuitable Housing ...... 5-35 Figure 5.3a-7: Average Cost of Rental and Ownership Housing ...... 5-36 Figure 5.3a-8: Housing Affordability ...... 5-37 Figure 5.3b-1: Population Trends in Rural Communities ...... 5-40 Figure 5.3b-2: Mobility Trends in the Region ...... 5-42 Figure 5.3b-3: Oil-Sands-Related Effects on Regional Population ...... 5-43 Figure 5.5b-1: Community Well-being Index Results ...... 5-71 Figure 5.5b-2: Education Attainment Levels in the RSA ...... 5-74 Figure 5.5b-3: Increase in High School Attainment for Indigenous Rural Communities (2006-11) ...... 5-75 Figure 5.5b-4: Labour Force Participation Rates for Indigenous Populations ...... 5-83 Figure 5.5b-5: Employment Rates for Indigenous Populations ...... 5-84

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Figure 5.5b-6: Unemployment Rate for Indigenous Populations ...... 5-85 Figure 5.5b-7: Employment in Energy and Construction...... 5-86 Figure 5.5b-8: Employment in Public Administration ...... 5-86 Figure 5.7a-1: Linkages between Traditional Land Use and Socio-Economic Values ...... 5-110

List of Appendices Appendix 5.7 Community Specific Socio-Economic Assessments Appendix 5.9-1 Teck Indigenous Policy Appendix 5.9-2 Teck Charter of Corporate Responsibility Appendix 5.9-3 Teck Code of Sustainable Conduct Appendix 5.9-4 Teck Code of Ethics Appendix 5.9-5 Teck Recommendations Protocol for Suppliers Appendix 5.9-6 Teck’s Inclusion and Diversity Policy Appendix 5.9-7 Teck 2016 Sustainability Report Appendix 5.10 Teck Anti-Corruption Policy Appendix 5.12 Teck Women in Mining Survey Results Appendix 5.15 Draft Socio-economic Monitoring Plan

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5.1. In Volume 1, Section 4.1.1 of the Project Update Teck states the Frontier Oil Sands Mine Project (the Project), will be developed in two phases, with the first phase planned to start-up in 2026 and Phase 2 planned to start-up in 2037. In Volume 1, Section 16.3.3.2, of the Project Update, Teck states "[t]he total tax and royalty estimate of $66 billion is roughly $4.9 billion (7%) lower (more conservative) than the estimate in the Integrated Application.

Although total production over the life of the Project is higher than estimated in the Integrated Application, total royalties payable as estimated in 2015 are expected to be lower. This difference is primarily due to revised assumptions regarding the long-range average price of West Texas Intermediate ($95 per barrel versus $100 per barrel) and lower estimated construction costs. Actual revenues accruing to government will depend on the economic conditions, and tax and royalty regimes in place throughout Project operations."

In its October 26, 2016 response letter to the JRP regarding the public comments (CEAR #260), Teck offered to provide an "an update of socio-economic effects of the Project based on a lower long-term oil price to provide an estimate of socio-economic effects over a potential range of future oil prices."

Since the June 2015 Project Update both Alberta and Canada have also announced plans to implement a tax on carbon emissions.

Provide an update of socio-economic effects under each of two scenarios described below:

a) Incorporating the current Alberta and Federal carbon pricing policies:

i. Provide the Low, Reference and High long-range average oil price scenario expected over the life of the Project.

ii. Provide the carbon tax or pricing scenario expected over the life of the Project.

iii. Provide justification for the oil and carbon price scenarios used over the life of the Project.

iv. Fill out tables 1 & 2 below, with corresponding effects.

v. Provide the Net Present Value calculation methodology used.

b) Without incorporating the current Alberta and Federal carbon pricing policies:

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i. Provide the Low, Reference and High long-range average oil price scenario expected over the life of the Project.

ii. Provide justification for the oil price scenarios used over the life of the Project.

iii. Fill out table 3 & 4 below, with corresponding effects.

iv. Provide the Net Present Value calculation methodology used

Response: a) i. The reference long term oil price scenario over the life of the Frontier Oil Sands Mine Project (the Project) is US$95 (United States [US] dollar) per barrel of West Texas Intermediate (WTI) benchmark crude oil at Cushing, Oklahoma. It is assumed that the US$/CAN$ (Canadian dollar) exchange rate is 1.11.

The low long term oil price scenario over the life of the Project is US$76.51 per barrel of WTI benchmark crude oil at Cushing, Oklahoma. It is assumed that the US$/CAN$ exchange rate is 1.25.

The high long-range average oil price scenario over the life of the Project is US$115.00 per barrel of WTI benchmark crude oil at Cushing, Oklahoma. It is assumed that the US$/CAN$ exchange rate is 1.05.

Justification for each oil price scenario is discussed in part (iii) below.

ii. The Specified Gas Emitters Regulation is the current greenhouse gas (GHG) emission regulation for Alberta. The regulation requires that large emitters establish their baseline emission intensity and either (i) reduce this intensity by 20% over six years, (ii) pay into a technology fund, or (iii) purchase carbon credits at a rate of $30/tonne beginning in 2018. Of these three compliance options, only the $30/tonne contribution rate to the technology fund is known (i.e., the cost of abatement technology is variable and carbon credits trade for less than the contribution rate). The contribution rate therefore establishes the maximum cost of compliance and has thus been used to develop the following carbon price scenario for the Project:

GHG emission intensity (see Volume 1, Section 14.4.2.5 of Project Update):

38.4 kg CO2e/bbl / 1,000 kg/tonne = 0.0384 tonnes CO2e/barrel

GHG emission intensity after 20% reduction:

0.0384 tonnes CO2e/barrel – 0.2(0.0384 tonnes CO2e/barrel) = 0.0307 tonnes CO2e /barrel

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Required reduction in emission intensity:

0.0384 tonnes CO2e/barrel - 0.0307 tonnes CO2e/barrel = 0.0077 tonnes CO2e/barrel

Cost of compliance:

0.0077 tonnes CO2e/barrel x $30/tonne = $0.23/barrel

For carbon pricing, this scenario conservatively assumes that there are no GHG emission intensity improvements made over the life of the Project. For the reasons identified above and in the response to part (iii), the $0.23 per barrel carbon pricing scenario is the approach that has been used to evaluate the carbon tax cost for the Project.

As shown in Table 5.1a-3, when the baseline setting period and timing of Phase 1 and Phase 2 are considered, the carbon tax cost for the Project reduces to $635 million, or approximately $0.20 per barrel.

iii. Basis for Carbon Price Scenario

Although the governments of Alberta and Canada have announced plans to implement a tax on carbon emissions, regulations that define how the tax will be applied to oil sands operations have not yet been provided. Despite this, some guidance on Alberta’s future regulations is available from the Alberta Climate Leadership Report to Minister, Alberta Climate Change Office (ACCO) website and Canada’s Mid-Century Long-Term Low-GHG Development Strategy. These documents indicate that:

• Sector-specific output-based allocations of emissions rights should be used to mitigate competitiveness and employment impacts in trade-exposed sectors (GOA 2015). The ACCO has convened several workshops to explore drivers of competiveness in Alberta’s trade exposed sectors. Useful information is being used to inform an ACCO competiveness study that will help establish output based allocations for GHG’s in the oil sands sector. Regulations are expected in 2017 that balance the need for GHG emission reductions in Alberta’s with the imperative to prevent carbon leakage to other jurisdictions.

• Under the Climate Leadership Report, it is proposed that new projects that are top- quartile or better for emissions performance will see improved project economics relative to the status quo and best-in-class projects may be advantaged under the proposed regulatory treatment (GOA 2015). See the response to Joint Review Panel (JRP) information request (IR) 3.15 for a discussion of why the Project constitutes a best in class oil sands mine.

• In Canada, there are challenges to reducing GHG emissions from heavy industry, primary extraction and certain applications in the transportation sector. In the short- to-medium term, there might be more cost effective GHG reduction opportunities in other sectors or regions, where abatement technologies are more effective or lower- GHG alternatives exist (GOC 2016) This statement recognizes the need to take a risk

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based approach to GHG abatement that considers the trade exposed nature of primary extraction industries such as oil.

For the preceding reasons and in the absence of clear GHG emission reduction plans from several of the world’s major oil producing nations against which Canada competes, the $0.23 per barrel carbon pricing scenario described in part (ii), which is based on the current Specified Gas Emitters Regulation in Alberta, is a reasonable approach used to evaluate the carbon tax for the Project for this JRP IR response.

Basis for Oil Price Scenarios

First oil production from the Project is planned for 2026, and production is expected for 41 years. Project socio-economics have been evaluated and assessed based on the best information available for oil prices during the Project’s operational period (2026 to 2066).

Teck used several independent, third-party global crude oil supply and demand models and price forecasts (e.g., the International Energy Agency [IEA], the United States Energy Information Administration) as guidance for evaluating, determining and assessing Project socio-economic effects.

The most recent oil pricing forecasts published in 2016 and 2017 continue to show long-term values in the range of US$75 to US$95 per barrel for 2025 and beyond. The world oil demand and price by scenario forecast from the International Energy Agency World Energy Outlook (IEA 2016) issued November 2016, for example, is shown in Figure 5.1a-1. The economic scenario used for the Project Update (average oil price scenario of US$95 per barrel WTI) aligns with the IEA (2016) New Policies Scenario.

Figure 5.1a-1: World Oil Demand and Price by Scenario

Source: © OECD/IEA 2016 World Energy Outlook, IEA Publishing. License: www.iea.org/t&c

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Teck also used low oil price case and high oil price case guidance from several independent, third-party global crude oil supply and demand models and price forecasts to determine the low oil price scenario of US$76.51 per barrel WTI and the high oil price scenario of US$115 per barrel WTI.

The New Policies Scenario outlined in Figure 5.1a-1 from IEA (2016) considers current and pledged policy direction as of mid-2016, including the Nationally Determined Contributions (NDCs) made under the Paris Climate Agreement. This scenario foresees a world that has started to bend the curve on emissions with a global temperature rise estimated to reach 2.7°C by 2100. Oil price forecasts under this scenario continue to show long-term values in the range of US$95 per barrel for 2025 and beyond. This aligns with the Reference Oil Price Scenario applied by Teck.

IEA’s 450 Scenario outlined in Figure 5.1a-1 sets out one possible pathway to transform global energy systems and lower carbon emissions to maintain global temperature rise to 2°C by 2100. The path to achieving this very ambitious scenario is uncertain, including factors that will shape energy efficiency and demand, energy mix and pricing. In the 450 Scenario, oil demand peaks by 2020 and by 2040 is more than 20 million barrels per day lower than today at 73.2 million barrels per day. Despite lower demand, high decline rates at existing fields and lower replacement capital investment rates provide a floor for average oil prices. Average oil prices rise from $73 in 2020 to $85 in 2030 before reaching $78 in 2040. This scenario aligns with the Low Price Scenario applied by Teck.

Teck recognizes that there are limitations to long-term oil price forecasts and expects there will be times over the Project life when oil prices will be higher or lower than these forecasts. Moreover, uncertainties in both oil demand and supply dynamics have been identified as forecast risks, with potential for both downside and upside price risk in IEA and other estimates. The long life of the Project in conjunction with its consistent rate of production and low cash operating costs makes the cyclical nature of oil prices more manageable than developments that have shorter lives and declining production rates. The advantage of a long life asset is that the operating life of the mine will likely include multiple price cycles, including periods of high commodity price that promote overall profitability. Once constructed, Teck believes the Project will be cash positive through the oil price cycles.

Another important factor with respect to Project economics is the fact that oil sands mining companies are continuing to find ways to become more efficient and reduce operating costs. Suncor, for example, in its Q1 2017 investor presentation showed that it has decreased its oil sands operations cash operating costs from $39.05 per barrel in 2011 to $22.55 in Q1 2017 (Suncor 2017). Teck’s ongoing investment in Canada’s Oil Sands Innovation Alliance (COSIA) will also continue to provide opportunities for improvement in environmental performance through collaborative action and innovation that will further reduce costs.

iv. An update of the socio-economic effects of the Project with current Alberta and federal carbon pricing is provided in Table 5.1a-1 (Phase 1 only), Table 5.1a-2 (Phase 2 only) and Table

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5.1a-3 (Phase 1 and 2). Table 5.1a-3 was not requested by this JRP IR but has been provided because it summarizes the overall Project economics.

The production volumes included in these tables reflect Teck’s total resource estimate for the Project of 3,220.5 million barrels of recovered bitumen. This estimate forms the basis upon which the Project was assessed (e.g., tonnes of ore mined, tonnes of ore processed). At the time the Project Update was submitted, the independent, third-party contingent resource estimate for the Project was 3,047 million barrels of recovered bitumen. As a result, this was the value that was disclosed in the Project Update for the total barrels of recovered bitumen. The reason for the difference in the barrels of recovered bitumen estimates was that the independent resource assessor discounted some barrels of recovered bitumen because of limited drilling data in some areas of the mine. As a result of completing some additional drilling in 2014 and updating the Project geology model in 2015, the independent resource assessor has increased its un-risked resource estimate for the Project to 3,184 million barrels of recovered bitumen, which is within approximately 1% of Teck’s estimate. Teck expects the estimates will continue to align further as future drilling is completed.

As indicated by the updated socio-economic results provided in Tables 5.1a-1 to 5.1a-3, the Project will be economically robust, financially viable and a strong contributor to the Albertan and Canadian economies under all scenarios.

v. The net present value (NPV) calculation methodology discounts all future cash flows at a rate of 8% back to 2026 when first production commences.

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Table 5.1a-1: Economic Scenarios with Current Alberta and Federal Carbon Pricing – Phase 1

Reference Reference Scenario Low Price High Price Low Price High Price Price Price Total NPV

Long range average oil price (US$/bbl West Texas Intermediate) 76.51 95.00 115.00 76.51 95.00 115.00 Production volumes (million bbls of recovered bitumen) 2,336.6 2,336.6 2,336.6 2,336.6 2,336.6 2,336.6 Exchange rate (US$/CAN$) 1.25 1.11 1.05 1.25 1.11 1.05 Provincial royalties (CAN$ million) 29,324 33,944 45,380 6,569 7,829 10,875 Federal income and capital taxes (CAN$ million) 8,332 8,685 10,116 1,933 2,059 2,514 Provincial income taxes (CAN$ million) 5,555 5,790 6,745 1,289 1,372 1,677 Municipal property taxes (CAN$ million) 2,788 2,788 2,788 814 814 814 Operations expenditure in Alberta (CAN$ million) (total includes 44,000 48,575 50,000 12,665 13,970 14,375 sustainable capital) Provincial and federal carbon tax (CAN$ million) 461 461 461 106 106 106 GDP (CAN$ million) *1,010 *1110 *1150 10,055 11,105 11,430 Multiplier - operations Household Income (CAN$ (includes sustaining capital) *520 *580 *600 5,220 5,760 5,930 million) GDP (CAN$ million) 9,000 9,000 9,000 4,610 4,610 4,610 Multiplier- construction Household Income (CAN$ (Total) 5,500 5,500 5,500 2,840 2,840 2,840 million) NOTES: * average annual. /bbl = per barrel; bbls = barrels; NPV = net present value; US$ = US dollar; CAN$ = Canadian dollar; GDP = gross domestic product.

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Table 5.1a-2: Economic Scenarios with Current Alberta and Federal Carbon Pricing – Phase 2

Reference Reference Scenario Low Price High Price Low Price High Price Price Price Total NPV

Long range average oil price (US$/bbl West Texas Intermediate) 76.51 95.00 115.00 76.51 95.00 115.00 Production volumes (million bbls of recovered bitumen) 883.9 883.9 883.9 883.9 883.9 883.9 Exchange rate (US$/CAN$) 1.25 1.11 1.05 1.25 1.11 1.05 Provincial royalties (CAN$ million) 11,092 12,840 17,166 1,274 1,518 2,109 Federal income and capital taxes (CAN$ million) 3,152 3,285 3,827 375 399 488 Provincial income taxes (CAN$ million) 2,101 2,190 2,551 250 266 325 Municipal property taxes (CAN$ million) 780 780 780 126 126 126 Operations expenditure in Alberta (CAN$ million) (including 16,500 18,300 18,875 2,535 2,800 2,885 sustainable capital) Provincial and federal carbon tax (CAN$ million) 174 174 174 20 20 20 Multiplier - operations (average GDP (CAN$ million) *370 *410 *420 2,010 2,230 2,295 annual, includes sustaining Household Income (CAN$ *190 *210 *220 1,025 1,135 1,170 capital) million) GDP (CAN$ million) 3,300 3,300 3,300 630 630 630 Multiplier - construction (Total) Household Income (CAN$ 2,000 2,000 2,000 390 390 390 million) NOTES: * average annual. /bbl = per barrel; bbls = barrels; NPV = net present value; US$ = US dollar; CAN$ = Canadian dollar; GDP = gross domestic product.

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Table 5.1a-3: Economic Scenarios with Current Alberta and Federal Carbon Pricing – Phase 1 and Phase 2

Reference Reference Scenario Low Price High Price Low Price High Price Price Price Total NPV

Long range average oil price (US$/bbl West Texas Intermediate) 76.51 95.00 115.00 76.51 95.00 115.00 Production volumes (million barrels of recovered bitumen) 3,220.5 3,220.5 3,220.5 3,220.5 3,220.5 3,220.5 Exchange rate (US$/ CAN$) 1.25 1.11 1.05 1.25 1.11 1.05 Provincial royalties (CAN$ million) 40,416 46,784 62,546 7,843 9,347 12,984 Federal income and capital taxes (CAN$ million) 11,484 11,970 13,943 2,308 2,458 3,002 Provincial income taxes (CAN$ million) 7,656 7,980 9,296 1,539 1,638 2,002 Municipal property taxes (CAN$ million) 3,568 3,568 3,568 939 939 939 Operations expenditure in Alberta (CAN$ million) (average 60,500 66,875 68,875 15,200 16,770 17,260 annual) Provincial and federal carbon tax (CAN$ million) 635 635 635 126 126 126 GDP (CAN$ million) *1380 *1520 *1570 12,065 13,335 13,725 Multiplier - operations (includes Household Income (CAN$ sustaining capital) *710 *790 *820 6,245 6,895 7,100 million) GDP (CAN$ million) 12,300 12,300 12,300 5,240 5,240 5,240 Multiplier - construction (Total) Household Income (CAN$ 7,500 7,500 7,500 3,230 3,230 3,230 million) NOTES: * average annual. /bbl = per barrel; bbls = barrels; NPV = net present value; US$ = US dollar; CAN$ = Canadian dollar; GDP = gross domestic product.

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b) i. See response to part (a), part (i).

ii. See response to part (a), part (iii).

iii. An update of the socio-economic effects of the Project with current Alberta and federal carbon pricing is provided in Table 5.1b-1 (Phase 1 only), Table 5.1b-2 (Phase 2 only) and Table 5.1b-3 (Phase 1 and 2). Table 5.1b-3 was not requested by this JRP IR but has been provided because it summarizes the overall Project economics.

The production volumes included in these tables reflect Teck’s total resource estimate for the Project: 3,220.5 million barrels of recovered bitumen. This estimate forms the basis upon which the Project was assessed (e.g., tonnes of ore mined, tonnes of ore processed). Although this estimate differs slightly from that disclosed in the Project Update, it aligns with a more recent independent, third-party contingent resource estimate for the Project and is therefore considered more appropriate for this JRP IR response (see the responses to part [a] and part [iv]).

As indicated by the updated socio-economic results provided Tables 5.1b-1 to 5.1b-3, the Project will be economically robust, financially viable and a strong contributor to the Albertan and Canadian economies under all scenarios.

iv. See responses to part (a) and part (v).

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Table 5.1b-1: Economic Scenarios without Current Alberta and Federal Carbon Pricing – Phase 1

Reference Reference Scenario Low Price High Price Low Price High Price Price Price Total NPV Long range average oil price (US$/bbl West Texas Intermediate) 76.51 95.00 115.00 76.51 95.00 115.00 Production volumes (million bbls of recovered bitumen) 2,336.6 2,336.6 2,336.6 2,336.6 2,336.6 2,336.6 Exchange rate (US$/CAN$) 1.25 1.11 1.05 1.25 1.11 1.05

Provincial royalties (CAN$ million) 29,465 34,098 45,558 6,595 7,859 10,913

Federal income and capital taxes (CAN$ million) 8,380 8,731 10,159 1,946 2,070 2,525 Provincial income taxes (CAN$ million) 5,587 5,820 6,773 1,297 1,380 1,684 Municipal property taxes (CAN$ million) 2,788 2,788 2,788 814 814 814 Operations expenditure in Alberta (CAN$ million) (average 44,000 48,575 50,000 12,665 13,970 14,375 annual) GDP (CAN$ million) *1,010 *1110 *1150 10,055 11,105 11,430 Multiplier - operations (includes Household Income (CAN$ sustaining capital) *520 *580 *600 5,220 5,760 5,930 million) GDP (CAN$ million) 9,000 9,000 9,000 4,610 4,610 4,610 Multiplier - construction (Total) Household Income (CAN$ 5,500 5,500 5,500 2,840 2,840 2,840 million) NOTES: * average annual. /bbl = per barrel; bbls = barrels; NPV = net present value; US$ = US dollar; CAN$ million = Canadian dollar in millions; GDP = gross domestic product.

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Table 5.1b-2: Economic Scenarios without Current Alberta and Federal Carbon Pricing – Phase 2

Reference Reference Scenario Low Price High Price Low Price High Price Price Price Total NPV Long range average oil price (US$/bbl West Texas Intermediate) 76.51 95.00 115.00 76.51 95.00 115.00 Production volumes (million bbl of recovered bitumen) 883.9 883.9 883.9 883.9 883.9 883.9 Exchange rate (US$/CAN$) 1.25 1.11 1.05 1.25 1.11 1.05 Provincial royalties (CAN$ million) 11,146 12,898 17,233 1,279 1,524 2,116 Federal income and capital taxes (CAN$ million) 3,170 3,303 3,843 377 401 490 Provincial income taxes (CAN$ million) 2,113 2,202 2,562 251 268 326 Municipal property taxes (CAN$ million) 780 780 780 126 126 126 Operations expenditure in Alberta (CAN$ million) (average 16,500 18,300 18,875 2,535 2,800 2,885 annual) GDP (CAN$ million) *370 *410 *420 2,010 2,230 2,295 Multiplier - operations (includes Household Income (CAN$ sustaining capital) *190 *210 *220 1,025 1,135 1,170 million) GDP (CAN$ million) 3,300 3,300 3,300 630 630 630 Multiplier - construction (Total) Household Income (CAN$ 2,000 2,000 2,000 390 390 390 million) NOTES: * average annual. /bbl = per barrel; bbls; = barrels; NPV = net present value; US$ = US dollar; CAN$ million = Canadian dollar in millions; GDP = gross domestic product.

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Table 5.1b-3: Economic Scenarios without Current Alberta and Federal Carbon Pricing – Phase 1 and Phase 2

Reference Reference Scenario Low Price High Price Low Price High Price Price Price Total NPV Long range average oil price (US$/bbl West Texas Intermediate) 76.51 95.00 115.00 76.51 95.00 115.00 Production volumes (million bbls of Recovered Bitumen) 3,220.5 3,220.5 3,220.5 3,220.5 3,220.5 3,220.5 Exchange rate (US$/CAN$) 1.25 1.11 1.05 1.25 1.11 1.05 Provincial royalties (CAN$ million) 40,611 46,996 62,791 7,874 9,383 13,029 Federal income and capital taxes (CAN$ million) 11,550 12,034 14,002 2,323 2,471 3,015 Provincial income taxes (CAN$ million) 7,700 8,022 9,335 1,548 1,648 2,010 Municipal property taxes (CAN$ million) 3,568 3,568 3,568 939 939 939 Operations expenditure in Alberta (CAN$ million) (average 60,500 66,875 68,875 15,200 16,770 17,260 annual) GDP (CAN$ million) *1380 *1520 *1570 12,065 13,335 13,725 Multiplier - operations (includes Household Income (CAN$ sustaining capital) *710 *790 *820 6,245 6,895 7,100 million) GDP (CAN$ million) 12,300 12,300 12,300 5,240 5,240 5,240 Multiplier - construction (Total) Household Income (CAN$ 7,500 7,500 7,500 3,230 3,230 3,230 million) NOTES: * average annual. /bbl = per barrel; bbls = barrels; NPV = net present value; US$ = US dollar; CAN$ million = Canadian dollar in millions; GDP = gross domestic product.

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References:

GOA (Government of Alberta). 2015. Climate Leadership Report to Minister. Available at: https://www.alberta.ca/documents/climate/climate-leadership-report-to- minister.pdf.

GOC (Government of Canada). 2016. Canada’s Mid-Century Long Term Low- Greenhouse Gas Development Strategy. Available at: http://unfccc.int/files/focus/long-term_strategies/application/pdf/canadas_mid- century_long-term_strategy.pdf.

IEA (The International Energy Agency). 2016. World Energy Outlook 2016. Available at: http://www.iea.org/newsroom/news/2016/november/world-energy-outlook- 2016.html.

Suncor (Suncor Energy Inc.). 2017. Suncor Investor. Investor Information. Published April 26, 2017. Available at: http://www.suncor.com/~/media/Files/PDF/ Investor%20Centre/Presentations%20and%20Key%20Dates/Investor%20Relati ons%20Presentations/2017/Q1-2017-Investor-Presentation-English.ashx?la=en- CA.

5.2 The 2016 Fort McMurray wildfire may have impacted a variety of socio-economic conditions including but not limited to housing availability and affordability; availability of direct, indirect and induced labour forces; quality of and access to health care; and other social infrastructure.

Discuss the impact of the 2016 Fort McMurray wildfire on relevant socio-economic conditions in the region, including specific impacts to Indigenous communities. If information is not publically available, provide an overview of any discussions with key social services providers that provide insight into socio-economic conditions following the fire. Incorporate the effects of the fire into the updated socio-economic assessment for the Project.

Response: BACKGROUND

In May 2016, residents of the Regional Municipality of Wood Buffalo (RMWB) were severely affected by a wildfire that forced the rapid evacuation of a reported 88,000 people, destroyed thousands of homes and other structures, and contributed to two traffic-related fatalities (AMA 2016, CBC 2017). Many communities were evacuated from:

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 Fort McMurray  Fort McKay

 Saprae Creek

 Anzac  Fort McMurray #468 First Nation (Gregoire Lake Reserves)

 Gregoire Lake Estates

Evacuated residents were forced to leave their homes and belongings on very short notice, creating considerable stress and anxiety during this time. Most residents began returning to their communities in summer 2016, although as of early 2017 some residents have chosen not to return. Residents who lost their homes are using temporary accommodation including rental properties, hotels and motels, motor homes and staying with family or friends in the region.

A natural disaster, such as a wildfire, can create immediate and major effects on socio- economic conditions in a region. How long those effects are experienced in a measurable way is very specific to the magnitude of the disaster, the capacity of responsible agencies and the resilience of the community itself. In the case of communities in the RMWB, the 2016 Fort McMurray wildfire had a profound and immediate effect as emergency response agencies and first responders undertook one of the largest evacuations in Canadian history. With the return of residents in June, and the re-establishment of many services by late 2016, many of the wildfire effects on socio-economic conditions shifted or dissipated.

CURRENT EFFECTS ON REGIONAL SOCIO-ECONOMIC CONDITIONS

Table 5.2-1 details the residual effects of the wildfire on regional socio-economic conditions as of early 2017. The effects of rebuilding efforts are discussed after the table. In some cases, the effects of the wildfire cannot be easily delineated from other factors affecting socio-economic conditions in the region, most notably the reduction in economic activity related to low oil prices, and associated effects on regional workforce requirements.

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Table 5.2-1: Effects of the 2016 Fort McMurray Wildfire on Regional Socio- Economic Conditions

Socio-Economic Indicators Wildfire Effects Population  The situation remains dynamic, but estimates as of late 2016 for the resident population in Fort McMurray is 72,000 to 74,000, a decrease of between 8% and 10% from the 2015 Municipal Census estimate of 80,500 (RMWB 2015). This estimate places the urban area roughly in line with census estimates from 2012, and below the estimated resident urban population of 76,000 in 2010 (RMWB 2010). This preliminary estimate takes into consideration the effect of both the 2016 Fort McMurray wildfire and the effect to regional employment, resulting from workforce reductions and improved operational efficiencies made by oil sands facilities and other companies during the recent economic downturn.  The economic downturn and wildfire are also anticipated to have had a dampening influence on population growth in rural communities. Several rural communities were evacuated (e.g., Fort McKay, Gregoire Lake Estates, Saprae Creek, Anzac) and some suffered wildfire damage (e.g., 86 structures in Saprae Creek were significantly damaged and roughly twelve structures in Anzac were lost [AMA 2016]). Specific population estimates for rural communities are not publicly available as of early 2017. Labour Force  The 2016 Fort McMurray wildfire has reduced the size of the local labour force because some residents have not returned to the region. Although the wildfire has reduced regional labour supply, changes in economic conditions have also reduced labour demand. For example, staffing reductions, efficiency restructuring and delays in major new investments or expansions by oil sands companies has led to an overall reduction in regional workforce requirements.  As of early 2017, uncertainty remains with respect to labour market conditions in the Wood Buffalo region. The Fort McMurray Chamber of Commerce, along with the RMWB and the Government of Alberta are supporting a study of labour market conditions in the area. The intention of this work is to identify current and future labour demand in Fort McMurray. The information collected in this study will be used in the creation of short-and long-term economic development plans for the region, including ongoing supports for local businesses. This information is expected to be available in the second quarter of 2017.

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Table 5.2-1: Effects of the 2016 Fort McMurray Wildfire on Regional Socio- Economic Conditions (continued) Socio-Economic Indicators Wildfire Effects Housing  The 2016 Fort McMurray wildfire is estimated to have destroyed more than 2,500 structures, and with an estimated insurance cost of $3.6 billion is the costliest natural disaster in Canadian history (AMA 2016; CBOC 2016). This damage was unevenly distributed. For example, within Fort McMurray, some neighbourhoods such as Waterways and Beacon Hill lost more than half their structures while other neighbourhoods were less affected (CMHC 2016a).  The reduction in housing supply resulting from the wildfire in 2016 did not reverse the downward trend in house prices seen in recent years in Fort McMurray. It is estimated that the average dwelling resale price (all types) in Fort McMurray dropped roughly 10% from $560,800 in 2015 to approximately $505,000 in 2016, while the average sale price of a single-family home dropped by 7%, from $695,000 to $645,000, during this same timeframe (CMHC 2016b; FMREB 2017). This continued decrease in house prices is likely attributable to the economic slowdown and other factors (e.g., mortgage rule changes [CBC 2017b).  The WBDHC, which provides social and affordable housing in the region, lost roughly 1% (10 out of 1257 units) of its affordable housing portfolio and half (16 out of 32 units) of its social housing portfolio. As of late 2016, WBDHC is looking into rebuilding its affordable housing units and is moving forward with plans to rebuild its social housing units (King 2016, pers. comm.). The WBDHC’s waiting list for housing was essentially zero prior to the fire, but has since grown to 32 clients as of late 2016. This is still well below many previous years’ numbers when the waiting list had well over 100 clients.  The wildfire destroyed two hotels in Fort McMurray, reducing available hotel/motel accommodation supply by roughly 10% to 15% (FMT 2016).  In the early stages of evacuation, many oil sands work lodges north of Fort McMurray were made available by companies as reception centres and welcomed displaced residents. However, many of these lodges were themselves later evacuated. By summer 2016 the vast majority of these lodges were re-opened. One 655-unit work lodge, owned by Horizon North Logistics, was destroyed by the fire. This represents a small fraction of the total Project accommodation capacity in the region. For example, in the 2015 Municipal Census approximately 123 work lodge facilities were enumerated with a total population count of over 38,000 people (RMWB 2015).

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Table 5.2-1: Effects of the 2016 Fort McMurray Wildfire on Regional Socio- Economic Conditions (continued) Socio-Economic Indicators Wildfire Effects Social  Demand on the region’s social infrastructure has been affected in the short-term by Infrastructure both the economic recession and 2016 Fort McMurray wildfire. Although the reduced population in 2016 served to decrease overall demands for social infrastructure, effects on both individuals and families related to the loss of jobs and homes has and will likely continue to place increased demands on selected social infrastructure providers including mental health services, food bank services and other social services (e.g., counselling [AMA 2016).  Effects from the wildfire on the physical condition of social infrastructure in the region was relatively small in comparison to effects on housing in the region.  Local health, police and emergency personnel played a key role in supporting evacuation from and re-entry to the community. These personnel were assisted by broader regional and provincial emergency response agencies and service providers. No health, police and emergency facilities were destroyed by the fire and police and emergency services both report that staff complements after the wildfire were adequate (Grainger 2017, pers. comm.; Tremblay 2016, pers. comm.). Following re-entry, health services faced increased demands, particularly from those seeking mental health and wellness support. Additional provincial resources from AHS were deployed to help assist with this demand (AMA 2016).  No schools were destroyed, although four schools in the neighbourhoods of Abasand, Beacon Hill and Waterways were damaged. At the beginning of the 2016/2017 school year, students who previously attended these damaged schools and who returned to the community after the wildfire were enrolled in other designated schools. By early 2017 all but one of these schools had been reopened (Tremblay 2016, pers. comm,; Grainger 2017, pers. comm.; Murrant 2017, pers. comm.).  A number of service delivery agencies in the region report that revenue streams have been affected by the 2016 Fort McMurray wildfire. Surveys of the social profit sector (e.g., social, recreation, arts and culture, education, health, children and youth services) conducted by FuseSocial in late 2016 found that roughly three- quarters of surveyed organizations had been adversely financially affected by the wildfire. Organizations reported a reduction in income-generating activities and a reduction in individual donations. In the very near term, organizations surveyed indicated that financial and human resources are the two greatest organizational needs (FuseSocial 2016). In addition to two surveys already conducted, FuseSocial plans another three surveys of the organizational capacities in the Wood Buffalo social profit sector.  The Government of Alberta and others are supporting the Red Cross Community Organizations Partnership Program, which provides grants to local charitable, non- governmental and Indigenous organizations assisting in the recovery of residents and the community (Red Cross 2017).  Along with the physical costs of the disaster, the 2016 Fort McMurray wildfire and associated evacuation is likely to leave an indelible imprint on the residents who lived through the traumatic experience. In early 2017, the Government of Canada announced seven research projects to be funded through a $3.4 million partnership between the Canadian Institutes of Health Research, the Canadian Red Cross, Alberta Innovates and other partners. These projects cover a range of issues including: understanding the mental health needs of the people of Fort McMurray, and studying the effects of the wildfire and evacuation on the psychological and emotional health of children and adolescents 5 to 18 years of age with a view to better understanding the factors that contribute to positive mental health and resiliency (CIHR 2017).

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Table 5.2-1: Effects of the 2016 Fort McMurray Wildfire on Regional Socio- Economic Conditions (continued) Socio-Economic Indicators Wildfire Effects Municipal  Critical public infrastructure, such as the water treatment and wastewater treatment Infrastructure and plant, was protected from wildfire damage (RMWB 2016). Services  The RMWB’s future fiscal position will be influenced by the 2016 Fort McMurray wildfire through lower property tax and user fee revenues related to a decreased population. The wildfire will also affect municipal expenses by either adding to current expenditures or displacing expenditures from other areas to support clean-up and rebuilding activities. Rebuilding of neighbourhoods damaged and destroyed by the wildfire will drive construction of associated municipal infrastructure, including water and wastewater lines, roadways and other public services.  In November 2016, the RMWB approved the Wildfire Recovery Plan to guide post-wildfire recovery budgeting and planning (RMWB 2016). The Recovery Plan is intended to guide recovery efforts, coordinate rebuilding efforts and enhance community-level resiliency.  In March 2017, the municipality approved a revised operating budget for 2017 that was roughly 9% lower than the initially proposed budget in late 2016 (RMWB 2017). The revised budget takes into consideration a number of factors including wildfire effects on municipal revenues and expenditures. Indigenous  Indigenous peoples were affected by the wildfire in different ways, including: Peoples  evacuation from Fort McMurray and Anzac, and from Indigenous communities such as Fort McKay and Gregoire Lake (Fort McMurray #468 First Nation)  loss of homes and personal possessions for Indigenous peoples living in affected communities (e.g., Fort McMurray, Anzac)  loss of or damage to shared Indigenous community assets such as the destruction of the office building in Fort McMurray that housed the Fort McMurray Métis (Métis Local 1935) and Athabasca Tribal Council  use of community resources in smaller rural communities to assist evacuating or accommodating non-community members or community members that had been living in Fort McMurray  effects on traditional lands and resources including: loss of cabins, traplines and effects on traditional food sources such as animals and berry patches (e.g., loss to fire, concern regarding residual chemical substances)  elevated levels of stress as a result of wildfire-related concerns regarding evacuation, loss of personal property and effects on traditional lands, resources and culture  In early 2017, the Government of Canada announced seven research projects to be funded through a $3.4 million partnership between the Canadian Institutes of Health Research, the Canadian Red Cross, Alberta Innovates and other partners. Two of these projects ($0.9 million) relate specifically to effects on Indigenous communities:  a project to examine how the health and well-being of the Indigenous residents of the RMWB were affected by the wildfires  a study to measure and compare the level of chemical substances, before and after the wildfires, in traditional foods such as local game meat and locally harvested plants in the MCFN Fort Chipewyan), FMFN and Fort McKay Métis communities (CIHR 2017) NOTES: WBDHC = Wood Buffalo Housing and Development Corporation; AHS = Alberta Health Services; RMWB = Regional Municipality of Wood Buffalo; MCFN = Mikisew Cree First Nation; FMFN = Fort McKay First Nation.

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EXPECTED EFFECTS OF FUTURE REBUILD ACTIVITIES

As of early 2017, the situation in the region remains dynamic. Clean-up and rebuilding efforts are underway, and government and other response agencies have shifted from emergency response mode to developing and implementing longer-term recovery plans, which include reconstructing affected areas. Funding support for response and recovery has been provided by government, businesses and individuals. In addition to the estimated insurance payouts, the provincial and federal governments have committed to providing roughly $615 million in disaster recovery, and nearly $319 million has been raised by the Canadian Red Cross for response and recovery (RMWB 2016)1. It is difficult to determine specifically how long rebuilding efforts will take, but several sources indicate rebuilding could take anywhere between three to five years (CBOC 2016; Global 2016; RMWB 2016; CMHC 2016a; Murrant 2017, pers. comm.).

As noted in Table 5.2-1, it is estimated that the 2016 Fort McMurray wildfire destroyed roughly 10% of the existing housing stock, or over 2,500 residential units in Fort McMurray. It is expected that most of those lost units will be reconstructed over the next three to five years. The actual pace of this development, however, will depend on the timing and nature of government planning processes, the settlement of insurance claims and the capacity of the construction industry in this market.

Although housing starts in Fort McMurray have averaged roughly 600 annually over the past five years, the housing construction industry has historically shown considerable capacity to respond to rising demand. For example, in the Wood Buffalo region between 2005 and 2010 there were an average of 1, 400 housing starts annually, peaking at 2,175 units in 2007 (CMHC 2008; 2013; 2014a; 2014b; 2015). Already in the first two months of 2017, the Wood Buffalo region has seen 230 housing starts, an increase from just nine starts during the same timeframe in 2016 (CMHC 2016c; 2017).

At this point it is too early to determine what effect the wildfire will have on house prices over the next couple of years, but after several years of decline the Canadian Mortgage and Housing Corporation (CMHC) are forecasting average resale prices to remain stable in 2017 and 2018 (CMHC 2016b).

The effect of the wildfire on the regional population from 2017 onwards is uncertain. Ongoing effects of the wildfire on regional population growth are expected in two ways:

 In-migration to fill jobs left vacant by those who did not return to the region in 2016. The degree to which previous or new residents can be attracted to the community to fill vacant positions remains uncertain. Given the challenging

1 This includes approximately $185 million in individual donations, $30 million from the Government of Alberta and $104 million from the federal government.

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economic conditions over the past two years, local businesses face larger strategic planning questions for their businesses and related workforce needs.

 Based on preliminary estimates of the number of people who did not return to the region as of the end of 2016, in-migration to fill vacant jobs could result in a population increase of roughly 2,500 to 3,500 in one to two years. This would represent an increase of between 3% and 5% to the post-fire population estimate of 72,000 to 74,000 in the urban service area.

 In-migration for jobs associated with the rebuilding process. Regional employment related to rebuilding activities is estimated at roughly 8,000 person- years (CBOC 2016). This employment is expected to be spread over three to five years. There is still uncertainty as to the capacity of the local labour force to carry out the necessary rebuilding (including commercial, institutional and residential construction) activities in the next few years. If out-of-region workers are required, it is expected that they will likely be construction crews rotating through the region, making use of available capacity in both the temporary (e.g., hotel/motel) and permanent housing (e.g., rentals) markets2.

In-migration to fill jobs left vacant by those who did not return to the region in 2016 is expected to add to the permanent resident population in the community, whereas any in- migration to fill jobs associated with rebuilding would be largely temporary. The region is well-experienced in hosting mobile construction workers.

Other factors that will also influence population growth include:

 continued changes in operational practices in the oil sands (e.g., move towards operational efficiencies which might lead to changes in operational workforce requirements)

 changes in status and timing of oil sands construction projects that are proposed, planned, or underway

 prevailing economic conditions (e.g., reductions in workforce requirements in other areas of the economy, including the public and service sector)

 continued natural growth (i.e., birth and deaths)

CHANGES TO THE PROJECT SOCIO-ECONOMIC ASSESSMENT

As outlined in this response, most wildfire effects on socio-economic conditions in the region have already occurred or are related to rebuilding activities over the next three to five years (2017 to 2021).

Although initial Project activities (which could occur as early as 2019) will overlap with rebuilding activities in the region, the effects of the 2016 Fort McMurray wildfire on the

2 The rental vacancy rate in Fort McMurray in fall 2016 was roughly 17.8%, well above the provincial average of 8.1% for centres with a population of 10,000 or more (CMHC 2016d).

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socio-economic assessment of the Project is expected to be negligible because of the following reasons:

 The population effect of the Project on the urban service area during the 2019 to 2022 period is estimated at less than 500 people. By the time the Project reaches peak construction in 2024, rebuilding activities are expected to be largely completed.

 The Project’s remote location and Teck’s plan to accommodate most of its construction workforce in the on-site lodge or in open lodges near the site. This will limit interaction with the region’s housing, social and municipal infrastructure during the timeframe in which rebuilding activities will be taking place. Should rebuilding activities take longer than anticipated (i.e., beyond 2021), and limit the capacity of infrastructure and services in the region, Teck would consider increased use of its on-site lodge and open lodges.

References:

AMA (Alberta Municipal Affairs). 2016. Home Again: Recovery After the Wood Buffalo Wildfire.

CBC (Canadian Broadcasting Corporation). 2017. More Homes for Sale, Prices Down After Fort McMurray Wildfire. Available at: http://www.cbc.ca/news/canada/edmonton/home-sales-down-fort-mcmurray- wildfire-average-prices-1.3995359. Accessed March 2017.

CBOC (Conference Board of Canada). 2016. Fort McMurray Wildfires: Assessing the Economic Impacts. November 2016.

CIHR (Canadian Institutes of Health Research). 2017. Continuing to Support Recovery after the 2016 Fort McMurray Wildfires – Research Projects (Backgrounder). March 14, 2017.

CMHC (Canadian Mortgage and Housing Corporation). 2008. Housing Now: Prairie Region. Fourth Quarter 2008.

CMHC. 2013. Housing Market Outlook: Prairie Region Highlights. First Quarter 2013.

CMHC. 2014a. Housing Market Outlook: Prairie Region Highlights. First Quarter 2014.

CMHC. 2014b. Housing Market Outlook: Prairie Region Highlights. Fourth Quarter 2014.

CMHC. 2015. Housing Market Outlook: Prairie Region Highlights. Fourth Quarter 2015.

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CMHC. 2016a. Housing Market Insight: Alberta. July 2016.

CMHC. 2016b. Housing Market Outlook: Prairie Region Highlights. Fourth Quarter 2016.

CMHC. 2016c. Housing Information Monthly. March 2016.CMHC. 2016d. Rental Market Report: Alberta Highlights.

CMHC. 2017. Housing Information Monthly. March 2017.

FMREB (Fort McMurray Real Estate Board). 2017. Market Update. Available at: http://www.fmreb.com/market_update. Accessed March 2017.

FMT (Fort McMurray Today). 2016. Hotel Managers Continue to Accommodate Essential Service Workers Despite Reduced Staff. Available at: http://www.fortmcmurraytoday.com/2016/05/25/hotel-managers-continue-to- accommodate-essential-service-workers-despite-reduced-staff. Accessed January 2017.

FuseSocial. 2016. Impact of the Wildfire on the Social Profit Sector: Wood Buffalo Region (Survey 2). October 2016.

Global. 2016. It’s Been a Struggle: Rebuilding Fort McMurray Could Take Up to Five Years. Available at: http://globalnews.ca/news/2925986/its-been-a-struggle- rebuilding-fort-mcmurray-could-take-up-to-five-years. Accessed December 2016.

Red Cross (The Canadian Red Cross). 2017. Alberta Wildfires 2016 Community Organizations Partnership Program. Available at: http://www.redcross.ca/how- we-help/current-emergency-responses/alberta-fires/alberta-wildfires-community- organization-partnerships-program. Accessed March 2017.

RMWB (Regional Municipality of Wood Buffalo). 2010. Municipal Census, 2010.

RMWB. 2015. Municipal Census, 2015.

RMWB. 2016. RMWB 2016 Wildfire Recovery Plan. December 2016.

RMWB. 2017. Council Approves Revised 2017 Operating Budget, Saving $47 million. Available at: http://www.rmwb.ca/News-Room/Council-Approves-Revised-2017- Operating-Budget--Saving--47-million_s8_p6071.htm. Accessed March 2017.

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Personal Communication:

Grainger, B. 2017. Deputy Chief of Operations and Technical Services, RMWB Regional Emergency Services. Telephone interview. March 28, 2017.

King, J. 2016. Interim CEO, Wood Buffalo Housing and Development Corporation (WBHDC). Telephone interview. December 13, 2016.

Murrant, S. 2017. Manager, Stakeholder Relations, Regional Municipality of Wood Buffalo. Telephone interview. March 30, 2017.

Tremblay, D. Sergeant, Royal Canadian Mounted Police, Fort McMurray Detachment. Telephone interview. December 7, 2016.

5.3 In Volume 1, Section 16.7.3.4, of the Project Update, Teck identified a shortage of housing, particularly affordable housing, due to high demand for accommodation as a socio-economic effect of the Project. The Athabasca Chipewyan First Nation (ACFN) and Mikisew Cree First Nation (MCFN) have suggested the Project has the potential to draw additional Indigenous peoples back to communities near the Project such as Fort Chipewyan, thus increasing pressures on housing and physical and social infrastructure.

a) Provide additional analysis of baseline conditions of housing affordability, accessibility and appropriateness for First Nation and Métis communities that are within the RSA but outside of the regional center of Fort McMurray.

b) Discuss and quantify, where possible, potential migration effects associated with the proposed Project on First Nation and Métis communities that are within the RSA but outside of the regional center of Fort McMurray.

Response:

a) In the preamble to JRP IR 5.3, the JRP makes the statement: In Volume 1, Section 16.7.3.4, of the Project Update, Teck identified a shortage of housing, particularly affordable housing, due to high demand for accommodation as a socio-economic effect of the Project.

Volume 1, Section 16.7.3.4 of the Project Update refers to historical baseline conditions and not to a socio-economic effect of the Project. The housing effects analysis in

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Volume 1, Section 16.5.3 of the Project Update notes that during Phase 1, the expected housing demand because of the Project is roughly one-third of the average annual housing starts between 2010 and 2014, and the long-term demand is roughly 10% of the average annual housing starts in Fort McMurray. Consequently, this demand signifies the Project-related housing demand is within the capacity of the local housing construction market.

Baseline housing conditions for Indigenous households in the regional study area (RSA) were analyzed. The following housing characteristics were examined:

 provision, including First Nation (Band)-owned housing and private market housing

 accessibility, including crowding

 appropriateness, including age, condition and suitability  affordability, including housing cost and its relative share of household monthly income

 homelessness

Rural communities3 outside Fort McMurray with relatively large Indigenous (First Nation and Métis) populations include:

 Fort McKay, including the FMFN Reserves and the hamlet of Fort McKay

 Fort Chipewyan, including the population centre of Fort Chipewyan, residents of the Athabasca Chipewyan First Nation (ACFN) and surrounding MCFN reserves (e.g., Allison Bay 219, Dog’s Head 218)

 Janvier, including the Chipewyan Prairie Dene First Nation (CPDFN) Janvier 194 Reserve community of and the nearby hamlet of Janvier

 the Fort McMurray #468 First Nation Reserve of Gregoire Lakes Estates

 Conklin

The housing situation on the reserves and in adjacent small hamlets is challenging to assess because of a mobile population base (see the response to part [b]) and limited publicly available information. Given the small sizes of some of these communities, housing-specific data from public sources, such as Statistics Canada, is often unavailable, either because the data does not exist or has been suppressed. These data limitations restrict the housing analysis to Indigenous households in the following communities:

3 There are also a limited number of Indigenous peoples residing in rural areas outside these communities, often in smaller and more remote areas (e.g., Fort Fitzgerald, which has nine residents) (RMWB 2015).

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 FMFN Reserves  Fort Chipewyan, including the population centre of Fort Chipewyan and surrounding MCFN Reserves (e.g., Allison Bay 219, Dog’s Head 218)

 the CPDFN Reserve Janvier 194

 the Fort McMurray #468 First Nation Reserve of Gregoire Lakes Estates

When applicable, analytical results are also compared against:

 the overall average for Indigenous households in other northern Alberta Indigenous communities4

 the RMWB rate, which includes both Indigenous and non-Indigenous households

 results for Indigenous households in the urban centre of Fort McMurray and the nearby community of Anzac

The primary data source used for this analysis is Statistics Canada’s 2011 National Household Survey (Statistics Canada 2013a, 2013b)5. Other data sources used in this analysis (where applicable), include:

 studies and reports prepared by, or on behalf of, Indigenous communities in the area

 consultations carried out by Teck with First Nations and Métis groups in the region

 interviews with representatives of agencies and authorities that participate in the development or delivery of housing programs for Indigenous communities

 other government sources, including municipal census and planning documents

 industry sources, including regulatory applications of oil sands projects in the region

 intervener submissions during regulatory review, including public hearings, for recent oil sands socio-economic impact assessments

 online sources, including websites for Indigenous communities and businesses, and local, provincial and federal government departments

4 Northern Alberta Indigenous communities include ten Treaty 8 communities in northern Alberta for which data are available: Little Red River Cree, Sturgeon Lake Cree, Driftpile, Dene Tha', Bigstone Cree, Woodland Cree, Swan River, Horse Lake, Beaver and Whitefish Lake (Atikameg). 5 The limitations of the National Household Survey (NHS), particularly with regards to on-reserve communities are acknowledged; however, it remains one of the most useful, standardized sources of information available across communities in the region and beyond. Because of sampling limitations housing estimates provide a general sense of changes over time and should be interpreted in broad terms.

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Housing Provision6

First Nation Housing

Roughly 45% of the housing in rural communities in the region is located on reserve lands belonging to the FMFN, MCFN, Fort McMurray #468 First Nation and CPDFN. Housing for the ACFN is located in the hamlet of Fort Chipewyan. On-reserve housing is the responsibility of First Nations with financial assistance from Indigenous and Northern Affairs Canada (INAC) and the CMHC.

In the urban settings of Fort McMurray and Anzac, Indigenous residents participate in the private housing markets.

Figure 5.3a-1 shows Band-owned housing as a proportion of total housing by rural community.

Source: Statistics Canada (2013a, 2013b). Figure 5.3a-1: Band Housing as a Proportion of Total Housing As illustrated in Figure 5.3a-1:

 The proportion of households in Band-owned housing ranges from 26% in Fort Chipewyan (including the MCFN reserves) to 94% in the Fort McMurray #468 First Nation.

 The prevalence of Band-owned housing is lower across all communities than the northern Alberta Indigenous community average.

6 There was no reported loss of housing stock in the rural, mostly Indigenous communities in the RSA considered in this response because of the Fort McMurray wildfire, except in Anzac, where twelve structures were lost (AMA 2016). Some of the housing stock lost or damaged in Fort McMurray would likely have involved Indigenous households; however, the number of affected households is unknown. The analysis presented in this response does not consider the effects of the 2016 wildfire on housing.

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 Only 2% of total households in the RWMB are in Band-owned housing, reflecting the size of the Fort McMurray private housing market.

The lower proportion of Band-owned housing in Fort Chipewyan is influenced by inclusion of the hamlet’s housing stock, most of which is privately owned. The hamlet’s private housing market appears to have low turnover because many families in the community have maintained ownership of property, even if they have left the community. Demand for private lots has been increasing as some community members, earning relatively high industry salaries, look for ownership opportunities. These community members seek to acquire owned housing as opportunities to purchase become available.

In 2011, the RMWB examined the concept of new residential lot developments in the hamlet, but found market demand to be insufficient at the price levels required to cover the high cost of construction (including servicing). These costs are high because of the remote location and unique build characteristics of the hamlet. The recommendation put forward by RMWB administration was for the RMWB to acquire existing vacant lots and then make these lots available to the public via auction to test of the demand for developable lots (RMWB 2011).

Along with privately owned housing, there are two Indigenous housing programs in Fort Chipewyan:

 The MCFN housing program, which focuses on maintaining and constructing new housing at its Dog Head and Allison Bay Reserve lands. The Nation has received funding from CMHC over the past decade, in the order of $340,000 annually (INAC 2012). The MCFN has an active housing program, which recently constructed 10 new houses (MCFN 2016a, 2017). Expenditures between 2015 and 2016 by the MCFN Technical Services department on infrastructure including housing was in the order of $11 million (MCFN 2016b).

 The ACFN’s housing program, which consists of properties located in the hamlet of Fort Chipewyan. The ACFN announced plans to develop an urban reserve within the hamlet, and plans to develop reserve lands located in Old Point remain unchanged (Wujcik 2017, pers. comm.). The ACFN is promoting ownership assistance programs and residential rehabilitation improvement for existing stock through CMHC funding. There is a waiting list for ACFN Band housing (ACFN 2017). Recent expenditure levels by the ACFN on housing are not publicly available. INAC/CMHC funding provided to the Nation has varied, ranging from about $500,000 in 2004, to zero during 2005 and 2006, and then returning to the $500,000 level annually in 2011 and 2012, the latest years for which data were available (INAC 2012).

Indigenous housing programs in other communities in the region include:

 The FMFN housing program in Fort McKay, which is a particularly active housing program with large-scale investment on reserve. The FMFN continues to work towards its plan of building up to 25 houses per year until its community needs are met. As of spring 2013, the FMFN reported approximately 74 people on the

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waiting list (FMFN 2013). The FMFN reports spending $2.4 million on housing in 2016 and indicates that 95% of its overall budget, including housing, is funded through own-source revenues (FMFN 2016). Active engagement of Band-owned businesses in oil sands-related work, along with other Band investments, is enabling the FMFN to deliver a successful housing program.

 The Fort McMurray #468 First Nation housing program on the Gregoire Lake Reserves. The Nation invested $2.7 million in its Band housing program between 2015 and 2016 (Fort McMurray First Nation 2016). Through income generated by the Christina River Enterprises in recent years, the Nation has expanded its housing program and plans on investing in additional housing stock (Suncor 2015).

Further south, the CPDFN has invested roughly $5.4 million in capital projects, including housing on the Janvier Reserve between 2015 and 2016 (CPDFN 2016). Both CPDFN and Fort McMurray #468 First Nation note increasing housing stock is of high importance (Suncor 2015).

Métis Housing

An additional 45% of housing in rural communities7 in the region is located off-reserve in the hamlets of Fort McKay, Fort Chipewyan, Janvier and Conklin. Most of this housing is occupied by Métis people and includes stock owned by Métis Locals or associations on behalf of their members, as well as privately owned housing. The private housing markets in all hamlets in the region are limited, with minimal public transactions, no listings on the Multiple Listing Service and sales often occurring via word of mouth. Some Métis people, live in Band-owned housing. The housing conditions for Métis are understood to be generally similar to on-reserve housing.

A major systemic challenge for Métis people is a lack of dedicated government funding, unlike First Nations people, who receive federal funding for housing. For the Fort McKay Métis, achieving improved housing conditions is an important contributor to their sense of self-reliance (MMSC 2016).

The Fort McKay Métis note that housing is a high priority for the community. The housing stock, leased or owned by the community association and rented back to members, has improved dramatically over the past three years, with fewer houses in need of major repairs (MMSC 2016). Through profits earned from the Fort McKay Métis Group LTD, the community has constructed a four-unit housing development, undertaken construction of other houses, and has plans for further building (FMT 2013).

7 The remaining approximately 10% of housing is located in the non-Indigenous communities of Gregoire Lake Estates and Draper.

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With the support of Teck and the Government of Alberta, the Fort Chipewyan Métis Local and Fort McKay Métis Local undertook separate community strategic planning sessions in 2010. The aim was to support the identification and prioritization of community key priorities and the development of strategic plans. A key goal identified in each plan was the need to address housing. In the case of the Fort Chipewyan Métis, the priority is the acquisition of land to develop affordable Métis housing, while the priority for the Fort McKay Métis was development of a housing funding plan (FCMA 2010; Fort McKay Métis 2010).

In Fort Chipewyan, the Métis identify housing as a key way of improving systems and programs supporting health and well-being (Métis Local 125 2015). The Métis Local 1935 (Fort McMurray) also identify housing affordability, particularly for Elders as being a concern (Métis Local 1935 2015).

Ownership Housing

Figure 5.3a-2 shows the proportion of households in homeownership positions (as opposed to Band or rental) across the RSA.

80% All RMWB 70% Rate 73% (68%) 60% 50% 40% 46% 30% Average 20% Northern AB 20% Indigenous % Housholds in in Ownership Housholds % 10% 15% 12% Communities 0% (12%) Indigenous in Fort Fort McKay Fort Chipewyan GL Reserves (Fort Janvier Reserve McMurray and Reserve (FMFN) and Reserves McMurray FN) (CPDFN) Anzac (MFCN,ACFN)

Source: Statistics Canada (2013a, 2013b). Figure 5.3a-2: Homeownership Rates As Figure 5.3a-2 demonstrates:

 The homeownership rate for rural Indigenous communities in the RSA equals or is greater than the northern Alberta Indigenous community average.

 The highest proportion of rural Indigenous households in ownership housing is located in Fort Chipewyan (reflecting the influence of hamlet housing included in the dataset).

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 Homeownership for Indigenous households in the region is most common in the Fort McMurray/Anzac urban markets, where the ownership rate is greater than the overall RMWB rate.

Non-Band Social Housing

The Wood Buffalo Housing and Development Corporation (WBHDC) is the primary provider of non-reserve subsidized housing in the region. Although most of its stock is in Fort McMurray, the corporation does provide some housing in rural communities.

The WBHDC received a number of mobile homes via the Government of Alberta, to house people displaced by the 2016 Fort McMurray wildfire. The Corporation has arranged for the delivery of 16 mobile homes to Fort Chipewyan to serve as subsidized rental housing, to address what it identifies as a housing shortage in Fort Chipewyan and other rural areas. The mobile homes will complement the WBHDC’s existing stock of two single-family dwellings and a 12-unit seniors’ facility in Fort Chipewyan. The WBHDC is also sending four mobile homes to Conklin (CBC 2017).

Accessibility

Historically in the region, waiting lists are common for First Nation housing programs, as demand typically is greater than supply. This trend parallels trends observed elsewhere in Alberta and elsewhere in Canada. According to the ACFN, a lack of adequate housing results in over-crowding for its members, with related health and social issues (The Firelight Group 2012a). The Fort McKay Métis observe that former residents who are returning to the community because of high housing costs in Fort McMurray are having an effect on their housing situation (MMSC 2016).

One outcome of a shortage of housing is crowding (defined as more than one household resident per total number of rooms). In Indigenous communities, the presence of extended family or more than one family sharing housing is common and often reflects a shortage of housing stock. Figure 5.3a-3 shows the incidence of crowding in Indigenous communities in the RSA.

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Average 20% Northern AB Indigenous Communities 15% (20%)

10% 11% 10%

5% 7% 5% All RMWB Rate (3%) % Households > 1 person/room Households % 2% 0% Indigenous in Fort McKay Fort Chipewyan GL Reserves Janvier Reserve Fort McMurray Reserve (FMFN) and Reserves (Fort McMurray (CPDFN) and Anzac (MFCN,ACFN) FN)

Source: Statistics Canada (2013a, 2013b). Figure 5.3a-3: Households in Crowded Conditions As Figure 5.3a-3 illustrates:

 The highest proportion of households living in crowded conditions is reported for the Fort McMurray #468 First Nation and CPDFN.

 Except for Fort McMurray and Anzac, all rural Indigenous communities in the region experience higher levels of crowding than the all-RMWB rate.

 All rural communities in the region with mostly Indigenous residents experience crowding at levels lower than the northern Alberta Indigenous community average.

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Appropriateness

One measure of the appropriateness of housing is the average age of dwellings. Figure 5.3a-4 shows the proportion of households in the region in housing older than 30 years.

40% 35% 30% 32% All RMWB Rate 25% (27%) 20% Average 15% 19% Northern AB Indigenous

% Dwellings > 30 Yrs Olds 30 Dwellings > % 10% Communities 11% 10% 5% (11%) 5% 0% Indig. in Fort Fort McKay Fort Chipewyan GL Reserves (Fort Janvier Reserve McMurray & Anzac Reserve (FMFN) and Reserves McMurray FN) (CPDFN) (MFCN,ACFN)

Source: Statistics Canada (2013a, 2013b). Figure 5.3a-4: Incidence of Indigenous Households in Older Housing Stock As Figure 5.3a-4 demonstrates:

 The highest proportion of Indigenous households in the region living in older housing stock is in Fort McMurray and Anzac. This reflects the average age of the housing stock available in those private housing markets. The proportion of Indigenous households living in older housing stock in Fort McMurray and Anzac is above the all-RMWB rate.

 The percentage of housing stock older than 30 years for the Fort McMurray #468 First Nation and CPDFN align with the northern Alberta Indigenous community average; the stock is older in Fort Chipewyan.

 Fort McKay has the lowest percentage of housing stock that is older than 30 years, reflecting the scale of recent investment by the community in its housing program.

The age of housing stock does not necessarily reflect quality. Figure 5.3a-5 presents the incidence of households living in housing in poor condition, defined as dwellings requiring major repairs.

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70% 60% 67% 50% Average Northern AB 40% Indigenous Communities 30% 36% (40%) 30% 20% 10% 15% All

RMWB % Dwellings Needing Major Repairs Major Dwellings%Needing 0% 4% Rate (6%) Indigenous in Fort McKay Fort Chipewyan GL Reserves (Fort Janvier Reserve Fort McMurray Reserve (FMFN) and Reserves McMurray FN) (CPDFN) and Anzac (MFCN,ACFN)

Source: Statistics Canada (2013a, 2013b). Figure 5.3a-5: Incidence of Households in Dwellings Requiring Major Repair As illustrated in Figure 5.3a-5:

 The Fort McMurray #468 First Nation had the highest proportion of Indigenous households living in dwellings in poor condition, with a rate that is greater than the average for other northern Alberta Indigenous communities.

 All other rural communities in the region are below the northern Alberta Indigenous community average, but above the all RMWB average. Fort McKay has the lowest proportion of Indigenous households living in poor conditions across the rural communities, reflecting the positive influence of its housing program.

 Indigenous households in Fort McMurray and Anzac reflect a lower rate of dwellings in poor condition than the all-RMWB rate.

According to the ACFN, the condition of housing has improved in recent years in Fort Chipewyan; however, seniors report issues with dwelling conditions and cost of repairs (The Firelight Group 2012a).

Another measure of appropriateness is suitability, defined as a dwelling having the required number of bedrooms for a household based on the age, sex and relationships among household members. Figure 5.3a-6 presents the incidence of households across the rural communities living in unsuitable housing.

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30% Average Northern AB Indigenous 25% Communities (27%) 20% 20% 15% 14% 10% 12% All RMWB Rate (7%) 5% 7% 5% 0% % Households withHousing Unsuitable Households % Indigenous in Fort Fort McKay Fort Chipewyan GL Reserves (Fort Janvier Reserve McMurray and Reserve (FMFN) and Reserves McMurray FN) (CPDFN) Anzac (MFCN,ACFN)

Source: Statistics Canada (2013a, 2013b). Figure 5.3a-6: Incidence of Households in Unsuitable Housing As illustrated in Figure 5.3a-6:

 Indigenous households across the region reflect lower levels of unsuitable housing when compared to the northern Alberta Indigenous community average.

 Households in Fort McKay and Fort McMurray and Anzac are at, or below the all- RMWB rate for unsuitability.

Affordability

As indicated in Volume 1, Section 16.7.3.2 of the Integrated Application and Volume 1, Section 16.5.3.2 of the Project Update, even when high housing costs in Fort McMurray are considered, the relative affordability of housing for households earning average incomes in the region is as good as, or better than, the affordability in Edmonton. Housing affordability is an issue for lower-income households in the region. Understanding housing affordability is more challenging in rural communities, particularly because of the influence of subsidized Band housing. Figure 5.3a-7 shows the average cost of rental and ownership housing for Indigenous households in Fort Chipewyan, Fort McMurray and Anzac, the only communities for which this data were available because of data suppression.

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$3,000 All RMWB $2,500 All RMWB Rate $2,520 ($2,410) $2,000 Rate $2,240 ($2,150) $1,500 Average Northern Average Northern AB Indigenous $1,000 AB Indigenous Communities Communities ($1,430) $930 $500 ($1,080) $790

Average Monthly Costs ($) Shelter Monthly Average $- Average Monthly Cost - Renter Hshlds Average Monthly Cost - Owner Hshlds

Indig. in Fort McMurray & Anzac Fort Chipewyan & Reserves (MFCN,ACFN)

Source: Statistics Canada (2013a, 2013b). Figure 5.3a-7: Average Cost of Rental and Ownership Housing As illustrated in Figure 5.3a-7:

 Rental and ownership housing costs for Indigenous households in Fort McMurray and Anzac are high, reflecting the relatively high housing costs in that combined urban market. The average rental and ownership costs for Indigenous households slightly exceed the all-RMWB rate.

 The average cost of rental and ownership housing in Fort Chipewyan is well below the cost of housing in Fort McMurray and Anzac, and below the northern Alberta Indigenous community average.

Figure 5.3a-8 shows the average affordability of rental and ownership housing for Indigenous households in Fort Chipewyan and Fort McMurray and Anzac, the only communities for which this data were available because of data suppression. Affordability is defined as being the proportion of households spending more than 30% of monthly (pre-tax) household income on shelter costs.

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50% Average Northern AB Indigenous Communities 45% (43%) 40% 35% Average Northern AB All RMWB 30% 33% Indigenous Rate (30%) 25% Communities (20%) 20% 24% 15% All RMWB Rate (14%) 10% 14% 13% 5% 0%

% Rental Hshlds Paying > 30% Income on Housing % Owner Hshlds Paying > 30% Income on Housing % Households > 30% Income on Income > Housing 30%on Households %

Indigenous in Fort McMurray & Anzac Fort Chipewyan and Reserves (MFCN,ACFN)

Source: Statistics Canada (2013a, 2013b). Figure 5.3a-8: Housing Affordability As illustrated in Figure 5.3a-8:

 Despite the higher costs, rental and ownership housing is more affordable for Indigenous households in Fort McMurray and Anzac than for the average northern Alberta Indigenous communities.

 Rental housing affordability for Indigenous households in Fort McMurray and Anzac is below the all-RMWB rate, while owner housing affordability is effectively the same as the all-RMWB rate.

 The proportion of Indigenous households in Fort Chipewyan in affordable rental and owned housing is greater than the all-RMWB rate.

A concern in Fort Chipewyan is housing-related affordability for Elders and seniors, in part because of high heating costs related to poor insulation (The Firelight Group 2012a). As part of its social investment program, Teck provided timber salvaged during a winter drilling season as heating fuel for the community. The company intends to examine this potential support again during Project construction and will engage with communities accordingly.

Homelessness

Homelessness in the RSA has been decreasing. Although the overall urban resident population increased from 2007 to 2015 by an average annual rate of approximately 2%, the number of homeless people is estimated to have decreased from 550 people in 2008 to about 110 people in 2016 (a 75% total reduction, or 16% annually) (RMWB 2015; 2016). The homeless population has been reduced by 43% in Edmonton over the same eight-year timeframe (SCHH 2016). The RSA estimate is based on the homeless count and includes people without permanent shelter (i.e., temporarily ‘couch surfing’). Similar to other major cities in Alberta, social service agencies in the region have been adopting

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a housing-first model with supports, which is reducing the incidence of homelessness. In the case of Fort McMurray, a contributing factor to the reduction in homelessness might be an outmigration of individuals as a result of the economic slowdown as well as the 2016 Fort McMurray wildfire (RMWB 2016).

In the RMWB’s 2016 homeless count, 43% self-identified as Indigenous. For comparison, in the 2016 Edmonton homeless count, 48% identified as Indigenous (SCHH 2016).

The RMWB homeless count is limited to Fort McMurray. According to the RMWB, Fort McKay expressed an intention to track homeless in that community; however, no report has been provided to date. Concerns regarding homelessness in rural communities have not been expressed as a concern to the Municipality (Snow 2017, pers. comm.).

Conclusions

The housing situation on reserves, as well as in adjacent small hamlets, is challenging to assess because of the mobile population base (see response to part [b]) combined with limited publicly-available information. Acknowledging those limitations, in general, the analysis indicates:

 The housing situation on reserves in the region is, for the most part, less advantageous than the situations experienced by non-Indigenous households in the region.

 The one exception is Fort Chipewyan, where Indigenous households have access to more affordable housing than non-Indigenous households in the region.

 The housing situation for Indigenous households in the region, in both urban and rural communities, is better than most on-reserve Indigenous households elsewhere in northern Alberta; in the case of crowding and unsuitability, by a substantial margin.

 The housing situation varies by community within the region. For example, FMFN households benefit from the best housing conditions compared to other RSA reserve communities, reflecting the sizeable investment by the FMFN in its housing program over the past decade.

The analysis is at a community level, with a focus on reserve-based housing. The circumstances for individual households are each unique. The situations on reserve are complex, and the availability of housing both limits and is a determinant of future growth. Subsidized Band housing allows Band members to live in more affordable situations, though dwelling conditions vary and might be considered unsuitable based on accessibility and appropriateness factors. Other housing options include paying higher rates in off-reserve market housing or living elsewhere in the region, most often Fort McMurray.

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Regulatory submissions from the Indigenous communities identify improvements in housing stock as a high priority, while also identifying challenges in responding to the housing demand of their members because of inadequate federal funding levels. New information (once available) from the latest federal census, as well as submissions from the Indigenous communities and the RMWB, will continue to inform how the housing situation in the rural region of the RSA is developing.

b) Population and Migration

Fort McMurray’s oil sands-related growth over the past 15 years has been well- documented. Estimates in terms of growth experienced in the urban service area of Fort McMurray and Saprae Creek range from an increase of 30,000 persons (75%) (Statistics Canada 2012, 2017) to 41,000 persons (95%) (RMWB 2015). Managing this urban growth and the related demand on infrastructure and services has been the subject of substantial discussion and analysis8.

Rural communities of the RSA have experienced less growth, with estimates ranging from an increase of 500 persons (20%) including First Nation reserves (Statistics Canada 2012, 2017) to 100 persons (4%) excluding First Nation reserves (RMWB 2015). The lower growth rates in rural communities might be because of:

 People leaving the community to pursue wage or education opportunities, or desired infrastructure and services (e.g., education and health) in Fort McMurray and other communities outside the region.

 Planning initiatives (e.g., Municipal Development Plan) or housing delivery issues (e.g., federal funding) that limit growth in many rural communities.

Obtaining an accurate population count in rural communities is challenging because of:

 Challenges in administering census counts in small, mostly Indigenous communities.

 A mobile population that moves between hamlets and adjacent First Nations reserves, between rural communities and Fort McMurray, and outside the region in search of education, training and employment opportunities.

Figure 5.3b-1 shows the change in population in rural communities between 2001 and 2016. Population estimates for reserves have been aggregated with nearby hamlets,

8 The analysis provided in this response considers the population before the effects of the 2016 Fort McMurray wildfire. Long-term effects of the 2016 Fort McMurray wildfire on Indigenous residents of the RSA are unknown. The rural, mostly indigenous communities of Fort McKay, Gregoire Lake Reserves and Anzac were evacuated because of the fire. The reported loss of housing stock in these communities was limited to approximately 12 units in Anzac (AMA 2016). Some of the housing stock lost in Fort McMurray probably affected Indigenous households; however, the number of households is unknown, there is no information about Indigenous people who could not secure alternative housing in the region. Consequently, the degree to which these factors (i.e., community evacuation, housing stock loss) have impacted the Indigenous population in the region is currently unknown.

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where applicable9. The timeframe encompasses a period of substantial oil sands investment in the region.

1200 -2% Reserve

1000 Hamlet % Total Change (2001-16) 68% 800

600 20% 24%

400

ResidentPopulation 33%

12% 200

0 Fort Chipewyan Fort McKay Janvier Greg. Lake Reserves Anzac Conklin 2001 2016 2001 2016 2001 2016 2001 2016 2001 2016 2001 2016

Source: Statistics Canada Federal Census (2002, 2017) Figure 5.3b-1: Population Trends in Rural Communities As illustrated in Figure 5.3b-1:

 In general, rural communities grew between 2001 and 2016, with estimates ranging from 12% in Conklin to 68% in Fort McKay.

 Fort McKay experienced the largest growth, with the on-reserve population increasing by 300 persons (68%). This growth is linked to more members living in the community over time as employment and housing options have been made available. The community’s proximity to (and engagement with) oil sands development is likely one of the key drivers of this growth.

 Anzac grew by 90 persons (20%), facilitated by increased oil sands employment in the area and new housing options being developed, which have made it a somewhat attractive option for some residents who might otherwise have settled in Fort McMurray.

 The hamlet of Janvier and reserve of the CPDFN experienced a combined estimated 100 person (24%) net growth, while the Fort McMurray #468 First

9 No estimate has been included for the hamlet of Fort McKay (not released by Statistics Canada in 2016 per their practice of suppressing small datasets to maintain confidentiality). The most recent municipal estimate specific to the hamlet was 50 people (RMWB 2015) and is estimated to have changed little from 2001. Although any census estimates for small Indigenous communities or reserves are subject to substantial uncertainty, the federal census is a reliable data source that uses a relatively consistent methodology. Although counts might vary in absolute value from other sources, like the municipal census, they are similar in scale and direction over time. As an example, the municipal census counts for Fort Chipewyan are 13% to 16% higher than shown in the federal census over the 2001 to 2016 period; however, the rate of change per the municipal census (hamlet only) is -2%, which is in line with the rate estimated by Statistics Canada.

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Nation in its Gregoire Lake Reserves experienced an estimated growth of 80 persons (33%). This growth is predominantly linked to natural growth, along with some in-migration linked to employment in the region.

 Conklin experienced grew by 20 persons (12%). The drivers for this growth is likely the same as for the CPDFN and Fort McMurray #468 First Nation.

 Fort Chipewyan was the only community to not grow in this timeframe, experiencing an estimated net decrease of 20 persons (2%). Within the community, the MCFN on-reserve populations increased by an estimated 30 persons (15%), while the hamlet population, which includes ACFN members, decreased by a net 50 persons (-6%)10.

Mobility in the Region

Indigenous people tend to be more mobile than non-Indigenous people in Alberta, at least within their own communities. For instance, the provincial average number of Indigenous people who reported having lived in a different place within their community within a five-year period was 17% higher than the average for all Albertans (Indigenous and non-Indigenous). The likelihood for those having lived in a different community within that same timeframe however, was the same between both groups (Statistics Canada 2013a; 2013b).

Compared to the RSA average (Indigenous and non-Indigenous residents), Indigenous residents are just as likely or more likely to have moved within their community over the past five years. They are, however, much less likely to have moved from outside the region. Indigenous residents’ mobility rates in the region are generally higher than the northern-Alberta Indigenous community average11. Figure 5.3b-2 shows the mobility tendency within and outside communities in the region.

10 This aligns with ACFN’s estimate of population trends, which indicate its membership living on reserve or crown land in Fort Chipewyan decreased by 4% from 2005 to an estimated 230 persons in 2012 (The Firelight Group 2012a). 11 Northern Alberta Indigenous communities include ten Treaty 8 communities in northern Alberta for which data are available: Little Red River Cree, Sturgeon Lake Cree, Driftpile, Dene Tha', Bigstone Cree, Woodland Cree, Swan River, Horse Lake, Beaver and Whitefish Lake (Atikameg).

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Source: Statistics Canada (2013a, b) Figure 5.3b-2: Mobility Trends in the Region As illustrated in Figure 5.3b-2:

 In terms of mobility rates within same communities in the region, at 13%, Fort Chipewyan has the lowest rate of mobility. It is also lower than the northern Alberta Indigenous community average.

 In terms of mobility outside the same community, the rate of Fort Chipewyan residents is roughly in line with the other rural communities in the region, as well as the Northern Alberta Indigenous community average.

ACFN and MCFN state that oil sands development causes residents to leave Fort Chipewyan to access education, training and jobs (The Firelight Group 2012a). The analysis above indicates that for residents of rural communities, mobility rates in and out of the region are no higher than those experienced on average by Indigenous peoples elsewhere in northern Alberta, including areas not affected by oil sands activity. Mobility within communities is higher in the RSA than the northern Alberta Indigenous community average, with the exception of Fort Chipewyan.

Linkage between Industrial Activity and Population Effects

Based on the above-mentioned population and mobility trends, as well as the housing analysis presented in the response to part (a), the following conclusions can be drawn:

 Population growth in the region, driven by oil sands activity, has concentrated in Fort McMurray, as the regional commerce, industrial service and residential hub. Over time, up to 98% of growth in the region has accrued there.

 Growth in rural communities attributable to oil sands activity is, in general, less than in Fort McMurray, but varies by community.

 Oil-sands related population growth is strongest in Fort McKay, because of:

 the community’s proximity to several large-scale mining operations

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 the FMFN’s active engagement with the oil sands industry (i.e., through direct employment of its members and business through the Band-owned group of companies)

 the Nation’s investment of its business-generated revenues into housing

 The growth is less pronounced on the Gregoire Lake Reserves and in Janvier, which have limited linkages with oil sands activities. For these communities, growth related to oil sands is likely less influential than natural factors. However, linkages between these communities and the oil sands industry is growing. For example, the Fort McMurray #468 First Nation group of companies is demonstrating a new level of engagement with industry, while the CPDFN operate several Band-owned and member-owned businesses active in the energy services sector. Several energy services sector. A number of energy services companies are also located in Conklin.

 For Fort Chipewyan, activity related to oil sands has not resulted in growth in the community over the last 15 years. It is likely to have helped limit a steeper decline in the population, particularly through the presence of some fly-in/fly-out (FIFO) arrangements with oil sands projects in the region. Business linkages between the MCFN and ACFN groups of companies and industry tend to flow through Fort McMurray, as the source community for workers and sites of their operation bases.

Oil-Sands Related Effects on Rural Population

Although there are many reasons people move from or return to rural communities in the region, Figure 5.3b-3 shows the pathway of population effects specific to oil sands activity on both rural communities and Fort McMurray.

Employment Opportunity

Filled from Filled from Within Outside the Region the Region

Filled by a Filled by a Resident in Rural Resident in Fort Community McMurray

Remains in Relocates to Relocates or Remains in Fort Returns to Rural Camp-Based Rural Fort McMurray Returns to Fort McMurray Community FIFO Community [Urban McMurray [No Population [Rural Population [No Population [No Population Population [Urban Population Effect] Effect] Effect] Effect] Effect] Effect]

Figure 5.3b-3: Oil-Sands-Related Effects on Regional Population As Figure 5.3b-3 shows, oil-sands-related population effects on mostly Indigenous rural communities in the RSA occur through two main pathways:

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 residents returning from the urban service area (i.e., Fort McMurray)  residents returning from outside the region

Although there are always exceptions (e.g., newcomers relocating), for small, Indigenous rural communities in the RSA, oil sands jobs are expected to be filled by people with a connection to the community.

In Fort McKay, where jobs have been in ample supply and the housing stock has been increasing, this population effect is being realized in a measurable way. In Fort Chipewyan, the population impact from oil sands employment has been limited because of:

 The lack of available housing – Despite the housing market being somewhat open, accessibility to market and Band housing has been identified as a challenge (The Firelight Group 2012b).

 Its remote location – Residents wanting to work for industry must relocate to other communities (predominantly Fort McMurray) or use a FIFO program. There are two FIFO programs in the community:

 one operated by Syncrude for more than 30 years, involving approximately 10 employees (The Firelight Group 2012a)

 one more recently established by Suncor, understood to involve a similar number of employees

These FIFO programs have likely had an effect on the community’s population. ACFN note that FIFO programs have slightly reduced the out-migration trend in Fort Chipewyan (The Firelight Group 2012a). The exact number of residents who participate in FIFO programs in any given year is unknown; however, it is estimated to be less than 20. Further, the 15-year population trend indicates that any additional growth generated through this employment has been insufficient to overcome the underlying outmigration trend.

Implications for Growth in the Region

As noted earlier, access to employment and housing are important to people remaining in or returning to rural communities to work in the oil sands. In the case of Fort Chipewyan, FIFO is a key factor for employment; without it, community members have to reside outside the community (which some have) to pursue steady oil sands employment. The community has expressed a desire for FIFO access to the Project, noting it is a key factor in residents being able to share the economic contributions of the Project (The Firelight Group 2012a).

If FIFO positions are filled by existing residents, no population effect to the community results. Additional FIFO jobs will lead to in-migration, the extent to which will be determined by available housing options. To date, some FIFO-driven in-migration has occurred and has been accommodated by the private market with varying success. This

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in-migration has not contributed to a net positive population increase in the community. By extension, service providers have not had to accommodate increased demand levels12.

For those seeking to return to Fort Chipewyan and participate in FIFO programs, adequate housing needs to be in place—without it, these residents are unlikely to return. With high, steady incomes, FIFO participants either do not qualify or would face a long waiting list for Band housing, making that option unlikely. Market housing for these individuals is an option, but can be a challenge to obtain in the limited private housing market (see response to part [a]). If enough demand persists, the private market will respond, albeit more slowly than in larger, more open markets, but with more options likely available than in some of the other smaller hamlets in the region.

If capturing these potential ‘returnees’ is desirable and a priority for the community, additional resources in housing development will be needed. As demonstrated in the response to part (a), federal funding for on-reserve housing has been insufficient over time to keep pace with natural growth demands on reserves in the region (i.e., waiting lists, crowding and condition of housing stock).

The most likely way for Indigenous communities to improve their housing situation in the region is through own-source revenues, generated through oil sands activity. Revenues from these activities increase the capacity of communities to plan for, encourage and manage growth. In Fort McKay and, in a more limited way in Fort Chipewyan as a result of revenues earned through businesses linked to oil sands-related activities13, the FMFN, ACFN and MCFN are already taking steps to improve their housing stock.

Because potential Project-related population and housing effects are not expected to occur for several years, and Teck has committed to a FIFO program in the community (given sufficient interest), communities have time to plan for future housing needs. Through existing relationships with existing oil sands facilities, community-owned companies are already generating own-source revenues, which increases their capacity to deliver services for future demand independent of the Project to initiate.

The conclusion of this analysis is that Project-related population growth in rural communities is, to a large extent, influenced by rural communities through the availability of housing. If adequate housing is available, former residents interested in returning to

12 The nature of service demand might have shifted because of the different work-life characteristics of FIFO jobs. This topic is discussed in the response to JRP IR 5.13. However, these new residents hold steady, well-paying jobs and can contribute to the community through stability, education, training, role-modelling and deepening the ties between industry and the community. 13 ACFN note that improvements in housing could bring the following benefits: adequate housing could allow the community of Fort Chipewyan and industry to expand FIFO programs and increase the proportion of Fort Chipewyan members that can take advantage of employment opportunities; and support for the move of ACFN members to a new community at Old Fort Point to access reserve lands would likely lead to improved well-being, quality of life and connection to land for ACFN members (The Firelight Group 2012a).

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the community will likely do so. If adequate housing is not available, former residents will likely not return. Some population growth might occur and be absorbed through private market housing, but to date, this has been limited across the region.

There will always be mobility within and outside the region. Although oil sands development appears to influence mobility within communities, other factors, including housing, health and education requirements and broader employment options, influence movement between communities and outside the region, just as they do in other northern Alberta Indigenous communities. The implications to health, social and education service providers from mobility trends are already internalized in their respective operating systems and funding arrangements.

References:

AMA (Alberta Municipal Affairs). 2016. Home Again: Recovery After the Wood Buffalo Wildfire. 2016.

CBC (Canadian Broadcasting Corporation). 2017. “Mobile Homes Headed to Fort Chipewyan to Relieve Housing Shortage”. Website, last accessed April 29, 2017 at: http://www.cbc.ca/news/canada/edmonton/fort-chipewyan-conklin-housing- shortage-trailer-wood-buffalo-development-corporation-1.4007172.

CPDFN (Chipewyan Prairie Dene First Nation). 2016. Consolidated Financial Statements. March 31, 2016. Accessed at: http://fnp-ppn.aandc- aadnc.gc.ca/fnp/Main/Search/DisplayBinaryData.aspx?BAND_NUMBER_FF=47 0&FY=2015-2016&DOC=Audited consolidated financial statements&lang=eng.

FCMA (Fort Chipewyan Métis Association – Local 125), 2010. 5-Year Strategic Plan.

FCMA (Fort Chipewyan Métis Association – Local 125). 2010. 5-Year Strategic Plan.

The Firelight Group (The Firelight Group Research Cooperative). 2012a. Supplemental Social, Economic and Cultural Effects Submission for Shell Canada’s Proposed Jackpine Mine Expansion. September 29, 2012. CEAA Registry Number: 465. Appendix D, Part 5.

The Firelight Group. 2012b. Technical Sufficiency Review of Teck Resources Ltd. Integrated Application for the Frontier Oil Sands Project. Submitted in conjunction with the Mikisew Cree First Nation. June 2012.ACFN. 2017. Athabasca Chipewyan First Nation. Website: http://www.acfn.com/housing.

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Fort McMurray First Nation. 2016. Consolidated Financial Statements. March 31, 2016. Accessed at: http://fnp-ppn.aandc-aadnc.gc.ca/fnp/Main/Search/ DisplayBinaryData.aspx?BAND_NUMBER_FF=468&FY=2015-2016&DOC= Audited consolidated financial statements&lang=eng.

FMFN (Fort McKay First Nation). 2013. Fort McKay First Nation. Red River Current (Volume 4, Issue 2). A Fort McKay First Nation Publication. March 2013.

FMFN. 2016. Business Ventures and Industry Relations: 2016 Year in Review. Accessed at: http://fortmckay.com/annual-reports/.

Fort McKay Métis. 2010. Fort McKay Métis Nation – Local 63. 5-Year Strategic Plan.

FMT (Fort McMurray Today). 2013. Fort McKay Metis Band Council Is Investing In New Housing. Wed May 29, 2013.

INAC (Indigenous and Northern Affairs Canada). 2012. First Nation Profiles, Federal Funding (2012-13) Available at: http://fnp-ppn.aandc-aadnc.gc.ca/ fnp/Main/Index.aspx?lasng=eng.

MCFN (Mikisew Cree First Nation). 2016a. News Release (November 2016): http://mikisewcree.ca/blog/ten-new-houses-raised-in-fort-chipewyan-for-mikisew- membership/.

MCFN. 2016b. Mikisew Cree First Nation. Consolidated Financial Statements. March 31, 2016. Accessed at: http://fnp-ppn.aandc-aadnc.gc.ca/fnp/Main/Search/ DisplayBinaryData.aspx?BAND_NUMBER_FF=461&FY=2015- 2016&DOC=Audited consolidated financial statements&lang=eng.

MCFN. 2017. Mikisew Cree First Nation. Website: http://mikisewcree.ca/services/.

Métis Local 1935 (Fort McMurray Métis). 2015. Fort McMurray Métis. Cultural Impact Assessment of the Teck Frontier Oil Sands Mine Project. July 2015.

Métis Local 125 (Fort Chipewyan Métis). 2015. Fort Chipewyan Métis, Local 125 Cultural Impact Assessment. October 2015.

MMSC (Fort McKay Metis Sustainability Centre). 2016. Fort McKay Métis Integrated Cultural Assessment: Teck Frontier Mine Project. 2016.

May 2017 Page 5-47 Teck Resources Limited Responses to Information Request Frontier Oil Sands Mine Project Joint Review Panel Package 5

RMWB (Regional Municipality of Wood Buffalo). 2011. Council Meeting Agenda Tuesday, December 13, 2011.

RMWB 2015. Regional Municipality of Wood Buffalo. Municipal Census. Released 2015.

RMWB. 2016. 2016 Point in Time Homeless Count. 2016.

SCHH (Seven Cities on Housing and Homelessness). 2016 Alberta Point in Time Homeless Count: Edmonton. Accessed at: http://www.homewardtrust.ca/wp- content/uploads/2016/12/2016-Preliminary-Homeless-Count-Numbers.pdf.

Statistics Canada. 2002. Statistics Canada 2001 Federal Census. Released 2002.

Statistics Canada. 2012. Statistics Canada 2011 Federal Census. Released 2012.

Statistics Canada. 2013a. Statistics Canada 2011 National Household Survey Aboriginal Population. Released 2013.

Statistics Canada. 2013b. Statistics Canada 2011 National Household Survey. Released 2013.

Statistics Canada. 2017. Statistics Canada 2016 Federal Census. Released 2012.

Suncor. 2015. Environmental Impact Assessment for the Meadow Creek East Project. Socio-economic Impact Assessment. 2015.

Personal Communication:

Snow, K. Supervisor, Homelessness. Regional Municipality of Wood Buffalo. Social Support Services. Telephone interview, May 5, 2017.

Wujcik, A. Wujcik, A. Manager, Land Operations, Indigenous and Northern Affairs. Telephone interview, April 25, 2017.

5.4 In Volume 1, Section 16.5.3.2, of the Integrated Application, Teck states "[t]he Project will spend an estimated $2.8 billion in post-closure activities. The bulk of the spending is in the first 10 years after the cessation of active mining and consists of mining activities related to moving waste materials into their final position and contouring the

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landscape". Although the June 2015 Project Update described changes to the Project, updated post closure reclamation costs were not provided.

In July 2015, the Auditor General determined that Alberta’s Mine Financial Security Program (MFSP) may not adequately mitigate taxpayer liability for reclamation work in the hypothetical event of an oil sands operator’s non-compliance with reclamation legislation. According to the Auditor General’s July report:

“For the design and operation of the MFSP to fully reflect the intended objectives of the program, we concluded that improvements are needed to both how security is calculated and how security amounts are monitored. Without these improvements, if a mine operator cannot fulfill its reclamation obligations and no other private operator assumes the liability, the province is at risk of having to pay substantial amounts of public money.”

Given the magnitude of the reclamation obligation associated with the Project and the potential limitations of the MFSP identified by the Auditor General, the Panel requires additional information to better understand how reclamation liabilities will be managed.

a) Provide updated estimated reclamation costs for the Project, taking into account the changes to Project design described in the Project Update. In the response, include a breakdown of the major components considered in the calculation of the reclamation costs for the Project. Examples of major components include, but are not limited to, abandonment, remediation, treatment of tailings and process affected water, dams and ponds decommissioning, process plants and associated infrastructure decommissioning, soil placement and re-contouring, revegetation, and reclamation monitoring.

b) Provide the economic analysis and justification supporting the Project’s approach to liability management through the current MFSP. Include a comparison of the value of Project liabilities to the securities provided by the Project through the MFSP over the course of the Project life. Include an economic evaluation for the option to provide full security payment based on the MFSP calculation, with reference to how much of project revenues will be set aside on an annual basis to pay for closure activities.

c) The Tailings Management Framework contemplates additional collection of financial security in the event the approval holder fails to meet tailings inventory requirements. Explain how Teck would fund this additional security payment if it was required.

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d) Describe any other management actions that Teck will implement to ensure Albertans are not responsible for subsidizing the economic and environmental liabilities associated with the operation of the Project throughout its life. In your response indicate the point in time after project start up that Teck will commence progressive reclamation work, and indicate the estimated percentage of disturbed land that Teck will have permanently reclaimed at the end of mining operations.

Response:

a) The $2.8 billion cost estimated for post-mining reclamation and closure activities did not change considerably in the Project Update. However, a more detailed breakdown of these costs is presented in Table 5.4a-1, including the addition of estimated spending during the construction and operation phases.

The Project plant closure costs shown in Table 5.4a-1 are associated with dismantling and removing plant equipment and infrastructure from the site. Some of these costs will be offset by salvaging materials and components that can be recycled or resold.

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Table 5.4a-1: Reclamation and Closure Cost Detail

Construction Operations Closure Total Project Description ($million) ($million) ($million) ($million) Mine 201 5,569 2,566 8,336 Reclamation material salvage and placement 201 1,542 1,062 2,805 Centrifuged fluid tailings system 0 3,391 29 3,420 Tailings area re-contouring 0 400 0 400 Reclamation and closure – other 0 235 58 293 ETA seepage management system 0 0 482 482 Staff and fixed inputs and contract indirects 0 0 210 210 Closure drainage system 0 1 470 471 Water monitoring system 0 0 81 81 Pit lake filling system 0 0 174 174 Plant CFT operations and closure 0 3,134 126 3,260 Owner1 0 0 228 228 Total 201 8,703 2,920 11,824 NOTES: ETA = external tailings area, CFT = centrifuged fine tailings. 1Owner’s costs includes items such as salaries, insurance, contract administration.

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b) Teck is committed to complying with the Mine Financial Security Program (MFSP). Teck’s long history as a diversified resource company has provided us with the experience of managing reclamation liabilities relating to mining activities across various commodities in multiple jurisdictions, including Alberta where, in addition to Teck’s oil sands assets, Teck also has a steelmaking coal operation (Cardinal River Operations).

The MFSP takes an asset-to-liability approach, where an approval holder’s assets are used to secure its liability. Assets can be in the form of financial security and proven and probable reserves.

Where an approval holder (i) has MFSP assets at least three times greater than the MFSP liability, (ii) is 15 years or more from the end of its reserves, and (iii) is keeping current with its reclamation plans, additional security above the base security is not required. The base security for the Project (an oil sands mine without an upgrader) is $30 million. Based on Teck’s economic assumptions and evaluation, Teck anticipates that posting additional security beyond the base security of $30 million will not be required until 2051, when the reserve life index falls below 15.00. Once the reserve life index falls below 15.00, Teck will post the additional Operating Life Deposit as identified in the MFSP throughout the remaining life of the mine.

Teck realizes that the cyclical nature of oil prices can lead to fluctuations in the value of MFSP assets and might trigger the requirement of additional financial security. Teck is committed to complying with the various mechanisms in place through the MFSP to manage this risk.

Teck’s approach for managing the reclamation liability throughout the life of the Project is described below.

Progressive Reclamation

As shown in Volume 1, Section 13, Table 13.5-5 and Table 13.5-9 of the Project Update, Teck will progressively reclaim the Project disturbance area (PDA) throughout the life of the Project. By the end of 2037 (soon after the start of Phase 2 production) about 620 ha of land will have been reclaimed, representing about 4% of the 16,400 ha of land that will have been disturbed. By the end of 2045, 2,257 ha will have been reclaimed, representing about 10% of the 21,664 ha that will have been disturbed. By the end of 2055, the total reclaimed area will have increased to 4,981 ha, or approximately 19% of the 25,751 ha disturbed.

Post-Mining Closure Liability

Mine operations are scheduled to cease in 2066, at which time about 43% of the PDA will have been progressively reclaimed. All remaining reclamation and closure activities will cost about $2.9 billion to complete.

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Fluid Fine Tailings Inventory

As shown in response to JRP IR 1.1, Figure 1.1-1, the volume of fluid fine tailings stored in ETA 1 will peak in 2037 at about 230 Mm3, when the internal tailings area 1 centrifuge fluid tailings storage area becomes available (this allows a substantial increase to the re- processing [treatment] rate of fluid fine tailings).

Maximum Liability Scenario

Reclamation liability for the Project is expected to be at its highest at the end of year 2037. As identified above, this is when the maximum fluid fine tailings inventory is expected (unprocessed volume of about 230 Mm3 of fluid fine tailings will be stored in ETA 1). The remaining 230 Mm3 will be processed at the centrifuge fluid tailing facility over seven years. As shown in Table 5.4b-1, the cost to operate the facility for this duration would be approximately $1.1 billion.

In the unlikely event that the mine was to close at the end of 2037, there would be about 15,780 ha of remaining disturbance area to reclaim (approximately 54% of the PDA). The cost estimate for this liability scenario is shown in Table 5.4b-1. The cost for fluid tailings treatment, reclamation and closure for this scenario is approximately $4.3 billion (see Table 5.4b-1).

Table 5.4b-1 Cost Estimate for Maximum Liability Scenario (Mine Closure in 2037)

Remaining Reclamation and Description Closure Costs ($ million) Mine 4,045 Reclamation material salvage and placement 1,618 Tailings (mine and Frontier Project Plant site) CFT operations 1,133 Tailings area re-contouring 233 Other reclamation and closure 236 ETA seepage management system, equipment and labour 402 Closure drainage, water monitoring and pit lake filling systems 423 Plant 126 Owner1 133 Total 4,304 NOTES: CFT = centrifuged fine tailings; ETA = external tailings area. 1Owner’s costs includes items such as salaries, insurance, contract administration.

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Remaining Life and Resource

In 2037, there will be approximately 29 years of operations remaining and 2.5 billion barrels of recoverable bitumen in the pit. Although full security is not required under the current MFSP, in the event that Teck chooses or is required to provide full security payment based on the MFSP calculation, a maximum security of approximately $4.3 billion throughout the life of the Project would be required.

Being a diversified resource company provides Teck with stable cash flows and the ability to endure through challenging economic times. Teck believes this will allow the necessary financial security, if required by the MFSP at the time. Cash flows from Teck’s portfolio of assets can be used to provide all or some of the security as opposed to only Project specific revenue.

Specific details, including Teck’s mine reclamation plan and schedule, assets and liability calculations, security estimate calculations and MFSP data will be provided in accordance with the timelines outlined in the MFSP standard and Appendix 4 of the Guide to the MFSP.

c) Teck is committed to complying with the MFSP, recognizing that this might include the requirement to post additional financial security resulting from the Tailings Management Framework. If additional security is required, how this is posted will ultimately depend on the options available under the MFSP. In order of decreasing preference, the form of additional security payment could be:

 secure against Project resource or other Alberta resource owned by Teck

 letter of credit  cash

Being a diversified resource company provides Teck with stable cash flows that can be used to provide the security.

d) Teck is committed to developing the Project responsibly and will incorporate best practices for environmental protection, reclamation and closure, which will help to limit and manage reclamation liabilities. Teck is also committed to complying with the MFSP and will have the necessary internal controls and processes in place to confirm that Teck meets all of the regulatory requirements, including Teck’s obligations under the MFSP.

As Canada’s largest diversified mining company with over 100 years of experience, Teck understands it is important that the financial resources required for the Project are capable of fully funding reclamation obligations. Teck understands that the Government of Alberta has a fiduciary responsibility to manage the exposure of the citizens of Alberta to unfunded reclamation liability and acknowledges that not all operators have the demonstrated record of sustainability and responsibility that Teck has. Teck’s intent is that Teck’s contributions to the MFSP will never need to be drawn upon.

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In addition to the prudent business practices outlined in the response to JRP IR 5.4(b), Teck’s diversification across a number of commodities provides an additional level of assurance regarding Teck’s ability to meet Teck’s reclamation obligations. Diversification across commodities and long life assets in stable jurisdictions are key management strategies because they reduce exposure to any single commodity whose price and long term demand can fluctuate. These strategies provide additional financial stability with respect to the funding of Teck’s reclamation obligations at Teck’s operations.

As detailed in Volume 1, Section 13, Table 13.5-9 of the Project Update, Teck plans to begin progressive reclamation work in 2024, two years before production start-up. By the end of mining operations, Teck plans to have reclaimed about 43% of the PDA (which is about 49% of the Project’s terrestrial landscape). For additional details, see the response to JRP IR 5.4(b).

5.5 Teck has acknowledged that each potentially-affected Indigenous community may experience different socio- economic effects as a result of the Project. However, Teck does not provide a thorough discussion or analysis of the issues raised by, or the potential for differing effects on, each First Nation or Métis community. First Nations and Métis communities have identified community specific socio-economic concerns and interests. It is not clear how or to what extent Teck has considered or will mitigate the community specific potential effects identified.

a) For each indigenous group that Teck has engaged with and that may be affected by the Project, describe how:

i. community-specific socio-economic concerns and interests identified during community consultation have guided and informed the socio-economic assessment for the Project and the design of mitigation plans; and,

ii. information provided in community-led TLU, TEK and cultural impact assessments, where applicable, have guided and informed the socio- economic assessment for the Project and the design of mitigation plans.

b) Confirm whether Teck has consulted with the following organizations regarding baseline conditions and effects assessment on Indigenous groups, and if so, describe what information relevant to the socio-economic impact assessment of the Project Teck received from them:

i. Nunee Health Authority;

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ii. Northlands School Division No. 64;

iii. Northeastern Alberta Aboriginal Business Association; and

iv. Aboriginal Futures

Response:

a) i. Socio-Economic Concerns and Interests

As described in the response to ACFN/MCFN SOC relating to socio-economics (see ACFN SOC [February 2013], Appendix D, Section 2.2.1), the design of the socio- economic assessment for each community was informed by:

 An initial scoping exercise in which concerns identified by Indigenous communities in a number of recent socio-economic impact assessments for other, similar projects were reviewed. The findings were incorporated into the socio-economic impact assessments.

 The Project draft terms of reference (TOR), issued by the Government of Alberta and through which Indigenous communities may provide input.

 Concerns and issues regarding the study scope that were identified during a study design review meeting held on January 25, 2010 with Teck and its consultants and ACFN, MFCN and their consultants.

 Community feedback gathered by Teck during open houses, advisory committee meetings, industrial relations corporation/government and industry relations meetings.

Volume 1, Section 16.2.3 of the Integrated Application outlines the input that informed the socio-economic assessment, including:

 the Project socio-economic assessment final TOR issued by Alberta Environment (AENV 2009)

 key issues, concerns and interests expressed by stakeholders and Indigenous communities regarding the Project and identified in past regulatory submissions

 studies relating to socio-economic conditions, such as the Royal Society of Canada Panel report (RSCEP 2010)

 regional initiatives, including provincial government-led responses to industrial development and population growth in the RSA

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 feedback about the Project gathered during two public open houses held in Fort McKay and Fort Chipewyan14

The Project Update was informed by Statements of Concern (SOCs) submitted by Indigenous communities and other interested parties. Volume 1, Section 16.1.1.1 of the Integrated Application identifies the sources and concerns considered and notes which Teck considered addressed and those to be addressed in the Project Update (see Volume 1, Section 16.7 of the Integrated Application and Table 5.5a-1).

Socio-economic conditions, as well as interests and concerns of residents in the RSA have been the subject of numerous assessments, regulatory reviews and public hearings in the past 15 years which continue to inform Teck’s assessment process.

Indigenous groups in the RSA share common interests and concerns regarding changes to socio-economic conditions from industrial growth. The concerns considered in the Integrated Application (see Volume 1, Section 16.2.3.2) align with the concerns expressed through the Project regulatory review process, and include: traffic, housing, employment and contracting opportunities, benefits to accrue locally, cost of living, pressures on social infrastructure including education, social, health and security, the pace of development in the region and impacts to culture and ongoing monitoring of effects in the region.

A difference in opinion remains between Teck and Indigenous communities in the region, regarding the level at which these issues have been assessed, with a regional-wide, systems-level assessment used by Teck versus detailed analysis and mitigation planning specific to individual First Nation and Métis communities, as requested by Indigenous groups.

Since filing the Integrated Application in 2011, Teck has continued to seek input from regulators, stakeholders and potentially affected Indigenous communities to refine key issues of concern. Interests and concerns of local communities addressed in Teck’s submissions to date are presented in Table 5.5a-1.

14 Teck notes the only comments specific to socio-economics received from residents at the well-attended public open house in Fort Chipewyan in 2010 related to the availability and timing of employment opportunities.

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Table 5.5a-1: Topics of Interest to Potentially Affected Indigenous Communities Addressed in the Assessment and SIR/SOC Responses

Topic Section Integrated Application (Volume 1)  the scope of input, selection of key indicators  Section 16.2.3  socio-economic assessment approach, study area including  Section 16.3 particular focus on Fort McKay and Fort Chipewyan  baseline conditions across key indicators, including specific to  Section 16.4.4 Fort McKay and Fort Chipewyan; and identification of current  Section 16.7.4 social infrastructure issues and responses, including information specific to rural communities  employment, spending and economic effects expected to accrue  Section 16.5 to the RSA  Indigenous-focused sections of the socio-economic assessment,  Section 16.5.5.1 including: employment and contracting; population; TLU and  Section 16.6.3.2 culture; housing, cost of living and social infrastructure; traffic;  Section 16.7.5 benefits; pace of development; management and monitoring  Section 16.7.7  Section 16.7.9 Project Update (Volume 1)  Indigenous community concerns, including scope of the  Section 16.1.1.1 assessment  Teck commitments to creating local long-term benefits, economic  Section 16.7.3.1 leakage and impact equity  Section 16.7.3.3  Section 16.7.3.5  shift schedules and potential effects from FIFO workforce  Section 16.7.3.3 commuting  potential population changes and service provider effects in rural  Section 16.7.3.3 communities and Fort McMurray  employment and training opportunities and barriers  Section 16.7.3.5  monitoring plans and programs and adaptive management  Section 16.3.6.1  Section 16.5.7 Responses to SIRs and SOCs  labour market indicators and issues, including: annual labour  ERCB Round 1 SIR 120 demand; local labour force assessment; Indigenous labour  ESRD/CEAA Round 1 SIR 140 market readiness, barriers to employment; employment targets;  AER Round 5 SIR 43 education/training plans; procurement lessons learned from other  Fort McKay SEIA SOCs (v), (w) locations; and assessment of effectiveness of company and (x) (February 2013) employment and procurement policies and programs  Métis Local 125 SOC 148 (April 2016)  lodge-based workers and lodging demand  ERCB Round 1 SIR 121 and ESRD/CEAA Round 1 SIRs 140 and 156  Métis Local 125 SOC 137 (April 2016)  monitoring and reporting of local employment and procurement  ERCB Round 1 SIR 122  ERCB Round 2 SIR 32  ACFN/MCFN SOC E12 (April 2016)  Métis Local 125 SOC 135 (April 2016)  health services demands  ERCB Round 1 SIR 127

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Table 5.5a-1: Topics of Interest to Potentially Affected Indigenous Communities Addressed in the Assessment and SIR/SOC Responses (continued) Topic Section  traffic effects, including expected volumes by type and year; over  ERCB Round 1 SIR 125 and 126 dimensional loads; and volumes, maintenance and safety  ESRD/CEAA Round 1 SIR 10 concerns specific to the Fort Chipewyan winter road  ERCB Round 2 SIR 33  AER Round 5 SIRs 41 and 42  AER Round 5 SIRs 98 and 101  ACFN/MCFN SOC E11 (April 2016)  updated assessment of effects based on results of community  CEAA Round 5 SIR 163 submitted CIAs  approach including incorporation of community specific concerns  ACFN and MCFN SOCs (February and regional focus 2013), Appendix D, Section 2and Section 3, responses to ACFN/MCFN SEIA SOCs 1 to 17  Responses to Métis Local 125 SOCs (April 2016) (e.g., SOCs 132, 135-140, 143, 145 and 148)  demand for and cost of housing  ACFN/MCFN SOC E9 (April 2016)  Fort McKay SEIA SOC (f) (February 2013) NOTES:ERCB = Energy Resources Conservation Board (now the Alberta Energy Regulator [AER]); ESRD = Alberta Environment and Sustainable Resource Development; CEAA = Canadian Environmental Assessment Agency; SEIA = socioeconomic environmental impact assessment; TLU = traditional land use; CIA = cultural impact assessment.

In addition to these responses specific to issues and interests of rural communities, Teck has assessed the socio-economic effects and identified appropriate enhancement and mitigation plans for Fort McMurray, the largest population centre in the region and home to the largest portion of Indigenous peoples in the RSA.

In the response to JRP IR 5.14(a) Teck provides a summary of management, mitigation and monitoring plans in response to community concerns and interests.

Throughout its engagement process with Indigenous communities, Teck has been made aware of some areas of particular interest to communities which might not fall within the regulatory-specified assessment (i.e., discipline) areas. To address this, Teck has funded a number of additional studies that were either led by the communities or included substantial input from communities. Teck expects that more community-specific baseline studies will be conducted as an input to mitigation monitoring frameworks, which might form part of Participation Agreements. Teck intends to follow a collaborative approach in designing these frameworks with individual communities.

ii. Concerns and Interests Identified through Cultural Impact Studies

Concerns and interests identified through community-led cultural impact studies conducted before early 2016 were considered in the response to CEAA Round 5 SIR

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163. Teck notes that while community-led CIAs contribute to deeper understanding of cultural and community well-being, they do not change the findings of the socio-economic assessment with regard to challenges posed by economic growth. In the response to CEAA Round 5 SIR 163, Teck identified a number of measures that could be considered in mitigating some of the effects:

 incorporate and use Indigenous place names where applicable

 support community-led projects to document Indigenous place names in their respective traditional territories

 continue to provide cultural awareness training for all Project staff and contractors

 contribute to language retention programs and other programs that support preservation of Indigenous culture, knowledge and practice (e.g., culture lodges for youth)

 consider key Indigenous access routes and access preferences in the Project’s access management plan

 establish a Reclamation Working Group with potentially affected Indigenous groups so that cultural values can be integrated into reclamation planning

 support documentation of community-specific cultural heritage

 consider cultural keystone species in the wildlife management and mitigation plan, fish habitat compensation lake and biodiversity management plan

See the response to JRP IR 4.4(a) regarding measures to mitigate effects on Indigenous use of lands and resources for traditional purposes.

Other Considerations for Community-Specific Analysis and Mitigation

Teck remains committed to proactively engaging Indigenous groups and identifying ways of contributing to community development and well-being. Teck will carry out monitoring of the Project’s effects via their engagement with regional and provincial stakeholders, Indigenous groups, as well as with other industry proponents in the region.

In the response to JRP IR Package 5, Teck has provided more information on socio- economic conditions of Indigenous communities within the RSA, including:

 the response to JRP IR 5.3 – population and housing

 the response to JRP IR 5.5(b) – health, education, business development, procurement and employment

 the response to JRP IR 5.6 – country foods

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 the response to JRP IR 5.7 – linkages to social, economic and cultural values and socio-economic conditions linked to TLU practices through community- specific socio-economic assessments

 the response to JRP IR 5.10 and 5.11 – employment commitments and barriers

 the response to JRP IR 5.12 – involvement of and barriers to female participation in oil sands development

 the response to JRP IR 5.13 – opportunities and impacts related to FIFO commuting

b) Information provided by the organizations listed part (b), including gathered through interviews has informed the Project’s Information from these organizations (and other public sector organizations) was also incorporated into responses to SIRs.

Table 5.5b-1 lists key concerns and interests relating to socio-economic impacts of the Project that were identified through consultation with these organizations. It also identifies where this information is located in the socio-economic impact assessment completed for the Integrated Application and Project Update, or in Teck’s responses to SIRs.

Table 5.5b-1: Information Provided by Public Service Providers Related to Key Socio-Economic Concerns and Interests

Topic Reference Section Integrated Application (Volume 1)  Volume 1, Section 16.2.2  The scope of input and selection of key indicators  Volume 1, Section 16.2.3  Sources of data used in the socio-economic impact assessment  Volume 1, Section 16.3.7  Volume 1, Section 16.4.4  Baseline conditions across key indicators  Volume 1, Section 16.7.4  Employment, spending and economic effects expected to accrue to  Volume 1, Section 16.5 the RSA  Management and monitoring impacts on social infrastructure  Volume 1, Section 16.7.10 Project Update  Infrastructure and service demand in Fort McMurray  Volume 1, Section 16.7.3.4  Employment and training opportunities and barriers  Volume 1, Section 16.7.3.5 SIRs  On-site health care services and coordination; concerns identified  response to ERCB Round 1 SIR by the regional health authority 127  Local labour force assessment; Indigenous labour market readiness, barriers, employment targets, education and training  response to AER Round 5 SIR plans; procurement lessons learned from other locations and 43 assessment of effectiveness

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Recognizing that socio-economic conditions and responses by public agencies in the RSA continue to evolve, Teck interviewed representatives of the Northland School Division No. 64, the Northeastern Alberta Aboriginal Business Association (NAABA), Aboriginal Futures, Alberta Health Services, a partner with the Nunee Health Authority, and other public sector organizations to supplement the baseline information. This information was then used to assess socio-economic effects on potentially-affected Indigenous groups as a result of the Project and cumulative activity.

Information provided by these organizations corresponds to three main areas of interest: health, education, business development and labour market readiness. To limit repetition, the information has been compiled and is presented using these headings.

For each of these socio-economic areas of interest, the analysis includes updated baseline information and is presented at a community level, where possible.

Data Considerations and Approach

Analyzing the socio-economic conditions of individual Indigenous groups or communities is challenging because of a mobile population base (see the response to JRP IR 5.3[b]) and limited publicly available information15. Further, some service providers (e.g., education, health and training) at the community and regional level could not differentiate between individual First Nations or between First Nations and Métis clients in terms of the nature or degree of demands or trends in service use.

Community-specific information, where available, was obtained from various sources. However, in many instances, data limitations restrict the analysis of conditions for individual Indigenous groups. Rather, the level of disaggregation reflects these groupings within the RSA:

 FMFN Reserves

 Fort Chipewyan, including the population centre of Fort Chipewyan and the largest group of ACFN peoples. Also, the surrounding MCFN Reserves (e.g., Allison Bay 219, Dog’s Head 218).

 the CPDFN Reserve (i.e., Janvier)

 the Fort McMurray #468 First Nation Reserve of Gregoire Lakes Estates  Métis communities in the hamlets of Fort McKay, Fort Chipewyan, Anzac, Janvier and Conklin

 Indigenous peoples in Fort McMurray

15 Because of the relatively small size of many Indigenous communities, indicator-specific data from public sources such as Statistics Canada, Health Canada and direct services providers is often unavailable because the data does not exist, or is suppressed due to confidentiality.

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Where applicable, analytical results were compared to:

 the overall average for Indigenous households in other Indigenous communities16 in northern Alberta

 the all-RMWB rate (average of all Indigenous and non-Indigenous residents)

 results for Indigenous households Fort McMurray (an urban centre) and the nearby community of Anzac

Other Sources of Information

Sources of information used this analysis, are listed in Table 5.5b-2 for each socio- economic area of interest. Each area of interest is discussed following Table 5.5b-2 and the response summarizes the information on a community level, where information is available.

Table 5.5b-2: Socio-Economic Areas of Interest and Sources of Information

Socio- Economic Specific Information Source Area of Interest

Health  First Nations and Inuit Health (Health Canada) listing of regional programs and services  Aboriginal People’s Survey  Statistic Canada’s Canadian Community Health Survey  Indigenous and Northern Affairs Canada, Community Well-Being Index  interviews with representatives of the Alberta Health Services North Zone, responsible for some elements of public health delivery in Fort McKay and Fort Chipewyan

Education  Alberta Education Accountability Pillar Survey results  interviews with the Superintendent of Northland School Division, and the Principals of the Athabasca Delta Community School in Fort Chipewyan and the Fort McKay School in Fort McKay Business  federal NHS and Census data regarding labour force engagement and labour force  interview with ATC employment and training program representative (i.e., Aboriginal development Futures)  review of reported results regarding Indigenous business engagement with industry  interview with the NAABA

16 Northern Alberta Indigenous communities include ten Treaty 8 communities for which data are available: Little Red River Cree, Sturgeon Lake Cree, Driftpile, Dene Tha', Bigstone Cree, Woodland Cree, Swan River, Horse Lake, Beaver and Whitefish Lake (Atikameg).

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Table 5.5b-2: Socio-Economic Areas of Interest and Sources of Information (continued) Socio- Economic Area of Specific Information Source Interest Other  studies and reports prepared by, or on behalf of, Indigenous groups in the area  consultations carried out by Teck with First Nations and Métis groups in the region  government sources, including municipal census and planning documents  industry sources, including regulatory applications of oil sands projects in the region  intervener submissions during regulatory review (including public hearings) of recent oil sands socio-economic impact assessments  online sources, including websites for Indigenous groups and businesses and local, provincial and federal government departments  Statistics Canada’s 2011 NHS1 NOTES: ATC = Athabasca Tribal Council; NAABA = Northeastern Alberta Aboriginal Business Association; NHS = national household survey. 1 The limitations of the 2011 NHS, particularly with regards to on-reserve communities are acknowledged; however, it remains one of the most useful, standardized sources of information available across communities in the region and beyond. Because of sampling limitations estimates provide a general sense of change over time and should be interpreted in broad terms.

1) Health

Service Delivery

Although there are some health services specific to Indigenous groups in the RSA, most health and social services are open to all members of the community (i.e., regardless of First Nation membership or Métis association). As is typical with relatively large, sparsely populated, rural areas, the majority of key services are concentrated in the region’s population and service hub – in the case of the RSA, Fort McMurray. Table 5.5b-3 provides an overview of existing health and social services in Fort McMurray, Fort McKay and Fort Chipewyan along with a summary of health concerns of residents, including Indigenous residents, in the region.

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Table 5.5b-3: Health and Social Services and Identified Concerns in the Region

Health and Social Services

Delivery Region-Wide, including Fort McMurray  Alberta Health Services (North Zone) has primary responsibility for the delivery of many provincially funded health services in the RSA. Some of these services are offered through the Northern Lights Regional Health Centre in Fort McMurray, including acute care, continuing care, 24-hour emergency, laboratory, x-ray, mental health, ambulatory care, rehabilitation, home care and community health. The Centre also has an Aboriginal Liaison Coordinator to assist Indigenous in-patients, clients and their families.  Much progress has been achieved over the past decade in addressing health delivery challenges in the RSA, including additional physician recruitment to the point of no waiting lists for general practitioners in the region, reduction in emergency room wait times to less than other major centres in Alberta, investment in two additional community health centres in Fort McMurray, major renovations to the Northern Lights Regional Health Centre, funding for addition of continuing care spaces in Fort McMurray.  According to AHS, health service delivery for rural RSA residents, including Indigenous, continues to improve. Increasing use of technology such as Telehealth, and better screening such as a new mobile screening service, focusing on early detection (Greening 2017, pers. comm.).  There is a full range of social services in Fort McMurray, including family and child support services offered through the Northeast Alberta Child and Family Services Authority; the municipal FCSS; the Alberta Alcohol and Drug Abuse Commission; and non- governmental agencies, such as the Salvation Army, the Canadian Mental Health Association and Some Other Solutions. The YMCA is the primary provider of childcare services.  There are several substance abuse treatment programs and facilities in and around Fort McMurray including the Pastew Place Detoxification Centre, an out-patient non-medical approach to addiction. In most First Nations communities, community health programs are delivered by a local Health Centre (FNIH 2010).  Various communities receive periodic visits by physicians, dentists, psychologists, most residents remain reliant on the Northern Lights Regional Health Centre and service providers in Fort McMurray for many medical services including emergency and acute care.  Primary care services in the area are provided by individual family physicians in the region, all of whom belong to the Wood Buffalo PCN. Established in 2006, the Wood Buffalo PCN connects local family physicians with other health professionals such as nurses, dieticians, pharmacists and others, in providing comprehensive team-based primary care to residents of the region.  In 2011, oil sands companies contributed over $12 million to Indigenous communities in the Wood Buffalo and Lac La Biche regions for school and youth programs, celebrations, cultural events, literacy, community projects and other programs. Over the last nine years, industry has provided $96 million in donations to a variety of groups and organizations in the Wood Buffalo region (OSDG 2012).  According to Statistics Canada data, approximately 85% of off-reserve Indigenous respondents in the region reported their health as good, very good or excellent. This is comparable to Indigenous respondents in other regions and to the rural and urban provincial averages for the Indigenous population. As well, approximately 45% of Indigenous respondents in the region reported that they had one or more chronic health conditions. This is somewhat lower than Indigenous respondents in other regions and the rural and urban provincial averages for the Indigenous population (Statistics Canada 2006).

Rural Community-Specific Health and Social Services Fort McKay Fort Chipewyan Anzac / Conklin Gregoire Lake Reserves / Janvier

Health Services Overview

 The Health & Human Services Department of FMFN manages a full spectrum of  Indigenous communities that are defined as remote or isolated are served by nursing  The Mark Amy Treatment Centre  Fort McMurray #468 First Nation programs and services supporting community members’ well-being. This includes stations that provide community health programs and primary care. The NHA, which is located in Anzac is the only residential members access health services in Fort McMurray. healthcare, mental health and Elder care, and support for youth, including responsible for the administration of health programs and services in Fort Chipewyan, adult alcohol and drug treatment center activities, programs and skill building (FMFN 2017). operates a nursing station and Wellness Centre in the community. The MCFN, ACFN in the RSA. Its programming includes  Health services to the CPDFN are provided via an on-site health centre,  Health services are provided through the Fort McKay Health Centre. The Centre and Métis Local 125 each appoint a member to the Authority Board of Directors. an Indigenous cultural component staffed by a community health has a Cultural Coordinator, a Mental Health Therapist and a Homecare and  The health station, recently reconstructed with a $15 million federal government grant including lectures by Elders, a sweat representative and offering supports Community Health nurse. (AR 2017), hosts a variety of health services, including emergency treatment by in-town lodge and pipe and sweetgrass regarding: pharmacy, vision, medical nursing staff, periodic physician and other health professional visits, pre-natal ceremonies.  Services currently available include primary care (e.g., family physician), public equipment, dental health, therapy, assessments and women’s health, lab and x-ray services, men’s health, diabetic  Alberta Health Services operates health (e.g., immunizations, vaccinations, STI screening, baby check-ups), ambulance and telehealth services management, palliative care, foot care, counselling, medication dispensing and community health centres in Anzac and prenatal and well-woman visits, mental health therapist, physiotherapy, (HCOM 2017). geriatric/palliative care specialist services, lab testing and telehealth consults. delivery, home care and other public health initiatives. The Nunee Wellness Centre Conklin, providing basic community offers programs including Sexual Abuse Healing Program, Tobacco Reduction health services including immunization  The range of health services available at the Fort McKay Health Centre has Program, Residential School Healing Program, Grievance Support and Alcoholics and public health nursing (AHS 2017). expanded in recent years. Future services are also being considered at the Anonymous. Telehealth services are also offered including diabetic workshops (NHA Health Centre including Internal Medicine Specialist visits, pharmacy services and 2017). dentist and optometrist clinics (FMFN 2017).  According to Alberta Health Services North Zone, health service delivery in Fort

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Table 5.5b-3: Health and Social Services and Identified Concerns in the Region (continued)

 According to the AHS North Zone, health service delivery to the FMFN is handled Chipewyan is through a partnership by AHS and the NHA, an authority under Health primarily by Health Canada through funding to the Nation. Other services, Canada. The NHA operates the Health Centre, which provides health staff and a health including to hamlet residents are via outreach or as provided in Fort McMurray, by director, an ambulatory care clinic and various public health programs and services AHS (Greening 2017, pers. comm.). while AHS supplies physicians. The health director position has experienced some turnover in recent years (Greening 2017, pers. comm.).

Social Services Overview

 Key social service providers include FCSS, a partnership between the  The FCSS, a partnership between the Government of Alberta and the RMWB, provides  The FCSS department of the RMWB  Alberta Family and Social Services Government of Alberta and the municipality, and the Fort McKay Wellness counseling, youth and senior services and support for community events. provides social support services located in Fort McMurray provide a full Centre. Programs and services provided through the Wellness Centre include the  Paspew House, funded by contributions from INAC and Health Canada and managed including rural communities. range of child welfare services to the Fort a children’s after school program, youth drop-in activities, youth leadership by the MCFN, provides emergency transitional housing for mothers and children Preventative programming focusses on McMurray #468 First Nation members programs, a supper program and summer day lodge programs (FMFN 2017). suffering from abuse or wishing to leave abusive relationships (MCFN 2017). enhancing the well-being of individuals, including adoption services, foster families and communities. homes and handicapped children’s  The FCSS promotes personal well-being and mental health; services include:  The ACFN's Social Development program delivers services to members, including services. An Indigenous contract social counselling for school children, individual counselling, ATC Child and Family adult care for those with functional limitations; supports include in-home, foster and  The FCSS is a partnership between worker provides family and social Services, probation services, NA and AA meetings and visits from Fort McMurray institutional care. Other social programming is offered through an arrangement with the the province, municipalities and Métis support counseling one day per week on Victim Services. ATC Child & Family Services department, which covers on-reserve child and family settlements that develops locally-driven the Gregoire Lake Reserve (ATC 2014).  The Fort McKay Elder and Day Care Centre – an 8,700 square foot facility – service issues (ACFN 2017). preventative social initiatives to enhance the well-being of individuals,  The RMWB FCSS services are available opened in January 2010 after fire destroyed the original building in 2007.  The MCFN has a Social Enhancement program for members residing in Fort families and communities (RMWB to residents of Janvier. Chipewyan or on the Allison Bay or Dog Head Reserves. The program assists 2017). members with a basic living allowance, and can be used to support a member’s basic costs of housing and meals while residing in Fort Chipewyan. Program funds come from INAC. The Mikisew Elders Program includes home maintenance services for Elder home owners and dwellers and a home care worker, whose function is to support Elders with regular home visits (MCFN 2017).  In 2014 a new care facility for Elders was opened. The $12 million, 12-room facility, built without government funding but with contributions from the MCFN and $5 million from industry, will provide vulnerable community members with assisted living or end of life care in their home community (NJ 2014).

Health and Social Service Delivery and Well-being Issues

General Health and Social Concerns  Concerns have been raised by Indigenous communities in the area regarding health issues. Health issues in the region include diabetes, smoking, drinking, sexually transmitted infections and drug use. A young population results in demands for neo-natal and maternal care. (Greening 2017, pers. comm.).  The availability and abuse of alcohol, illicit drugs and prescription pills has been raised consistently by all Indigenous communities as a serious concern. The stresses being placed on families dealing with alcohol and drug abuse issues contribute to concerns that youth might not be receiving adequate direction and support.  Care and support for Elders who face a relatively high cost of living with few financial means is also a concern across Indigenous communities.  Historically there has been difficulty in recruiting and retaining health care professionals and support staff in Fort McMurray – a national challenge that is intensified because of the region’s remote location, lack of affordable housing, higher cost of living and wage competition. Recruitment challenges have eased in recent years and progress has been made over the past few years in addressing health delivery challenges in the region, including: recruiting additional doctors; additional funding; reduction in emergency department wait times and investments in regional health infrastructure. For example, in 2012/2013, the Northern Lights Regional Health Centre Emergency Department was able to treat and discharge a higher percentage of patients in the targeted timeframe (less than four hours) than emergency departments in Edmonton, Grande Prairie and Lethbridge (AHS 2013).  Challenges in recruiting and retaining staff have also been expressed with regards to the social service sector, which affects all residents, including Indigenous peoples. Workers can be attracted away by higher-paying jobs or better working conditions in other sectors. In addition, decreases in volunteerism resulting from increased work demands are also a concern.

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Table 5.5b-3: Health and Social Services and Identified Concerns in the Region (continued)

Concerns Related to Industrial Activity  All Indigenous communities in the area have raised concerns in regards to the health effects caused by environmental changes brought about by oil sands development. See Table 5.5b-4 for more detail.  Concerns with the potential health effects related to air quality (e.g., dust, odours) are especially prevalent in Fort McKay because of the community’s proximity to development.  The impact of oil sands development upon individual and community health is the most prevalent of all social issues raised by community members, according to supplementary information filed by the ACFN during the Shell Jackpine Mine Expansion regulatory process (The Firelight Group 2012). Concerns with the potential health effects related to water quality are particularly prevalent in Fort Chipewyan because of the community’s downstream location.  Indigenous communities in the region have previously voiced concern with regards to the demands placed on health services because of historically high population growth in the region (RSCEP 2010). Demands related to the influx of new residents has largely fallen on the urban service area, but Indigenous community members in the region are also reliant on the Fort McMurray hospital for many medical services and are concerned about long wait times at, for example, the emergency department. Rural, Mostly Indigenous Communities:  Cancer rates have been an especially important issue to Indigenous communities in Fort Chipewyan. A three-year community health assessment study was commissioned by the provincial government, with the proposed participation of the ACFN, FMFN, Fort McKay Métis and the NHA.  Work commitments take members away from their home community for extended periods of time to access employment, decreasing the quantity of time available to spend with family.  Decreased community cohesion and a sense of transience associated with the movement of community members to and from larger centres, such as Fort McMurray.  Wage employment in the region can also drive positive social effects, including an increased sense of self-worth and sense of control. This concept of self-reliance is more focused on individual effort and achievement as opposed to the more traditional concept that is focused more so on communal efforts and achievements.  Despite the presence of social issues, there are fewer social services available in rural communities compared to the urban service area. Challenges include difficulty in recruiting and retaining health care professionals and support staff, and a reliance of agencies on ad hoc and project-specific funding.  Rural residents are reliant on the Fort McMurray hospital for many medical services and are concerned about wait times. Travel to Fort McMurray also increases the time and cost associated with accessing those services. NOTES: INAC = Indigenous and Northern Affairs Canada; AHS = Alberta Health Services; Nation; NHA = Nunee Health Authority; FCSS = Family and Community Support Services; ATC = Athabasca Tribal Council; PCN = Primary Care Network.

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Community Health Concerns Related to Industrial Emissions

Indigenous groups in the area have raised concerns regarding potential health effects caused by environmental changes brought about by oil sands development; for example, contamination, dust and odours create concerns regarding water quality and air quality and the quantity and quality of country foods and plants for medicinal and cultural use.

Table 5.5b-4 identifies the health concerns raised by communities in the RSA17.

Table 5.5b-4: Community Health Concerns Related to Oil Sands Activity

Type of Concern Nature of Concern Personal Health  concerns regarding reported cancer rates in Fort Chipewyan  Cancer  potential reduced physical activity linked to decreased land use  Physical activity practices  Nutrition  increased reliance on store-bought food as a result of reduced engagement in harvesting activities Mental Health  linked to concerns and uncertainty regarding health effects  Stress / anxiety  a feeling of dislocation from the land and traditional culture as a result  Dislocation of reduced engagement in harvesting activities Sources: The Firelight Group 2012, ACFN 2012, FMIRC 2010, Treefrog 2007, cited in Orenstein et al. 2013, and AFN 2007.

In response to health concerns in Fort McKay and Fort Chipewyan, the provincial government is undertaking a three-year community health assessment, conducted by a research team from the University of Calgary. The assessment will involve the FMFN, ACFN, Fort McKay Métis and the NHA18, working with the research team and community members to develop the study approach and identify health priorities.

Substance Abuse

The abuse of alcohol, illicit drugs and prescription pills has been raised as a serious concern by all Indigenous communities in the RSA, across Alberta and nationally. For example, respondents to the First Nations Regional Health Survey, a national survey of First Nations communities on-reserve and northern First Nations communities, ranked alcohol and drug abuse as the greatest challenge (FNIGC 2012).

17 See Volume 3, Section 12 of the Project Update and Volume 7, Section 2 of the Integrated Application for a discussion of human health risks associated with oil sands industry activities. 18 The MCFN are not participating in the study because of concerns over the study’s focus (i.e., cancer rates relative to other health issues), the level of community involvement, and ownership of the data (NP 2013).

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Population growth in the region driven by oil sands development has increased access to alcohol and drugs, both in Fort McMurray and in rural communities. Substance abuse affects families and communities through:

 direct health effects on users  stress and potential physical danger to families and colleagues from behavioural effects

 lack of guidance and oversight for youth if parents are affected

 care and support for Elders who might experience neglect

Effects of Wage Employment on Health

Indigenous communities have concerns about the effects of Indigenous people’s increased involvement in the wage economy, which is supported by oil sands activity in the RSA. Table 5.5b-5 summarizes potential benefits and adverse effects associated with the wage economy.

Table 5.5b-5: Potential Effects of Increased Participation in the Wage Economy

Adverse Effects Positive Effects Individual  Stress resulting from shift work that leads to extended absence from home  an increased sense of self-worth and sense of  Negative behaviours enabled by increased control linked to self-reliance incomes (gambling, substance abuse)  new skills and knowledge acquired through work  Mental stress related to oil-sands work affecting and wider interactions the environment, including traditional lands Family / Household  Increased stress on affected family members as a result of a worker’s extended absences from the  increased stability and standard of living linked to home and/or negative behaviours (e.g., alcohol, steady source of dependable income drugs) Community  Decreased cohesion linked to changing work life  increased amenities and services, brought on by patterns population growth and increased incomes resulting  Increased differentials between income levels from labour force engagement  Increased exposure to outside values that are  opportunities to maintain social and family more focused on the individual, versus traditional, connections in rural communities, and not relocate communal values within or outside the region Sources: The Firelight Group 2012, FMIRC 2010, Treefrog 2007 cited in Orenstein et al. 2013.

For a detailed analysis of the potential benefits and adverse effects associated with FIFO operations, see the response to JRP IR 5.13.

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A number of these concerns are shared by the non-Indigenous population in the RSA as well. For example:

 reduced community cohesion and a sense of transience among residents in Fort McMurray

 work demands, particularly shift-work, which takes time away from family and community life

 substance abuse – for instance the rate of heavy drinking in the area is above the provincial average (Statistics Canada 2009)

Social conditions for Indigenous peoples must be considered within the larger context of past and current events. Past government policies of racism and social exclusion, including the legacy of residential schools, has created conditions of disadvantage for Indigenous peoples (NCCAH 2009). Current experiences with racism and social exclusion can also create stressors and adversely impact social conditions and health outcomes.

Broader Health Determinants

Broader socio-economic indicators of health (e.g., educational attainment levels, income levels, labour market attachment and housing conditions) indicate that Indigenous communities in the RSA compare favourably to other Indigenous communities, but are below the scores of the non-Indigenous population in the RSA.

Indigenous and Northern Affairs Canada has developed a Community Well-Being (CWB) Index to measure socio-economic well-being in First Nations, Inuit and other Canadian communities (INAC 2016). The index uses Statistics Canada’s National Household Survey data to produce ‘well-being’ scores for Canadian communities. The CWB Index accounts for the influence of income, education, housing and labour force activity, on individual and household health. It does not account for other social determinants of health including the availability of social support networks, social environment, personal health practices and coping skills.

The latest (2015) index includes a larger number of communities in the RSA than in previous years.

According to the CWB Index, Indigenous communities in the RSA all rank high compared to other Indigenous communities across Alberta. Of 62 Alberta Indigenous communities with reported results:

 FMFN ranked second (with number one being the highest result)

 MCFN Reserves, Allison Bay and Dog Head, are ranked fourth and 12th, respectively

 Janvier (CPDFN) ranked 11th

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 the Gregoire Lake Reserves (Fort McMurray #468 First Nation) ranked 22nd

Four of these communities are in the top quartile, and all are in the top half of results across Alberta Indigenous communities (see Figure 5.5b-1).

Wood Buffalo (Non-Indigenous) Score 100 Other Northern AB Indigenous Average 100 95 99 91 90 88 89 80 81 80 76 77 71 76 70 64 66 68 60 62 65 57 68 60 63 50 58 40 30 28

WellbeingIndexScore 20 34 27 28 10 0 Income Score Education Score Housing Score Labour Force CWB Score Score Fort McKay Reserve (FMFN) GL Reserves (Fort McMurray FN) Janvier Reserve (CPDFN) MCFN Reserves Source: INAC 2016 Figure 5.5b-1: Community Well-being Index Results The index score for the total Wood Buffalo population (Indigenous and non-Indigenous) is in the top decile (10%) of all Alberta communities, ahead of Edmonton.

2) Education

Service Delivery

Primary and secondary schooling in the RSA is the responsibility of:

 The Fort McMurray Public School District, with 14 schools and serving approximately 5,400 students.

 The Fort McMurray Catholic School District, operating 11 schools and serving approximately 6,100 students.

 Northland School Division No. 64, which operates 23 schools serving primarily First Nation and Métis students located throughout the northern half of Alberta, including six schools in the RSA.

Table 5.5b-6 provides an overview of education delivery in the RSA and highlights issues identified by Indigenous communities in the region.

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Table 5.5b-6: Education Service Delivery and Identified Issues in the Region

Education Services

 The Fort McMurray Public School District provides kindergarten to grade 12 instruction and offers specialized programs including Early Childhood Development, Advanced Placement, Early Intervention and high school French Immersion. The board operates 14 schools and has an enrolment of about 5,440 students as of the 2016/2017 school year.

 The Fort McMurray Catholic School District operates 11 schools serving 6,150 students from kindergarten to grade 12. It offers specialized programs including First Nations Métis Inuit studies. Post-secondary education services are provided by Keyano College with learning centres in other communities in the RMWB. The college delivers programs with a focus on trades training, academic foundation programs and other adult learning courses.

 Aboriginal Education at Keyano College offers the Aboriginal Entrepreneurship program, Professional Drivers Improvement Course, Syncrude Aboriginal Trades Preparation Program and a Diploma program in Supply Management. The College offers programs and courses under Aboriginal Education.

 Education offerings across the region have been growing in recent years and industry has become an influential player in supporting education infrastructure and programming in the region, including for Indigenous students. Industry has funded early literacy and high school programs, language retention programs, and provided financial assistance to Indigenous students pursuing post-secondary education.

 Indigenous language retention in the region varies, with the percentage of the Indigenous population reporting knowledge of an Indigenous language by community including: Fort McKay (49%), Fort Chipewyan (34%), Fort McMurray #468 First Nation (26%), CPDFN Janvier (79%), Fort McMurray and Anzac (5%). This compares to the average for other northern Alberta Indigenous communities of 48% (Statistics Canada 2013).

Community-Specific Education Services Fort McKay Fort Chipewyan Anzac/ Conklin Gregoire Lake Reserves / Janvier  The Fort McKay School, which is part of the Northlands  The Athabasca Delta Community School, which is part of the Northlands School Division  Northlands School Division No. 61 operates a one-  Primary and secondary education for the Fort School Division No. 61, provides kindergarten to grade No. 61, provides kindergarten to grade 12 instruction to about 220 students in the campus, two school model in Anzac - the Anzac McMurray #468 First Nation is delivered nine instruction to about 90 students in the community. community. Junior and senior students can also enrol in industrial arts, home economics School (kindergarten to grade four, enrolment 80) and through Anzac or Fort McMurray schools. High school students either attend schools in Fort and food studies and computer courses. Bill Woodward (grade five to 12, enrolment 115). The  Father R. Perin School, part of Northlands McMurray or pursue distance education through the E-  The Lake Athabasca Youth Council has been established to provide support to the school offers a snack and lunch program, school School Division No. 61, provides kindergarten learning program in the community. community’s youth. supplies and modern facilities. to grade nine instruction to about 80 students  The school’s four goals are to improve literacy, to improve  Although present in the community for many years, Keyano opened a new 800m2  The Conklin Community School, operated by in Janvier. Through partnerships with various attendance, to include more Indigenous knowledge in the campus in Fort Chipewyan in 2011. Industry donors for the campus included Shell, Total Northlands, offers kindergarten to grade 12 education community, courses are offered in curriculum and to enhance parental and community E&P, Enbridge and Imperial Oil. The Fort Chipewyan campus offers credited adult in a combined-class setting, based on an enrolment of communications technology, fabrication engagement. upgrading programs, and access to distance education learning opportunities. 35. Currently no high school students are enrolled. (welding), construction, Breakfast, lunches and school supplies are provided. cosmetology/esthetics, cooking, environment,  A Head Start Program is offered in the community for pre-  In Fort Chipewyan, experiential land-based learning programs, including facilitation of wildlife, mechanics, business, school children. traditional land knowledge transfer from Elders to youth, are showing encouraging results entrepreneurship, design and culture. The  Keyano College operates a learning centre in the in student motivation and community member engagement. CPDFN run their own high school. community (Dorothy McDonald Learning Centre). The  The education department of the MCFN operates the Post-Secondary Student Support

centre provides academic foundation programs which Program. This program provides funding to eligible students to attend education or upgrade basic skills to a grade nine level. It also provides academic upgrading after completion of public school (MCFN 2017). college preparation courses to qualifying students.  Various supports are available for ACFN children attending post-secondary schooling (ACFN 2017).

Education Service Delivery Issues

General  Similar to other public services, there is a need for education services to provide more holistic, culturally-sensitive programming in education to improve outcomes for Indigenous students. The need for Indigenous language retention programs has also been identified in the region. The loss of Indigenous languages is a concern for Indigenous communities across Canada. It depend on several factors, including increasing exposure to the non-Indigenous population and exposure to English through the school system, the workplace and other medium (e.g., television, films and the internet). Finding ways to frame learning experiences within an Indigenous context and to facilitate the transfer of traditional knowledge, including language, from Elders to young people is an important consideration for the education system.

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Table 5.5b-6: Education Service Delivery and Identified Issues in the Region (continued)

 Although the education attainment levels of the Indigenous population in the region are comparable or better than other Indigenous communities, they continue to lag behind the non-Indigenous population.  Family stresses – whether the result of alcohol and drugs, work demands, or the legacy of residential schools – affect education outcomes for Indigenous students in the region. These stresses can contribute to lower parental involvement in a child’s education and the absence of strong support networks in the community.  For Indigenous youth in the region, there still appears to be an insufficient focus on post-secondary studies and a lack of career development opportunities, especially in fields of study that are not industry-related.  There is uneven access to funding sources across Indigenous groups. For example, Métis students are not eligible for the federal government’s Post-Secondary Student Support Program. Urban Indigenous  Compared to other urban centres, the proportion of the Indigenous population in Fort McMurray with: a high school diploma or equivalent is comparable; a trades certificate or diploma is higher; a university certificate, diploma or degree is comparable or lower.  In the Fort McMurray public and separate school systems, 88% to 89% of surveyed teachers, parents and students were satisfied with the overall quality of basic education. This compares to a provincial average of 90%.  Indigenous students in Fort McMurray generally have better results than the provincial average for Indigenous students, but poorer results compared to the provincial average for all students.  Barriers to educational funding, affordable daycare and adequate family support is a challenge for young Indigenous parents, especially single mothers, who might be considering pursuing further educational opportunities.  For the urban school boards, staff turnover, although lower than levels experienced in previous years, remains an issue. School boards regularly lose teaching and support staff to the private sector. The cost of housing continues to be a challenge in attempting to attract and retain staff. Rural, Mostly Indigenous Communities:  The delivery of education services in rural communities has challenges including: limited programming; aging school infrastructure and difficulty in attracting and retaining quality educators. Barriers to educational funding, affordable daycare and adequate family support is a challenge for young Indigenous parents, especially single mothers, who might be considering pursuing further educational opportunities.  80% of teachers, parents and students surveyed in the Northland School Division, which serves the rural communities in the RSA, were satisfied with the overall quality of basic education. This compares to a provincial average of 90%.  Concerns have been raised about persistently weak student learning outcomes in the Northland School Division and other matters relating to the governance of the jurisdiction. In early 2010 the Minister of Education dismissed the Northland School Division Board and convened the Northland School Division Inquiry Team. As of early 2017, the Northland School Division and Alberta Education completed a community engagement program, and are working towards the reinstatement of an elected governance board. The Division has introduced initiatives to address student learning issues, and celebrate successes.  Similar to other public services, there is a need for more holistic, culturally-sensitive programming in education to improve outcomes for Indigenous students. The need for Indigenous language retention programs has also been identified in the region. The loss of Indigenous languages is a concern for Indigenous communities across Canada. It is dependent upon factors, including increasing exposure to the non-Indigenous population and exposure to English through the school system, the workplace and other medium (e.g., television, films and the internet). Finding ways to frame learning experiences within an Indigenous context and to facilitate the transfer of traditional knowledge, including language, from Elders to young people is an important consideration for the education system.  Although the education attainment levels of the Indigenous population in the region are comparable or better than other Indigenous communities, they continue to lag behind the non-Indigenous population.  Transitioning from a rural to urban setting, to access education and training, creates challenges for students including: dealing with a new environment, which is largely non-Indigenous; being disconnected from their family and support network and facing discrimination.  There is a need for more holistic, culturally-sensitive programming in education to improve outcomes for Indigenous students. Industry has become an influential player in supporting education infrastructure and programming in the region. For instance, the land- based learning program introduced in the Athabasca Delate School in Fort Chipewyan has had a marked impact in improving student attendance and engagement and building relationships and trust with community members. Industry is a key funder for this program (Silliker 2017, pers. comm.).  Additional concerns expressed by ACFN members with the quality of the education in Fort Chipewyan include: low expectations of teachers and lack of discipline/ structure in the school; insufficient preparation of primarily young and inexperienced staff to teach in the province’s small, northern schools; and promoting children to the next grade before they are academically ready (The Firelight Group 2012, Taylor et al. 2009).  For Fort McKay students who commute on a daily basis to Fort McMurray, long days on the bus leave them with little opportunity to engage in after-school activities.

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Education Attainment

Overall education attainment (Indigenous and non-Indigenous) in the RSA is high (see Figure 5.5b-2). The region has:

 A higher proportion of residents (aged 15+) with at least a high school diploma than the provincial average.

 A higher proportion (16%) of residents with a trade or apprenticeship designation than the provincial average (11%), reflecting the influence of industrial-based employment in the region.

 A comparable proportion (41%) of residents with a college or university diploma or degree to the provincial average (43%).

Source: Statistics Canada 2013. Figure 5.5b-2: Education Attainment Levels in the RSA Figure 5.5b-2 shows that:

 Compared to Indigenous residents in rural communities, Indigenous residents in Fort McMurray and Anzac have attained education at levels similar to the total RMWB and total Alberta populations.

 in terms of rural communities:

 Fort McKay has the highest proportion of residents with at least high school.

 Fort Chipewyan has the highest proportion of residents with college or university education.

 Gregoire Lake and Janvier Reserves have the highest proportion of residents without a high school diploma (65% and 64%, respectively). 8% of Gregoire Lake Reserve residents (Fort McMurray #468 First Nation) and 5% of Janvier Reserve residents (CPDFN) have attained trade certification, and 7% of Janvier Reserve residents have college or university education.

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 All rural communities in the RSA show above-average education attainment levels than northern Indigenous communities, where only 28% of the population has attained at least a high school diploma.

In general, education attainment continues to improve for Indigenous peoples in the RSA. Figure 5.5b-3 shows the relative increase in high school attainment for rural communities between 2006 and 2011, for communities where data are available.

18% 11%

- 16% 14% 12% 12% 10% 10% 8% Average 6% Northern AB 4% Indigenous Communities 2% (4%)

0% 1% Shiftin relative proportion between2006 -2% Fort Chipewyan and Janvier Reserve (CPDFN) Fort McKay Reserve Reserves (MFCN,ACFN) (FMFN)

Source: Statistics Canada 2013. Figure 5.5b-3: Increase in High School Attainment for Indigenous Rural Communities (2006-11) Figure 5.5b-3 shows that the proportion of residents on the Janvier Reserve with a high school diploma has increased by 10% between 2006 and 2011. For the Fort McKay Reserve, the relative proportion increased by 12%. These communities have both experienced a larger shift than was observed for other northern Alberta Indigenous communities (4%). Fort Chipewyan saw only a modest relative gain of 1%.

Post-secondary attainment has also shifted over time:

 Although the relative population with high school attainment in Fort Chipewyan saw little increase between 2006 and 2011, the relative proportion of the population with trades or apprenticeship certifications decreased by 2%, and those with college or university degree and diplomas increased by 5%.

 In Janvier, attainment increased by 5% for trades and apprenticeships and by 2% for college or university.

 Post-secondary attainment in Fort McKay remained somewhat steady, while Indigenous residents in Fort McMurray and Anzac saw a slight increase in college or university attainment.

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Education Results

In terms of primary and secondary education, Table 5.5b-7 provides Accountability Pillar Survey results for Indigenous students in the RSA.

Table 5.5b-7: Accountability Pillar Survey Results (Three-Year Average) All Students Indigenous Students (%) (%) Fort Fort Measure McMurray McMurray Northland Alberta Alberta Catholic Public School Average Average School School Division Division Division Dropout rate 1.7 4.3 12.6 7.2 3.5 High school completion rate 74.3 57.3 17.9 46.4 75.5 (three year) Provincial achievement test results (kindergarten to grade nine) 88.3 69.1 27.7 59.0 92.0 (acceptable or excellent) NOTE: Information for Northland School Division based on the entire Division results, not specific to the RSA, due to data availability. Sources: FMCSD 2016, FMPSD 2016, NSD 2016.

As demonstrated in Table 5.5b-7:

 Indigenous students in Fort McMurray have better results than the provincial average for Indigenous students, but lag somewhat compared to the provincial average for all students. However, rates for Indigenous students in the Fort McMurray Catholic school division are close to (or greater than) the averages for all Alberta students.

 Indigenous students in the Northland School Division have poorer results than Indigenous students in Fort McMurray and poorer results than the provincial average for all Indigenous students.

Both the Fort McMurray Public and Catholic school divisions have reported major gains in recent years in reducing Indigenous dropout rates and increasing Indigenous high school completion rates. Clients of the Northland School Division have had long-standing concerns regarding education delivery and student success levels in rural communities. The school division is working to address key barriers to success, and recognizes this to be a long-term endeavour. According to the administration, a key element for improved success in attaining and engaging is connecting youth with a vision and path forward, including for some, the prospect of working for industry in the region (Atkinson 2017, pers. comm.).

The administration for the Athabasca Delta Community School in Fort Chipewyan reports improved learning conditions and results at the school, including a reduction in behavioural issues and students and families in crisis (Silliker 2017, pers. comm.).

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Although challenges with absenteeism, student and family engagement and student performance remain, relationships between the school, families and the community are improving. According to the school principal, a contributing factor has been programs such as the land-based learning program, which involves community members (including Elders) working with students and teachers outside the classroom. Positive outcomes from this program include increased engagement with students and a rebuilding of trust with the community, damaged after the legacy of the residential-school based education system in the community and beyond. The key source of funding support for this program to-date has been industry (Silliker 2017, pers. comm.).

Administration for the Fort McKay School (Ryan 2017, pers. comm.) reports developments over the past five years regarding education delivery in the community, including:

 An increase in funding from Northland School Division for cultural teaching. As well, the school developed a specific culture room, coordinated with the FMFN and funded by Shell.

 An increase in participation from the Métis community, including support in delivering cultural programming.

 An improvement in student literacy, and increased visits from the public library system.

 A recent decrease in industry support because of the economic slowdown.

 Continuing challenges in ensuring attendance of junior and senior high school students in Fort McMurray.

3) Business and Labour Force Development

Indigenous Business Development

The NAABA is an organization in the RSA that assists Indigenous-owned enterprises with business development. It offers various services including:

 an online database of member companies organized by good or service area

 online postings of opportunities by industry and suppliers looking for Indigenous participation

 assistance to resource to companies wanting to develop Indigenous hiring and procurement policies

According to the NAABA, membership has remained steady. Its current focus is to increase engagement with member companies and work on meeting specific needs. Members have noted challenges in the current business climate, but also convey a positive outlook for growth in the region. Groups of companies owned by Indigenous communities, such as the Fort McKay Group of Companies, Acden (ACFN) and the

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Mikisew Group of Companies (MCFN) are all identified as examples of the successful engagement of Indigenous businesses in the region (Hawco 2017, pers. comm.).

Table 5.5b-8 identifies the number of NAABA member companies in the RSA, by community.

Table 5.5b-8: NAABA Member Companies by Community

Community Number of Companies Fort McKay:  14  FMFN  8  Fort McKay Métis Fort Chipewyan:  12  ACFN  14  MCFN Gregoire Lake Reserves:  7  Fort McMurray #468 First Nation Janvier:  12  CPDFN Fort McMurray:  13  Métis Local 1935  14  Métis Nation of Alberta NOTES: Number of companies is based on identified First Nation or Métis Local affiliation. The physical location of business varies, with most occurring in the Fort McMurray and Fort McKay area.

With a range in revenue reaching the tens or hundreds of millions of dollars on an annual basis, many Indigenous community-owned business groups have sophisticated business development systems and resources.

Labour Force Development

Several organizations in the RSA deliver labour force development programs that include:

 the Athabasca Tribal Council (ATC), which administers the Aboriginal Futures training program for the region and other federally-funded programs

 employment and training programs operated by the various Indigenous communities, some of which are coordinated through the ATC

 pre-employment and pre-trade secondary education delivered by the school divisions in the region

 post-secondary training and education offered through Keyano College, which has satellite training locations in Fort McKay, Fort Chipewyan, Gregoire Lake Reserves and Janvier

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 on-site apprenticeship, summer student and high school work experience programs offered at industry sites and other organizations in the region

The ATC reports successes and challenges with engaging Indigenous peoples in the labour market (Stevens 2017, pers. comm.):

 Most clients indicate a desire for full-time work in oil sands development because of the stability and relatively good compensation. A secondary choice is to work for contractors or other companies involved in the industry. A small subset of clients (roughly 5%) is interested in opportunities in other sectors.

 Currently, the two main barriers faced by clients are (i) the absence of a valid driver’s license and (ii) a high school diploma; both of these are common requirements on job sites. ACT programming addresses these barriers by:

 sourcing jobs which do not require a valid driver’s licence or high school diploma

 offering driver’s training and financial support for licencing

 connecting clients with pre-upgrading and upgrading courses to achieve a General Educational Development (GED), or high school equivalency credential

 ACT also offers support for resume development, safety certifications and work readiness.

Many older clients have years of work experience, but lack high school credentials. Not having a high school diploma is a more common barrier for older clients, particularly those that were either directly or indirectly affected by the residential school system legacy. For these clients, finding employment is often an immediate need because of financial pressures. Upgrading and pursuit of better positions is not the first priority.

For younger clients, the high school diploma requirement is not as strong a barrier because more youth are graduating or can complete upgrading. The needs of youth focus on obtaining drivers licenses, developing life skills and work readiness skills, breaking into the labour market and finding opportunities that interest them. The ATC program manager notes that younger clients have an interest in different types of careers, some of which could be applicable to industrial work (e.g., information technology), rather than the traditional focus on heavy equipment operators (Stevens 2017, pers. comm.).

Key findings from the ATC’s 2006 labour pool study regarding primary barriers to employment that are still pertinent include (Stevens 2017, pers. comm.):

 lack of education, with almost 75% of respondents having left before completing high school

 lack of transportation in general and a lack of a driver’s license in particular

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 lack of employability skills/training, with safety and driver training being the key needs

 inability to pass drug and alcohol tests, with 26% of all respondents noting that they face this barrier

The study indicates a high degree of desire among respondents to upgrade skills. Many of those not in the labour force were enrolled in academic upgrading or training programs and 59% of employed respondents and 85% of the unemployed respondents indicated a willingness to upgrade (ATC 2006).

Another barrier to employment can be worksites that are not culturally sensitive. According to the ATC, the situation in terms of direct oil sands companies has improved, where companies often have Indigenous employment coordinators and policies and training in place. Challenges remain in smaller companies which do not have the same resources (Stevens 2017, pers. comm.).

Table 5.5b-9 summarizes the current situation with regards to labour force and business development services in the RSA, including concerns and interests held by Indigenous communities.

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Table 5.5b-9: Labour Force and Business Development Services and Identified Issues in the Region

Labour Force and Business Development Services

 The regional economy has expanded over the past two decades as a result of growth in the oil sands industry. For instance, construction and sustaining capital expenditures in the province’s oil sands industry increased from $1.5 billion in 1998 to more than $23 billion in 2015 (CAPP 2017). Many of the related employment and procurement opportunities have been realized by local workers and businesses, including Indigenous peoples and companies.  Several Indigenous groups in the region operate business ventures that act as contractors and suppliers either directly or indirectly for oil sands development. As an example, Indigenous companies in the RMWB performed over $1.3 billion in contract work with OSDG member companies in 2010. Between 1998 and 2011, Indigenous companies earned over $6 billion in revenue (OSDG 2012). The opportunity for locally-owned Indigenous businesses to bid and work on oil sands-related development is supported by Impact and Benefit Agreements that communities have with industrial proponents in the region.  An example of a Métis-owned company in Fort McMurray is the Infinity Métis Corporation, a business arm of the Métis Local 1935. Companies in the Infinity portfolio include Forthryte Industrial Services and North Country Catering. In 2015, the Métis Local 1935 announced in a joint venture with GEO Worldwide, including its subsidiary Aqua Industrial, which works in construction, maintenance and engineering. The community reports increased engagement with industry, including business contracts (FMCM 2015).  A wide-array of education, labour force development, apprenticeship and other training programs exist in the region, either directly with industry proponents, or with goods and service supply firms and firms in the general economy, which include participation by Indigenous peoples.

Community-Specific Labour Force and Business Development Activities Fort McKay Fort Chipewyan Anzac / Conklin Gregoire Lake Reserves / Janvier  The Fort McKay Group of Companies, a multi-million dollar organization fully  Acden, owned by the ACFN, provides essential services for the  Several oil field service companies are located in the  Christina River Enterprises, a group of owned and controlled by the FMFN. The group has over $150 million in gross planning, construction, maintenance and reclamation of Alberta’s oil hamlets of Anzac and Conklin, or in nearby industrial companies owned and operated by the Fort annual revenues and employs 1,000 employees, with a goal of a minimum of sands projects. Beginning in 1994 the group of 18 companies and parks. McMurray #468 First Nation, has been 20% Indigenous employee content. Businesses include earthworks, site approximately 3,000 employees has grown to be one of Canada’s providing services in the region for 30 years. services, fleet maintenance, fuel services, reclamation support services and largest Indigenous companies (ACDEN 2017). Current services include logistics, site

logistics (FMGOC 2017).  The ACFN administer skills and development training and support servicing and civil works (CRE 2017).  Along with the Fort McKay Group of Companies, the FMFN has entered into programs to assist their members in entering and succeeding in the  The CPDFN own and operate several several joint ventures with other existing corporations to provide services, labour market. Programs include Enhanced Service Delivery, First companies. Two strategic joint ventures the including remote lodge services and related support assistance. Nation Job Fund and Drivers License Training. The Nation Nation has are with GSH (flight services) and  In 2016 the FMFN signed a participation agreement with Suncor, worth $350 announced it has recently conducted a Labour Pool Analysis (ACFN Aramark (remote lodge and hospitality million for the purchase and sale of a 34.3% equity interest in Suncor's East 2017). services (GSH 2017; CNW 2012). Tank Farm project. The Nation states: Fort McKay First Nation has been  The Mikisew Cree Group of Companies was established to create engaged in the oil sands business for over 30 years and we have the ability to wealth for the First Nation and employment and training build and maintain sustainable relationships with our neighbours. The opportunities for its members, and build individual and collective investment we make today is an investment that will endure for the long-term capacity. Although the focus has traditionally been on the energy benefit of our community (Suncor 2016). sector, the group continues to diversify into other business sectors  The FMFN Human Resources Department provides human resources (MGC 2013). The group of companies employs approximately 600 services, oversees workforce development, including the Employment and MCFN and other First Nations members and non-Indigenous Training Program, the Steps Forward Program a new program Foundations for persons, and is comprised of seven Mikisew-owned companies and Success, focussing on life skills management courses for community three joint ventures. The Group of Companies’ flagship, Mikisew members. The Steps Forward Program is offered in partnership with Fort Energy Services, is a major participant in the resource development McKay’s employment and training office. It aims to help community members sector for the oil and gas, mining and forestry industries and achieve their education and employment goals (FMFN 2017). provides a full range of maintenance related services (MES 2012; MGC 2013).  The Fort McKay Métis Group Ltd., owned and operated by the Fort McKay Métis Community, offers transportation, construction, maintenance, safety,  The Fort Chipewyan Métis Group of Companies is owned and catering and security services. As a social enterprise, profits generated by the operated by the Fort Chipewyan Métis (Métis Local 125). The business are reinvested in the community (FMM 2017). group’s first venture is Triple K Oil Field Services (FCM 2017).

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Table 5.5b-9: Labour Force and Business Development Services and Identified Issues in the Region (continued)

Labour Force, Employment and Business Development Concerns and Interests

General  Although labour force indicators for the Indigenous identity population in the region compare favourably to Indigenous peoples in other communities, they still lag behind the non-Indigenous population. The relatively higher unemployment rates among Indigenous people in the region indicates that some seeking work face challenges in securing it.  Among respondents to the Aboriginal Peoples Survey, the levels of participation in traditional activities in the region are below the Alberta rural average but largely comparable to participation among Indigenous peoples in other regions (Statistics Canada 2006). Industry-Specific  As Teck noted in its response to AER Round 5 SIR 43, Indigenous groups in the region have expressed a desire for:  more inclusive and culturally-sensitive workplaces  more flexible wage employment arrangements that would offer their members opportunities to continue practicing traditional activities (e.g., more flexible work rotations)  shift rotations that are more compatible with family and community life (e.g., a one week on, one week off schedule for those on FIFO work arrangements)  more flexibility in tailoring industry-funded training to the specific education and employment needs of community members  opportunities to increase skill levels and improve their chances for advancement in a specific industry or occupation  opportunities to incorporate traditional knowledge into their wage employment opportunities (for example, the Building Environmental Aboriginal Human Resources program in Fort Chipewyan)  more local training, given that in the smaller communities there are relatively fewer local training opportunities, while the costs associated with accessing training in Fort McMurray can be prohibitive (The Firelight Group 2012)  The ATC Employment and Training Coordinator confirms that training priorities from industry do not always align with client or member Nation priorities; and accessing training in Fort McMurray, particularly for Fort Chipewyan residents can be a barrier (Stevens 2017, pers. comm.).  Local Indigenous businesses, particularly small or start-up enterprises, face challenges including limited financial and operational capacities, lack of experience, and skilled workforce shortages. Although large oil sands companies drive economic activity, they also compete for local workers, often making it difficult for other companies, especially small businesses, to attract and retain staff. The need to support small Indigenous businesses and entrepreneurs has been raised by Indigenous groups in the area. In 2009, the FMFN, in a joint venture with Suncor, established the Fort McKay Business Incubator to provide local entrepreneurs with support in developing their businesses (e.g., business planning, start-up activities). NOTE: OSDG = Oil Sands Developers Group (now the Oil Sands Community Alliance [OSCA]).

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Labour Market Indicators

Labour force data for the Indigenous population in Fort McMurray and Anzac (Statistics Canada 2013) shows that:

 The labour force participation rate of 77%, is higher than for the Indigenous population in many other major urban centres in Alberta.

 The unemployment rate is 8.4%, lower than in many other major urban centres in Alberta.

Figures 5.5b-4 and 5.5b-5 compare labour force indicators for the Indigenous population in rural communities and reserves near or north of Fort McMurray to other Treaty 8 communities in Alberta.

Source: Statistics Canada 2013. Figure 5.5b-4: Labour Force Participation Rates for Indigenous Populations As shown in the Figure 5.5b-4:

 Labour force participation rates (i.e., people employed or actively seeking employment) for all Indigenous communities in the RSA is above the average for other northern Alberta Indigenous communities.

 Participation in the rural communities is well below that of all RMWB residents.

 The participation rate of Indigenous residents in Fort McMurray and Anzac is approaching the all RMWB rate.

The labour market in Fort Chipewyan includes MCFN members residing on adjacent reserves. In 2011, the labour force participation rate for MCFN residents on-reserve19

19 The only Indigenous group in the community for which specific data are available, beyond the aggregate grouping.

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was 50%. This is below the community’s combined average, but above the northern Alberta Indigenous average (INAC 2017).

Source: Statistics Canada 2013. Figure 5.5b-5: Employment Rates for Indigenous Populations As shown in Figure 5.5b-5:

 Employment rates (i.e., those employed as a percentage of working age population) for most Indigenous communities in the RSA is above the average for other northern Alberta Indigenous communities.

 The employment rate of Indigenous residents on Gregoire Lake Reserves matches the northern Indigenous community average.

 Similar to the participation rate, employment rates for Indigenous communities lag the all RMWB rate, while that of Indigenous residents in Fort McMurray and Anzac is approaching the all RMWB rate.

The employment rate for MCFN residents on-reserve in 2011 was 44%. This is below the combined average for Fort Chipewyan, but above the Indigenous average for northern Alberta (INAC 2017). Figure 5.5b-6 shows unemployment rates for the region.

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Source: Statistics Canada 2013. Figure 5.5b-6: Unemployment Rate for Indigenous Populations As shown in Figure 5.5b-6:

 Unemployment rates (those looking and unable to find work) for most Indigenous communities in the RSA is well below the average for (i.e., better than) other northern Alberta Indigenous communities.

 The unemployment rate of Indigenous residents on Gregoire Lake Reserves is above the northern Indigenous community average.

 Unemployment rates for Indigenous communities (except for the Gregoire Lake Reserves) range between 3% and 4% above the all RMWB rate, and do not vary much between Indigenous residents in the urban centre versus rural communities.

The unemployment rate for MCFN residents on-reserve in 2011 was 13%. This is above the combined average for Fort Chipewyan, but below the northern Alberta Indigenous average (INAC 2017).

Comparing labour market rates for Indigenous men and women across communities in the RSA shows that:

 The participation rate of Indigenous women is lower than that of men; it is roughly in-line with, but below the all-RMWB differential between men and women.

 The employment rate of Indigenous women is higher than men, and above the all-RMWB differential.

 The unemployment rate of Indigenous women is roughly equivalent to men, but lower than the all-RMWB average.

Key industries of employment for Indigenous workers in the RSA, particularly in the rural communities, include the energy sector, construction and public administration.

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Figures 5.5b-7 and 5.5b-8 show the relative proportion of the labour force engaged in these sectors, by community.

Source: Statistics Canada 2013. Figure 5.5b-7: Employment in Energy and Construction

Source: Statistics Canada 2013. Figure 5.5b-8: Employment in Public Administration As shown in Figures 5.5b-7 and 5.5b-8:

 Employment in the energy sector (mining, oil and gas) represents anywhere from 12% to 15% of employment in the rural communities. It represents more than

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one-third of employment for Indigenous residents in Fort McMurray and Anzac, a higher participation than the all-RWMB rate. Employment in the energy sector in the region is above the Indigenous average for northern Alberta.

 Employment in construction ranges between 11% and 30% in rural communities, and is at, or above the northern Alberta Indigenous average and the all-RMWB rate.

 Public administration is a key employer in Indigenous communities. For rural communities in the RSA, the relative proportion of employment in this sector (28% to 35%) roughly aligns with the northern Alberta Indigenous average (32%).

Income Characteristics

Generally, incomes in the region have been driven by oil sands investment and are relatively high. In 2011, the median after-tax annual income in the RSA for all households with incomes based on full-year, full-time work was $103,600. This was nearly double the provincial average for all Albertans ($55,500).

Incomes accruing to Indigenous households in the region are higher than in other northern Alberta Indigenous communities, but still lag behind incomes for all households (including non-Indigenous) in the RSA. For example, the median income for Indigenous households in Fort McMurray and Anzac was $92,700 in 2011, roughly 10% below the all-RMWB rate. However, Indigenous households in Fort McMurray and Anzac have incomes roughly two-thirds higher than the provincial average for all Albertans. Median incomes for households reporting full-time work are lower in the rural communities in the RSA compared to those in Fort McMurray and Anzac; however, they are still above- average relative to other Indigenous communities in northern Alberta. For Fort McMurray #468 First Nation members living on-reserve, the median income is twice the average for northern Alberta Indigenous communities; while the median income in Fort McKay is higher by 1.5 times.

Table 5.5b-10 shows household income levels (with and without employment) across the RSA, sources of income, and the relative distribution in communities. Income figures used in the 2011 NHS (based on 2010 tax filing data - the latest available) are also compared to the distribution of Canadian household incomes.

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Table 5.5b-10: Households Income, Income Sources and Distribution in the RSA

Fort Fort Gregoire Lake Indigenous Average for Average for all of McKay Chipewyan Reserves (Fort Janvier People in Fort Northern Alberta the Regional Reserve and Reserves McMurray #468 Reserve McMurray and Indigenous Municipality of (FMFN) (MFCN, ACFN) First Nation) (CPDFN) Anzac Communities Wood Buffalo Median income all $23,400 $24,900 $13,300 $17,400 $49,500 $15,500 $56,900 households Male / Female differential 2.1 1.1 1.1 1.1 2.7 1.0 2.4 Median income (households working full- $50,700 $41,000 $66,900 $35,300 $92,700 $32,600 $103,600 time, full-year) Male / female differential 1.7 1.1 1.9 1.1 2.2 1.1 2.1 Percentage of total ------income: - market income 94% 82% 87% 94% 97% 72% 98% - government 6% 18% 12% 6% 3% 28% 2% transfers Percentage of households in the top half 42% 37% 38% 23% 85% 17% 28% of the all-Canadian income distribution Ratio of top-to-bottom quintile for household 0.79 0.40 0.40 0.25 10.21 0.03 8.22 incomes (all households) NOTES: Income expressed in 2010 CAD dollars, as reported in the 2011 NHS. M/F differential is average male incomes expressed as a proportion of female incomes. Ratio of top-to- bottom households incomes is the average incomes for the highest 20% of community households expressed as a proportion of the average incomes for the lowest 20% of households. Source: Statistics Canada 2013.

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As Table 5.5b-10 shows:

 Median incomes for all households in Indigenous rural communities in the RSA are higher than (but within the same order of magnitude as) average incomes in Indigenous communities in northern Alberta.

 Median incomes for working households are higher in Fort McKay and Gregoire Lake Reserves compared to other Indigenous communities in northern Alberta.

 In communities with lower median incomes, the differential between men’s and women’s incomes is lowers (1.0 to 1.1) than for higher-income communities, where the differential ranges from 1.7 to 2.2. The relative differential is lower, but still remains, in households that report year-round income.

 The relative share of earnings is higher for men; however, in the rural RSA communities, women’s incomes are 15% to 45% higher than the average income for women in other northern Alberta Indigenous communities. The median income for working Indigenous women in Fort McMurray and Anzac is 50% higher than the median income for all women across Alberta.

 For Indigenous households in the RSA, a greater percentage of income is derived from market sources (e.g., wages, self-employed earnings and investments) compared to Indigenous communities elsewhere in northern Alberta.

 Although Indigenous incomes are, on average, lower than non-Indigenous incomes, the median income for Indigenous working households in some communities in the RSA is comparable to the all-Canadian household average. For instance, 42% of Fort McKay households working full-time have incomes that fall into the top half of all Canadian households. 85% of Indigenous households in Fort McMurray and Anzac also fall within the top half of national household incomes.

 The gap between the highest- and lowest-earning households in the RSA increases as median incomes rise. This is because as wages increase in a community as a result of oil sands employment, the differential between household incomes in the community also increases. As shown in Table 5.5b-10, communities with higher levels of engagement in the oil sands industry show slightly higher levels of wage differential. Specifically:

 In Janvier, the ratio is 0.25; in Fort Chipewyan and Gregoire Lake Reserves it is 0.40; and in Fort McKay the ratio increases to 0.79.

 The ratio increases to 10.2 for Indigenous households in Fort McMurray and Anzac as a result of high income levels of urban residents. The all-RMWB rate (dominated by non-Indigenous residents in Fort McMurray) is 8.2.

 For reference, the average ratio between the top and bottom quintile of all households across Alberta is 1.94, which is higher than in rural communities in the RSA, but below the ratio for Indigenous households in Fort McMurray and Anzac.

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Cost of Living

Income levels should be considered in the context of the cost of living, which has been raised as a concern by both Indigenous and non-Indigenous residents in the region (see Volume 1, Section 16.1.1.1 of the Project Update). Alberta’s Place-to-Place Price Comparison Survey in 2016 showed that price levels in Fort McMurray were roughly 15% higher than in Edmonton (AFE 2016)20. This is slightly higher than the findings of the Place-to-Place Price Comparison Survey for 2007, which found price levels in Fort McMurray were roughly 11% higher than in Edmonton (AFE 2008). A key driver of these higher costs is housing. In the 2016 survey, shelter costs were roughly 36% higher in Fort McMurray than in Edmonton, and the highest for all communities included in the survey other than Canmore.

Despite the relatively high cost of living, Fort McMurray remains relatively affordable for many residents when taking into consideration the relatively higher incomes. As an example, for median income-earning couples, lone-parent families and non-family persons (i.e., individuals), Fort McMurray was more affordable in 2012 than Grande Prairie, Medicine Hat and Edmonton21;22. However, not all residents benefit from high- earning opportunities. With relatively high prices in Fort McMurray—especially for housing—low-income residents (e.g., workers employed in the service sector, and low- income lone-parent and single-income households) face a higher cost of living than in other communities.

In small communities, housing costs are generally lower than in Fort McMurray, but food prices are higher. The price of food, fuel and other necessities is a concern especially in Fort Chipewyan, where food retail prices in 2006 were found to be 120% higher than in Fort McMurray (Larcombe 2012). The higher food costs are largely related to Fort Chipewyan’s remote location (the community has no all-weather road access to the rest of Alberta) and the associated higher freight costs.

Food and fuel prices are a widespread concern for many rural northern communities across Canada and are related to their small market size and isolation. For example, results from northern Manitoba for the First Nations Food, Nutrition and Environment Study found that food prices were, on average, 126% higher than in Winnipeg (UNBC 2012).

20 Most of the data collection for Fort McMurray took place before the 2016 wildfire and measures the average cost for a basket of goods and services for the typical Alberta household (including shelter and utilities). 21 Median income is defined as the midpoint in the income distribution (i.e., half of the families or individuals earn more than the median and half earn less than the median). 22 These results are based on a comparison of median incomes in 2012 (the latest available data based on filed tax returns from Statistics Canada’s Small Area and Administrative Data Division) and the cost of living in Fort McMurray and other communities (as adapted from Alberta Finance and Enterprise’s 2010 Alberta Spatial Price Survey).

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4) Summary

This response provides updated baseline information about existing socio-economic conditions for the Indigenous population in the RSA. The response focused specifically on key areas of interest, including health, education, business and labour force development (e.g., employment, income and cost of living). As indicated, this information was gathered through interviews with key service providers in the health, education and employment/business development sectors, and relevant statistics, public reports and other documentation. Based on this information, the following conclusions can be made regarding socio-economic conditions for Indigenous communities in the RSA:

Health

 Indigenous communities raised health concerns resulting from physical changes to the environment and increased engagement of community members in the wage economy.

 In terms of broader health determinants (e.g., education, income, housing), Indigenous communities in the RSA compare favourably as compared to other Indigenous communities in Alberta.

Education

 Education attainment levels in the region are mixed. Indigenous residents in rural communities lag behind their urban counterparts; however, all Indigenous communities in the RSA have higher education attainment than the average for northern Indigenous communities. Secondary and post-secondary attainment rates are improving in the region.

 Indigenous students in Fort McMurray generally have better results than the provincial average for Indigenous students, but poorer results compared to the provincial average for all students. Indigenous students in the Northland School Division have poorer results than Indigenous students in Fort McMurray and poorer results than the provincial average for all Indigenous students.

 Clients of the Northland School Division have long-standing concerns regarding education delivery and student success levels in rural communities. The school division is working to address key barriers to success, and recognizes this to be a long-term endeavour. Some pilot projects are showing good success (e.g., land-based learning involving community members in Fort Chipewyan).

Business and Labour Force Development

 There are several Indigenous-owned businesses in the region that successfully engage in oil-sands-related activities and are earning up to hundreds of millions of dollars in annual revenues and employing hundreds to thousands of people, including Indigenous residents.

 Revenues from Indigenous community-owned companies are providing own- source revenues to fund essential services and programs for members.

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 In general, Indigenous groups in the region are enjoying higher success levels in the labour market than other Indigenous groups in northern Alberta. Rural Indigenous community members in the RSA have lower labour market engagement than their urban counterparts. Indicators for Indigenous groups in the RSA tend to lag behind that of non-Indigenous groups; depending on the community the difference can be minimal.

 Indigenous workers in the RSA have higher incomes and lower dependency on government transfers than their counterparts in other northern Alberta communities. Not all Indigenous households are participating equally in the labour market, and in communities with higher income levels linked to engagement with industrial-driven activity, a larger differential in income levels within the community exists.

 The cost of living in the region varies. Price levels in Fort McMurray are roughly 15% higher than in Edmonton, influenced to a large extent by housing costs. However, Fort McMurray remains affordable for many residents when taking into consideration the relatively higher incomes. This benefit does not apply to all residents. The price of food, fuel and other necessities is a concern especially in Fort Chipewyan. These concerns are similar to those in other, isolated communities in northern Canada.

References:

ACDEN (Athabasca Chipewyan First Nation Group of Companies). 2017. Available at: http://www.acden.com Accessed May 2017.

ACFN (Athabasca Chipewyan First Nation). 2012. Technical Sufficiency Review of Teck Resources Ltd. Integrated Application for the Frontier Oil Sands Project. Submitted in conjunction with the Mikisew Cree First Nation. June 2012.

ACFN. 2017. Athabasca Chipewyan First Nation Website. Available at: www.acfn.com. Accessed May 2017.

AENV (Alberta Environment). 2009. Final Terms of Reference Environmental Impact Assessment Report for the Proposed UTS Energy Corporation/Teck Cominco Limited Frontier Oil Sands Mine Project. February 11, 2009.

AFE (Alberta Finance and Enterprise). 2008. 2007 Alberta Spatial Price Survey. January 2008.

AFE. 2016. 2016 Alberta Spatial Price Survey. October 2016.

AFN (Assembly of First Nations). 2007. Traditional Foods: Are they Safe for First Nations Consumption? March 2007.

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AHS (Alberta Health Services). 2013. Patients Discharged from Emergency Department or Urgent Care within 4 Hours (%). Performance Reports – Site Reporting. Q3 2012/13.

AHS. 2017. Community Health Centres. Available at: http://www.albertahealthservices.ca/default.aspx Accessed May 2017.

AR (Alberta Aboriginal Relations). 2017. Nunee Health Authority. Available at: http://indigenous.alberta.ca/css/1004.cfm Accessed May 2017.

ATC (Athabasca Tribal Council). 2006. All Parties Core Agreement Sustainable Employment Committee, 2006 Labour Pool Analysis.

ATC. 2014. Athabasca Tribal Council. Website. Available at: http://atc97.org. Accessed May 2017.

CAPP (Canadian Association of Petroleum Producers). 2017. Statistical Handbook for Canada’s Upstream Petroleum Industry. April 2017.

CNW (CNW News Services). 2012. CNW Group Website. Available at: http://www.newswire.ca/news-releases/aramark-extends-partnership-with- chipewyan-prairie-dene-first-nation-510333641.html Accessed May 2017.

CRE (Christina River Enterprises). 2017. Christina River Enterprises Website. Available at: http://www.christinariverenterprises.ca/ Accessed May 2017.

FCM (Fort Chipewyan Métis). 2017. Group of Companies. Available at: http://fortchipewyanmetis.net/about-us/group-of-companies/ Accessed May 2017.

The Firelight Group (The Firelight Group Research Cooperative). 2012. Supplemental Social, Economic and Cultural Effects Submission for Shell Canada’s Proposed Jackpine Mine Expansion. September 29, 2012. CEAA Registry Number: 465.

FMCM (Fort McMurray Métis). 2015. 2014/15 Annual Report. Available at: https://www.scribd.com/document/270832706/2014-15-McMurray-Metis-Annual- Report?ad_group=&campaign=Skimbit%2C+Ltd.&content=10079&irgwc=1&key word=ft750noi&medium=affiliate&source=impactradius Accessed May 2017.

FMCSD (Fort McMurray Catholic Schools). 2016. Combined 3-Year Education Plan 2016-2019 and Annual Education Results Report (AERR) 2015-2016.

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FMFN (Fort McKay First Nation). 2017. Fort McKay First Nation Website. Available at: http://fortmckay.com/. Accessed May 2017.

FMGOC (Fort McKay Group of Companies). 2017. Fort McKay Group of Companies Website. Available at: http://fortmckaygroup.com. Accessed May 2017.

FMIRC (Fort McKay Industry Relations Corporation). 2010. Cultural Heritage Assessment Baseline Pre-development (1960s) to Current (2008). March 2010.

FMM (Fort McKay Métis). 2017. Fort McKay Métis Website. Available at: http://mckaymetisgroup.ca/ Accessed May 2017.

FMPSD (Fort McMurray Public School District). 2016. 2016-2019 3-Year Strategic Education Plan and Annual Education Results Report (AERR) 2015-2016.

FNIGC (First Nations Information Governance Centre). 2012. First Nations Regional Health Survey: Phase 2 (2008/10). Preliminary Results.

FNIH (First Nations and Inuit Health [Health Canada]). 2010. Alberta Region Programs and Services.

GSH (Great Slave Helicopters). 2017. Great Slave Helicopters Website. Available at: http://www.gsheli.com/partner/chipewyan-prairie-dene-first-nation/ Accessed May 2017.

HCOM (On-Reserve Health Programs and Services in Alberta). 2017. Chipewyan Prairie First Nation. Available at: http://services.hcom.ca/nations/chipewyan-prairie/ Accessed May 2017.

INAC (Indigenous and Northern Affairs Canada). 2016. Community Well-Being Index 2011. Available at: https://www.aadnc- aandc.gc.ca/eng/1100100016579/1100100016580 Accessed May 2017.

INAC. 2017. First Nation Profiles, 2011 National Household Survey data. Available at: http://fnp-ppn.aandc-aadnc.gc.ca/fnp/Main/Search/SearchFN.aspx?lang=eng Accessed May 2017.

Larcombe, P.M. and Symbion Consultants. 2012. A Narrative of Encroachment Experienced by Athabasca Chipewyan First Nation. Prepared For: Athabasca Chipewyan First Nation Industry Relations Corporation.

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MES (Mikisew Energy Services) 2012. Mikisew Energy Services. Available at: http://www.mesg.ca/ Accessed May 2017.

MCFN (Mikisew Cree First Nation). 2017. Mikisew Services. Available at: http://mikisewcree.ca/services/ Accessed May 2017.

MGC (Mikisew Group of Companies). 2013. Available at: http://www.mikisewgroup.com/ Accessed May 2017.

NCCAH (National Collaborating Centre for Aboriginal Health). 2009. Health Inequalities and Social Determinants of Aboriginal Peoples’ Health. 2009.

NHA (Nunee Health Authority). 2017. Nunee Health Authority Services in Fort Chipewyan. Available at: http://www.nunee.org/NursingStation2.htm Accessed May 2017.

NJ (Northern Journal). 2014. Fort Chipewyan Celebrates Opening of Elders’ Care Centre. Available at: https://norj.ca/2014/05/fort-chip-celebrates-opening-of- elders-care-centre/ Accessed May 2017.

NSD (Northland School District No. 61). 2016. Accountability Pillar Overall Summary Annual Education Results Reports - Oct 2016.

OSDG (Oil Sands Developers Group). 2012. The OSDG 2012 Survey Results. November 2012.

Orenstein, M., M. Lee and A. Angel. 2013. Determinants of Health and Industrial Development in the Regional Municipality of Wood Buffalo. April 2012. Habitat Health Impact Consulting.

RMWB (Regional Municipality of Wood Buffalo). 2017. Social Support Services. Available at https://www.rmwb.ca/living/Social-Support-Services.htm Accessed May 2017.

RSCEP (Royal Society of Canada Expert Panel). 2010. Environmental and Health Impacts of Canada’s Oil Sands Industry. December 2010.

Statistics Canada. 2006. Aboriginal People's Survey. Released 2009.

Statistics Canada. 2009. Canadian Community Health Survey.

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Statistics Canada. 2013. 2011 National Household Survey. Released 2013.

Suncor (Suncor Energy Inc.). 2016. Suncor Energy and Fort McKay First Nation Announce Agreement for Equity Partnership in East Tank Farm Developments. News Release Dated September 6, 2016.

Taylor, A., T.L. Friedel, and L. Edge. 2009. Pathways for First Nation and Métis Youth in the Oil Sands. Canadian Policy Research Networks. April 2009.

UNBC (University of Northern British Columbia). 2012. Food, Nutrition and Environment Study (FNFNES): Results from Manitoba (2010). Chan et al. Prince George, 2012.

Personal Communications:

Atkinson, G. 2017. Superintendent, Northland School Division. Telephone interview, May 2, 2017.

Greening, S. 2017. Manager Rural Health, North Zone (1-4), Alberta Health Services. Telephone interview, May 18, 2017.

Hawco, L. 2017. Executive Director Northeastern Alberta Aboriginal Business Association (NAABA). Telephone interview, April 25, 2017.

Ryan, R. 2017. Principal, Fort McKay School. Telephone interview, May 18, 2017.

Silliker, W. 2017. Principal, Athabasca Delta School. Telephone interview, May 2, 2017.

Stevens, L. 2017. Employment & Training Coordinator, Athabasca Tribal Council. Telephone interview, May 10, 2017.

5.6 Country foods include animals, plants, and fungi used by Indigenous peoples for nutritional or medicinal purposes that are harvested through hunting, fishing, or gathering of vegetation. Country foods are an important economic contribution to the traditional or land-based economy in some communities. Concerns have been raised by Indigenous groups that the analysis of the significance and socio-economic contributions of country foods to each community has not been presented consistently across the application and third-party studies.

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a) Review and summarize available literature and data on the cultural, social and economic value of country foods to regional Indigenous communities. If regional data is not available, provide available data from other Canadian Indigenous communities.

b) Discuss the contribution that country foods make to the socio-economic baseline conditions for each Indigenous group that Teck has engaged with and that may be affected by the Project. This discussion should include, where data is available, community-specific information on annual harvest of country foods, including types of country foods harvested and the volume of food harvested.

c) In the updated assessment of socio-economic effects on Indigenous communities requested in the SIR below, include a qualitative assessment of Application Case (Project) and Planned Development Case (Cumulative) socio-economic effects resulting from predicted changes in the availability of, and ability to access, country foods.

Response:

a) To understand potential cultural, social and economic value of country foods to regional Indigenous communities, information was reviewed and considered from several sources, including:

 publicly-available studies and reports, including peer-reviewed publications and government studies

 Project-specific TLU and cultural impact studies as well as for other oil sands projects in the region

See the response to JRP IR 5.6(b) for information on the value of country foods as identified by Indigenous communities in the RSA. To supplement region-specific literature, wider research was drawn upon regarding country food contributions to socio- economic conditions of Indigenous communities elsewhere in Canada.

Table 5.6a-1 presents a high level summary of the value country foods provide to Indigenous communities based on the reviewed information sources.

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Table 5.6a-1: Value of Country Foods to Indigenous Communities

Theme Value Sources Health and well-  Country foods are believed to play an important role in improving the health and well-  FNIGC 2012 being being of Indigenous peoples and their communities.  Chan et al. 2013  It is considered more nutritious than market food substitutes, as country foods contain  Pedersen 2015 higher amounts of protein, iron and other essential nutrients.  Ayach and Korda 2010  By contrast, the consumption of market foods is linked to higher intakes of saturated  Council of Canadian Academies 2014 fat, sugar and sodium; studies have connected the prevalence of diabetes and other chronic diseases among Indigenous communities to market food consumption.  Willows 2005  Collection and consumption of country foods is associated with being physically active  Kuhnlein and Receveur 2007 and improving mental health.  Pufall et al. 2010  Sheehy et al. 2014  Candler et al. 2015  Willow Springs and Métis Local 1909 2015 Food security  Food insecurity is defined as: inadequate or uncertain access to an acceptable  Power 2008 amount and quality of healthy food.  Council of Canadian Academies 2014  The collection and consumption of country foods can, at least in part, support food  Socha et al. 2012 security by improving both the availability of and access to food.  Skinner et al. 2013  Access to and availability of country foods is identified as a key priority.  Schuster et al. 2011  Human Environment Group 2016 Food sovereignty  Food sovereignty is defined as the: the right of peoples to healthy and culturally  FSC 2017 appropriate food produced through ecologically sound and sustainable methods, and  Chan et al. 2013 their right to define their own food and agriculture systems.  Willow Springs 2015  Food sovereignty for Indigenous communities can be improved through country food,  Integral Ecology Group Ltd. 2016 especially in comparison to market foods over which Indigenous peoples often have limited control.  Limits on the ability of Indigenous communities to collect country foods (e.g., taking up of traditional lands for other purposes, ecological changes to the land) can affect food security.  Access to harvesting is important to Métis to offset additional barriers related to government restrictions on harvesting rights.  Control over food sources contribute to overall feelings of self-sufficiency and self- esteem.

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Table 5.6a-1: Value of Country Foods to Indigenous Communities (continued)

Theme Value Sources Social cohesion  Sharing of country foods is an important practise in many Indigenous communities,  FNIGC 2012 acting as a social bonding activity.  Natcher 2015  Country foods often play a key role in community cultural events.  Integral Ecology Group Ltd. 2015  Food systems in Indigenous communities help form a social network that is better able  Candler et al. 2013a, b to deal with community-wide issues, such as poverty.  Candler et al. 2015  Willow Springs and Métis Local 1909 2015  Willow Springs 2014 Cultural identity  Traditional knowledge about local plant and animal species, methods of harvest and  Council of Canadian Academies 2014 food preparation and storage are important aspects of the cultural identity of  LeBlanc et al. 2011 Indigenous peoples and their communities.  FNIGC 2012  The presence of an individual active in cultural practices (i.e., hunting, trapping or  Power 2008 fishing) is strongly correlated to both the frequency and weight of country food consumed within a household hunting, trapping, fishing and gathering all require time  Nelson et al. 2005 spent on the land and are key elements to the cultural identity of Indigenous  Wein et al. 1991 communities.  Chan et al. 2013  Pursuit of country foods is often a key time for transmission and protection of cultural  The Firelight Group 2015 knowledge and values, including practical, spiritual and ceremonial.  Candler et al. 2013a  These activities also contribute to a sense of belonging in a community and the  Candler et al. 2015 maintenance of family relationships.  Willow Springs and Métis Local 1909 2015  Integral Ecology Group 2016 Financial stability  Although market foods are generally more convenient and can add variety, country  BC Hydro 2012 foods are often considered less expensive than their market food counterparts.  Wein et al. 1991  Because it can be more affordable, the consumption of country food contributes to the  Council of Canadian Academies 2014 financial stability of Indigenous peoples and their communities.  Chan et al. 2013

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As indicated in Table 5.6a-1, the pursuit and use of country foods present a number of values to Indigenous communities, including those in the RSA.

b) The general value that country foods have on social, cultural and economic well-being of Indigenous communities in the RSA is generally understood (see the response to part [a]); however, quantitative information is limited regarding the specific contributions of country foods to socio-economic baseline conditions. To the extent possible, current or historical use patterns have been identified and where possible, quantified.

Benefits of the pursuit and use of country foods have been identified through CIAs conducted by Indigenous communities in the RSA as well as TLU studies and other relevant publications. These benefits translate to improved socio-economic conditions for community members related to:

 health and well-being

 social cohesion including sharing of country foods  cultural identity, knowledge preservation and transmission through ties to the land

While the focus of country food research is on harvest types, yields and benefits, little information is available on the economics of country foods, in terms of:

 the costs incurred in obtaining them (such as truck, snowmobile, boat, fuel, gun and other equipment)

 the opportunity cost of time, which will vary depending on an individual’s life situation

 the costs of purchased foods, medicines and other products avoided through obtaining the products naturally

Communities note the importance of sharing food within the community, particularly with Elders, many of whom prefer country foods to store-bought, and find purchased foods to be prohibitive in cost (Candler et al. 2013a, 2015).

All the communities have identified country foods and TLU practices as integral to cultural identity. Table 5.6b-1 provides a summary of country food usage by Indigenous communities within the RSA.

See the response to JRP IR 5.7, Appendix 5.7 for further information on the contribution of country foods to socio-economic baseline conditions, and related effects assessments for Indigenous communities in the RSA.

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Table 5.6b-1: Summary of Country Food Usage by Indigenous Communities in the RSA

Theme Value Sources FMFN  Country foods, important as food sources as well as other uses include: moose, bears, caribou,  Tanner et al. 2001 deer, fish, waterfowl, grouse, hares, muskrats, lynx, martin, fisher, ermine, squirrel, wolf, fox, berries  FMES 1997 and other medicinal plants.  Integral Ecology Group  The most commonly reported country food consumed by the FMFN is moose. In an average year, a 2016 FMFN family would typically harvest nine moose, two deer, eight caribou, three bear, as well as birds, small mammals, fish and plants.  Traditional skills are passed on through harvesting country food, such as meeting at common fishing areas. Fort McKay Métis  Country foods are generally preferred to market food alternatives.  Tanner et al. 2001  While not identified, specific country food uses presumably align with those of the FMFN in Fort  Human Environment McKay (i.e., moose, bears, caribou, deer, fish, waterfowl, grouse, hares, muskrats, lynx, martin, Group 2016 fisher, ermine, squirrel, wolf, fox, berries and other medicinal plants). MCFN  Harvesting country food is an important component of the diets of the people living in Fort  The Firelight Group 2015 Chipewyan and Fort Smith, with up to a third of meat, fish and birds consumed being from wild  Candler et al. 2013a sources.  Candler et al. 2015  Important country foods include moose, caribou, buffalo, bear, hare, muskrat, beaver and lynx as  Wein et al. 1991 well as several species of waterfowl, land birds, fish and berries.

 Moose are the most commonly hunted big mammal.

 It is estimated that a family of 10 with 20 sled dogs would require on average approximately 5 kg of country food per person per day (4.97 kg meat and 0.08 kg of berries).  It was reported that in 1899, a MCFN family of 10 people and 18 dogs would require between five and 15 bison per year.  Bison are of specific importance, both culturally and ceremonially, and tends to be the preferred meat for taste, nutrition and ease of sharing within the community. Bison are still harvested regularly today by the MCFN.  The MCFN note that if they were to exercise their full rights today, they would require one bison per MCFN member per year within their traditional territory, which amounts to approximately 3,000 bison per year.  MCFN members share harvested resources, such as country food, widely in the community.

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Table 5.6b-1: Summary of Country Food Usage by Indigenous Communities in the RSA (continued)

Theme Value Sources ACFN  Harvesting country food is an important component of the diets of the ACFN with up to a third of  Candler et al. 2013b meat, fish and birds consumed being from wild sources.  ACFN 2003  Country foods, important as food sources as well as other uses include migratory waterfowl, muskrats, caribou, bison, moose, lynx, martin, wolf, wolverine, fisher, ermine, fox, beavers, mink, muskrat, waterfowl, fish, small game and berries.  ACFN estimate that if a family of five ACFN members and dogs were to exercise their full rights, they would require between five and 10 moose per year.  ACFN members share harvested resources, such as country food, widely in the community. Métis Local 125  Important country foods include moose, caribou, bison, bear, deer, hare, muskrat, beaver and lynx  Wein et al. 1991 as well as several species of waterfowl, upland birds, fish, berries and other plants.  Woven Paths 2015  In 1991, the average daily consumption of country foods, including meats, birds, berries and fish,  Integral Ecology Group was estimated to be 73 grams. Ltd. 2015  Sharing of country foods is a common practise in this community.  Hunting is an important activity in this community as it provides an opportunity to transfer knowledge and skills and provides a connection with nature. Métis Local 1935  Country foods important to the Métis Local 1935 include moose, deer and bison as well as other wild  Willow Springs 2014 game species and berries.  Willow Springs 2015  Moose hunting is also an important part of the culture of the community as it provides opportunities to share community food.  Big game hunting is the main source of protein for community members.  The connection to the land through country food collection and consumption is an identified source of pride for the community. Lac La Biche  Moose and bison are the most commonly hunted big mammals at between five and six hunts per  Willow Springs and Métis Métis year, both historically and currently. Local 1909 2015 (Métis Local 1909)  Country foods, important as food sources as well as other uses include moose, bison, martin, fisher, fox, coyote, beaver, muskrat, wolverine, fish, waterfowl and berries.  A larger proportion of protein consumed by the community is reportedly from wild-caught meat and fish. Many community members have a preference for country food over market foods.  Hunting is a key opportunity to transmit cultural knowledge and values.

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c) See the response to JRP IR 5.7(b), Appendix 5.7.

References:

Ayach B.B. and H. Korda. 2010. Commentary: Type 2 diabetes epidemic in First Nations peoples in Canada. Ethnicity and Disease 20 (3): 300-303.

ACFN (Athabasca Chipewyan First Nation). 2003. Footprints on the Land: Tracing the Path of the Athabasca Chipewyan First Nation.

BC Hydro (British Columbia Hydro and Power Authority). 2012 Site C Clean Energy Project, Volume 3 Appendix B First Nations Community Baseline Reports, Part 3 Community Baseline Report and EIA Integration Summary Table – Duncan’s First Nation. Available at: https://www.ceaa- acee.gc.ca/050/documents_staticpost/63919/85328/Vol3_Appendix_B- Duncan.pdf Accessed April 19, 2017.

Candler, C. and the Firelight Group Research Cooperative. 2013a. Athabasca Chipewyan First Nation Knowledge and Use Report for Teck Resources Limited Proposed Frontier Oil Sands Mine Project. November 20, 2013. Prepared on behalf of the Athabasca Chipewyan First Nation.

Candler, C. Olsen, R. and the Firelight Group Research Cooperative. 2013b. Mikisew Cree First Nation Indigenous Knowledge and Use Report and Assessment For Teck Resources Limited’s Proposed Frontier Oil Sands Mine Project. November 15, 2014. Prepared on behalf of Mikisew Cree First Nation.

Candler, C., Leech, S., Whittaker, C., and the Firelight Group with Mikisew Cree First Nation. 2015. Sakâw Mostos (Wood Bison): Mikisew Cree First Nation Indigenous Knowledge Study. April 10, 2015. Submitted to Miksiew Cree First Nation GIR.

Chan L., O. Receveur, M. Batal, W. David, H. Schwartz, A. Ing, K. Fediuk and C. Tikhonov. 2013. First Nations Food, Nutrition and Environment Study. Ottawa: University of Ottawa, 2016. Print.

Council of Canadian Academies. 2014. Aboriginal food security in Northern Canada: An assessment of the state of knowledge. Available at: http://www.scienceadvice.ca/uploads/eng/assessments%20and%20publications %20and%20news%20releases/food%20security/foodsecurity_fullreporten.pdf Accessed April 25, 2017.

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FMES (Fort McKay Environment Services). 1997. A Survey of the Consumptive Use of Traditional Resources in the Community of Fort McKay. Completed for Syncrude Canada Ltd. Fort McMurray, Alberta.

FNIGC (First Nations Information Governance Centre). 2012. First Nations Regional Health Survey (RHS) 2008/10: National report on adults, youth and children living in First Nations communities. Ottawa: First Nations Information Governance Centre. Available at: http://fnigc.ca/sites/default/files/First_Nations_Regional_Health_Survey_2008- 10_National_Report.pdf Accessed April 26, 2012.

FSC (Food Secure Canada). 2017. What is Food Sovereignty? Accessed April 25, 2017 at https://foodsecurecanada.org/who-we-are/what-food-sovereignty.

Human Environment Group. 2016. Teck Frontier Mine Project Fort McKay Métis Integrated Cultural Assessment. March 2016. Submitted by Fort McKay Métis Sustainability Centre.

Integral Ecology Group Ltd. 2015. Fort Chipewyan Métis Local 125 Cultural Impact Assessment. October 20, 2015. Prepared in association with Woven Paths Consulting.

Integral Ecology Group Ltd. 2016. Fort McKay First Nation Cultural Impact Assessment: Teck Frontier Oil Sands Mine Project. October 6, 2016. Prepared in association with ALCES Landscape & Land-Use Ltd.

Kuhnlein, H.V. and O. Receveur. 2007. Loval Cultural Animal Food Contributes High Levels of Nutrients for Arctic Canadian Indigenous Adults and Children. J. Nutri. 137: 1110-1114.

LeBlanc J.W., B.E. McLaren, C. Pereira, M. Bell and S. Atlookan. 2011. First Nations moose hunt in Ontario: A community’s perspectives and reflections. Alces 47: 163-174.

Natcher D.C. 2015. Social capital and the vulnerability of Aboriginal food systems in Canada. Human Organization 74 (3): 230.

Nelson M., D.C. Natcher and C.G. Hickey. 2005. Social and economic barriers to subsistence harvesting in a Northern Alberta Aboriginal community. Anthropologica 47: 289-301.

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Pedersen S. 2015. Alberta First Nations Food Security Strategy. Available at: file:///C:/Users/dharper/Downloads/alberta-first-nations-food-security-strategy- 2.pdf Accessed April 19, 2017.

Power E.M. 2008. Conceptualizing food security of Aboriginal people in Canada. Canadian Journal of Public Health 99 (2): 95-7.

Pufall E.L., A.Q. Jones, S.A. McEwen, C. Lyall, A.S. Peregrine and V.L. Edge. 2010. Perception of the importance of traditional country foods to the physical, mental, and spiritual health of Labrador Inuit. Arctic 64 (2): 242-250.

Schuster R.C., E.E. Wein, C. Dickson and H.M. Chan. 2011. Importance of traditional foods for the food security of two First Nations communities in the Yukon, Canada. International Journal of Circumpolar Health 70 (3): 286-300.

Sheehy T., F. Kolahdooz, S.E. Schaefer, D.N. Douglas, A.Corriveau and S. Sharma. 2014. Traditional food patterns are associated with better diet quality and improved dietary adequacy in Aboriginal peoples in the Northwest Territories, Canada. Journal of Human Nutrition and Dietetics 28: 262-271.

Skinner K., R.M. Hanning and L.J.S. Tsuji. 2013. Prevalence and severity of household food insecurity of First Nations people living in an on-reserve, sub-Arctic community within the Mushkegowuk Territory. Public Health Nutrition 17 (1): 31- 39.

Socha T., M. Zahaf, L. Chambers, R. Abraham and T. Fiddler. 2012. Food security in a northern First Nations Community: An exploratory study on food availability and accessibility. Journal of Aboriginal Health, March 2012.

Tanner J.N., C.C. Gates and B. Ganter. 2001. Some Effects of Oil Sands Development on the Traditional Economy of Fort McKay. Fort McKay Industry Relations Corporation, Mint Printing Services Ltd.

The Firelight Group. 2015. MCFN Culture and Rights Report for the Teck Frontier Project Update, Appendix E: Harvest Budget Estimation. Available at: https://www.ceaa-acee.gc.ca/050/documents/p65505/102730E.pdf Accessed April 20, 2017.

Wein E. E., J. H. Sabry and F. T. Evers. 1991. Food consumption patterns and use of country foods by Native Canadians near Wood Buffalo National Park, Canada. Arctic 44 (3): 196-206.

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Willows N. 2005. Overweight in Aboriginal children: Prevalence, implications and solutions. Journal of Aboriginal Health 2: 76-85.

Willow Springs (Willow Springs Strategic Solutions Inc.). 2014. Métis Traditional Land Use and Occupancy Study: Teck Resources Limited- Frontier Oil Sands Project. October 2014. Prepared for Fort McMurray Métis Local 1935.

Willow Springs. 2015. McMurray Métis Cultural Impact Assessment of the Teck Frontier Oil Sands Mine Project. July 2015. Prepared by Dr. Timothy David Clarke.

Willow Springs and Métis Local 1909 (Willow Springs Strategic Solutions Inc., with Métis Nation of Alberta Association Local 1909). 2015. Métis Nation of Alberta Association Local 1909 Phase 1 Traditional Knowledge and Use Baseline Study – Frontier Mine Project. October 2015.

Woven Paths (Woven Paths Aboriginal Relations, Research & Consulting Inc). 2015. Fort Chipewyan Métis Local 125: Métis Land Use & Ecological Knowledge Study. Executive Summary: Teck Resources Ltd. Frontier Mine. Prepared by K. Dertien-Loubert on behalf of Fort Chipewyan Métis Local 125.

5.7 Section 5(1)(c) of the Canadian Environmental Assessment Act, 2012 (CEAA 2012) requires the Panel to consider, with respect to Aboriginal peoples, an effect occurring in Canada of any change that may be caused to the environment on:

i. health and socio-economic conditions,

ii. physical and cultural heritage,

iii. the current use of lands and resources for traditional purposes, or

iv. any structure, site or thing that is of historical, archaeological, paleontological or architectural significance.

CEAA 2012 also requires that the environmental assessment of a designated project take into account any cumulative environmental effects that are likely to result from the designated project in combination with the environmental effects of other physical activities that have been or will be carried out.

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In the EIA for the Project, Teck concludes that high consequence effects to Aboriginal traditional land use have already occurred in the Base case and will occur in the Application and Planned Development cases. Despite this finding, Teck does not provide a detailed discussion or assessment of the potential cultural, social and economic implications of this high consequence effect on specific First Nation and Métis groups caused by the Project.

Rather, Teck relies on the results of the various community-led traditional land use (TLU) studies and cultural impact assessments to identify these effects and provides no analysis of its own.

Teck has not demonstrated how it considered the results of the community-led studies in its assessment and what specific mitigation measures will be implemented to address some of the effects identified in these studies. For example, Teck’s socio- economic assessment does not discuss or provide an assessment of the potential social, economic and cultural effects resulting from the loss of traditional land use and harvesting opportunities. The loss of traditional land use and harvesting opportunities and the subsequent reduction in the availability of country foods has the potential to result in a variety of other socio-economic effects related to food security, economic self-sufficiency, community health, culture, and more.

a) Provide a linkage analysis that shows how effects to traditional land use resulting from changes to the environment may result in effects on other social, economic and cultural values within Indigenous communities.

b) For each Indigenous group that Teck has engaged with and that may be affected by the Project, provide an assessment of the effects of changes to the environment caused by the Project on socio-economic conditions. The assessment should include a description of baseline conditions, a prediction of project effects (including identification of technically and economically feasible mitigation measures, characterization of residual effects and determination of significance) and cumulative effects (including identification of mitigation measures, characterization of residual cumulative effects and determination of significance), and consideration of whether a follow-up program is required. The updated assessment should clearly show the effects predicted, the mitigation measure applied to the specific effect, any residual effects, and a discussion of mitigation efficacy.

c) Provide a set of tables of the effects characterization and residual impact significance as part of the revised socio-economic impact assessment.

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Response:

a) Effects on the current use of lands and resources by Indigenous communities (TLU) have been presented in the Project Update (see Volume 3, Section 17) and the response to JRP IR 4.2 (see Appendix 4.2). The following discusses linkages between potential effects on TLU and effects on other social, economic and cultural values as identified by Indigenous communities because of potential changes to the environment from the Project.

To identify potential linkages, Teck reviewed the information provided by communities in the traditional use studies (TUSs) and CIAs that communities have prepared with funding from Teck, as part of the Project’s regulatory process. These studies detailed information on the linkages between TLU practices and key social, economic and cultural values held by community members. Additional linkages were identified based on Teck’s experience working with Indigenous communities during the development of mining projects.

The importance of the linkages between TLU and socio-economic conditions is illustrated in the various examples:

 The Fort McKay Métis note that: “the culture, society and traditional economy of the people of Fort McKay are inextricably linked to the regional landscapes and ecosystems that support and shape them. The social, cultural and economic health of the community of Fort McKay is dependent on opportunities in the industrial economy, but is also dependent on functioning ecosystems and the ecological goods and services provided by these ecosystems” (Berryman et al. 2013 cited in Human Environment Group 2016, p. 363).

 The MCFN indicate that the: “Mikisew way of life is rooted in ‘traditional’ or pre- colonial Cree practices, knowledge structures, and relationships with the environment. It includes a complex set of activities, including harvesting, sharing, living on the land, and learning from Elders and others, as well as the social relationships and knowledge and belief systems that support those activities and give them cultural meaning” (Candler et al. 2015, p. 40).

 The ACFN report that the: “ACFN uses all parts of its traditional lands for a range of traditional practices that are integral to its physical and cultural survival. Using traditional lands for these purposes is extremely important to ACFN. The land sustains ACFN and is at the heart of its culture, traditions, identity, spirituality and rights” (Candler et al. 2013, p. 19).

Although specific to each community, the various TUSs and CIAs share a number of cross-cutting themes, relating to both key TLU practices and the nature of associated socio-economic and cultural values. Project effects on the environment might potentially affect the opportunity for Indigenous peoples to undertake TLU activities through

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multiple pathways that can be grouped under the four following general categories that were identified as the measurable parameters in the TLU assessment (see Volume 3, Section 17.3.5.2 of the Project Update):

 disturbance to preferred land use areas  changes in the availability of the resource base (e.g., bison, wildlife, fish and traditional plant potential)  changes in access, including both land access and water access  sensory disturbances affecting Indigenous land users (e.g., noise, odour and visual disturbance)

These four parameters were used to describe and assess the potential environmental effects on the following six key indicators considered to represent the effects on TLU (see Volume 3, Table 17-2 of the Project Update):

 opportunities to harvest bison  opportunities to hunt traditionally important wildlife species  opportunities to trap fur-bearers  opportunities to fish for traditionally important species  opportunities to harvest traditionally important vegetation  opportunities to use culturally important sites and areas

Various key socio-economic values associated with these types of TLU practice are identified in the community-led TUSs and CIAs. These key socio-economic values fall within four broad categories defined as economic, population, community and cultural. Figure 5.7a-1 presents Teck's interpretation of the key linkages between TLU practices and key socio-economic values, as described in the various submissions from Indigenous communities. Each of linkages to these key values are described in more detail in the following sections.

As noted in some of the studies, many of the TLU practices have linkages with various socio-economic values; and these socio-economic values are, in turn, interrelated and affect one another. For this interpretation, these key values are organized by socio- economic area and indicator; however the complexity between interrelated concepts and their relationships to TLU practice is acknowledged.

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Figure 5.7a-1: Linkages between Traditional Land Use and Socio-Economic Values

Traditional Land Use and Economics

Traditional Harvest

Changes in the ability to harvest resources traditionally relied on, through effects on TLU, including changes in wildlife harvesting, trapping, fishing and vegetation harvesting can result in economic effects for Indigenous community members. These economic effects can result from a reduction of harvest yields of traditional resources, the requirement to purchase non-traditional foods in replacement of country foods, and the requirement for increased expenditures to be able to participate in traditional harvesting practices.

Harvest Yields

Effects that reduce the potential for harvesting success and therefore harvest yields, such as changes in the availability of wildlife, fish or vegetation, might result in a reduction in

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the amount of country food available to Indigenous community members. As noted in the responses to JRP IR 5.6(a) and (b), country foods present benefits to Indigenous communities, including positive contributions to health and well-being, food security and cultural identity. Wild foods—including large and small game, birds, fish and berries— have high importance (Candler et al. 2013). For many Indigenous peoples, including those who work in the industrial sector, providing wild foods to family through hunting and fishing is important (Willow Springs and Métis Local 1909 2015).

Effects on the environment that result in a shift in traditional harvesting practices into new, unfamiliar or more remote areas also might affect harvesting success and yields. Reported effects that might cause such a shift include the extent of industrial disturbance in an area and changes in access (Integral Ecology Group 2016). This is also linked to familiarity with an area. For example remote locations are often unfamiliar to community members, resulting in reduced success in terms of both hunting and gathering (Integral Ecology Group 2016, p. 34)

A corresponding value important to Indigenous communities to pursue TLU is that use areas are reachable in a reasonable and affordable manner. For example, more and more, hunting is becoming an activity that requires planning, time, and money to buy a vehicle, gas and supplies (Human Environment Group 2016, p. 119). Effects to access on the Athabasca River from changing water levels are reported to increase the time required for travel and harvesting (Human Environment Group 2016).

For some individuals, sale of harvested items from TLU activities contributes to income. Financial revenues from private fishing sales, as well as trapline yields, are an important component in a mixed traditional income for some Indigenous people. Commercial trapping is a long-established activity for the Métis. The passing of specific knowledge to subsequent generations regarding habitat and locations, techniques and seasonality is important to preserving fur trapping activity (Integral Ecology Group 2015).

Purchase of Non-Traditional Foods

Elders note that when they were younger and prior to community growth, country foods were a necessity because no grocery store was available (Willow Springs 2014). As described above, changes in harvesting success and yields might reduce the amount of country or wild foods available to an individual, family or community. Unavailability of wild foods has the potential to result in costs for purchasing replacement non-traditional foods. While not all community members might be hunters, many within a community could have access to wild foods because harvested game (e.g., bison) can feed a large number of community members and sharing of country foods with family or other community members is common (Candler et al. 2013; Integral Ecology Group 2016).

In addition to wild foods, the gathering of traditional medicines is noted as a valued sustenance component gathered through TLU (Candler et al. 2013). The use of natural

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materials for medicinal purposes reduces the requirement of Indigenous people to purchase medicine, and this activity contributes to self-sufficiency.

Expenditures on Traditional Harvesting Activities

Hunting and other TLU pursuits require the economic means to access sites, hunting equipment and supplies and an allowance of adequate time (Candler et al. 2013). Environmental changes that result in the need to travel further to access resources will require land users to purchase additional supplies or equipment (e.g., a snowmobile to travel longer distances quicker). Changes in the environment also might have potential to cause damage or require increased maintenance to the equipment of land users. For example, reductions in the navigability of the Athabasca River and an increase in the number of sand bars can cause damage to boats and outboard motors while participating in TLU activities.

Traditional Land Use and Population

There are two identified linkages between population in the region and TLU, population change and mobility.

Population Change

Regional Population

Population growth in the region can translate to increased land use by non-Indigenous land users, which increases encounters, disturbances and places pressure on resources. (Candler et al. 2013; Fort McKay and Integral Ecology Group 2011; Willow Springs 2014; Willow Springs and Métis Local 1909 2015; Woven Paths 2015).

Mobility

Inter- or Intra-Community Movement

Linked to population change is mobility, either within or outside the region. Residents in rural Indigenous communities in the RSA will move to Fort McMurray for opportunities or needs (employment, education, health and other), which can affect their ability to pursue TLU in a new, more developed area. These or other residents might move back to rural communities, to avoid high housing costs, or for lifestyle preferences, including an ability to pursue TLU. Some residents might relocate outside the region, either for opportunities or to avoid high housing costs or population growth in Fort McMurray, changing their TLU patterns. Others might relocate outside of their communities, or the region, to pursue TLU in other, less disturbed areas (Willow Springs and Métis Local 1909 2015). All of these changes relate to changed TLU patterns, and resultant potential linkages to traditions, knowledge transmission, cohesion and mental well-being.

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Traditional Land Use and Community

Health

Food Quality and Activity Levels

Changes to TLU, including reduced harvests are reported to affect community health. Reported effects include concerns regarding the quality of potentially-contaminated water, meat or vegetation (Candler et al. 2013; Fort McKay and Integral Ecology Group 2011; Willow Springs 2014; Willow Springs and Métis Local 1909 2015; Woven Paths 2015). Other reported effects include reduced harvest yields resulting in a reduction in the consumption of wild foods and an increase in the consumption of less-healthy non- traditional foods, in turn affecting overall health of community members (Candler et al. 2013). Similarly, reduced TLU means reduced activity levels associated with being on the land, which can affect overall health (Fort McKay and Integral Ecology Group 2011).

Social

Well-being and Mental Health

Indigenous communities identify a linkage between TLU practices and personal health and well-being because being on the land contributes to positive emotions, including feeling good, and a sense of happiness and pride. These feelings are linked in part to a sense of identity and belonging, but also to the physical activity involved in hunting and plant harvesting. Community members indicate an enhanced sense of personal health when being on the land (Integral Ecology Group 2016). Community members value their sense of welfare, sense of self, and sense of their relation and experience of place; these emotions are linked to land-based activities (Integral Ecology Group 2015).

For Indigenous communities, well-being is linked to a sense of self and place, and is closely tied to TLU practices. People enjoy being on the land, being self-sufficient, and having the ability to practice traditional activities and go to special and familiar places because it brings a sense of fulfillment and identification with place, culture, traditions and spirituality (Integral Ecology Group 2016, p. 60).

There is a strong linkage between Indigenous culture, spirituality and ties to the land. For example, undertaking TLU activities contributes to a sense of control for Indigenous communities. It is the space where communities can build personal and familial well- being (Willow Springs 2015). TLU reinforces cultural values, and provide[s] opportunities for sharing and maintaining sacred connections between generations, and between humans and animals (Candler et al. 2013, p.26), a key element of Indigenous identity.

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Indigenous communities express requirements such as solitude, freedom of movement and choice as being important to TLU pursuits. For example, members of Métis Local 125 note feelings of peaceful enjoyment and spiritual renewal . . . while on the Athabasca River with family, friends, or alone (Woven Paths 2015, p.12).

Communities emphasize the importance of being able to experience and enjoy TLU without encountering human-made influences (sights, sounds and smells). The ability to travel, access and experience lands in ways used for generations with confidence and without disturbance is valued.

Indigenous Identity and Autonomy

The root of self-sufficiency for Indigenous peoples has traditionally been through TLU, whereby many of their basic needs could be met, and the desire to maintain self- sufficiency through TLU practices remains important for Indigenous communities today. For example; the ability to support oneself and one’s family with the essentials for a healthy life is important (Integral Ecology Group 2015). For some community members, a high level of value is placed on traditional knowledge, as well as knowledge and skills related to self-sufficiency, including an ability to survive off the land (Integral Ecology Group 2016).

Indigenous communities also view self-sufficiency and autonomy from a communal perspective, whereby sharing of harvests can help confirm the well-being of all members. The sharing of resources and wildlife foods is a key element of cultural practice, as indicated by widespread sharing of wild foods and resources amongst members. Factors such as different hunting regulations put in place by the government can affect self- sufficiency of Métis differently than First Nations (Willow Springs 2014).

Key requirements of land use experiences that are self-determined include sufficient quantity and quality of culturally important species and resources available in culturally important areas and adequate access (Candler et al. 2013). Access to an intact and healthy environmental landscape is critical to maintaining TLU as well as community values of self-reliance and determination (Fort McKay and Integral Ecology Group 2011).

An ability to exercise treaty rights is a key element of self-determination. The ability to utilize treaty rights requires access to subsistence resources, but also requires the ability to practice and transmit place-based cultural knowledge that is essential to the ‘mode of life” (Candler et al. 2013, p. 93). Availability of adequate Crown land with viable wildlife habitats is identified as being a requirement to confirm sustainable traditional resource use and harvesting practices into the future (Willow Springs and Métis Local 1909 2015).

TLU pursuits are also a key element linked to unique Indigenous identities. Cultural practices, tied to TLU help define Indigenous identity. For example, practicing cultural activities involving skills and knowledge passed down through generations is identified as

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allowing Indigenous community members to connect with where they came from and their identity today (Integral Ecology Group 2016).

Another aspect of Indigenous identity is stewardship and respect for nature. For example, Indigenous communities indicate a need to protect and conserve resources on the land, and to only harvest what is needed, leaving no waste (Integral Ecology Group 2016, p.52). Being on the land is noted as providing a sense of identity and belonging both as hunters and as community members (Integral Ecology Group 2016).

Other key elements of identity include knowledge, hierarchy and roles within families and communities. For example, the role of big game hunters in maintaining traditional subsistence hunting and sharing practices which help with community unity are important valued components of the Métis lifestyle (Willow Springs and Métis Local 1909 2015).

Cohesion (Familial and Communal)

Indigenous communities note that cohesiveness, or being part of a united whole, is an important element of their respective cultures, and TLU practices are a key mechanism in which this value is maintained and strengthened. TLU practices are also listed as a key mechanism with which members maintain and strengthen familial and communal bonds. Hunting and harvesting can be a social occasion, bringing generations together on the land to help with processing the meat and hide and distributing the harvest with relatives and friends. (Willow Springs and Métis Local 1909 2015).

The coordination involved in planning and executing a group hunt helps strengthen bonds between community members. Through this process, as well as the post-hunt sharing in the community, is a major focus of interaction between adults and children, elders and youth (Candler et al. 2013, p. 26). TLU reinforces family and community cohesiveness. A moose hunt, for example, provides an opportunity to be together with family and community members and to build cultural understanding and unity (Integral Ecology Group 2016, p. 61).

TLU is also a critical mechanism by which knowledge transmission takes place. Harvesting activities provide the context for learning, reinforcing and transmitting traditional knowledge and cultural values. They provide opportunities for sharing and maintaining sacred connections between generations, and between humans and nature (Candler et al. 2013, p. 26).

Knowledge sharing across generations, including cultural elements is an important value for the community (Willow Springs and Métis Local 1909 2015). Historic trap lines are considered critical sites for inter-generational knowledge transfer regarding harvesting, trapping and hunting (Willow Springs 2014).

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Traditional Land Use and Cultural Effects

Traditions and History

Indigenous peoples place a high value on knowing and maintaining their history through time, and TLU is a key mechanism through which this achieved. For example, TLU comprises the knowledge and cultural norms and practices associated with harvesting, processing, and consumption of traditional resources, from the cultural and spiritual significances of particular places to norms of sharing and reciprocity and processes of identity formation (Willow Springs 2015, p. 17)

Closely linked to social values, traditions and language are key ways in which an Indigenous community’s culture is defined and represented. For example, “cultural values are the commonly held standards of what is acceptable or unacceptable, important or unimportant (MVEIRB 2012). Cultural values are embedded within beliefs, cultural activities, traditional rules or norms, and relationships with the environment and with one’s community (Berkes 2009) (Integral Ecology Group 2016, p. 11).

As part of their cultural identity, Indigenous peoples hold unique belief systems. One example is the concept of cultural landscapes, which are places that are valued for special meaning, through attributes related to spiritual beliefs, special location or other traditional uses. Cultural landscapes reflect an Indigenous community’s history and relationship with the land (Integral Ecology Group 2016). Other components of Indigenous belief systems encompass spiritual elements, and interpersonal and land- based relationships.

A sense of place infers to an area which has an identity or character felt by users. A sense of place linked to culture is inherent to TLU practices. For example, the relationship with the landscape is inter-connected with relationships with family and ancestors and strengthened through harvesting, through the transmission of knowledge to younger generations, and through creating personal connections to places oral histories and traditional knowledge (Candler et al. 2013, p. 32). The ability of Elders or knowledge holders to pass along cultural knowledge and skills is reliant on access to physical places of importance, continuity in the sense of place, and absence of disturbances. Places with strong connections can include special spiritual sites, historically important areas, harvesting areas, or places where family can share and be together (MVEIRB 2012 in Integral Ecology Group 2016, p. 11).

Traditional Knowledge Transmission

Transmission of cultural values occurs through and beyond TLU practices, and also is linked to simply being on the land.

Actions that destroy a place, or cause the use of a place to be lost (for example, because of fear of contaminants), especially over long periods of time, frequently

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result in a gap in the transmission of place-based knowledge, and eliminate the place as a cultural resource for remembering, teaching, and learning the knowledge associated with it. Other kinds of knowledge may not be associated with a particular place, but with an aesthetic feelings, or sense associated with particular kinds of places, especially ones that are considered ‘natural’

[Candler et al. 2013, p. 79]

Time and space is required to teach children and grandchildren traditional ways of sourcing food and protecting resources for future use (Willow Springs and Métis Local 1909 2015). Communities value opportunities to come together to share aspects of their culture, including songs, stories and food (Integral Ecology Group 2015).

Interrelated Effects

In addition to the linkages described above, Indigenous communities report other broader socio-economic effects experienced in their communities from industrial-driven development in the region. These effects are reported to both contribute to, and be influenced by socio-economic effects related to TLU. For example:

 A decrease in TLU can result in a weakening of family and community bonds; this in turn can lead to reduced TLU practice and a reduced experience through lowered participation.

 Declines in TLU can result in an individual going from a position of status to the opposite when less value is placed on TLU and more value placed on money and consumerism. Youth might become less inclined to follow engage in TLU activities and, therefore, cultural knowledge transmission would be less.

Increased engagement with the wage economy can result in less time for community members to engage in TLU pursuits, which affects cultural knowledge and language retention and transmission (Willow Springs 2015). The increase in English language use and naming conventions also adversely affects place-specific knowledge.

Linkages to Broader Socio-Economic Conditions

The TUSs and CIAs identify broader socio-economic effects that are linked to changes in TLU and socio-economic values, including but not limited to:

 reduced sharing, community cohesion, preserving of a community’s way of life and identity – all of which apply to life in the community, not only on the land

 the decline of TLU practice, combined with strong growth in the non-indigenous population, produces upheavals in the social order of Indigenous communities by disturbing existing hierarchies, roles and identities, including the status of Elders (Willow Springs 2015)

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 changes in the communities through population, employment, incomes, lifestyle and social conditions contributes to broader cultural change (The Firelight Group 2012)

 adverse changes in broader health conditions, including emotional, mental and spiritual

 Opportunities for business development and support for entrepreneurs as a result of FIFO employment with oil sands projects; this might contribute to retention of young residents in Fort Chipewyan. This will strengthen the long term sustainability of the community and support their access to TLU opportunities (The Firelight Group 2012).

Certain positive effects associated with new infrastructure (e.g., pool), recreation, Elders centres, education facilities, youth centre, health programming, among others, willwhich influence how economic, population and community effects are experienced in communities, and will influence migration decisions of community members.

b) See Appendix 5.7.

c) See the response to part (b).

References:

Berkes, F. 2009. Indigenous ways of knowing and the study of environmental change. Journal of the Royal Society of New Zealand 39(4): 151–156. Available at: http://doi.org/10.1080/03014220909510568. Accessed August 10, 2016.

Berryman, S., A. Garibaldi, J. Straker, J. Nishi, and J.B. Stelfox. 2013. Community Led Approach to Landscape Planning. Prepared for Fort McKay Sustainability Department. Prepared by: Integral Ecology Group (Victoria) and ALCES Group (Calgary).

Candler, C. and the Firelight Group Research Cooperative. 2013. Athabasca Chipewyan First Nation Knowledge and Use Report for Teck Resources Limited Proposed Frontier Oil Sands Mine Project. November 20, 2013. Prepared on behalf of the Athabasca Chipewyan First Nation.

Candler, C., G. Gibson, M. Malone, and the Firelight Group Research Cooperative, with Mikisew Cree First Nation. 2015. Wîyôw’tan’kitaskino (Our Land is Rich): A Mikisew Cree Culture and Rights Assessment for the Proposed Teck Frontier Project Update. September 15, 2015.

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The Firelight Group (The Firelight Group Research Cooperative). 2012. Supplemental Social, Economic and Cultural Effects Submission for Shell Canada’s Proposed Jackpine Mine Expansion. September 29, 2012. CEAA Registry Number: 465. Appendix D, Part 5.

Fort McKay and Integral Ecology Group (Fort McKay Sustainability Department and Integral Ecology Group). 2011. Traditional Land Use Study for the Teck and Silverbirch Frontier Project. August 9, 2011. Submitted to Teck and Silverbirch.

Integral Ecology Group Ltd. 2015. Fort Chipewyan Métis Local 125 Cultural Impact Assessment. October 20, 2015. Prepared in association with Woven Paths Consulting.

Integral Ecology Group Ltd. 2016. Fort McKay First Nation Cultural Impact Assessment: Teck Frontier Oil Sands Mine Project. October 6, 2016. Prepared in association with ALCES Landscape & Land-Use Ltd. for Fort McKay Sustainability Department.

Human Environment Group. 2016. Teck Frontier Mine Project Fort McKay Métis Integrated Cultural Assessment. March 2016. Submitted by Fort McKay Métis Sustainability Centre.

MVEIRB (Mackenzie Valley Environmental Impact Review Board). 2012. Cultural impact assessment guidelines. Mackenzie Valley Review Board, Yellowknife.

Willow Springs (Willow Springs Strategic Solutions Inc.). 2014. Métis Traditional Land Use and Occupancy Study: Teck Resources Limited- Frontier Oil Sands Project. October 2014. Prepared for Fort McMurray Métis Local 1935.

Willow Springs. 2015. McMurray Métis Cultural Impact Assessment of the Teck Frontier Oil Sands Mine Project. July 2015. Prepared by Dr. Timothy David Clarke.

Willow Springs and Métis Local 1909 (Willow Springs Strategic Solutions Inc., with Métis Nation of Alberta Association Local 1909). 2015. Métis Nation of Alberta Association Local 1909 Phase 1 Traditional Knowledge and Use Baseline Study – Frontier Mine Project. October 2015.

Woven Paths (Woven Paths Aboriginal Relations, Research & Consulting Inc). 2015. Fort Chipewyan Métis Local 125: Métis Land Use & Ecological Knowledge Study. Executive Summary: Teck Resources Ltd. Frontier Mine. Prepared by K. Dertien-Loubert on behalf of Fort Chipewyan Métis Local 125.

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5.8 Teck has not provided a standalone traffic assessment, and it is not clear whether all traffic-related effects of the Project are included in the average annual daily traffic numbers provided by Teck in Volume 1 Tables 16.5-1 and 16.5-2 of the updated socio- economic impact assessment in the Project Update.

a) Confirm whether the Application Case and Planned Development Case effects assessments of traffic include direct and induced effects of increased industry activity resulting from:

i. sourcing gravel and aggregates for the Project (clarifying what sources of gravel are reflected in the traffic numbers provided – sourcing material from the mining area, from across the Athabasca River, or other);

ii. timber extraction related to the Project;

iii. installation of utilities and infrastructure to support the Project; and,

iv. any additional traffic relating to contract workers.

b) If not, provide an updated assessment of the associated traffic effects that include the activities listed above. Include a discussion of the seasonality of these effects and potential impacts to existing traffic and maintenance of the Fort Chipewyan winter road.

Response:

a) i. Traffic related to gravel and other aggregate deliveries to the Project isincluded in the estimates presented in Volume 1, Section 16.5.5.3, Tables 16.5-1 and 16.5-2 of the Project Update. In Volume 1, Section 16.5.5.3 of the Project Update, Teck outlines the Project’s traffic-related assumptions, including the intention to source aggregate materials from existing or approved sources on the east side of the Athabasca River. In the responses to AER Round 5 SIRs 101 and 158, Teck identifies possible off-site sources of aggregate for the Project.

ii. Off-site timber extraction was not included in traffic volume estimates presented in Volume 1, Section 16.5.5.3, Tables 16.5-1 and 16.5-2 of the Project Update because the work will be carried out by Al-Pac Forest Products Incorporated and Northlands Forest Products Ltd. See the response to JRP IR 5.8(b) for an estimate of timber extraction- related traffic.

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iii. Traffic related to installation of utilities and infrastructure to support the Project as defined within the PDA was included in Volume 1, Section 16.5.5.3, Tables 16.5-1 and 16.5-2 of the Project Update, with the exception of construction of the bridge over the Athabasca River. See the response to JRP IR 5.8(b) for an estimate of bridge construction-related traffic.

iv. Traffic related to the use of contract workers was included within the estimates presented in Volume 1, Section 16.5.5.3, Tables 16.5-1 and 16.5-2 of the Project Update, and in the response to AER Round 5 SIR 42 regarding workforce movements between the Project site and open lodges in the region.

Cumulative Traffic Volumes

Traffic volumes related to aggregate deliveries, timber extraction, installation of utilities and support infrastructure and contract workers are considered in the Base Case and Planned Development Case (PDC) effects assessments as presented in Volume 1, Sections 16.5.5.2 and 16.5.5.4 of the Project Update. These types of activities are reflected in the historical traffic patterns data for Highway #63 that form the basis for the Base Case and PDC traffic forecasts. It is assumed that future industrial developments will follow the experience of past, similar projects in the region. Therefore Base Case and PDC traffic estimates are based on historical trends, adjusted to reflect the difference between historical and future development scenarios.

b) Timber Extraction

Based on the current timber salvage plan (see Volume 1, Section 13.5-1, Table 13.5-1 of the Project Update), Teck estimates that 38% of the expected 3 million m3 of timber salvage could occur during Phase 1 construction of the Project. The remaining salvage would be ongoing as new areas are cleared.

Based on average logging truck haul capacity and the onsite workforce required for harvesting and loading, high-level estimates indicate traffic associated with the Project’s timber extraction could be as follows:

 35 average annual daily traffic (AADT) movements over the entire Phase 1 construction period (between 2019 and 2025), potentially reaching 140 average daily vehicle movements if Teck elects to haul salvaged timber during a three- month winter period only

 80 AADT in 2022, the forecasted year of highest salvage, potentially reaching 300 daily vehicle movements if Teck elects to haul salvaged timber during a three-month winter period only

 15 AADT over the remainder of the Project life (2026 to 2061), potentially reaching 60 daily vehicle movements if hauling is done during winter months only in any given year

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The winter period AADTs are based on the assumption that salvaged timber is hauled out as it is logged under winter conditions. The lower annual AADT’s recognize that, seasonal traffic peaks might be reduced by hauling out timber year-round as a result of:

 stockpiling salvaged timber onsite  using the all-season Project access road that has a target completion of 2020

 Highway #63 having all-season status up to and beyond the Project access road

The estimates assume that the logging contract workforce stays in open lodges in the Fort McKay area. If this workforce stays in the on-site lodge, the estimates will be slightly reduced.

Similar to other projects in the region, Teck expects to reach contractual arrangements with third-party contractors which hold Forest Management Agreement or Coniferous Timber Licenses in the region to oversee logging and hauling. Based on current understanding, possible destinations for the salvaged timber could include:

 For deciduous wood, Northland Forest Products Ltd., located approximately 16 km north of Fort McMurray. Deciduous trees are estimated to represent roughly two-thirds of the total timber to be salvaged and extracted.

 For coniferous wood, Al-Pac Forest Products Incorporated, located north of Athabasca, Alberta.

Other delivery sites are possible, and will be determined at the time of negotiating logging/haulage with potential contractor(s).

Bridge Construction

Construction of the bridge is expected to occur over the third and fourth years of Phase 1 construction of the Project. Traffic estimates on Highway #63 associated with construction of the bridge are estimated to average 10 AADT between 2021 and 2022, comprised of materials deliveries and workforce movements to and from site during shift changes. Teck expects to house the on-shift bridge workforce in its on-site lodge.

There might be some limited traffic peaking during winter months, in the order of 20 to 40 daily vehicle movements. The traffic estimates for bridge construction also include an estimated 100 over-dimensional load trips involving pre-cast spans and crane movements.

Updated Project Effects Estimate

Table 5.8-1 is an update to Volume 1, Section 16.5, Table 16.5-2 of the Project Update and reflects additional volumes associated with timber haulage and bridge construction. Similar to the Project Update, the data represents high-level estimates of Project-related

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traffic during Phase 1 construction and operation. These estimates are based on the current phase of Project planning.

Table 5.8-1: Updated Project Phase 1 Traffic Estimates

Year Light Vehicle Bus Transport Truck Oversize Total Traffic Volumes (AADT) Phase 1 Construction 2019 60 10 65 0.2 135 2020 70 10 75 0.2 155 2021 75 10 125 2 212 2022 50 5 115 - 170 2023 100 10 160 2 272 2024 125 10 175 3 313 2025 105 10 120 2 237 Phase 1 Operation 2026 55 10 75 - 140 NOTES: Numbers subject to rounding. .- = not applicable; AADT = average annual daily traffic (two-way vehicle movements).

The additional trips associated with timber haulage and bridge construction is estimated to increase peak annual construction traffic in 2024 by 40 AADT (to 313 AADT), or a 15% increase compared to the Project Update. Ongoing timber haulage is expected to increase Project operations traffic in 2026 by 20 AADT, a 17% increase from the Project Update estimate.

Table 5.8-2 presents an update to Volume 1, Section 16.5.5.3, Table 16.5-1 Volume Section of the Project Update, indicating the estimated Project traffic effect on individual segments of Highway #63 during peak annual construction in 2024 and the commencement of Phase 1 operation in 2026.

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Table 5.8-2: Updated Project Traffic Effects

2024 - Peak Construction Phase 1 2026 - Phase 1 Operations Highway Base Project Application Project Traffic as% Base Project Application Project Traffic as% #63 Case Traffic Case Base Case Traffic Case Base Segment Traffic Volumes Traffic Volumes CS TCS Description (AADT) % (AADT) % 15.4 km north 11 40 29,100 313 29,413 1.1 30,470 140 30,610 0.5 Fort McMurray 12 8 North of Suncor 20,800 313 21,113 1.5 21,780 140 21,920 0.6 South of Fort 12 12 12,240 313 12,553 2.5 12,820 140 12,960 1.1 McKay North of Fort 14 4 10,720 313 11,033 2.8 11,230 140 11,370 1.2 McKay NOTES: AADT = average annual daily traffic; CS / TCS = highway segment control section and traffic control section number.

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With the additional traffic associated with timber haulage and bridge construction, the peak Project construction effect is estimated at 2.8% over Base Case estimates north of the Fort McKay turnoff, and 1.1% over Base Case estimates 15 km north of Fort McMurray. The estimates presented in Volume 1, Section 16.5.5.3, Table 16.5-1 Volume Section of the Project Update for these highway segments were 2.5% and 0.9%, respectively. Additional traffic associated with these activities does not materially affect the results of the Highway #63 traffic analysis as presented in the Project Update.

Expected Effects on the Fort Chipewyan Winter Road

The additional traffic associated with timber haulage and bridge construction will not affect the Fort Chipewyan winter road because the road starts north of the Project access road. Teck has previously delivered donated salvaged timber to Fort Chipewyan for heating wood as part of its winter drilling program (see Volume 1, Section 17.4 of the Project Update). Teck might undertake a similar project in the future, depending on community interest. Any future wood donations to Fort Chipewyan will likely be limited to two or three loads per season. Donated loads would adhere to the winter road weight restrictions, and be coordinated with the relevant recipient groups in the community.

Safety on Highway #63

Logging trucks are part of the existing traffic pattern in the region, linked to timber haulage from oil sands project sites as well as standalone logging operations completed under existing Forest Management Agreements or Coniferous Timber Licenses. Teck expects logging companies will meet all applicable Alberta Traffic Safety Act regulations. Discussions with the Royal Canadian Mounted Police indicate no safety concerns regarding collisions, other incidents or resident complaints involving logging trucks in the region (Murphy 2017, pers. comm.).

c) See the response to part (b).

References:

Personal Communications

Murphy, J. 2017. Sergeant, RCMP Integrated Traffic Unit. Personal communication. Telephone interview, April 6, 2017.

5.9 Teck has made a commitment to work with local Indigenous communities to facilitate local employment and contracting opportunities. Engagement in the oil sands sector through employment, training and business development is an indicator of how

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much benefit this sector brings, against which the environmental effects of the sector and effects to specific communities must be weighed.

In its response to Round 5 Supplemental Information Requests Question 43d, Teck recognized the importance of working with Indigenous peoples to achieve self- defined community goals that provide lasting benefits, making reference to its recently implemented Indigenous Peoples Policy. While this policy is referenced in the response, a copy of the policy was not provided and it is not clear whether or how this policy, or other similar policies, will be applied for the Project.

The Panel requires additional information on hiring and procurement policies and practices to better understand the potential for local communities to receive economic benefits from the Project.

a) Provide the Indigenous Peoples Policy referenced in the round 5 SIR Response, Question 43d.

b) Confirm whether Teck has any other formal policies (at the corporate or Frontier project level) relating to the hiring, training, and retention of Indigenous Peoples. If so, provide copies of the policies.

c) Provide a discussion on the effectiveness of the above policy(ies) in employing, training, and retaining Indigenous people in the workforce at any of Teck’s other operating projects.

d) Provide a discussion of the hurdles, trends, and lessons learned with respect to Indigenous peoples hiring, retention, training, education and advancement, and labour and business procurement efforts from Teck’s other operations, including the Fort Hills project.

Response:

a) Please see Appendix 5.9-1 for Teck’s Indigenous Peoples Policy. For discussion on hiring and procurement policies and practices see part (b).

b) Teck’s vision is to build strong relationships with Indigenous peoples and create lasting mutual benefits that respect Indigenous community values, including hiring, training and retention of Indigenous employees. Teck’s work is guided by several charters, codes and policies which are highlighted below. Teck’s preference for ensuring that training and employment commitments are implemented consistently with this policy framework is to jointly develop specific commitments directly with Indigenous peoples, through negotiated long-term benefits and participation agreements.

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Teck Charter, Codes and Polices

Charter of Corporate Responsibility

Teck’s Charter of Corporate Responsibility (see the response to JRP IR 5.9, Appendix 5.9-2) is a set of principles related to business ethics, health, safety, environment and community that governs all operating practices and provides Teck’s overarching sustainability governance commitment. In this Charter, Teck vision is a corporate environment that values sustainable development and a workplace free from discrimination.

Code of Sustainable Conduct

Teck’s Code of Sustainable Conduct (see the response to JRP IR 5.9, Appendix 5.9-3) sets out specific commitments to implement Teck’s Charter of Corporate Responsibility. Of particular relevance to hiring, training and retention of Indigenous peoples is a commitment to confirm that there is no discrimination in the workplace, as well as to support local communities and their sustainability through measures such as development programs, locally sourcing goods and services and employing local people.

Code of Ethics

Teck’s Code of Ethics (see the response to JRP IR 5.9, Appendix 5.9-4) represents Teck’s dedication to upholding high moral and ethical standards, specifying basic business conduct and behavior. Teck’s Code of Ethics states that discrimination should not be tolerated at any level of the company or in any part of the employment relationship. This includes areas such as recruitment, promotion, training opportunities, salary, benefits and terminations.

Indigenous Peoples Policy

The Indigenous Peoples Policy establishes a clear set of commitments to guide Teck’s work with Indigenous peoples across all current and future operations, both inside Canada and abroad. Of particular significance, the policy establishes that Teck will work with Indigenous peoples to achieve self-defined community goals that provide lasting benefits. Indigenous communities regularly indicate that employment and training are among their primary goals. Consistency with Teck’s Indigenous Peoples Policy is a key driver in advancing hiring, training and retention of Indigenous peoples. The Indigenous Peoples Policy has also been provided in response to JRP IR 5.9(a), Appendix 5.9-1.

Teck’s Expectations for Suppliers and Contractors

Teck’s Expectations for Suppliers and Contractors Policy (see the response to JRP IR 5.9, Appendix 5.9-5) has been established to clearly communicate Teck’s expectations for suppliers of goods and contractors performing services for or on behalf of Teck. A key

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feature of this policy is a section setting out Teck’s expectations for suppliers and contractors to understand and support Teck’s engagement with Indigenous peoples and other communities as described in Teck’s Indigenous Peoples Policy. Of particular note, the policy provides that:

• Suppliers should be aware of how their activities, goods and services might positively or adversely affect communities, including Indigenous communities and respond to issues that might arise with respectful dialogue and in recognition of local culture, heritage and traditions.

• Suppliers should develop and implement practices to reduce adverse effects and maximize benefits on communities. Suppliers are expected to have processes in place to continually improve such practices.

• Suppliers should proactively consult with Teck to gain awareness of Teck’s commitments and priorities in connection with Indigenous peoples and other communities.

• Suppliers should be willing to engage and work with Teck, Indigenous peoples and other communities to contribute to the well-being of the communities in which they are active, including minimizing their environmental effects and enabling capacity building, procurement, employment and contracting opportunities.

Inclusion and Diversity Policy

Teck’s Inclusion and Diversity Policy (see the response to JRP IR 5.9, Appendix 5.9-6) reflects Teck’s commitment to supporting an inclusive and diverse workplace that recognizes and values difference. It acknowledges Teck’s respect and appreciation for a number of diversity aspects, including Indigenous origin or heritage. Importantly, this policy formalizes Teck’s commitment to promote and foster an inclusive and diverse workforce to:

• contribute to innovation and better decision making through exposure to increased perspectives and ideas

• attract a broader pool of candidates and improved employee retention

• build a strong workforce that is engaged and contributing to Teck’s social and economic goals

• better reflect the diversity of the communities in which Teck operates

Sustainability Strategy – Focus Area Goals

Teck’s Sustainability Strategy (see the response to JRP IR 5.9, Appendix 5.9-7) addresses the greatest sustainability risks and opportunities facing Teck’s business in six focus areas: Teck’s People, Community, Water, Air, Biodiversity, and Energy and Climate Change.

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Progress in hiring, training and retention of Indigenous peoples is a prominent and continued component of Teck’s sustainability goals. Through development of sequential Focus Area goals, Teck has implemented a long-term strategy to establish objectives and monitor progress related to employment, training and procurement from Indigenous communities:

• 2020 Focus Area Goals: Work with Indigenous Peoples to identify and participate in initiatives to support the self-defined goals of Indigenous communities; develop metrics for monitoring Indigenous training, employment and procurement to establish baselines and drive progress.

• 2030 Focus Area Goal: collaborate with Indigenous communities to consistently create lasting benefits that respect their unique interests and aspirations.

In support of these goals, Teck has recently completed a company-wide review of Teck’s objectives and specific commitments regarding Indigenous employment, training and procurement. This review will inform the development of metrics to establish baselines and drive progress.

Policy Guidance Reflected in Teck Agreements with Indigenous Peoples

Impact Benefit Agreements

The commitments and intentions set out in Teck’s policy framework are evident in Teck’s approach to negotiating Impact Benefit Agreements and other agreements with Indigenous peoples. A key issue which Indigenous communities consistently wish to address in agreements with Teck is the specific commitments and joint processes which will be pursued to support development of training and employment opportunities for Indigenous peoples. Teck’s experience is that the needs and interests of each Indigenous community regarding training and employment vary considerably and so joint development of an agreed approach to advance shared training and employment objectives through a negotiated agreement allows for development of an appropriate approach with each Indigenous community.

Indigenous Hiring, Training and Retention Reflected in Teck Agreements

Commitments to support hiring, training and retention opportunities for Indigenous peoples are a consistent feature in Teck’s agreements with Indigenous communities. While the legal commitments contained in these agreements are confidential and vary in terms of specificity, the agreements commonly prescribe an ongoing, formalized relationship between Teck and Indigenous communities to explore opportunities to maximize Indigenous hiring and training. Specifically, features of Teck’s agreements include:

• creation of committees with representatives of Teck and Indigenous peoples to focus on increasing training and employment

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• development of Strategic Plans to achieve the goals with respect to hiring and training identified by the parties, including information sharing between Teck and Indigenous communities

• joint establishment of objectives and targets for hiring of Indigenous peoples

• preferential treatment of Indigenous peoples in training and hiring processes and decisions

• identification of specific steps such as cross-cultural training or other actions to support retention and a diverse workplace which is inclusive of Indigenous peoples

c) Teck’s Indigenous Peoples Policy (see Appendix 5.9-1) has been effective in terms of raising awareness within Teck and acknowledging the importance of creating lasting benefits for indigenous communities. The awareness starts with Teck’s senior management team, and expectations are communicated throughout Teck’s operations. The Indigenous Peoples Policy is further reflected in actions and decision making at all levels of the organization. This includes, for example, dedicating financial and human resources, and planning and developing mechanisms or processes to support implementation. In many ways, the Policy is standardizing Teck’s commitments to working effectively with Indigenous peoples and to accommodating Indigenous culture at its operations. A tangible example of practices that help to retain Indigenous people in the workforce exists at Teck’s Red Dog Operation in Alaska where there is a dedicated room set up for cultural practices, and a room to cook traditional foods. In addition, this operation offers additional bereavement leave (see the response to JRP IR 5.13[e]) given the high percentage of indigenous employees and that it is a FIFO operation. Providing this flexibility for bereavement is very important for the retention of Indigenous peoples, and these examples highlight how Teck is working to accommodate these cultural needs at Teck’s operations.

Teck’s Indigenous Peoples Policy has helped guide the negotiation of Impact Benefit or Participation Agreements and their content. For example, these agreements typically include commitments to recruit, retain and train Indigenous people in Teck’s workforce. Although the scope of these agreements varies, the number of active agreements between Teck and Indigenous peoples increased from 34 in 2015 to 54 in 2016. Project related agreements with Fort Chipewyan Métis, FMFN and Fort McKay Métis were among those signed in 2016. These agreements typically put people, resources and joint processes with Indigenous communities in place at Teck’s operations to address community-identified interests and prioritize specific challenges and solutions regarding recruitment, retention and training. For instance, as a result of commitments Teck made in its agreements with Indigenous peoples, Teck took a targeted approach to employment at its Highland Valley Copper Operations that resulted in 57% of all entry-level jobs in 2016 being awarded to local Indigenous peoples.

Early measures of effectiveness include the establishment of joint processes related to training, recruitment and retention. These processes have been established under most

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agreements with Indigenous communities. Providing an avenue for ongoing communication where issues can be identified and solutions discussed has proven to be effective, and some initiatives resulting from these joint processes have had a rapid and positive effect. For example, in one business unit, changes in resume-screening protocols immediately resolved a situation where resumes of Indigenous candidates were initially screened out because they showed a history of intermittent or seasonal employment rather than the preferred continuous history. This quickly removed the barrier of qualified Indigenous candidates making it to the next stage of the recruitment process. While the number of candidates this affected was low, for the individuals involved and the community itself, this was a substantive improvement. It also provides the basis for improving effectiveness of future recruitment initiatives.

The communication that occurs through the joint committees has also highlighted unexpected issues. For example, community members have indicated less interest in working at Teck’s operations because of the relative distance of the operations to the potentially affected communities. Instead, these community members expressed a preference for working in businesses close to their homes that would provide goods or services to the operations. This knowledge has helped Teck confirm that programs support a community’s self-defined goals. Teck has also developed other programs in response to issues raised through these types of communication processes. These include, for example:

• forming continuous employment training committees at Teck locations

• offering courses in health and safety, leadership training and providing additional support for off-site continuing education

• developing partnerships with technical training institutions to provide pre-employment readiness training; this strategy has proven to be effective in preparing new hires for the work life experience at Teck’s Red Dog Operation

In implementing the Indigenous Peoples Policy across its operations, Teck has delivered appropriate cultural awareness training for key exploration, operations and management staff. At its Highland Valley Copper Operation, 300 employees have completed cultural awareness training.

The Red Dog Operation, where targeted programs for the recruitment, retention and training of Indigenous peoples have been in place for over 25 years, the effectiveness of these programs is unequivocal. In 2016, with approximately 638 Indigenous people (more than 53% of the workforce) were working at the mine, earning US$37.55 million in wages.

The introduction and implementation of policies such as the Indigenous Peoples Policy, as well as others such as Teck’s Expectations for Suppliers and Contractors, has driven relatively rapid change at Teck. Teck’s Indigenous Peoples Policy was developed in parallel with evolving practices at operations aimed at increasing the benefits of resource development shared with Indigenous communities. It is important to recognize that the

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implementation of many policies is relatively recent and their full effectiveness is yet to be confirmed with direct measures.

For Indigenous communities that have little or no previous history or exposure to the resource economy, efforts to establish the necessary education and training might take some time. It is Teck’s experience that these practices and programs must be supported before their effectiveness can be directly measured (i.e., an increase in the number of Indigenous people working at the operation). In the meantime, introducing such programs provides an indirect measure of the effectiveness of such policies. In the oil sands region, there is extensive experience and knowledge among Indigenous communities on effective employment and training plans and programs. For instance, some Indigenous communities located in the oil sands region have developed their groups of companies to be of the largest indigenous-owned companies in Canada. These businesses have also worked to support their community members in being valued employees. Teck hopes to continue to learn from these companies as Teck advances their employment and training initiatives in the region.

d) This response focuses on information collected through Teck’s North American operations. Through consultation and engagement regarding the Project, Indigenous communities have shared their policies, processes and practices related to employment for their membership and procurement opportunities for their businesses. Teck will use what it has learned to date from local Indigenous communities to overcome the challenges specific to oil sands operations. The procurement and employment-related content of negotiated agreements with Indigenous communities reflects the concerns and interests of Indigenous communities as well as best practices for oil sands operations.

Teck has learned through its experience is that community-specific strategies and plans are needed to manage hiring, retention, training, education and advancement of Indigenous peoples and labour and business procurement. A critical element is to work closely with potentially affected Indigenous communities on an ongoing basis. Frequent and transparent communication is key.

A major North American trend is for the resource industry to work towards increasing participation of Indigenous peoples in the resource economy through procurement as well as employment. Two key factors driving this have been (i) societal recognition of the need to achieve equitable participation for Indigenous communities, and (ii) the recognition that Indigenous people represent a critical talent source for the mining sector (MiHR 2016). Success stories exist across Canada, and particularly in the oil sands sector, of substantive, successful Indigenous businesses providing competitive and high quality goods, services and trained employees to the resource industry.

The information that follows is a compilation of the reported hurdles, trends and lessons learned that Teck has gathered based on experience from its North American operations and projects. Teck has not included the Fort Hills project in the information provided

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below as Suncor is the operator and is responsible for all recruitment and employment associated with the operation.

Hiring, Retention and Advancement

• For Indigenous communities with little or no previous experience of large resource projects, there are sometimes gaps in understanding mining projects, the employment opportunities and other benefits they can provide, and how to access these opportunities. Similarly, there can be gaps in understanding among project staff about the Indigenous community context including the location, size and circumstances of Indigenous communities in the project region; traditional territory the project is located in; and, the project’s effect on Indigenous rights and interests. Overcoming these gaps requires that resource companies:

− undertake measures to engage local Indigenous communities early in project development on a broad level and in detail on specific topics such as project employment, procurement opportunities and their timing

− make a commitment, especially at the senior management level, to achieve increased Indigenous cultural awareness

− communicate and provide training to employees about company commitments to diversity and to working with Indigenous peoples; such efforts are critical to reducing the potential for cultural barriers

• There can be hurdles for Indigenous communities regarding the recruitment process used by resource development projects because of their accessibility or rule-bound nature and because of the lack of communication between community members and community-based organizations and project recruitment staff. Community-appropriate approaches should be developed to share timely information about potential employment opportunities (e.g., nature and timing of those opportunities) with local Indigenous communities.

• Some recruitment practices can be culturally insensitive or intimidating, including interviews being conducted by staff that are unaware of cultural norms for Indigenous candidates. This can be prevented through modified hiring processes that consider cultural sensitivities and culture awareness training targeted at recruitment staff.

• Indigenous members might have work experience that consists predominantly of seasonal work rather than full-time employment. This gives an impression of high job turnover to recruitment staff. Recruitment processes must incorporate these cultural considerations, particularly through the candidate-screening process.

• There can be a lack of suitable transportation between the community and the operation. Providing transportation of workers to and from the mine site can help mitigate this barrier to employment.

• There can be an inability or unwillingness by Indigenous members to relocate their family to a community near the operation. They might lack the funds necessary to move and become established in another community, or they might

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be reluctant to move from their home community because of strong family and social ties and commitments. Providing appropriate transportation (i.e., FIFO) and accommodation of workers while on the job might enable members to work at the operation and reside in their preferred community.

• Indigenous members might have a strong desire to engage in traditional pursuits at certain times of the year, especially in the spring and fall; this can contribute to absenteeism and employee turnover. Having flexibility in vacation schedules and work rotations can be important to accommodate traditional activities.

• The work environment at operations can be culturally insensitive and have policies and procedures in place that are not culturally relevant. It can be difficult to retain Indigenous employees for this reason. Operations should offer a range of activities that encourage retention of Indigenous employees (e.g., orientation, counselling services, shift schedule accommodations, ceremonies). It is equally important to provide cultural awareness training to non-Indigenous employees to confirm understanding and acceptance of Indigenous culture.

• There is sometimes a cultural preference for Indigenous employees to avoid stress or conflict with fellow workers, which can be a barrier to advancement. Efforts must be made to support advancement of Indigenous employees through management and other senior-level positions.

Training and Education

• The proportion of Indigenous peoples without a certificate, diploma or degree is higher than for non-Indigenous populations (MiHR 2016). This means that most Indigenous candidates are recruited into lower-skilled jobs because of lack of training or education in skilled trades or occupations. This imbalance also points to potential limitations for Indigenous peoples looking to expand their career prospects within the mining industry (MiHR 2016). Access to ongoing education and training is important to overcome this barrier, as well as human resource practices that support promotion.

• Individuals might not be able to undertake training if there is insufficient income to support their family during training. Further, individuals might also lack an acceptable credit record to access a loan to pay for training or to support family during training. Access to direct financial support might be necessary to overcome this barrier, and government, Indigenous communities and industry might need to confirm accessibility. On-the-job training can frequently overcome this barrier.

• Individuals might need one-on-one assistance to navigate the application processes for training or to confirm awareness of the availability of training.

• Training that occurs in or close to the home community of an Indigenous trainee might have advantages over training in regional or provincial centres.

• Difficulties can arise when there is a gap between the completion of training initiatives and the Project requiring those positions for construction or operations.

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Careful consideration of Project requirements and the timing of training initiatives is important.

• Youth face specific challenges in the absence of grade 12 or GED-level education. High school completion rates are lower among Indigenous youth than their non-Indigenous counterparts (MiHR 2016). In the absence of that education, successful candidates will need related experience, which youth typically lack. Consequently, it is important that government, communities and industry encourage youth to stay in school.

• There are requirements for driver’s licenses for many entry-level positions. Especially for remote Indigenous communities, residents might never have obtained a driver’s license as it is not a priority in their lives, there is no access to license-testing facilities, they cannot afford a vehicle or it has limited use in their community. Access to, or the provision of, driver training and testing might be critical.

• Lack of financial literacy and life skills, as well as access to banking services within a community, might complicate a transition into the wage economy. Access to related programs might be important depending on the community and the individual.

• There is a long history of effective training for Indigenous peoples in the oil sands industry, and Teck intends to build on those successes. During Impact Benefit or Participation Agreement negotiations for the Project, Indigenous communities have indicated clear requirements regarding training.

• It is important to have people and process in place in an Indigenous community and within Teck to confirm timely planning and communication regarding short- term and long-term employment opportunities, related educational qualifications and upcoming training programs.

Procurement

• Ensuring Indigenous businesses are successful at being awarded contracts and executing those contracts takes dedicated effort as well as deliberate, intensive and honest communication. It is important to have relationships, people and processes in place to support this.

• Success tends to build upon success as Indigenous business experience and capacity grows. Cost-competitiveness tends to increase with the scale of an Indigenous business. Quality or performance tends to increase where feedback mechanisms exist.

• Business capacity within an Indigenous community is not static, so a proponent has to clearly understand a community’s short-term and long-term direction and ambitions for business development to align opportunities.

• There sometimes can be a gap between an Indigenous business’s view of their capacity and a proponent’s viewpoint on their ability to deliver. Honest discussion about any perceived gap is critical and identifying ways to close the gap is important to success for both parties.

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• In situations where there are multiple Indigenous businesses competing for work, proponents can receive criticism for awarding work to one Indigenous business over another. Transparency and balance is necessary in the long term.

• For existing operations, a culture change internally might be necessary as procurement is very rule-bound, and it can take a long time to change processes to provide opportunities for Indigenous businesses unless there is a deliberate focus. Internal targets for Indigenous spending can have a positive effect if well managed.

• For existing operations, a deliberate change management process might be necessary to encourage procurement personnel to move from a business or supplier they have been working with for a long time to a new Indigenous business or supplier. It is important to confirm there is internal education about Teck’s obligations and interests in growing and supporting procurement with Indigenous companies.

• For Indigenous communities with limited business capacity or experience in the resource sector, there can be a tendency to establish joint venture arrangements with already established businesses. However, joint ventures might fail to deliver expected benefits to Indigenous communities. Failure of these joint ventures can have a negative effect on relationships with a proponent. Direct communication with an Indigenous community about the expected benefits (where reasonable) and the performance of the joint venture at executing a contract is important for success and maintaining the relationship.

• Teck’s internal procurement practices tend to focus on bids with competitive budgets, this would potentially eliminate smaller, local Indigenous-owned companies from successfully bidding against large, well established companies. Providing prompt and direct feedback to Indigenous businesses when they are not successful in the bidding process can offer greater clarity and understanding on what success might look like for future contract opportunities.

• In the lead up to construction, bid packages are frequently on very large packages of work. Extra effort must be placed to confirm that there are opportunities for small Indigenous businesses, either through offering smaller packages of work attainable for smaller companies or through the prime contractor’s requirements to include opportunities to local Indigenous businesses.

• At some new operations, the contracting experience of Indigenous-owned business is limited to other industries such as forestry, and there is relatively limited understanding of the mining contract opportunities.

• Required qualifications (e.g., safety certification, qualifications for personnel) can sometimes make it difficult or expensive for Indigenous-owned businesses to successfully obtain the contracts.

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Reference:

MiHR (Mining Industry Human Resources Council). 2016. Canadian Mining Labour Market Outlook: 2016. Kanata, Ontario. 47 pp.

5.10 In the updated socio-economic assessment, Teck provides a brief and general discussion of the potential barriers to the employment of Indigenous peoples including a lack of education, employment skills, and training.

a) Identify all plans, programs and policies Teck has to maximize recruitment, retention, advancement and career development training among Indigenous peoples in relation to the Frontier Mine. Discuss how these plans, programs and policies have been shaped to address community-specific constraints and barriers to employment;

b) Identify whether high school graduation will be considered a minimum requirement for all jobs at the mine site and whether Teck will consider work experience in lieu of a high school graduation for Indigenous peoples from the primarily affected communities;

c) Identify any commitments to specific programs or other considerations to maximize the local and regional procurement opportunities for Indigenous peoples; and

d) Identify any limitations the Proponent anticipates regarding providing opportunities to local and regional Indigenous peoples or businesses.

Response:

a) A number of codes, policies and programs guide the development and implementation of Teck’s strategies, plans and initiatives throughout Teck’s operations. Collectively, these codes, policies and programs are in place to maximize retention, advancement and career development training for Indigenous peoples at Teck’s existing operations. Moreover, they will be used to inform the development and implementation of specific plans, programs and policies for the Project recognizing that they will continue to evolve and be improved.

For the Project, Teck will look to Participation Agreements with local Indigenous communities to address community-specific constraints and barriers for employment of

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community members. These Agreements will shape any Project-specific strategies, plans and initiatives on recruitment, retention, advancement and career development.

As requested, Teck has identified relevant plans, programs and policies below (full descriptions of Teck’s codes, strategies and policies, where public, are available at www.teck.com).

Codes of Ethics and Conduct:

 Code of Ethics: Outlines Teck’s dedication to upholding high moral and ethical standards, specifying basic business conduct and behavior, including Human Rights.

 Code of Sustainable Conduct: Ensures that no discriminatory conduct is permitted in the workplace. Decisions on job selection, advancements and promotions will be unbiased, based on merit and ability and in keeping with commitments to local communities.

Policies:

 Health and Safety Policy: Outlines how Teck is responsible for providing a safe workplace, effectively managing workplace risk and are committed to providing leadership and resources for managing health and safety.

 Human Rights Policy: States how Teck is committed to respecting and observing all human rights, as articulated in the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights and the International Labour Organization Core Conventions.

 Global Harassment Policy: Outlines discrimination, harassment and sexual harassment and how Teck is committed to provide a working environment where employees are treated with dignity and respect. It also outlines procedures.

 Violence, Bullying and Harassment in the Workplace Policy: This policy supplements Teck’s Global Harassment Policy and defines violence, bullying and harassment in the workplace and related procedures and responsibilities.

 Inclusion and Diversity Policy: This is Teck’s commitment to supporting an inclusive and diverse workplace that recognizes and values differences.

 Indigenous Peoples Policy: Teck’s commitment to respect the rights, cultures, interests and aspirations of Indigenous peoples.

 Expectations for Suppliers and Contractors: This outlines Teck’s expectations on how suppliers of goods and contractors performing services for or on behalf of Teck should understand and support Teck’s engagement with Indigenous communities, as outlined in Teck’s Indigenous Peoples Policy.

 Anti-Corruption and Compliance Policy: This outlines Teck’s expectations of its employees to be familiar with anti-corruption laws in various jurisdictions across

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the company and to strictly adhere to all laws applicable to its business activities (see the response to JRP IR 5.10, Appendix 5.10).

Strategies and Plans:

 Sustainability Strategy: Diversity in the workforce is part of Teck’s commitments within Teck’s Sustainability Strategy.

 Global People Strategy: This is implemented by Teck’s human resources and management teams at each operation and by the corporate human resources department.

 Senior Executive Diversity Committee: In 2015, Teck launched this committee to focus on inclusion and diversity, which led to the development of the Inclusion and Diversity Policy which has been endorsed by Teck’s Board of Directors and Senior Management team. This policy was launched across the company in November 2016.

 Global Inclusion and Diversity Plan: This draft plan is not currently publicly available. Some of the key focus areas in this plan include:

 develop Teck’s people – to grow a culture of inclusion that values diversity  measure and report – to track and report progress

 attract the right people – strengthen recruitment practices

 foster a more inclusive culture and increase employee engagement – through effective family care and flexible work programs

 remove systemic barriers and biases – make processes and policies more inclusive

 Diversity Committees at Operations: Diversity committees have been established, or are in the process of being established across Teck operations. These committees are being established at the discretion of the site’s leadership.

 Local Hire and Procurement Plans: These plans are developed at various operations across Teck and are utilized to focus Teck’s hiring (and contracting) practices to be adapted and relevant to the region in which they are operating.

Company-Wide Programs and Initiatives:

 Competitive employee remuneration: Teck makes sure that they offer competitive economic benefits as well as opportunities for skills and experience development through work and training opportunities.

 Building Strength with People: This is Teck’s employee performance and development program that formally engages employees and supervisors in regular meaningful conversations about performance, development and career to drive individual growth and business success.

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 Leadership development and succession planning: This is focused on three leadership programs: Leading for the Future, Leading for Excellence and Emerging Leaders. These leadership programs engage supervisors, team leaders, managers and prospective senior management to prepare a new generation of leaders to replace current leaders in the future.

 Cultural awareness training: Community-specific Indigenous awareness is provided to employees across most operations and is often developed in collaboration with local Indigenous communities.

 Respectful workplace training: This is provided to employees across the company.

 Unconscious bias training: Senior management and some Human Resources personnel have been trained in unconscious bias, which is defined as social stereotypes about certain groups of people that individuals form outside their own conscious awareness. The goal of this training is to raise awareness for unconscious biases, foster a more inclusive workplace and provide employees with strategies to make more objective decisions.

 Locally coordinated career fairs: Teck hosts career fairs in communities near their Projects and Operations to identify needs for pre-employment training, to provide notifications to community members on current and future employment opportunities, and to network with prospective employees.

 Long-term Impact Agreements: Teck has 54 formal active agreements in place with Indigenous groups around the world, in the areas in which Teck operates. These agreements create a framework for greater cooperation and clarity on topics such as consultation and engagement, the environment and land stewardship and employment and business opportunities.

 Initiatives at Operations:

 Teck has experience with initiatives that maximize recruitment, retention, advancement and career development training of Indigenous peoples at Teck’s operations. The following are examples, of the experience that Teck will draw upon for the Project.

 Teck’s Red Dog Operations was developed under an innovative operating agreement between the landowner NANA Regional Corporation, a Regional Alaska Native corporation and Teck. Over $5 billion in benefits have been realized by the region in the form of payments such as wages, taxes, royalties and community investments since the operation began. More than 715 jobs are directly supported by Red Dog, making the mine the largest source of non-government jobs in the entire region.

 Teck’s Red Dog Operations has developed a bereavement policy that accomodates the needs of the predominantly indigenous worksforce (see the response to JRP IR 5.13).

 Developing skilled tradespeople: Teck recruits skilled tradespeople at the five steelmaking coal mines in southeast British Columbia through Teck’s

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participation in the College of the Rockies Mining Apprenticeship Program. Teck also has an internal apprenticeship program whereby they identify current employees who are looking to move into a tradesperson role and help facilitate that transition.

 Teck engaged Liard First Nation in the permanent closure of the former Sä Dena Hes mine, which lies within Liard First Nation’s traditional territory in the Yukon. This led to signing of a socio-economic participation agreement between Teck and the Liard First Nation. This agreement resulted in a local Indigenous hiring requirement for the major general contractor responsible for much of the reclamation work on the site. With Teck’s support, the Liard First Nation also conducted a qualified personnel search, which included collecting résumés and advising the community about opportunities. To further promote local involvement, Teck hired environmental monitors and first-aid attendants from the Liard First Nation and funded traditional knowledge studies. Throughout the closure work, 60% of all Teck- contracted hours worked at site were completed by Indigenous personnel.

 External Initiatives:  Teck is involved with a number of external commitments and initiatives that influence the approach to Indigenous training and employment that are relevant to the Project, such as:

 Teck is guided by United Nations Declaration on the Rights of Indigenous Peoples, International Labour Organization Convention No.169 on Indigenous and Tribal Peoples, and the International Council on Mining and Metals Position Statement in Indigenous Peoples and Mining.

 Reconciliation Canada: Teck is a partner with Reconciliation Canada, engaging Canadians in dialogue around the relationships among Indigenous peoples and all Canadians.

 Capital for Aboriginal Prosperity and Entrepreneurship (CAPE) Fund: Teck is a founding investor in CAPE Fund, a $50 million investment fund created to support Indigenous entrepreneurs or communities to pursue economic opportunities.

 Indspire Awards: Teck sponsors the Teck Canadian Aboriginal Bursary in partnership with Indspire, helping Indigenous youth achieve their potential.

 Minerva – Combining Our Strength Initiative: Teck has been a supporter of Minerva’s program to create partnerships between Indigenous and non-Indigenous women.

 Champions Table: Teck is a founding member of the Champions Table, a formal ongoing opportunity to foster dialogue between Indigenous and business leaders in British Columbia.

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 UN Women: Teck provided $1 million to support a UN Women initiative to create opportunities for skills development of Indigenous women in northern Chile.

 Mining Industry Human Resources (MiHR) Council: Teck is a member of MiHR and also draws upon their best practices and standards to inform human resources practices.

How Teck’s codes, policies, strategies, plans and programs/initiatives are shaped to address community-specific constraints and barriers to employment:

Teck has been mining for over 100 years and the plans, policies and programs in place today have been adopted and evolved in a period of tremendous societal change, nationally and internationally. Human resources practices have also evolved in recent decades. Foundationally, many of Teck’s policies have been introduced in direct recognition of constraints and barriers for Indigenous peoples (e.g., Human Rights Policy, Indigenous Peoples Policy, Inclusion and Diversity Policy, Teck’s Expectations for Suppliers and Contractors), all of them are relevant to addressing barriers (e.g., Violence, Bullying and Harassment in the Workplace), and collectively they address the need to achieve diversity in Teck’s workforce reflective of the diversity of communities where they operate and live. Codes and policies provide overall structure and requirements but operations are able to confirm that specific circumstances locally are addressed. Programs and plans developed for operations are heavily influenced by local challenges and circumstances.

b) Teck’s recruitment requirements for direct employment require candidates to have either a high school diploma, completion of the general educational development test, or equivalent level of training or experience. However, for Indigenous peoples Teck will consider work experience in lieu of a high school diploma.

For indirect employment, suppliers and contractors might establish their own criteria which might differ from that of Teck’s. However, under Teck’s Expectations for Suppliers and Contractors (see response to JRP IR 5.9, Appendix 5.9-5), suppliers and contractors are expected to have processes and practices in place that will remove potential barriers to employing Indigenous peoples.

c) Teck recognizes the importance of providing substantive local and regional procurement opportunities for Indigenous peoples throughout the Project life and has demonstrated its commitment through the approximately $22 million spent with local Indigenous businesses (see Volume 1, Section 16.7.3.5 of the Project Update). It is important to note the extensive experience and business capacity that exists in the region to provide goods and services for the Project. For example, the Fort McKay First Nation’s group of companies has 30 years of supporting the oil sands industry and recently generated $2.36 billion in revenue over a five-year period (Financial Post 2016). Further, the Athabasca Chipewyan First Nation business group includes 17 different companies with

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over 3,000 employees, and offers services for the planning, construction, maintenance and reclamation of Alberta’s oil sands (Business Elite Canada 2016).

Teck’s preferred approach to developing local and regional procurement opportunities is to negotiate long-term benefits and participation agreements with Indigenous communities. These typically include commitments to procurement processes, information sharing, annual and long-term planning, opportunity identification, support for the development of new or improved Indigenous businesses, and shared objective and target setting. The approaches jointly developed with Indigenous communities include:

 Develop joint working groups or committees to support ongoing information sharing and planning, establish a shared understanding of barriers to success and opportunities, and ensure Indigenous communities have clear contacts within Teck to support their procurement objectives.

 Ensure any engineering, procurement and construction management contractors have clear plans in place to pursue and award contracting opportunities with local and regional Indigenous businesses.

 Identify ways to create contracting opportunities which are of appropriate size and scope for all Indigenous businesses.

 Include Indigenous participation and local content as one of the criteria used when evaluating bids.

 Provide forecasts of expected contracting opportunities and present them to the communities to gauge their interest and capabilities.

 Ensure Indigenous businesses understand contracting requirements, and provide feedback and support to improve future bidding or contracting performance, including where Indigenous businesses are unsuccessful so they can learn and position themselves better for other opportunities.

Developing specific commitments through negotiated agreements provides Teck and the Indigenous community an opportunity to develop programs that are tailored to business and community priorities, and allows the parties to jointly adapt and grow their efforts during the life of the Project. The existing procurement capacity of each community varies, with some Indigenous communities having long histories of procurement and the ability to undertake substantial scopes of work (hundreds-of-millions of dollars a year) whereas others focus on smaller individually owned community businesses, or incubating new business.

Teck’s has a broad understanding of available contractors and services through its membership in the Northern Alberta Aboriginal Business Association.

d) Extensive experience and business capacity exists within local and regional Indigenous communities, and thus there are few limitations to Teck providing procurement opportunities.

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Limitations may exist when very specialized items or services are available only from specialized manufacturers or service providers. Teck also has global purchasing agreements for some specialized items across its mine sites which could limit local procurement opportunities.

Generally, Teck considers the availability of supply and local resources to be more of a limitation than the company’s ability to provide local procurement opportunities. For example, qualified Indigenous services and businesses may not be able to meet industry- wide demand nor have the capacity to provide goods or services during busy periods, depending on the timing of Project requirements. However, local businesses have partnered with firms outside the region to increase their capacity to undertake available work. Teck assumes that this trend will continue.

References:

Business Elite Canada. 2016. Showcasing the Business Talent of the Athabasca Chipewyan First Nation. Accessed May 3, 2017 at: http:// www.businesselitecanada.com/canada-construction-industry/acden- environment.

Financial Post. 2016. Fort McKay Chief Jim Boucher Explores Building the First Aboriginal Oilsands Project: ‘Timing is Right’. Accessed May 3, 2017 at: http:// business.financialpost.com/news/energy/fort-mckay-chief-jim-boucher-explores- building-the-first-aboriginal-oilsands-project-timing-is-right.

5.11. In response to Round 5 Supplemental Information Requests, Question 43a, Teck provides an analysis of labour market readiness for Indigenous peoples. Teck relies on the 2011 National Household Survey, which was voluntary for Métis people and had a very low response rate for those Métis people living outside of Métis Settlements. Thus, the baseline data used in this response may not be representative of the Métis population in the Regional Municipality of Wood Buffalo.

Teck has also committed to conduct a labour-market readiness assessment for Fort Chipewyan. Other Indigenous groups, such as the McMurray Métis and Métis Nation of Alberta (Region 1) have expressed a desire to have a similar assessment conducted for their communities.

a) Identify when the Fort Chipewyan workforce evaluation is expected to be completed, and provide a scope of work and proposed methodology; and,

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b) Identify any other communities or Indigenous groups for which Teck plans to conduct a workforce evaluation and provide the proposed timing of the evaluations.

Response:

a) A workforce evaluation has not been initiated for Fort Chipewyan, nor does a scope of work or proposed methodology exist. The idea of a study was raised by Teck, and early discussions about a collaborative approach took place with Athabasca Chipewyan First Nation, Fort Chipewyan Métis and Mikisew Cree First Nation in 2010 and 2011. However, no agreement was made on a plan and the initiative has not been pursued as it is not a clear priority for the communities.

Teck considers that the primary need for a workforce evaluation is to identify gaps and prioritize necessary training and employment plans and programs. However, workforce evaluations are not the sole option and Indigenous communities can use other methods of their own choosing. Teck considers that any commitments to supporting processes identified and required by Indigenous communities to target and prioritise training and employment initiatives belong within Participation Agreements. Among Métis groups, Teck has signed such agreements with the Fort Chipewyan Métis and the Fort McKay Métis Community, and negotiations actively continue with other Indigenous groups.

b) Teck has no plans to conduct workforce evaluations for any other communities or Indigenous communities.

5.12. ACFN and MCFN have expressed concern that women may face potential barriers to employment in the mining industry. Potential issues include insufficient training and mentorship, pay inequity, lack of access to certain positions, physical and sexual harassment, poor work/life balance, and other factors. A lack of access to child care support was identified as a constraining factor for women entering any mining workforce, especially one that involves long-distance fly-in/fly-out commuting.

a) Provide any publically available information on the number of women employed in the oil sands mining sector.

b) Identify any issues Teck is aware of that women currently and formerly employed at mines have raised regarding their employment, and discuss whether in Teck’s opinion these issues represent potential barriers to employment for women.

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c) Discuss the current availability of child care in Fort Chipewyan and the Regional Municipality of Wood Buffalo, including the total number of spaces and vacancy rates, by community, where possible.

d) Identify all plans, policies or programs Teck has in place or will develop for the Project to reduce potential barriers to employment for women.

Response:

a) Estimating the Oil Sands Workforce

Defining and estimating the workforce active in the oil sands sector is challenging because of several factors, including:

 a lack of common definitions of what constitutes oil-sands-related jobs (e.g., on- site, head office, construction-related, supplier-related positions)

 movement of construction and maintenance-related workers between projects; for example, a worker might work for part of the year on oil sands projects and then shift to other industrial, institutional, commercial or residential projects

 commuting workers, who are employed in oil sands positions, but who report their workforce status and earnings in other jurisdictions

Enform, through its Petroleum Labour Market Council, has started providing estimates specific to the oil sands sector. According to their latest study, 28,900 people (nationally) directly worked in construction, operations and maintenance of oil sands in 2016. Of that number, approximately 14,900 (51%) worked in oil sands mining; 9,200 (32%) in in-situ production; and 4,900 (17%) in upgrading (Enform 2017).

Involvement of Women

The same challenges that apply to overall labour market information on the oil sands sector also make it difficult to obtain data specifically relating to the involvement of women in this sector, and particularly oil sands mining. For context, Teck has provided the following information and related statistics:

 According to the Enform study, Statistics Canada’s 2011 National Household Survey indicates that women comprise 21% of oil and gas employment; this is greater than the proportion of women in mining, forestry and logging, but less than electricity (Enform 2014).

 The RMWB (2012) census, which included a specific count of the camp-based workforce in the region, estimated that 17% of camp resident workers were women. Based on the total count of 39,270 camp-based workers, this would imply that the 6,675 women in camp-based jobs in 2012 were employed in oil- sands-related positions (RMWB 2012).

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 The 2007 mobile worker study, completed on behalf of the Regional Issues Working Group (now the Oil Sands Community Alliance) and other interested stakeholders estimated that women comprised roughly 8% of the 24,300 mobile workers in the RSA to construct oil sands facilities (RIWG 2007).

 The Canadian Centre of Training Excellence in Mining reports that female participation represents 16% of the British Columbia mining workforce, compared to the broader female rate of 61% across all sectors in the province (CTEM 2017).

Involvement of women in the energy sector also varies by sub-sector. For example, participation of women is higher in exploration and production (28% of all jobs), as well as the pipeline sub-sector (31%), because of a higher proportion of office-based jobs. Oil and gas services see a lower proportion of female involvement (15%), influenced by the long shifts, field travel and challenging conditions (Enform 2015).

Using the Enform (2017) employment estimate (14,900 workers in oil sands mining in 2016), and drawing on the more recent estimates of female participation ranging from 17% in the RMWB survey to 28% as identified in the Enform study, the number of women directly involved in oil sands mining is estimated to be 2,500 to 4,100, nationally. This estimate includes women working at remote sites as well as those in head-office positions.

Barriers to Participation

Although widely-accepted estimates of the number of women employed in oil sands mining are not available, it is generally understood that women are under-represented in this sector. Enform (2014) identified several barriers, including:

 the nature of field-based work in the oil and gas sector, which can include safety and security concerns, particularly in remote areas

 potentially unwelcoming work site culture, including gender stereotypes regarding abilities

 lack of mentors and supports

 inflexible work arrangements and associated challenges balancing family responsibilities

Field-based work is characterized by extensive travel to work locations, long days and challenging working conditions. This, combined with the factors listed above, explains why participation by women is low (Enform 2014).

Increasing Mobility

Despite the barriers, women living in other parts of the country are finding ways to increase their participation in Alberta’s economy, including the energy sector, either through temporary relocation to the province or rotational shift arrangements.

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A 2013 study from Statistics Canada found that the percentage of interprovincial workers in Alberta who were women increased from 30% in 2004 to 35% in 2009. The participation of women in sectors related to the oil sands also increased over this time, including construction (from 3% to 6% of interprovincial workers); professional, technical and scientific services (4.1% to 4.7%); and remediation services (5% to 6%) (Statistics Canada 2013).

b) Issues Teck is aware of that women currently and formerly employed at mines have raised regarding their employment are summarized in Table 5.12b-1. Teck’s understanding has been informed by internal surveys, exit surveys and substantive external studies (MiHR 2016). In Teck’s opinion, these issues do represent potential barriers to employment for women. Teck has been actively addressing the concerns regarding barriers to employment for women in the mining industry through implementation of policies and practices that support gender diversity and will apply these lessons-learned as they build their workforce for the Project.

Teck is persistently working to eliminate the barriers for women within the organization and for those who are interested in pursuing a career at Teck. Teck has adopted a number of policies and practices related to improving gender diversity throughout the organization, as outlined in the response to part (d).

Table 5.12b-1: Issue or Barrier to Female Employment and Teck’s Approach to Addressing the Issue

Issue and/or barriers to employment identified Teck’s approach to addressing the issue: for women: Low representation of women in the mining Measures introduced to date include launching a industry: Overall, women are underrepresented company-wide Inclusion and Diversity Policy, in the mining industry compared to the total diversity-focused recruitment practices, and programs workforce (17% vs. 48%), highlighting industry- and training that support the advancement and specific barriers in their engagement (pg. 5-6). development of under-represented groups, including women. Between 2010 and 2016, Teck’s female workforce has increased from 12% to 14%.

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Table 5.12b-1: Issue or Barrier to Female Employment and Teck’s Approach to Addressing the Issue (continued)

Issue and/or barriers to employment identified Teck’s approach to addressing the issue: for women: Limitations to career advancement: Women Measures introduced to date include launching a were more likely to indicate that they had company-wide Inclusion and Diversity Policy, experienced challenges in successfully advancing diversity-focused recruitment practices, and programs within their career, and that the mining industry and training that support the advancement and remained to be an all-boys club that excludes development of under-represented groups, including women from important networking opportunities women. (pg. 30). Teck considers gender diversity when managing talent. For example, Teck have taken steps to continue to strengthen the diversity of talent pipeline through succession and development planning. Also, Teck has reviewed development plans for high- performing and high-potential women and are proactively managing their inclusion in leadership programs (e.g., leading for the future, leading for excellence, emerging leaders program, SFU General Diploma in Business Administration & Executive Masters in Business Administration programs). Between 2010 and 2016, Teck has had a 30%increase in women in trades roles. Gendered workplace culture: Women reported Overcoming outdated perceptions and gender experiencing more difficulty in adapting to a mining stereotypes is something that Teck seeks to take workplace culture than men (pg. 15). Women were leadership on in the industry, including demonstrating more likely than men to report a more inhospitable that women are capable of achieving leadership workplace and witnessing ‘put-downs’, poor team positions across the company. atmosphere, or harassment (pg. 14). Teck has implemented policies and practices that aim to address these issues, as outlined in response to part (d). Key policies to note include the Inclusion and Diversity Policy, Global Harassment Policy, Human Rights Policy and Violence, Bullying and Harassment in the Workplace Policy. Teck has also committed to Respectful Workplace Training, Inflexible work hours: The challenge for women, Teck’s is currently developing a Global Inclusion and who tend to be the primary caregiver in the family, Diversity Plan that considers flexible work programs to integrate a rigid work schedule with demands of for employees. their family (pg. 14-15). Lack of adequate childcare: A lack of available Teck has supported the launch of a child care task and adequate child care options has been force to provide short- and long-term solutions, and identified as a barrier for women near Teck’s five Teck is looking at opportunities to work together with steelmaking coal mines in British Columbia local, provincial and federal governments, child care (Alberta Children’s Services 2017, pers. resource organizations, business, other employers comm.). and the local college. Ill-fitted Personal Protective Equipment (PPE): Teck has addressed this concern and now provides Women expressed that often safety wear available gender-appropriate PPE at all its sites. on-site is ill-fitted and does not accommodate the female workers (T. McCarth 2017, pers.comm.). Lack of maternity compensation: Women Teck has a Canadian Maternity Policy that aligns with expressed concerns about lack of maternity industry standards and certifies that Teck offers a compensation provided by Teck (T. McCarthy competitive program to employees. 2017, pers. comm.).

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c) Most child care spaces in the RSA are located in Fort McMurray, the major population centre in the region. Table 5.12c-1 lists the number and type of licensed child care spaces available in Fort McMurray, as reported by Alberta Children’s Services (Alberta Children’s Services 2017, pers. comm.).

Table 5.12c-1: Licensed Child Care Spaces Fort McMurray

Number of Spaces Enrolment as% of Facility Type1 Capacity Enrolment2 Capacity Daycare centre 530 390 74% Dayhome 220 200 91% After-school care 810 480 59% Preschool 230 40 17% Total 1,790 1,110 62% NOTES: 1 Does not include unlicensed facilities. 2 Enrolment data are as of February 2017. SOURCE: Alberta Children’s Services 2017, pers. comm.

At a system-wide level, there appears to be an adequate number of child care spaces in Fort McMurray, with all types reporting capacity. Wait lists are still reported for some facilities, and facilities report ongoing challenges securing sufficient staff following the 2016 wildfire (Sheppard 2017, pers. comm.). Note that Table 5.12c-1 does not include data for unlicensed23 facilities that might be in operation.

The availability of child care in Fort McMurray has varied over time. In the mid-2000s, during a period of strong economic growth, the government identified child care availability as a concern. As part of a broader $396 million response to social and municipal infrastructure requirements in the region, the Government of Alberta provided $1 million per year for three years to help support access to child care (GOA 2007). Since then, the supply of child care spaces has increased; for example, the number of licensed daycares in Fort McMurray increased from five to eleven (GOA 2006; Alberta Children’s Services 2017, pers. comm.).

Accessing child care in rural communities in the RSA can be a challenge. Possible reasons include lower population density, availability of trained workers, and a preference of parents to use child care facilities in urban centres near their work. According to the Alberta Government (Sheppard 2017, pers. comm.), available child care space in the rural areas currently includes:

23 Licensing is required for care providers offering more than seven child care spaces.

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 A licensed daycare in Anzac run by a not-for-profit society (14 spaces).  An unlicensed daycare at the FMFN reserve (estimated 50 spaces).

 An unlicensed preschool in Janvier run by the CPDFN (approximately 50 spaces).

 An unlicensed daycare at the Gregoire Lake Reserves of the Fort McMurray #468 First Nation (24 spaces).

There are likely other unlicensed facilities that contribute to the total supply of child care in rural communities.

For several years, a daycare was operated by a not-for-profit society in Fort Chipewyan. It ceased operating in 2016; however, the reason is unknown (Sheppard 2017, pers. comm.). A lack of child care access is an issue faced in rural communities elsewhere in Alberta and beyond. A recent survey of child care across the province found that 43% of providers had waiting lists, with an average of 59 children awaiting space (PIA 2016). The Government of Alberta recently announced a new three-year pilot program to create new spaces and limit parent costs for childcare to $25 per day in a select number of daycares, including the one in Anzac (GOA 2017).

d) Teck recognizes the challenges and barriers that have existed, and still exist for women in the mining industry workforce, as outlined in the responses to JRP IR 5.12(a) and (b). Teck believes that diversity is important, both within the company and across all industries. To this end, Teck has implemented programs to increase diversity within its organization and to support training and education opportunities focused on women in areas Teck operates.

Teck is committed to removing barriers and supporting the recruitment, retainment and promotion of women at Teck. By increasing the number of women in skilled trades, Teck has an opportunity to reduce the labour shortage facing the mining industry, help close the gender wage gap, and improve the standard of living for women (Teck 2015).

Teck aims to employ a diverse workforce that represents the communities in which it operates. Although Project-specific plans and programs have not yet been developed, all future plans, programs or initiatives will be required to align with Teck’s company-wide policies. Project-specific plans and programs will be developed during Project execution planning (see Volume 1, Section 12.3.1.3 of the Project Update) should the Project receive regulatory approvals and be sanctioned by Teck’s Board of Directors.

The following information outlines Teck’s existing company-wide policies, plans, and programs that aim to reduce barriers to employment for women. Full codes, strategies and policies, where public, are available at www.teck.com.

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Codes of Ethics and Conduct:

 See the codes outlined in the response to JRP IR 5.10(a).

Corporate Policies:

 See the relevant policies outlined in the response to JRP IR 5.10(a).  The Canadian Maternity Policy: Teck offers competitive maternity benefits to employees, and this policy aligns with industry standards.

Strategies and Plans

 Please refer to the strategies and plans outlined in response to JRP IR 5.10(a).

Programs and Initiatives:

 Teck continues to strengthen the diversity of its talent pipeline through succession and development planning.

 Teck has reviewed development plans for high-performing and high- potential women and is proactively managing their inclusion in corporate leadership programs.

 Company-wide staff learning, development and awareness initiatives:  Teck has respectful workplace training across the organization.

 Senior management and some human resources have been trained in unconscious bias, which is defined as social stereotypes about certain groups of people that individuals form outside their own conscious awareness. The goal of this training is to raise awareness for unconscious biases, foster a more inclusive workplace and provide employees with strategies to make more objective decisions.

 Teck celebrates International Women’s Day annually (since 2014). As part of its annual campaign, Teck celebrates the more than 1,300 female employees who represent a vital component of its workforce. The campaign includes profiling the accomplishments of women at Teck who represent a variety of occupations, sites and offices throughout the organization.

 Teck holds a Women’s Speaker Series in its Vancouver office.

 Teck plans to pilot additional inclusion and diversity related training in the coming year.

 Initiatives at Operations:

 Teck’s work in advancing women in the workforce is not just driven by its corporate office; these efforts have also extended to activities at operations. For example:

 A lack of available child care options has been identified as a barrier for women near Teck’s five steelmaking coal mines in British Columbia. As a

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result, Teck helped launch a child care task force to provide short- and long- term solutions, and Teck is looking at opportunities to work together with local, provincial and federal governments, child care resource organizations, business, other employers and the local college (EVCCAI 2015).

 Teck’s Trail Operations smelter in British Columbia has launched a local partnership called Mining and Refining for Women, a mentorship program that helps support the advancement and retention of female employees at all levels in mining and resource sectors. This program was developed in partnership with the Greater Trail Community Skills Centre and Status of Women Canada. A second cohort of this mentorship program is underway and additional cohorts are being considered.

 Teck’s Trail Operations smelter has also conducted gender intelligence training. Teck is exploring potentially rolling this out at other sites.

 Industry initiatives:

 Teck supports industry initiatives that focus on inclusion and diversity, such as the Gender Equity in Mining Works Initiative. This program is run through the MiHR Council, which aims to expedite institutional change necessary to improve gender equity in the Canadian mining and minerals industry. Teck is currently working with the MiHR Council on Gender Equity in Mining project to select a policy, analyze through a gender lens and remove systemic barriers (MiHR 2017).

 Teck is involved with the Women in Canadian Mining National Action Plan, which sets out a coherent approach that helps to confirm a successful implementation of gender inclusive practices.

 Teck has joined the 30% Club Canada, an organization focused on building a strong foundation of business leaders who are committed to meaningful, sustainable gender balance in business leadership. The goal of the 30% Club is to increase board seats held by women to 30% by 2019 (30 Percent Club Canada 2015).

References:

30 Percent Club Canada. 2015. Canada Members. Available at: https://30percentclub.org/about/chapters/canada. Accessed May 4, 2017.

CTEM (Centre of Training Excellence in Mining). 2017. Diversity-Women. Website, accessed at: http://www.bc-ctem.ca/diversity-%E2%80%93-women. 2017.

Enform. 2014. Hr Trends and Insights: Diversity in Canada’s Oil and Gas Workforce. Petroleum Labour Market Information (PetroLMI) Division. November, 2014.

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Enform. 2015. Participation of Under-Represented Groups In 38 Core Oil And Gas Occupations – Fact Sheet. Petroleum Human Resources Council Division. 2015.

Enform. 2017. Labour Market Outlook 2017 to 2021 Canada’s Oil and Gas Industry. Petroleum Labour Market Information (PetroLMI) Division. March 2017.

EVCCAI (Elk Valley Child Care Advisory Initiative). 2015. Elk Valley Child Care Barriers and Opportunities Survey- Final Report. In partnership with the Elkford Women’s Task Force. September 2015.

GOA (Government of Alberta). 2006. Investing in Our Future. Responding to the Rapid Growth of Oil Sands Development. December 29, 2006.

GOA. 2007. Managing Our Future: Funding for Fort McMurray Helps Meet Urgent Needs Brought On By Oil Sands Growth. Press release Dated February 26, 2007.

GOA. 2017. Early Learning and Child Care Centres. Accessed at: https://www.alberta.ca/early-learning-child-care-centres.aspx.

MiHR. (Mining Industry Human Resources Council). (2016). Strengthening Mining’s Talent Alloy: Exploring Gender Inclusion. Ottawa: Mining Industry Human Resource Council.

MiHR. 2017. Gender Equity in Mining Works. Available at: https://www.mihr.ca/certification-training-standards/training-programs- tools/gender-equity-in-mining-works.

PIA (Public Interest Alberta). 2016. Alberta Child Care Survey 2016. Available at: https://d3n8a8pro7vhmx.cloudfront.net/publicinterestalberta/pages/80/attachmen ts/original/1481601374/2016-Child-Care-Survey-Summary- Final.pdf?1481601374. Accessed May 4, 2017.

RIWG (Regional Issues Working Group). 2007. Report on Mobile Workers in the Wood Buffalo Region of Alberta. December 2007.

RMWB (Regional Municipality of Wood Buffalo). 2012. Municipal Census. 2012.

Statistics Canada. 2013. Inter-provincial Employees in Alberta. Prepared by C. Laporte, Y. Lu, and G. Schellenberg. Analytical Studies Branch Research Paper Series. Ottawa, Ontario Catalog No. 11F0019M – No. 350. September 2013.

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Teck (Teck Resources Limited). 2015. United Nations Sustainable Development Goals. Available at: http://www.teck.com/responsibility/global-citizenship/un- sustainable-development-goals/. Accessed May 4, 2017.

Personal Communication

Alberta Children’s Services. 2017. Early Childhood Development Branch, Quality Assurance and Standards. Information provided by email. May 2, 2017.

Sheppard, N. Children’s Services. Licensing Officer, Children & Family Services, Fort McMurray. Telephone interview, May 2, 2017.

5.13. ACFN and MCFN have expressed concerns regarding the effects of people working away from their home communities and families for extended periods of time. They have also questioned whether the fly-in/fly-out policy proposed by Teck will successfully ensure employment opportunities for residents of Fort Chipewyan.

More information is required to understand the potential effects of the fly-in/fly-out policy.

a) Using existing literature and case studies from the Canadian resource extraction sector, and the oil sands sector where possible, identify and discuss the potential impacts and benefits of a long distance commute or fly-in/fly-out operation to Indigenous employees, especially those from Fort Chipewyan.

b) Identify all plans, policies and programs Teck has in place or is committed to implementing to maximize positive work/life experiences for Indigenous employees at the proposed lodge accommodation system;

c) Discuss the potential for adverse impacts on families and the community of Fort Chipewyan associated with extended Project-related long-distance work rotations.

d) Identify the measures Teck could implement for counselling Indigenous employees and their families experiencing stress at home or work associated with employment for the Project.

e) Identify and discuss Teck’s policy toward communal bereavement leave and how the cultural responsibilities of several employees from the same community

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would be accommodated in the event of a communal or extended family bereavement situation.

Response:

a) To understand potential benefits and impacts associated with long-distance commuting to industrial worksites, including FIFO arrangements in Indigenous communities, information was reviewed and considered from a number of sources, including:

 publicly-available studies and reports (e.g., academia, industry, government)

 SOCs and input from, or on behalf of, Indigenous groups in the region in relation to this and other oil sands projects

 Teck itself, drawing on the company’s corporate experience with resource development projects requiring long-distance or FIFO commuting

Much of the research focuses on the general workforce; some of it is specific to Indigenous participants and communities. A broad approach was taken in identifying the impacts of FIFO arrangements. Specifically, impacts were identified on individuals, families and communities in relation to:

 the extended periods of time away from home (direct impacts)

 other factors that FIFO participants encounter as a result of FIFO arrangements (indirect impacts), including wage employment, income and dominant cultural influences

Research identifies a number of potential impacts for Indigenous FIFO participants, their families and home communities. In most instances the evidence for these impacts is largely anecdotal24. Although not all findings are supported by available research, anecdotal evidence provides valuable perspective of the personal experiences of workers and families25.

24 A Standing Committee of the House of Representatives in Australia was recently tasked with inquiring into and reporting on the use of ‘ FIFO and ‘drive-in, drive-out’ workforce practices in regional Australia. In its 2013 report, the Committee noted that much of the evidence they heard was anecdotal and, Like all aspects of the FIFO workforce debate, little is known about the real impact of FIFO work, on individuals, on families and on source communities (SCRA 2013). 25 For example, a report on Alberta's oil and gas rotational workforce noted that no significant negative differences were identified in children with parents working on rotation compared to normal work arrangements (Enform 2015). Another study on the implications for community sustainability from FIFO arrangements notes that, Much is made of these potential negative outcomes in the media [family break-ups, family violence], but there is only limited empirical to support these contentions (Storey 2010). Despite this findings, families with members that engage in rotational work in Canada and elsewhere often feel they face more stressors than those who do not. Ultimately, as noted in a report on FIFO workforce practices from a Standing Committee of the House of Representatives in Australia, the lack of extensive research on the impact of a FIFO parent on children’s well-being and family relationships hinders any real analysis of the benefits to or needs of children of FIFO parents (SCRA 2013).

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Table 5.13a-1 presents a summary of potential positive and negative effects from FIFO- based work commuting on Indigenous communities based on the reviewed information sources as identified in the Bibliography.

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Table 5.13a-1: Potential Impacts of FIFO Arrangements

Theme Potential Positive and Adverse Impacts Family and Social Connections + Maintain social and family connections in home communities, as compared to leaving home communities in search of employment opportunities elsewhere. + Spend extended periods of quality time with family, something that might not be available to those who work a regular work week. - Difficulty in sustaining social connections (e.g., friendships) because of only being home periodically. Mental and Physical Health + An increased sense of self-worth and sense of control resulting from steady, relatively high wage employment. This concept of self-reliance is more focused on individual effort and achievement as opposed to the more traditional concept that is focused more so on communal efforts and achievements. - Depression or anxiety as a result of feeling disconnected from social and family relationships for long periods of time. These feelings might be more acute during important family or community moments (e.g., holidays, births/deaths in the family). This might result in mental health issues, such as depression or anxiety. - Fatigue resulting from longer shift schedules and travel. - Potentially unsafe conditions during travel home (e.g., flying out after working night shifts and then driving home). - High-risk or inappropriate behaviour while away from home community (e.g., use of alcohol and illicit drugs and gambling). This can be driven by a number of factors including feelings of isolation or anxiety at being away from home, or higher incomes coupled with a lack of financial experience in managing income. Income and Employment Considerations + Increased incomes resulting from wage employment, which can be used to improve quality of life (e.g., housing and amenities). Impacts to Participants1,2 + Better opportunities for on-the-job training and career advancement, particularly when there is a lack of opportunities in the home community. Traditional Land Use and Knowledge - More difficult to consistently spend time learning traditional skills and obtaining ecological knowledge from Elders, or passing this knowledge to the younger generation. + As compared to a regular work week, extended periods of time off work allow for opportunities to engage in traditional pursuits. + Increased income to purchase hunting and harvesting equipment (e.g., rifles and snowmobiles), thus increasing the effectiveness and efficiency in carrying out traditional pursuits. This is especially important given the time constraints imposed by work commitments. + Reduced economic need for carrying out traditional activities because of increased incomes. - Increased exposure to English on-the-job that decreases the use of traditional languages and contributes to further erosion of traditional language knowledge and use. - Increased exposure to, and pressure to act according to, outside social values that might run contrary to traditional values or face discrimination or misunderstanding regarding cultural norms and values. Other Considerations +/- Need for participants to adjust from the worksite where they might experience a certain level of freedom (e.g., food and housekeeping are provided), to a situation where they are expected to contribute to the running of a household. +/- More flexibility to engage in recreational time as a result of longer shifts (i.e., extended periods of time off). The drawback is the lack of regularity to engage in these activities (e.g., can’t participate on a daily or weekly basis at home). + Access to onsite amenities and services (e.g., comfortable private rooms, nutritious meals and recreational facilities) that might be better than in the home community. General + Eliminates the need to relocate families to other, often larger, centres to access employment opportunities. These moves can be costly and disruptive to families. + Allows families stay in their home community, closer to family and social support networks. - Decreased quantity of time available to spend with family, increasing conflict between family members and leading to increased family stressors. - Altered social and familial relationships (e.g., children might miss their parent and look for alternate authority figures, such as uncles/aunts, grandparents). This might place increased burden on extended family members, as well as create challenges for the FIFO participant whose role in day-to-day life diminishes. - Stress placed on families (spouses and children) who have to oscillate between having a spouse/parent at home and then having them gone again. - Stress placed on the families of participants who engage in high-risk or inappropriate behaviour (e.g., use of alcohol and illicit drugs and gambling). Impacts to Families Spouses - Increased burden on participants’ spouses, mostly women, to shoulder household responsibilities. + For dual career families, the spouse not participating in FIFO does not have to interrupt or change his or her work situation. - Difficulty on the part of the parent staying in the home community to participate in community affairs because of certain barriers, such as a lack of supports (e.g., child care). Children - Difficulty for children who experience inconsistent expectations between the parent participating in FIFO and the parent staying in the home community. - Because of stressors placed on children, they might experience anxiety or depression and/or act out or engage in negative behaviour. + Conversely, adolescent children might show more responsibility and independence and a greater appreciation of quality time spent with the parent participating in the FIFO arrangement.

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Table 5.13a-1: Potential Impacts of FIFO Arrangements (continued)

Theme Potential Positive and Adverse Impacts - Income disparity between those engaged in resource development and those who are engaged in lower pay work or simply not engaged in wage employment at all, can contribute to increased social stratification within Indigenous communities, affecting existing relationships and values. It might reshape societal values by placing increased emphasis on individualism and impacting extended family and relationships and community dynamics.2 - Because those with education and experience are more likely to be able to access employment opportunities, they are more likely to realize economic benefits of employment offered through FIFO arrangements, further increasing disparity and social stratification within a community. + Access to FIFO-related employment has the potential to reduce unemployment and increase incomes in a community, the spending of which can, in turn, drive enhanced and expanded businesses and service offerings in the community. - Decreased community cohesion and a sense of transience associated with the regular movement of community members in and out of the community. - Stressors placed on participants and their families could lead to increased demand on mental health and social services in the community. - FIFO participants are immersed in English when on-the-job and this might affect their use of Indigenous languages in their home community, further eroding the use of Indigenous languages in the community as a whole. Impacts to Home Communities - Reduction in the effectiveness of hunting activities in the community because of a lack of prolonged time available in the community for FIFO participants to take extended hunting trips. - Less country foods available because of a reduction in traditional activities being carried out, leading to an increased reliance on store bought food which is potentially more expensive and less nutritious. - Return of former community members to their Indigenous community to access new employment and business opportunities could place pressure on local infrastructure and services (e.g., housing). + The return of former community members, which can improve the vibrancy and viability of the community. - Less opportunity to regularly participate in volunteer, sports or other political, cultural and social activities in the community, as compared to other workers remaining in the community. + Increased engagement of FIFO participants in the community under a FIFO arrangement as compared to relocating to another community in search of employment. - FIFO participants might bring back values and norms to the community from their FIFO experience that run contrary to existing community values (e.g., less sharing). + FIFO participants bring back to the community values and norms from their FIFO experience that support community values (e.g., self-reliance), and can serve as important role models to others, particularly youth, regarding possible future opportunities. + Increased disposable income might promote sharing in a community (e.g., sharing of communal resources). + Reduction in the number of skilled workers leaving the home community entirely, in search of employment elsewhere, with either periodic self-funded visits home, or relocating their family entirely. NOTES: 1 Given that employment in the resource industry is currently male-dominated, many of the impacts of FIFO participation are likely to be realized by men. 2 A report on Alberta's oil and gas rotational workforce, funded in part by the governments of Alberta and Canada, noted that workers who engage in rotational work solely for financial benefits tend to be less satisfied and less likely to remain employed in this work arrangement for any significant period of time (Enform 2015). + = potential positive impact; - = potential adverse impact; +/- = potential positive and negative impact.

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Fort Chipewyan-Specific Input

Indigenous groups based in Fort Chipewyan have provided the following input in relation to the Project and to past regulatory applications on what they view as the potential effects of FIFO arrangements (The Firelight Group 2012; MCFN 2012):

 stronger connections to home for Indigenous community members

 opportunities for youth and working age people to remain in Fort Chipewyan rather than leave the community, facing economic and social risks, to access work opportunities elsewhere

 reduce the “brain drain” effect on Fort Chipewyan

 increase the disposable income in the community, potentially leading to business opportunities and price competition

 encourage previous out-migrants from Fort Chipewyan to return to the community which could26:

 re-establish families in the community

 place pressure on local housing  bring different values and vices from larger communities and the oil sands workplace (e.g., less sharing and drug use)

 lead to increased disparity

 potentially adverse effects of long-distance commuting on families27

The interests and concerns identified above align with the research findings summarized in Table 5.13a-1.

Potential FIFO Effects on Fort Chipewyan

The degree to which potential impacts related to FIFO arrangements to participants, families and communities (see Table 5.13a-1) manifest in any particular community, including Indigenous ones, is a complex consideration dependent on a range of variables, including:

26 The ACFN’s submission to the JRP in regards to the previously approved Shell Jackpine Mine Expansion (JPME) project noted that, The potential for an increased draw of ACFN members back into the community because of Fort Chipewyan being a point of hire and FIFO location for the JPME was identified as a benefit by a large majority of participants (The Firelight Group 2012). 27 The ACFN’s submission in relation to Shell’s JPME project also noted in relation to existing FIFO arrangements in the community that, There are some observations of increased family dysfunction from families involved in FIFO rotation schedules (The Firelight Group 2012).

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 education levels, support systems and the internal resiliency of individual participants

 the pre-existing dynamics of a participant’s family relationships  past experience of participants and the community with commuting arrangements, including FIFO

 the ability of the community to cope with external disturbances

 the type and manner of the FIFO arrangement being offered by a resource developer, including:

 length of rotation schedules (e.g., consideration of family obligations and the pursuit of traditional activities by Indigenous workers)

 on-site amenities and services (e.g., recreation facilities, lodging requirements and dining services)

 lodge and workplace policies (e.g., alcohol and drug policies)

 employee and family support programs

The degree to which Fort Chipewyan is affected by a FIFO arrangement with the Project is subject to these same considerations. Some factors specific to the current context in Fort Chipewyan include:

 There is past and current experience in Fort Chipewyan with FIFO arrangements, related to some oil sands operations in the region, including a long-standing arrangement with Syncrude. As a result of these FIFO experiences:

 participants, families and community leaders are aware of the potential effects related to this work-commute pattern

 demand on service providers in the community will already reflect the specific needs of existing FIFO participant households

 The community’s remote location has led many residents to leave the community over time to pursue work and other opportunities in other locations (see response to JRP IR 5.3[b]). FIFO offers a pathway for stable, relatively well-paying employment with industry, while also remaining resident in the community, rather than self-commuting or relocating out.

 a key consideration of possible effects on the community as a whole of future FIFO arrangements will be the degree to which this opportunity is taken up by people already resident in the community, versus those returning to the community from elsewhere

As stated in Section 16.7.3.3 of the Project Update, while the nature of a FIFO-based work arrangement is preferable to some, it is not the preference of others, regardless of background or home community location. Successful participants tend to focus more on

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job satisfaction rather than their income, have a supportive home life and healthy coping mechanisms (Enform 2015).

Support from Teck

For its part, Teck recognizes that its FIFO arrangement will not only affect workers in Fort Chipewyan, but their families and the community as a whole. Teck is committed to working with the community of Fort Chipewyan to develop and implement a FIFO program that works to maximize benefits and reduce adverse impacts to the FIFO participants, their families and the community as a whole. To that end, Teck has already:

 developed a number of plans, policies and programs to maximize positive work/life experiences for Indigenous employees at the proposed lodge accommodation system, as outlined in response to part (b)

 committed to providing a robust Employee and Family Assistance Program (EFAP) that provides free, immediate and confidential resources, including counselling, for all Teck employees and their dependents (see response to part [d])

In addition, Teck is committed to ongoing monitoring of its FIFO arrangement in Fort Chipewyan. This will include feedback with respect to the social and economic effects of the FIFO model on individual workers, their families and communities. Teck sees its Participation Agreements with Indigenous groups as the appropriate framework through which impacts can be identified and monitored, in collaboration with the community.

b) Project specific plans, policies and programs to realize positive work/life experiences for employees have not yet been developed. Such items are part of Project Execution Planning (see Volume 1, Section 12.3.1.3), which would occur after the anticipated regulatory approvals are received and the Project is sanctioned by Teck’s Board of Directors.

In general, Teck’s approach to maximizing a positive work/life for all employees at the proposed lodge accommodation system is to focus on the social aspects that confirm employees feel comfortable and appreciated within the workplace and in the lodge before and after shifts. Teck recognizes that Indigenous employees might have specific needs and in the response to JRP IR 5.9(c), Teck has identified the plans, policies and programs that are aimed at ensuring Indigenous employees experience positive and respectful work and life experiences. Teck will consider specific facilities or programs for Indigenous employees including access to a dedicated cooking area for traditional foods, such as at Teck’s Red Dog Operation in Alaska, or a communal healing area. Also, visits by Elders will be considered. Consultation with Indigenous communities on their specific needs will occur through processes established under Participation Agreements.

Overall, the proposed lodge facilities will offer a combination of social and recreation facilities, comfortable rooms with entertainment and communication options and good

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quality, nutritious food. Teck recognizes that its lodging facilities will be an important asset for the company with regards to attracting and retaining employees. Teck intends on investing appropriate resources in its facilities to enhance the quality of lodge-life experience for its employees, including those from Indigenous communities.

c) See the response to part (a).

d) Teck’s vision is to engage and develop its people, and ensure everyone goes home safe and healthy every day. In line with this vision, Teck currently provides a robust EFAP that provides free, immediate and confidential resources, including counselling, for all Teck employees and their dependents. The services are provided in various platforms (i.e., in- person, online and via telephone) and are accessible 24 hours a day, seven days a week. The services are designed to help with stress, relationship problems, depression, anxiety, nutrition, weight loss and parenting, and to help employees:

 achieve well-being  find child care or elder care resources

 get legal advice

 get financial guidance  cope with workplace challenges

Teck’s EFAP provider supports many oil sands organizations within Fort McMurray and northern Alberta, including Syncrude and Suncor. It has an office in downtown Fort McMurray where clients can receive in-person counselling. The counsellors are familiar with the cultural requirements of Indigenous clients.

Teck’s EFAP provider offers employees access to counsellors with specializations in Indigenous issues. The organization recruits, employs, trains and develops individuals with specialization and experience in Indigenous counselling. Traditional healing practices are embraced by their counsellor network and integrated into support. The following examples highlight the specialized support and experience Teck’s EFAP service provider offers:

 It currently provides EFAPs to 100 Indigenous communities across Canada.

 Its network includes approximately 250 counsellors with specialization in Indigenous issues and concerns. This represents the largest network of counsellors in Canada and provides flexibility to match each client with a counsellor best suited to that client’s specific cultural, clinical, spiritual and lifestyle requirements.

 Many of its counsellors have specialized expertise in addictions, abuse trauma, suicide risk and prevention, eating disorders, poverty and displacement.

 Teck’s EFAP provider has provided us with the following statistics based on their recent satisfaction surveys from Indigenous clients indicate that:

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 100% of these clients would use the EFAP again  95% of these clients would recommend the EFAP to others

 100% of these clients found the EFAP easy to access

e) Teck’s standard bereavement leave policy at its Canadian operations provides three paid days of leave for a bereavement involving an employee’s immediate family. Additional days of paid or unpaid leave are granted based on the approval of the employee’s manager and human resources.

Teck recognizes that FIFO operations and operations with high workforce participation from Indigenous people have unique needs. As such, Teck has adapted these policies for specific operations. For example, Indigenous people comprise more than 53% of the workforce at Teck’s Red Dog FIFO mine in Alaska. At this operation, Teck provides an extended bereavement leave, offering five days of paid leave and five days of unpaid leave to all employees when the bereavement involves a member of the employee’s immediate family. Further, employees who are not part of the immediate family can request paid (vacation or banked time) or unpaid leave to attend a funeral for a community member. Red Dog management works closely with employees to accommodate bereavement requests, and employees can fly home on the next available flight. When there is a bereavement, Red Dog also opens a community room where employees gather to celebrate the life of the deceased, offer support, share stories and grieve.

Teck will review its standard bereavement policy (as well as policies from other FIFO operations in Alberta) and develop operation-specific policies for the Project during future planning phases.

References:

Enform. 2015. Rotating, Not Relocating: Alberta’s Oil and Gas Rotational Workforce. June 2015 (funded in part by the Government of Alberta and the Government of Canada’s Sectoral Initiatives Program).

The Firelight Group (The Firelight Group Research Cooperative). 2012. Supplemental Social, Economic and Cultural Effects Submission for Shell Canada’s Proposed Jackpine Mine Expansion. September 29, 2012. CEAA Registry Number: 465.

MCFN (Mikisew Cree First Nation). 2012. Statement of Concern: Teck Frontier Project. In Conjunction with the Athabasca Chipewyan First Nation. 2012.

SCRA (Standing Committee on Regional Australia [House of Representatives]). 2013. Cancer of the Bush or Salvation for our Cities? Fly-in, Fly-out and Drive-in, Drive-out Workforce Practices in Regional Australia.

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Storey, K. 2010. Fly-in-Fly-out: Implications for Community Sustainability. Sustainability (Open Access Journal). April 2010.

Bibliography

The following information sources were reviewed in preparing Table 5.13a-1.

Enform. 2015. Rotating, Not Relocating: Alberta’s Oil and Gas Rotational Workforce. June 2015 (funded in part by the Government of Alberta and the Government of Canada’s Sectoral Initiatives Program).

The Firelight Group (The Firelight Group Research Cooperative). 2012. Supplemental Social, Economic and Cultural Effects Submission for Shell Canada’s Proposed Jackpine Mine Expansion. September 29, 2012. CEAA Registry Number: 465.

Government of Northwest Territories (Bureau of Statistics). 2014. NWT Survey of Mining Employees Overall.

Government of Northwest Territories. 2015. Communities and Diamonds: 2015 Annual Report of the Government of the Northwest Territories under the Ekati, Diavik, and Snap Lake Socio-Economic Agreements.

Gibson, G. 2005. Canada’s Resilient North: The Impact of Mining on Aboriginal Communities. University of British Columbia.

Gibson, V. 2008 Negotiated Spaces: Work, Home And Relationships In The Dene Diamond Economy. University of British Columbia.

Jones, C. and Southcott, C. 2015. Mobile Miners: Work, Home, and Hazards in the Yukon’s Mining Industry. The Northern Review.

MCFN (Mikisew Cree First Nation). 2012. Statement of Concern: Teck Frontier Project. In Conjunction with the Athabasca Chipewyan First Nation.

Rescan Environmental Services. 2012. Impacts of Mining Operations on Aboriginal Communities in the Northwest Territories and Labrador: Case Studies and Literature Review.

SCRA (Standing Committee on Regional Australia [House of Representatives]). 2013. Cancer of the Bush or Salvation for our Cities? Fly-in, Fly-out and Drive-in, Drive-out Workforce Practices in Regional Australia.

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Storey, K. 2010. Fly-in-Fly-out: Implications for Community Sustainability. Sustainability (Open Access Journal).

5.14. Teck has proposed mitigation measures related to social and economic issues that are distributed throughout numerous documents. In Volume 1, Section 16.5.7 of the Project Update and in various sections throughout, Teck uses language that suggests that it may implement certain mitigation measures. However, which mitigation measures will be implemented and which ones may be implemented is unclear and may be subject to different interpretations. Teck has provided some general clarification on how it has used language to reflect levels of commitments, but the Panel requires additional clarity.

a) Provide a summary list or table identifying all of Teck’s commitments related to social and economic mitigation and monitoring, and identify the reference to where this information is located. Clearly distinguish Teck’s firm commitments from actions that Teck may undertake.

b) For each Indigenous group that Teck has engaged with and that may be affected by the Project, provide a list of the socio-economic concerns and interests that have been identified and any specific mitigation measures Teck has proposed to address the concerns

Response:

a) As part of the socio-economic impact assessment completed for the Project (see Volume 1, Section 16 of the Integrated Application and the Project Update), Teck identified a variety of mitigation measures, management and monitoring plans to reduce potential community socio-economic effects. These plans are summarized in Table 5.14a-1 along with their location in the Integrated Application and Project Update and whether a proposed action is under consideration or represents a firm commitment from Teck. Information on issues and concerns raised by local Indigenous communities, along with the applicability of management and monitoring activities to these communities, is also included in the tables to support part (b).

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Table 5.14a-1: Project Mitigation, Management and Monitoring – Housing Commitment or Indigenous Concerns and Interests Applicable Indigenous Communities Area of Concern Activity Reference Consideration Housing  Indigenous groups in Fort McKay and Fort Chipewyan have noted  Provide on-site, lodge-based  Volume 1, Commitment  MCFN that, to the degree that Teck supports economic activity in these accommodations during construction and Section 16.7.10 of the  ACFN communities, the Project might assist in retaining current residents operations to reduce the Project’s effect Integrated Application  Métis Local 125 or attracting former residents back to these communities from on the resident population and associated  FMFN other locations. This might place increased demands on local effects on social infrastructure and infrastructure and services, including housing. housing in the region.  Fort McKay Métis  Métis Local 1935  Concerns with the quality and supply of housing as well as general  Offer lodge amenities and services –  Volume 1, Commitment cost of living concerns locally and regionally. These costs are felt including individual rooms and shared Section 16.3.6.2 of the  Métis Local 1909 by Indigenous residents both in Fort McMurray and in smaller, spaces, the quality of the food services Project Update  Fort McMurray #468 First Nation rural communities. Concerns have been expressed, for example, and free-time activities – that are  Métis Nation of Alberta- Region One about living costs in Fort Chipewyan because of geographic competitive with other lodge isolation, distance to suppliers and lack of year-round road accommodations in the region. access.  Concern with the level of federal government funding for on- reserve housing.  Shortage of housing in Fort Chipewyan.

Table 5.14a-2: Project Mitigation, Management and Monitoring – Social Infrastructure

Commitment/ Applicable Indigenous Socio-Economic Area Indigenous Concerns and Interests Activity Reference Consideration Communities Social infrastructure  Indigenous groups in Fort McKay and Fort Chipewyan  Maintain explicit and enforced lodge, workplace and flight policies  Volume 1, Section 16.7.10 of the Commitment  MCFN have noted that, to the degree that Teck supports with regards to the use of alcohol, drugs and illegal activities. Integrated Application  ACFN economic activity in these communities, the Project might  Provide onsite security services, including controlled gates, Commitment assist in retaining current residents or attracting former  Volume 1, Section 16.7.10 of the  Métis Local 125 check-in procedures, perimeter security fencing and lodge-based Integrated Application residents back to these communities from other locations. security officers on duty 24 hours.  FMFN This might place increased demands on local  Volume 1, Section 16.7.10 of the Commitment  Offer in-house security services to assist the RCMP within, and  Fort McKay Métis infrastructure and services. Integrated Application sometimes outside, the Project lease boundaries (e.g., securing  (Métis Local 1935  Concerns with the level of government funding for local accident scenes and assisting with highway closures).  Volume 1, Section 16.7.10 of the Commitment  Métis Local 1909 health services.  Develop and implement an emergency response plan which Integrated Application  Fort McMurray #468 First  Community health and social concerns include alcohol includes the required personnel, procedures and equipment  Volume 1, Section 16.7.10 of the Commitment Nation and drug use, elder care, and physical health effects resources (e.g., vehicles, fire response, medical response and Integrated Application  Métis Nation of Alberta- related to changes in the environment. rescue). Region One  Community concerns include alcohol and drug-related  Develop required mitigation measures for areas adjacent to the offences and traffic safety in the region. Project area based on the FireSmart Wildfire Assessment System  Concerns have been raised regarding the increased and implement in the emergency response plan. likelihood of a major industrial accident in the region.  Concerns with the level of government funding for local  Enter into mutual aid agreements with the RMWB and other oil  Volume 1, Section 16.7.10 of the Commitment education services. sands companies that include: Integrated Application  Concerns regarding education services, including quality  responding to motor vehicle accidents on Highway #63 of education, the range of educational options in rural  responding to forest fire threats to Fort McKay communities, and student retention.  responding to regional spills  For Indigenous rural residents, there is concern about the adequacy of support for students who make the transition  Participate in the management of regional emergencies at the RMWB’s Regional Emergency Operations Centre

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Table 5.14a-2: Project Mitigation, Management and Monitoring – Social Infrastructure (continued)

Commitment/ Applicable Indigenous Socio-Economic Area Indigenous Concerns and Interests Activity Reference Consideration Communities to Fort McMurray schools.  Make available onsite health services, including an on-site  Volume 1, Section 16.7.10 of the Commitment  Concerns with the level of government funding for local medical facility staffed by qualified health professionals providing Integrated Application social services. 24-hour on-site primary, emergency and occupational health  Concerns with changes in community composition and services. cohesion over time and associated pressures on social  Consider financial and in-kind contributions to the Northern Lights  Volume 1, Section 16.7.10 of the Consideration services in Fort McMurray as well as in smaller, rural Health Foundation, where appropriate, to support the efforts of Integrated Application communities. Alberta Health Services to meet the needs of Wood Buffalo residents. Recognizing some of the health concerns in the region Teck is prepared to make health promotion and disease prevention initiatives a focus of their community investment policy.  Provide helicopter or fixed-wing aircraft access via the on-site  Volume 1, Section 16.7.10 of the Commitment aerodrome for injured workers requiring rapid evacuation for off- Integrated Application site medical care.  Discuss with other industrial proponents near the Project options  Volume 1, Section 16.7.10 of the Commitment for coordinating on-site health facilities and resources. Integrated Application  Assess and support school events and education initiatives  Volume 1, Section 16.7.10 of the Commitment identified by rural schools in the study area, as appropriate. Integrated Application  Provide employees with access to the company’s confidential  Volume 1, Section 16.7.10 of the Commitment Employee and Family Assistance Plan, which provides support Integrated Application for families and individuals who might experience difficulty dealing  Response to JRP IR 5.13(d with personal, family or work-life issues that can affect one’s health and well-being.  Consider support for community level initiatives including social  Volume 1, Section 16.7.10 of the Consideration groups providing assistance to those in need. Integrated Application  Continue providing direct support to community initiatives through  Volume 1, Section 16.7.3.4 of the Commitment its social investment programs. Project Update  Offer shift schedules that provide workers with sufficient time off  Volume 1, Section 16.7.10 of the Commitment to enjoy leisure activities in their home communities. Integrated Application  Make available onsite recreational opportunities and facilities.  Volume 1, Section 16.7.10 of the Commitment Integrated Application NOTES: RCMP = Royal Canadian Mounted Police.

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Table 5.14a-3: Project Mitigation, Management and Monitoring – Transportation Commitment/ Applicable Indigenous Indigenous Concerns and Interests Area of Concern Activity Reference Consideration Communities Transportation  Concerns with an increase in traffic volume, including truck and  Construct and operate an aerodrome near the  Volume 1, Section 16.7.10 of the Commitment  MCFN over-dimensional trips, particularly from Fort McKay north of Project site. Integrated Application  ACFN Highway #63 and the Fort Chipewyan winter road. This concern Commitment is especially important to Indigenous community members living  Use on-site as well as regional lodge  Volume 1, Section 16.7.10 of the  Métis Local 125 in Fort Chipewyan. accommodations during both construction and Integrated Application  FMFN operations to reduce worker commutes.  Indigenous groups in Fort Chipewyan have raised concerns as  Fort McKay Métis Commitment well about driving patterns of workers and transport trucks  Use bus service for transporting construction  Volume 1, Section 16.7.10 of the  Métis Local 1935 coming up from Fort McMurray along that winter road. As the and operations workers. Integrated Application  Fort McMurray #468 First furthest north of all large open pit oil sands mines, the Project  Limit private vehicles brought to the Project  Volume 1, Section 16.7.10 of the Commitment Nation might contribute to these cumulative traffic load effects. site. Integrated Application  Métis Nation of Alberta-  Schedule truck traffic, including oversized  Volume 1, Section 16.7.10 of the Commitment Region One loads, to off-peak hours. Integrated Application  Use an on-site concrete batch plant; and  Volume 1, Section 16.7.10 of the Commitment attempt to source aggregates from pits near to Integrated Application site.  Enforce lodge, workplace and flight policies  Volume 1, Section 16.7.10 of the Commitment with regards to the use of alcohol, drugs and Integrated Application illegal activities.  Work with the local RCMP to confirm  Volume 1, Section 16.7.10 of the Commitment communication on local effects. Integrated Application  Support the efforts of RMWB and OSCA to  Volume 1, Section 16.7.10 of the Commitment work with the provincial government to progress Integrated Application improvements to highway infrastructure in a timely way.  Keep responsible regional and provincial  Volume 1, Section 16.7.10 of the Commitment planners informed of the Project’s development Integrated Application plans and their timing.  Consult and cooperate with other operators  Volume 1, Section 16.7.10 of the Commitment regarding shift scheduling with a view to reduce Integrated Application overlap in commuter traffic.  Provide funding to assist in the maintenance  Volume 1, Section 16.7.3.2 of the Project Commitment and safety of applicable segments of Highway Update #63 from Fort McKay to Fort Chipewyan that are affected by the Project. NOTES: OSCA = Oil Sands Community Alliance; RMWB = Regional Municipality of Wood Buffalo; RCMP = Royal Canadian Mounted Police.

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Table 5.14a-4: Project Mitigation, Management and Monitoring – Municipal Infrastructure and Services Commitment/ Indigenous Concerns and Interests Applicable Indigenous Communities Area of Concern Activity Reference Consideration Municipal infrastructure  Indigenous groups in Fort McKay and Fort Chipewyan  Provide water and sewer services for the  Volume 1, Section 16.7.10 of Commitment  MCFN have noted that, to the degree that Teck supports different mining areas and the associated the Integrated Application  ACFN economic activity in these communities, the Project processing facilities and infrastructure, might assist in retaining current residents or attracting including on-site lodges.  Métis Local 125 former residents back to these communities from other  FMFN locations. This might place increased demands on local  Fort McKay Métis infrastructure and services.

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Table 5.14a-5: Project Mitigation, Management and Monitoring – Employment, Business, and Training Opportunities Commitment/ Applicable Indigenous Indigenous Concerns and Interests Area of Concern Activity Reference Consideration Communities Employment, business and  A clear and specific commitment from Teck to employment  Specific contractual commitments to Indigenous communities on  Response to JRP IR Teck’s intention is to  MCFN training opportunities negotiate specific and contracting opportunities for local Indigenous workers employment, business and training opportunities will be made within 5.10(c)  ACFN and businesses. Participation Agreements negotiated between Teck and the Indigenous commitments as part of Participation Agreements  Métis Local 125  An interest in training opportunities to confirm community community.  FMFN members are able to access employment opportunities.  Prioritize recruiting residents from the region first, Alberta second,  Volume 1, Teck’s intention is to  Concerns with how the immediate and long-term benefits followed by the rest of Canada, then North America and then overseas Section 16.5.6.2 of the negotiate specific  Fort McKay Métis accruing to affected Indigenous peoples in the region countries. Integrated Application commitments as part of  Métis Local 1935 balance (or not) the long-term impacts to traditional lands Participation Agreements  Métis Local 1909 and lifestyles.  Draw on various sources of labour in Canada that are traditionally  Volume 1, Commitment  Fort McMurray #468 First  A request for more specific information on commitments under-represented in the labour market, including Indigenous people, Section 16.5.6.2 of the Nation from Teck regarding, for example, benefits, including immigrants and women. Integrated Application  Métis Nation of Alberta- contracting and employment levels.  Put in place a policy to hire local businesses and contractors that are  Volume 1, Teck’s intention is to Region One  Challenges that some Indigenous businesses face include competitive and able to meet the company’s needs is already in place. Section 16.5.6.2 of the negotiate specific limited financial and operational capacities. Integrated Application commitments as part of  Indigenous groups in Fort Chipewyan have expressed Participation Agreements concern about the potential for diminishing employment  In terms of local procurement and employment, Teck is considering:  Volume 1, Teck’s intention is to prospects and declining employment numbers from the oil negotiate specific  establishing mechanisms to enhance employment prospects of Section 16.5.7 of the sands sector for their members. commitments as part of local residents, including preferential consideration Project Update Participation Agreements  using procurement processes that regard local ownership and prevalence of workers residing locally as positive criteria in goods and services vendor selection competitions  establishing monitoring programs that measure local involvement, gather feedback and work with interested parties on how to improve results  Be guided by several of Teck’s charters, codes and policies, including  Response to JRP IR Teck’s intention is to its Indigenous Peoples Policy, when working with Indigenous peoples in 5.9(b) and 5.10(a) negotiate specific creating lasting mutual benefits that respect Indigenous community’s commitments as part of values – including hiring, training and retention of Indigenous Participation Agreements employees.  Utilize what Teck’s has learned to date from local Indigenous  Response to JRP IR Teck’s intention is to communities with which it is engaged for the Project to overcome oil 5.9(c) negotiate specific sands specific challenges to Indigenous employment and procurement. commitments as part of Participation Agreements  Consider work experience in lieu of a high school graduation for  Response to JRP IR Consideration Indigenous peoples. 5.10(b)

 Work with the Fort McMurray Chamber of Commerce, the NAABA and  Volume 1, Commitment others to maximize contracting and employment opportunities in the Section 16.5.6.2 of the region. Integrated Application

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Table 5.14a-5: Project Mitigation, Management and Monitoring – Employment, Business, and Training Opportunities (continued) Commitment/ Applicable Indigenous Indigenous Concerns and Interests Area of Concern Activity Reference Consideration Communities Employment, business and  A clear and specific commitment from Teck to employment  Offer a choice of worker turnaround cycles and opportunity to earn  Volume 1, Commitment training opportunities and contracting opportunities for local Indigenous workers premium pay through overtime. Section 16.5.6.2 of the and businesses. Integrated Application  An interest in training opportunities to confirm community  Continue to work with the Indigenous communities in the area and  Volume 1, Teck’s intention is to members are able to access employment opportunities. specifically with the communities of Fort McKay and Fort Chipewyan to Section 16.5.5 of the negotiate specific  Concerns with how the immediate and long-term benefits develop Indigenous employment and business development program(s) Integrated Application commitments as part of Participation Agreements accruing to affected Indigenous peoples in the region guided by a commitment to: maximize opportunities for local Indigenous  Volume 1, balance (or not) the long-term impacts to traditional lands businesses to supply services and products in support of Project Section 16.7.3.5 of the and lifestyles. construction and operations; hire qualified Indigenous people from the Project Update  A request for more specific information on commitments communities surrounding the Project and support education, training from Teck regarding, for example, benefits, including and investment initiatives in local Indigenous communities, where contracting and employment levels. appropriate.  Challenges that some Indigenous businesses face include  Teck’s Indigenous community employment and business development  Volume 1, Teck’s intention is to limited financial and operational capacities. program(s) will consider establishing employment and procurement Section 16.5.7 of the negotiate specific commitments as part of  Indigenous groups in Fort Chipewyan have expressed policies and procedures, as well as adaptive management mechanisms Project Update Participation Agreements concern about the potential for diminishing employment specific to Indigenous community employment and procurement. prospects and declining employment numbers from the oil  Teck’s Indigenous community employment and business development  Volume 1, Teck’s intention is to sands sector for their members. program(s), as well as community-specific Participation Agreements will Section 16.5.7 of the negotiate specific take into consideration input provided by local Indigenous communities, Project Update commitments as part of and will be guided by a commitment to: develop substantial Participation Agreements opportunities for local Indigenous businesses to supply services and products in support of Project construction and operations; hire qualified Indigenous people from the communities surrounding the Project and support education, training and investment initiatives in local Indigenous communities, where appropriate.  Continuously monitor Teck’s local employment and procurement  Volume 1, Teck’s intention is to policies and programs, along with reporting the results of this monitoring Section 16.5.6.2 of the negotiate specific as part of ongoing community consultation. Integrated Application commitments as part of Participation Agreements  Teck has yet to determine the exact reporting and monitoring  Volume 1, Consideration mechanisms for its local procurement and employment policies, but they Section 16.5.7 of the will likely be similar to mechanisms used by Teck’s other operations, Project Update and might include:  Response to JRP IR  Total employment, attraction and retention rates, average salary 5.15(a). levels and other general human resource data. Where possible, the data will be disaggregated at the local community level.  Procurement activity, including examination of goods and services sourced from providers in local communities, value and length of contracts, types of goods and services provided and employment and enterprise effects associated with procurement.  Additional potential mechanisms are identified in Teck’s draft socio- economic monitoring plan in response to JRP IR 5.15(a).  Continue supporting local labour force skills development, and work with  Volume 1, Commitment communities, government and other industrial proponents on programs Section 16.7.3.5 of the that assist community members overcome labour market barriers. Project Update

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Teck Resources Limited Responses to Information Request Frontier Oil Sands Mine Project Joint Review Panel Package 5

Table 5.14a-6: Project Mitigation, Management and Monitoring – Fly-in/Fly-Out Commitment/ Applicable Indigenous Indigenous Concerns and Interests Area of Concern Activity Reference Consideration Communities FIFO  Concerns from Indigenous groups in Fort Chipewyan  A FIFO lodge-based approach to construction and operations.  Volume 1, Commitment  MCFN regarding the impact of FIFO arrangements and long- Section 16.6.6.2 of the  ACFN distance commuting effects on workers, their families and Integrated Application  Métis Local 125 their community. Commitment  Ongoing monitoring of the operations FIFO model and revisiting the  Volume 1,  Concerns with how the immediate and long-term benefits approach should local circumstances change. Section 16.6.6.2 of the accruing to affected Indigenous peoples in the region Integrated Application balance (or not) the long-term impacts to traditional lands and lifestyles.  Teck’s monitoring will take into consideration input received via its  Volume 1, Consideration workers, contractors and ongoing local stakeholder and Indigenous Section 16.7.3.3 of the  A request for more specific information on commitments engagement process. This would likely include feedback with respect Project Update from Teck regarding, for example, for Indigenous groups in to the social and economic effects of the FIFO model on individual Fort Chipewyan, logistics such as flight frequencies and workers, their families and communities. shift schedules.  A desire for shift rotations that are more compatible with  Commitment to include Fort Chipewyan in a FIFO program.  Volume 1, Commitment family, community life and the ability to undertake traditional Section 16.7.3.3 of the pursuits. Project Update  Concern that Indigenous community members often have to  Engage with potential employees living in Fort Chipewyan to discuss  Volume 1, Commitment travel from, or leave, their community to participate in the shift schedules and other travel and lodging logistics that influence Section 16.7.3.3 of the wage economy. their choice to work at the Project versus other opportunities. Project Update  Discuss with local communities the design of FIFO shifts that best  Volume 1, Commitment benefit its employees and families while remaining logistically and Section 16.7.3.3 of the financially feasible. Project Update  Remain open to engaging in broader, regional initiatives, for example  Volume 1, Consideration through the OSCA and its study of the use of aerodromes in the Section 16.7.3.3 of the region. Project Update NOTES: FIFO = fly-in/fly-out; NAABA = Northeastern Alberta Aboriginal Business Association; OSCA = Oil Sands Community Alliance.

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Teck Resources Limited Responses to Information Request Frontier Oil Sands Mine Project Joint Review Panel Package 5

Table 5.14a-7: Project Mitigation, Management and Monitoring – Culture Commitment/ Applicable Indigenous Indigenous Concerns and Interests Area of Concern Activity Reference Consideration Communities Culture  Exposure of Indigenous people to outside cultural values, and  Continue expand Teck’s knowledge of, and engagement with,  Volume 1, Teck’s intention is to  MCFN negotiate specific increased involvement in the oil sands wage economy, changing local stakeholders and Indigenous communities near the Project Section 16.7.3.2 of the  ACFN TLU experiences, inter-generational transmission of culture and to confirm ongoing and growing participation in Project-related Project Update commitments as part of general community interactions. benefits, as well as the design of appropriate and effective Participation Agreements  Métis Local 125  Concerns with continued development and the ability of mitigation measures to reduce any adverse effect. These efforts  FMFN Indigenous residents to adjust to change, and the continued loss are envisioned to include capacity building support within  Fort McKay Métis Participation Agreements for Indigenous communities to develop of language and traditional ways of life.  Métis Local 1935 relevant socio-economic indicators, baseline conditions and the  Concerns with how the immediate and long-term benefits ongoing measurement of Project-related activities and results  Métis Local 1909 accruing to affected Indigenous peoples in the region balance (or over time.  Fort McMurray #468 First not) the long-term impacts to traditional lands and lifestyles. Nation  Decreasing opportunities for TLU as oil sands facilities are built.  Provide cultural diversity awareness training to employees and  Volume 1, Commitment  Métis Nation of Alberta- For Fort Chipewyan, oil sands are pushing the mineable area contractors, focusing on respect for traditional land users as well Section 16.7.9.4 of the Region One farther north, closer to the community and the areas used by as respect for Indigenous world views, customs and values. Integrated Application residents for traditional pursuits.  Volume 1,  Younger community members with appropriate education and Section 16.7.3.5 of the training are becoming part of the wage economy, reducing their Project Update involvement in traditional activities.  Cultural effects related to TLU changes and associated broader  Consider supportive workplace practices as Teck develops  Volume 1, Consideration socio-economic conditions in communities. workplace policies and seek local Indigenous community input Section 16.7.3.5 of the  Mitigation measures to address cultural impacts28. into cultural awareness programming to be provided at the Project Update Project site.  Carry out a review of Teck’s standard bereavement policy,  Response to JRP IR Commitment including a review of policies from other fly in/fly out operations in 5.13(e) Alberta, as operation specific policies are developed during future planning phases.  Continuing to provide cultural awareness training for all Project  Response to JRP IR Commitment staff and contractors. 5.15(a)  Considering key Indigenous access routes and access  See the draft AMP in the Commitment preferences in the Project’s draft AMP. response to JRP IR 4.5,  Considering cultural keystone species in the wildlife Appendix 4.5 management and mitigation plan, fish habitat compensation lake  See the draft wildlife and biodiversity management plan. mitigation and management plan in the response to JRP IR 7.14, Appendix 7.14  See the draft detailed fisheries and offsetting plan, in the response to JRP IR 2.1, Appendix 2.1

28 Although these discussions are not yet complete, Teck has reviewed the CIAs that have been completed, and has identified some potential measures to assist in mitigating effects.

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Teck Resources Limited Responses to Information Request Frontier Oil Sands Mine Project Joint Review Panel Package 5

Table 5.14a-7: Project Mitigation, Management and Monitoring – Culture (continued) Commitment/ Applicable Indigenous Indigenous Concerns and Interests Area of Concern Activity Reference Consideration Communities  Incorporating and using Indigenous place names where  Response to JRP IR Consideration applicable. 5.15(a)  Supporting community-led projects to document Indigenous place names in their respective traditional territories.  Contributing to language retention programs and other programs that support retaining Indigenous culture, knowledge and practice (e.g., culture camps for youth).  Investigate with potentially affected Indigenous communities through the Reclamation Working Group the concept of incorporating cultural values into reclamation planning.  Supporting documentation of community-specific cultural heritage. NOTE: AMP = access management plan.

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Teck Resources Limited Responses to Information Request Frontier Oil Sands Mine Project Joint Review Panel Package 5

b) As stated in the response to part (a), Teck remains engaged with local, including Indigenous, communities in the area to develop the necessary processes, plans, and commitments for the realization of Project benefits and reduction of potentially adverse Project effects. Teck feels that direct collaboration, including individual benefit agreements with specific communities and associated monitoring and management systems developed in a collaborative manner, is the appropriate way to address local participation in the Project. Teck is committed to continuing to work with Indigenous communities throughout Project development, construction and operation.

Socio-economic–related concerns and interests identified by Indigenous groups can be grouped into general areas of concern:

 technical concerns regarding methodology and approach, and a level of analysis does not provide sufficient Indigenous community-specific information

 requests for more specific information on Project activities, related opportunities and commitments from Teck regarding benefits, including contracting and employment opportunities

 concerns about the potential socio-economic impacts of the Project on specific Indigenous communities

 interest with regards to support for community and regional social, economic and cultural initiatives

The concerns and interests expressed by Indigenous communities are organized in Tables 5.14a-1 to 5.14a-7 in the response to part (a) relate to these concerns, with the exception of technical concerns with the socio-economic methodology and approach which are not specifically addressed by Project mitigation and management measures. Responses to these technical concerns have already been addressed through various SOC and SIR responses provided by Teck (see the response to ACFN/MCFN SOC [February 2013], Appendix D, Section 2.2.1).

Indigenous issues and concerns identified in Tables 5.14a-1 to 5.14a-7 mostly relate to: housing and cost of living; employment and contracting opportunities to accrue locally; pressures on social infrastructure including education, social, health and security; traffic volumes and safety; effects of FIFO arrangements; the pace of development in the region and impacts to culture; and ongoing monitoring of effects in the region. There is considerable overlap in issues and concerns expressed to-date by Indigenous groups in the region. Tables 5.14a-1 to 5.14a-7 also identify the Indigenous groups to which Teck’s various mitigation and management measures apply. Mitigation and management measures also have broad applicability across many Indigenous communities.

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Teck Resources Limited Responses to Information Request Frontier Oil Sands Mine Project Joint Review Panel Package 5

5.15 Teck has committed to monitoring the Project’s socio-economic effects and reporting the results to Indigenous communities and other stakeholders., However, it has not provided any specific information about how such monitoring and reporting will take place or what measures might be most feasible or appropriate for Teck’s involvement. Teck states that indicators for monitoring will be developed through negotiated agreements. Additional detail regarding the proposed monitoring and reporting is required.

a) Provide a draft socio-economic monitoring plan.

b) Include a set of basic criteria and data collection methods, including the frequency of data collection and reporting proposed by Teck to monitor the efficacy of its regional Indigenous procurement and employment policies/plans.

c) Discuss how the concerns and interests of Indigenous communities have been incorporated into the draft monitoring plan, and describe the process for finalizing the monitoring plan.

d) Identify any existing regional or government social and economic data collection and reporting efforts that Teck intends to participate in as part of its monitoring plan.

Response:

a) Please refer to Appendix 5.15 for the draft socio-economic monitoring plan.

b) Please refer to Section 6 of the draft socio-economic monitoring plan (Appendix 5.15).

c) Please refer to Sections 5 and 6.2 of the draft socio-economic monitoring plan (Appendix 5.15).

d) Teck has participated, and expects to continue participating in regional monitoring that addresses socio-economic concerns and interests. As a member of the Canadian Association of Petroleum Producers, Teck is able to participate in Oil Sands Community Alliance projects. Teck has participated in past regional studies of industrial activity including transportation of workforces and over-dimensional loads, capital and operating expenditure forecasts, regional population estimates, among others.

Substantial monitoring of socio-economic conditions occurs in the region on an ongoing basis, much of this as part of normal federal and provincial government operations as well as ongoing work from organizations such as school, health and real estate boards.

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Socio-economic conditions in the RSA, influenced by cumulative industrial activity, to which the Project will contribute, will be captured within these and other reporting mechanisms.

Examples of monitoring systems with regularly-reported publicly-available information specific to the RSA includes:

 periodic detailed population censuses, including the federal census, undertaken by Statistics Canada every five years, with the latest data available for reference year 2016 and the RMWB municipal census, undertaken periodically, last conducted in 2015

 monthly, quarterly and annual CMHC housing information; for example, housing starts, prices, sales, vacancy rates and price forecasts and monthly reporting on house sale and prices by the Fort McMurray Real Estate Board

 quarterly reporting by the Alberta Health Services North Zone on a variety of health service delivery indicators, including treatment and discharge times for hospital emergency departments

 reporting by school boards within their organizational structures, as well as the Government of Alberta on a variety of indicators, such as student enrolment, dropout rate, high school completion rate and satisfaction with education quality—all of which are reported to Alberta Education and provided online by Alberta Education and individual school boards

 annual traffic volume estimates produced by Alberta Transportation

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