NWT PETROLEUM RESOURCES a Path to Northern Benefits and Energy Security RESSOURCES PÉTROLIÈRES DES TNO Un Pas Vers La Sécurité Énergétique Au Profit Des Ténois

NWT PETROLEUM RESOURCES A Path to Northern Benefits and Energy Security RESSOURCES PÉTROLIÈRES DES TNO Un pas vers la sécurité énergétique au profit des ténois

Le present document contient la traduction française du résumé et du message du ministre If you would like this information in another official language, call us. English

Si vous voulez ces informations dans une autre langue officielle, contactez-nous. French

Kīspin ki nitawihtīn ē nīhīyawihk ōma ācimōwin, tipwāsinān. Cree

Tłı̨chǫ yatı k’ę̀ę̀. Dı wegodı newǫ dè, gots’o gonede. Tłı̨chǫ

Ɂerıhtł’ıś Dëne Sųłıné yatı t’a huts’elkër xa beyáyatı theɂą ɂat’e, nuwe ts’ën yółtı. Chipewyan

Edı gondı dehgáh got’ı̨e zhatıé k’ę́ę́ edatł’éh enahddhę nıde naxets’ę́ edahłı.́ South Slavey

K’áhshó got’ı̨ne xǝdǝ k’é hederı ɂedı̨htl’é yerınıwę nı ́dé dúle. North Slavey

Jii gwandak izhii ginjìk vat’atr’ijąhch’uu zhit yinohthan jì’, diits’àt ginohkhìi. Gwich’in

Uvanittuaq ilitchurisukupku Inuvialuktun, ququaqluta. Inuvialuktun

ᑖᒃᑯᐊ ᑎᑎᕐᒃᑲᐃᑦ ᐱᔪᒪᒍᕕᒋᑦ ᐃᓄᒃᑎᑐᓕᕐᒃᓯᒪᓗᑎᒃ, ᐅᕙᑦᑎᓐᓄᑦ ᐅᖄᓚᔪᓐᓇᖅᑐᑎᑦ. Inuktitut

Hapkua titiqqat pijumagupkit Inuinnaqtun, uvaptinnut hivajarlutit. Inuinnaqtun

Aboriginal Languages Secretariat: 867-767-9346 ext. 71037 Francophone Affairs Secretariat: 867-767-9343 TABLE OF CONTENTS

MESSAGE FROM THE MINISTER ...... 4

MESSAGE DU MINISTRE ...... 5

EXECUTIVE SUMMARY ...... 6

RÉSUMÉ ...... 8

VISION AND PRINCIPLES ...... 10

INTRODUCTION ...... 11

State of the NWT Petroleum Resources Sector ...... 12

Pathways to Development ...... 17

Implementation of the Strategy ...... 20

PILLAR I – Improving our competitive Edge...... 22

Goals ...... 22

PILLAR II – Ensuring Benefits for NWT Residents...... 26

Goals ...... 26

PILLAR III – Creating a Sustainable and Innovative Sector ...... 30

Goals ...... 30

APPENDIX A: SUMMARY OF GOALS ...... 32

APPENDIX B: STRATEGY IMPLEMENTATION ...... 33

APPENDIX C: MONITORING AND EVALUATION FRAMEWORK ...... 39 NORTHWEST TERRITORIES Petroleum Resources | 2018 4 w MESSAGE FROM THE MINISTER

The Northwest Territories has significant and varied energy resources. The responsible development of these resources can create meaningful jobs for residents, opportunities for businesses, and sources of revenue to support territory-wide public programs and services for NWT residents. The Honourable Wally Schumann Minister of Industry, Tourism and Investment

NWT petroleum resources, in particular, offer Its aim is to realize both short and long- a frontier for exploration; and represent, in their development and delivery to market, petroleum resources; positioning and term economic benefits from our territory’s preparing the NWT to realize eventual industry our economy. significant opportunities to grow and diversify security, addressing and recognizing climate In time, our natural gas resources can also investment, while, pursuing local energy contribute to regional energy security, lessen Economy. our reliance on imported diesel, reduce energy change, and advancing our growing Knowledge Access to secure, affordable, and environmentally-sustainable sources of energy costs and lower NWT greenhouse gas emissions. is essential to the prosperity of the NWT and None of this, however, will happen overnight. everyone has a part to play in achieving a more Realizing the benefits of NWT petroleum sustainable territory. resources will take time, commitment and NWTinnovation. Petroleum All of Resources which we - have.A Path to Northern stakeholders and Indigenous governments Benefits and Energy Security presents a I look forward to working with colleagues, to implement this pursuit of economic balanced, viable and made-in-the-NWT opportunity and prosperity on behalf of all approach to advancing petroleum development

residents of the Northwest Territories. in the NWT for the benefit of all residents. NORTHWEST TERRITORIES 5 Petroleum Resources | 2018

MESSAGE DU MINISTRE

Les Territoires du Nord-Ouest sont dotés de ressources énergétiques importantes et variées. L’exploitation responsable de ces ressources peut se traduire par des emplois intéressants, des ouvertures pour les entreprises et des sources de revenus appuyant les programmes et les services publics offerts à la population à l’échelle des TNO. Wally Schumann

Ministre de l’Industrie, du Tourisme et de l’Investissement

Elle a pour but de concrétiser les retombées le marché, les réserves pétrolières ténoises, en De leur exploitation jusqu’à leur livraison sur économiques à la fois à court et à long terme des particulier, ouvrent de nouveaux horizons à ressources pétrolières de notre territoire, et à l’exploration et offrent de formidables perspectives positionner et à préparer les TNO à réaliser des visant la sécurité énergétique et la croissance de deEn fairetemps croître voulu, et nos de diversifierressources notre de gaz économie. naturel investissements potentiels dans l’industrie, tout en notre secteur du savoir.

énergétique de la région, ainsi que réduire notre pourront également contribuer à la sécurité dépendance au diésel importé, et diminuer les coûts La prospérité des TNO passe par l’accès à des sources d’énergie fiables, abordables et durables jouer pour assurer la durabilité du territoire. deCes l’énergie changements et les gazne se à effetferont de pas serre du auxjour TNO. au sur le plan de l’environnement et chacun a un rôle à lendemain. La concrétisation des retombées des Je me réjouis de travailler avec mes collègues, ressources pétrolières ténoises nécessitera du les parties intéressées et les gouvernements

ce dont nous disposons. temps, un véritable engagement et de l’innovation, autochtones afin de saisir ces possibilités La stratégie intitulée Ressources pétrolières ténoises, économiques et d’assurer l’essor du territoire pour un pas vers la sécurité énergétique au profit des Ténois l’ensemble de la population des TNO. présente une approche équilibrée, viable et locale pour stimuler l’exploitation pétrolière du territoire au profit de l’ensemble de la population. NORTHWEST TERRITORIES Petroleum Resources | 2018 6 EXECUTIVE SUMMARY

Petroleum development, when achieved safely and responsibly, can result in significant long-lasting benefits and returns for NWT residents. But while the NWT’s petroleum resources sector has long been an industry on the verge of becoming a powerful economic driver, it has, to date, never realized its potential.

Built on the direct input of NWT residents, businesses, governments, industry and investment and advancement of this sector, the To improve the NWT’s competitive edge for stakeholder groups, NWT Petroleum Resources - A Path to Northern Benefits and Energy Security GNWT will: support infrastructure projects offers a balanced approach to developing these that facilitate activity in the NWT’s petroleum resources that all NWT residents can both resources sector; clarify and improve the NWT’s oil and gas regulatory framework; and invest in Thesupport strategy and benefit sets out from a path, in the in part, long toterm. restore greater public awareness and understanding at home while soliciting investment from industry partners worldwide. the confidence and investment of the petroleum promoting smaller-scale natural gas projects resources industry in our territory while To ensure benefits are fully realized by NWT designed to meet the more immediate energy opportunities to provide locally produced energy Residents, the GNWT will assess and advance needs of communities and businesses.

to communities; build the NWT’s workforce and business capacity to allow Northerners to participate It also opens the door for new technologies and an active role in the governance of offshore oil and in and benefit from resource development; and take research that will help residents pursue economic gas policy and co-management. benefits from the development of petroleum innovation aimed at securing environmentally resources within a framework of knowledge and responsible and affordable energy for everyone. NORTHWEST TERRITORIES 7 Petroleum Resources | 2018

Framed by a family of GNWT strategies and implementation of this strategy, to create policies including the Northwest Territories 2030 Finally, the GNWT will work, through the a sustainable and innovative petroleum Energy Strategy and the NWT Climate Change resources sector by ensuring decisions about Strategic Framework the development of NWT petroleum resources 10 goals under three pillars that the GNWT , this Strategy identifies and by encouraging the application of the residents, stakeholders, and federal and consider both science and traditional knowledge; will work towards in association with industry, Indigenous governments.

Knowledge Economy to petroleum resources.

“The strategy sets out a path, in part, to restore the confidence and investment of the petroleum resources industry in our territory while promoting smaller-scale natural gas projects designed to meet the more immediate energy needs of communities and businesses.” NORTHWEST TERRITORIES Petroleum Resources | 2018 8 RÉSUMÉ

L’exploitation pétrolière, quand elle est menée de façon responsable et sécuritaire, peut avoir des avantages et des retours durables de taille pour les Ténois. Si le secteur pétrolier des TNO a toujours été sur le point de devenir un moteur économique important, il n’a pas, à ce jour, réalisé son plein potentiel.

Basée sur les commentaires directs de la population, des entreprises, des gouvernements, technologies et recherches qui aideront les Elle ouvre également la voie à de nouvelles

stratégie Ressources pétrolières ténoises, un pas de l’industrie et des parties intéressées, la Ténois à retirer des avantages économiques de vers la sécurité énergétique au profit des Ténois l’exploitation pétrolière dans un contexte de énergie durable et peu coûteuse pour tous. connaissance et d’innovation en vue d’offrir une pétrolière que les Ténois peuvent soutenir et dont présente une approche équilibrée de l’exploitation

Dans le but d’améliorer l’avantage concurrentiel ils bénéficieront à long terme. des TNO pour ce qui est de l’investissement et de La stratégie établit une orientation, à la fois pour l’évolution dans ce secteur, le GTNO appuie les dans notre territoire et pour rétablir les du secteur pétrolier ténois; précise et améliore le restaurer la confiance de l’industrie pétrolière projets d’infrastructure qui facilitent les activités investissements dans ce secteur; elle encourage par la même occasion les projets de gaz naturel cadre réglementaire de l’exploitation pétrolière le public aux enjeux tout en sollicitant des aux TNO; et investit pour mieux sensibiliser besoins plus urgents en énergie des collectivités et investissements des partenaires mondiaux à plus petite échelle conçus pour répondre aux des entreprises.

de l’industrie. NORTHWEST TERRITORIES 9 Petroleum Resources | 2018

traditionnelles, et en intégrant le développement du Nord au secteur du savoir pour encourager Afin que les Ténois bénéficient pleinement des avancer les perspectives potentielles pour offrir retombées générées, le GTNO évaluera et fera la recherche et l’innovation qui stimuleront la aux collectivités de l’énergie produite localement, Cetteviabilité stratégie de l’exploitation est encadrée pétrolière. par un ensemble les capacités des entreprises pour que les mobilisera la main-d’œuvre locale et développera Ténois prennent part aux activités pétrolières Stratégie énergétique 2030 des Territoires du Nord- de stratégies et de politiques du GTNO, dont la Ouest et le Cadre stratégique sur le changement et en bénéficient, et jouera un rôle actif dans climatique l’orientation des politiques et de la cogestion des ; elle fixe dix objectifs répartis dans trois activités pétrolières extracôtières. catégories que le GTNO s’efforcera d’atteindre en parties intéressées et les gouvernements fédéral Enfin, par l’intermédiaire de cette stratégie, le collaboration avec l’industrie, la population, les et autochtones. GTNO s’efforcera de créer un secteur pétrolier durable et innovant en s’assurant que les décisions prises sur l’exploitation des ressources pétrolières ténoises s’appuient à la fois sur des données scientifiques et sur les connaissances

La stratégie établit une orientation, à la fois pour restaurer la confiance de l’industrie pétrolière dans notre territoire et pour rétablir les investissements dans ce secteur; elle encourage par la même occasion les projets de gaz naturel à plus petite échelle conçus pour répondre aux besoins plus urgents en énergie des collectivités et des entreprises. NORTHWEST TERRITORIES Petroleum Resources | 2018 10 VISION AND PRINCIPLES NWT Petroleum Resources - A Path to Northern Benefits and Energy Security seeks to maximize the benefits of development for NWT residents by strengthening and revitalizing the petroleum resource sector in a sustainable and responsible manner.

IN DEVELOPING THIS VISION, THIS STRATEGY FOCUSES ON FIVE PRIORITIES:

• NORTHERN: NWT petroleum resources are • INFORMED: Decisions about land use and the developed and regulated in a manner that development of NWT petroleum resources are

by gathering, using and sharing evidence and reflects northern priorities and values and made with the participation of NWT residents, and a positive legacy for NWT residents. developed in a manner that provides benefits • BALANCED: The development of NWT • knowledge.PARTNERSHIP: Cooperation and meaningful petroleum resources respects the need to engagement are essential to attract and sustain petroleum resource development resources for present and future generations. protect and advance the wise use of NWT Indigenous government organizations, • PREDICTABLE: in the territory, between GNWT departments, community governments, industry and decision-making processes are Oil and gas regulation and residents. clear, transparent and consistent to guide responsible development. NORTHWEST TERRITORIES 11 Petroleum Resources | 2018 INTRODUCTION The Mandate of the Government of the Northwest Territories 2016-2019 identifies the need to “develop a long-term strategy to attract oil and gas development in the territory”.

NWT Petroleum Resources - A Path to Northern Benefits and Energy Security (NWT Petroleum Office of the Regulator of Oil and Gas Operations); organizations and businesses; and advocating for working with Indigenous governments, the interests of NWT communities and businesses. WithResources activity Strategy) in this sector fulfills paused this commitment. in the NWT there is both time and opportunity to position the NWT as a jurisdiction for future development. potential to generate revenues capable of The NWT’s petroleum resources offer the comes the need to establish a strong policy stimulating infrastructure development; With the potential for growth and development supporting and driving the NWT economy:

supporting public programs and investment. Thefoundation April 2014 and devolutionidentify a clear of decision- path forward. advancing new economic opportunities; and making authority for onshore resources to recognizes that this level of development is reliant The Government of the Northwest Territories (GNWT) has given NWT residents the authorities the Government of the Northwest Territories to address the resource development and and sustain industry investment. on the return of global markets that will justify management issues that impact them. This Strategy, therefore, also considers shorter- As the land manager on matters related to term opportunities to use NWT natural gas resources to address local energy needs and as a public land, water and resources, the GNWT needs to balance a number of roles with respect means to grow and advance the NWT’s promising investment; managing land and administering to the petroleum resources sector: attracting knowledge sector and economy. land tenure instruments; protecting the environment; regulating activity (through the NORTHWEST TERRITORIES Petroleum Resources | 2018 12 STATE OF THE NWT PETROLEUM RESOURCES SECTOR While the NWT’s petroleum resources sector has long been an industry on the verge of becoming a powerful economic driver, its potential has, to date, never been realized.

Due to investment constraints, companies There are currently eight pools or regions that have produced oil or natural gas in the

have, traditionally, only explored for the NWT’s Cameron Hills, Pointed Mountain and four petroleum resources when commodity prices Northwest Territories – Norman Wells, Ikhil, pools in the Fort Liard area. were high, or when financial incentives were in the 1970s and 1980s. offered by the federal government – as they were Long distances, a lack of transportation Between 2011 and 2013, five companies were infrastructure and high costs of energy, Canol shale in the Central Mackenzie Valley, awarded 13 Exploration Licences (ELs) in the resulting in commitments of $626 million in contributors to higher exploration, development exploration spending. capital and labour are commonly identified as and production costs. As of January 2018, there are currently

have been drilled in the NWT, the majority of While more than 1,300 onshore wells 13 active ELs held by five companies in the commitments of approximately $1.9 billion Canadian Beaufort Sea with exploration work build an understanding of NWT resources but are these are exploration wells that have helped to approximately $474 million held by Indigenous and associated work bid deposit securities of and Northern Affairs Canada. not producing wells. NORTHWEST TERRITORIES 13 Petroleum Resources | 2018

WORLD-CLASS POTENTIAL The National Energy Board (NEB) estimates that With known high-quality, mature source rocks the NWT could hold as much as 37 percent of identified, there is also potential for the discovery mainland basins such as the Devonian Canol of new shale-based reserves in the NWT’s of its marketable natural gas. Discovered and Formation and Cretaceous Slater River Formation. Canada’s marketable light crude oil and 35 percent recoverable potential for the NWT onshore and Existing geoscience datasets, established during the offshore is estimated at 1.2 billion barrels (bbl) of Mackenzie Plain Petroleum Project, require detailed conventional oil and 16.4 trillion cubic feet (Tcf) of conventional natural gas. Ultimate conventional information from the adjacent Peel Plain is also study to better understand shale reservoirs. New

These estimates do not account for larger possible hydrocarbon resource potential in this area. potential is estimated to be over five times that. required to expand the knowledge and mapping of reserves in the deep waters of the Beaufort Sea by the geological surveys of the NWT and Yukon, In a March 2016 Energy Briefing Note, released Inwhich addition have toyet conventional to be explored. high permeability and the British Columbia Ministry of Energy, Mines, and Natural Gas, the ultimate potential for marketable, unconventional gas in the Liard Basin plays, there is also significant potential for resources in the NWT. unconventional or low permeability petroleum was estimated at 219 Tcf, the equivalent of 90 years Theof Canada’s Liard Basin natural Hydrocarbon gas consumption Project, at undertaken 2014 levels. and NEB joint report An Assessment of the The May 2015 NWT Geological Survey (NTGS) Unconventional Petroleum Resources of the marketable gas volume from the NWT portion Bluefish Shale and the Canol Shale in the by the NTGS from 2012-2015, sets the expected Northwest Territories estimated oil-in place in the additional 33 Tcf of marketable gas is estimated to of the Upper Besa River/Exshaw at 44 Tcf. An

Canol Shale at 145 bbl of oil; and 45 bbl in the Horn River. is deemed marketable, it establishes these exist in the NWT portion of the Lower Besa River/ Bluefish shale. If only one percent of this potential

- shale oil plays such as the Bakken Formation and formations as world-class - equal to or greater than the Permian Basin in the United States. NORTHWEST TERRITORIES Petroleum Resources | 2018 14 TIMELINE

Indigenous residents make use of natural petroleum seepages along the Mackenzie River to seal canoes; Explorer Pre-1789 Alexander Mackenzie records petroleum seepages from the Lower Ramparts during his exploration of what is now the Sahtu region 1800s Tar springs at Fort Good Hope are used by Dene and Hudson’s Bay traders as a source of pitch 1911 Seepages at Norman Wells identified by Dene and local traders 1913-14 Area of Norman Wells seepages staked by Dr. Bosworth 1919 Imperial Oil acquires the rights to the Norman Wells prospect; drilling commenced in 1920 1920 Northwest Discovery No. 1 flows oil to the surface from fractures in the Canol formation at Norman Wells As part of war effort, the Canol Project is initiated to transport Norman Wells oil to Whitehorse by pipeline - from initial 1942 flows of 3000 bpd it eventually reaches 4400 bpd in 1944; project is dismantled after the war Mid 1950s Exploration in the southern NWT - discovery of Cameron Hills field

1960s Geophysical exploration and drilling in the Mackenzie Valley and Delta begins

Discovery of Pointed Mountain natural gas field by Amoco; production continued until 1998; in 2011 hydraulic fracturing in 1966 the field identified the potential for prolific shale gas reserves 1971 Taglu gas field discovered by Imperial Oil 1972 Parsons Lake gas field discovered by Gulf Canada 1973 Niglintgak gas field discovered by Shell Canada Bent Horn oil field on Cameron Island discovered by Panarctic Oil; oil produced and shipped by tanker from 1985-1996. 1974 Field abandoned in 1996 Middle East oil crisis spurs exploration in the north; federal government initiates incentive programs that increase 1974 exploration significantly 1975-1985 Intensive exploration and drilling in the Mackenzie Delta and the Beaufort Sea After extensive public hearings throughout the NWT, the Mackenzie Valley Pipeline Inquiry (Berger Commission) 1977 recommended no gas pipeline development in the Mackenzie Valley for 10 years to allow settlement of land claims; federal government ceases issuance of new exploration rights Amauligak oil field discovered in deeper water of the Beaufort Sea. Over 300,000 barrels of oil transported by tanker to 1984 Japan in one shipment 1984 Ikhil gas field discovered near Inuvik Production facilities at Norman Wells are expanded, and the Norman Wells Pipeline is built to transport oil to Alberta and 1986 southern markets 1989 New rights issued for exploration in the Mackenzie Delta-Beaufort Sea 1989-1991 Low commodity prices halt exploration in the Mackenzie Delta - Beaufort Sea 1994 Lands again made available for exploration in the onshore NWT 1999 Ikhil pipeline begins to supply natural gas to Inuvik NORTHWEST TERRITORIES 15 Petroleum Resources | 2018

2000-2004 Exploration starts again in the Mackenzie Delta 2000 Interest is rekindled in an Alaska Highway Gas Pipeline (Yukon) and a Mackenzie Gas Pipeline Aboriginal Pipeline Group (APG) is formed to represent the ownership interests of the Aboriginal people of the NWT in the Mackenzie Gas Project (MGP); APG becomes a partner in the consortium of companies proposing the Mackenzie Gas Project 2000 EIA and regulatory applications are filed with the Joint Review Panel, the NEB, and northern boards for permits and authorizations related to the Mackenzie Gas Project 2004 Aboriginal Pipeline Group (APG) is formed to represent the ownership interests of the Aboriginal people of the NWT in the Mackenzie Gas Project (MGP); APG becomes a partner in the consortium of companies proposing the Mackenzie Gas Project 2005-2006 Exploration drilling begins again in the Beaufort Sea 2010-2011 NEB and Governor-in-Council approve the Mackenzie Gas Project and issue a Certificate of Public Convenience and Necessity subject to numerous conditions. 2011 One of the Ikhil wells runs dry. The second continues to be a back-up or supplementary supply for power generation in Inuvik 2011 NEB releases the report of its Arctic Offshore Drilling Review, undertaken following the Macondo oil spill in the Gulf of Mexico; NEB revises filing requirements for offshore drilling 2013 Imperial Oil and Chevron request a review by the NEB of their plans for deep water offshore drilling in the Beaufort Sea, specifically the requirement for same season relief well capability. Chevron subsequently decides not to proceed 2014 Devolution occurs; NWT gains more powers over its land, waters and natural resources 2015 Release of Canol and Bluefish shale oil-in-place estimates. The NWT appears to have considerably greater unconventional reserves than expected 2015 Calgary-based Strategic Oil and Gas announces its halting operations at the Cameron Hills production field due to low oil prices 2016 As a precautionary measure, Enbridge shuts down Line 21 to investigate and address slope instability near the Mackenzie River crossing, approximately ten kilometres east of Fort Simpson. 2016 A number of Exploration Licences (ELs) in the Central Mackenzie Valley are terminated by expiration, leaving all outstanding Work Bid Deposits forfeited to the Government of the Northwest Territories (GNWT) 2016 In a December 20, 2016 joint statement, President Barack Obama and Prime Minister Justin Trudeau designate the waters of the Arctic Ocean as being off-limits for new oil and gas leasing and licensing. The Prime Minister states that a science-based review of the Canadian offshore ban would be conducted in five years. 2017 President Donald Trump revokes President Obama’s designation signing an executive order aimed at expanding offshore drilling in the Arctic and Atlantic Oceans 2017 Put this between: 2017 The Government of the Northwest Territories issues six Significant Discovery Licences (SDL) in the Central Mackenzie Valley 2017 Imperial Oil announces that the joint-venture partnership driving the Mackenzie Valley Gas Project has been dissolved NORTHWEST TERRITORIES Petroleum Resources | 2018 16

THE NWT’S REGULATORY ENVIRONMENT The administration of oil and gas rights under FOR PETROLEUM RESOURCES the PRA fits within land use plans and planning baseline research funded by the ESRF builds the Government of Canada in 2014, is embedded processes, while environmental and socio-economic The NWT’s regulatory framework, devolved from and informs the regulatory regime of the future. self-government agreements. datasets, information and knowledge that guides within the context of Indigenous land claims and It is a regime based on long-standing best LAND USE PLANS SUPPORTING THE DEVELOPMENT OF PETROLEUM RESOURCES accepted and understood by governments and practices and requirements, generally well- Areas, existing land use plans provide clarity In the Tłįchǫ, Gwich’in and Sahtu Settlement its oversight of petroleum development as it stakeholders; and provides for the GNWT to grow continues to evolve. as to areas where petroleum development can occur. The plans are a result of significant values and aspirations of the communities and community and stakeholder input and reflect the The development of the NWT’s petroleum party agreements, have been jointly approved resources is governed by two pieces of legislation, regions. The Gwich’in and Sahtu plans are multi- the Petroleum Resources Act (PRA) and the Oil by the NWT, Canada and the regional Indigenous from the original federal legislation. and Gas Operations Act (OGOA), both mirrored governments, and are legally binding. The Tłįchǫ plans, the Environmental Studies Research Fund Land Use Plan applies to Tłįchǫ private lands, The PRA administers rights, royalties, benefits Department of Culture and Lands Protection. Calls and is administered by the Tłįchǫ Government’s

(ESRF) and information management, while the land use plans to bring increased certainty to the for bids in these Settlement Areas align with the AlthoughOGOA administers the majority operations. of the onshore regions of regulatory process.

In the Inuvialuit Settlement Region, Community the NWT are regulated, under the OGOA, by the Conservation Plans advise developers on Office of the Regulator of Oil and Gas Operations Settlement Region and the Norman Wells Proven community land based concerns and interests. (OROGO), the onshore regions of the Inuvialuit Area are administered by the National Energy Board (NEB). Use Plan and bring clarity and certainty for Work is still required to finalize a Dehcho Land developers in this region of high potential. NORTHWEST TERRITORIES 17 Petroleum Resources | 2018

PATHWAYS TO DEVELOPMENT public survey solicited the input of the general Between March and April 2015, an online guided in large part, by an extensive engagement public and a broad database of interested The GNWT’s development of this Strategy has been groups and individuals. leaders, subject matter experts, Indigenous groups, with communities, territorial stakeholders, industry and the general public. to assess the NWT as a location for increased Sector stakeholders, in particular, were asked petroleum development and investment.

Between November 2014 and January 2015, governments, industry, Indigenous organizations, recommendations – including perceived gaps or interviews were held with representatives of Individuals were asked to contribute insights and non-government organizations and stakeholders barriers – for consideration by the GNWT in its creation of a strategy for the development of NWT petroleum resources sector. petroleum resources. with direct and extensive experience in the a range of individuals, including Indigenous as opportunities, risks, concerns and key obstacles Additional interviews were conducted with In all cases, participants described what they saw

place to successfully realize increased petroleum the petroleum resources industry in Alberta, – as well as the conditions that they felt must be in governments, those working in and with investment and development. and with GNWT employees in a number of affiliated departments. The result of this consultation and engagement was of Pathways to Development: Public Engagement documented in the September 2015 publication A series of eight focus groups were held in NWT Report for the NWT Oil and Gas Strategy. regional centres: two each in Inuvik, Norman Simpson and Hay River. Wells, and Yellowknife, and one each in Fort NORTHWEST TERRITORIES Petroleum Resources | 2018 18 THE PETROLEUM RESOURCES STRATEGY: A MEMBER OF THE FAMILY OF NWT STRATEGIC POLICIES The development and implementation of this Strategy is not something that has, or will, be done in isolation.

In charting a path for the NWT petroleum resources sector, an all-of-government policy documents, the NWT Petroleum Resources As a member of the GNWT’s family of strategic approach continues to be key. Strategy builds upon existing commitments and

While this Strategy is focused on developing direction already included in the: resources, it recognizes that the coordinated • the economic potential of the NWT’s petroleum • NWT Land Use and Sustainability Framework and land is also important to creating and and aligned management of water, air, wildlife • sustaining investment opportunities and NWT Climate Change Strategic Framework economic development. • TheNWT Traditional 2030 Energy Knowledge Strategy Policy • NWT Transportation Strategy •

• NWT EconomicMineral Development Opportunities Strategy Strategy •

NWT Water Stewardship Strategy NORTHWEST TERRITORIES 19 Petroleum Resources | 2018

All GNWT decisions on land and resource The GNWT is a signatory to the Pan Canadian management are guided by the overarching

Framework on Clean Growth and Climate The LUSF provides a foundation for sustainable to a 30 percent reduction in greenhouse gas Land Use and Sustainability Framework (LUSF). Change, which commits Canadian jurisdictions land use and guides integrated and principled decisions to ensure sustainable land use for emissions by 2030 from 2005 levels. The NWT Climate Change Strategic Framework outlines Northerners. The NWT Petroleum Resources the benefit of current and future generations of how the NWT will reduce its greenhouse economy. Using NWT natural gas to displace gas emissions and move to a lower Carbon Strategy aligns with the GNWT Land Interest – “The Land Provides Benefits and Wealth”. imported diesel will contribute to this goal. Territories 2030 Energy Strategy and the With established links to the Northwest Meanwhile, the 2030 Energy Strategy aims to to diesel and other fuels imported from southern increase the use of local and renewable alternatives Petroleum Resources Strategy compliments a Climate Change Strategic Framework, the WhileCanada, this for Strategy both heat considers and power the needs. means to sustainable and affordable energy costs for NWT legislative framework that is working to ensure, extract petroleum resources for their economic residents and businesses.

benefits, the GNWT’s Energy Strategy will work others, for use in our communities, businesses to deliver these energy resources, as well as and homes.

“While this Strategy is focused on developing the economic potential of the NWT’s petroleum resources, it recognizes that the coordinated and aligned management of water, air, wildlife and land is also important to creating and sustaining investment opportunities and economic development.” NORTHWEST TERRITORIES Petroleum Resources | 2018 20

IMPLEMENTATION OF THE STRATEGY

This Strategy outlines 10 goals Projected timelines for the goals and action items under three pillars: included in the Strategy have been separated into • Improving our Competitive Edge • Short term (1-3 years) • Ensuring Benefits for NWT Residents three distinct categories: • Medium term (4-7 years) • Creating a Sustainable and Innovative Sector • It includes actions and performance measures to TheLong actions term of (8-15 this Strategy years) are considered to be guide its implementation over the next 15 years. Strategy is updated, revised and improved upon be undertaken across a number of GNWT fluid. Identified measures will ensure that the More detailed implementation planning will as needed in a dynamic and evolving context. departments, Indigenous governments and stakeholder organizations to ensure that the implementation process is balanced, sustainable monitored by the Department of Industry, The implementation of this Strategy will be and feasible. Tourism and Investment (ITI) and its measures reported on every 3 years. Unless noted, the The key requirements for implementation

implementation of action items will be led by ITI. are• Goals captured as follows: • Action Item • Timelines • Supporting GNWT Departments • Links to GNWT Strategies NORTHWEST TERRITORIES 21 Petroleum Resources | 2018

The implementation of this Strategy will be monitored by the Department of Industry, Tourism and Investment (ITI) and its measures reported on every 3 years. Unless noted, the implementation of action items will be led by ITI. NORTHWEST TERRITORIES Petroleum Resources | 2018 22 PILLAR I: IMPROVING OUR COMPETITIVE EDGE Our territory has a unique combination of circumstances that present challenges for attracting investment and

realizing value from our petroleum resources.

Developing transportation infrastructure, NECESSARY INFRASTRUCTURE IN PLACE enhancing our legislative and regulatory TO FACILITATE ACTIVITY IN THE NWT’S PETROLEUM RESOURCES SECTOR framework and promoting our potential to an ability to attract investment in the development of international audience will all contribute to our Improving the NWT’s transportation NWT petroleum resources. costs, support local businesses, and make the infrastructure will increase predictability, reduce NWT more attractive to investment. GOALS 1. Necessary infrastructure in place to offers the greatest potential return on investment, The completion of the Mackenzie Valley Highway of all NWT transportation infrastructure projects, resources sector facilitate activity in the NWT’s petroleum and is the highest priority for development of the 2. An improved NWT oil and gas regulatory While federal investment is required to build Canol and Bluefish shales in the Sahtú Region. 3. Greaterframework investment in NWT petroleum expected spending from resource development resources the highway, the rationale is compelling; with in the Valley estimated to be 80 times greater 4.

Greater public awareness and understanding than the cost of constructing the highway the Canada Transportation Act. Landof the use NWT’s certainty petroleum related resources to responsible sector according to a 2015 review report of petroleum development 5. NORTHWEST TERRITORIES 23 Petroleum Resources | 2018

Pipelines, in particular, are required for the AN IMPROVED NWT OIL AND GAS territorial petroleum resources industry. Although REGULATORY FRAMEWORK mega projects are no longer the rule, the potential The regulatory system in the NWT has been exists for small pipeline infrastructure projects criticized for unnecessarily increasing the costs to meet the local and regional needs of NWT and timelines of projects in both the exploration residents and businesses. and development phases.

The regulatory process and the number of governments, neighbouring territorial and Discussions with NWT Indigenous regulatory bodies involved in it, mean that not provincial governments, Canada, international every project in the NWT has been assessed in the governments, resource companies, financial organizations all offer opportunities to bring Assame territorial way or inregulatory the same processes length of time.evolve, institutions, universities and non-profit energy and transportation infrastructure level of regulatory scrutiny, and associated investment in the NWT to the forefront. flexibility is essential to ensure that the

In addition to roads and pipelines the NWT the environmental and social risks posed by process demands and costs, are in line with investments in other infrastructure projects NWT regulators to adapt their processes as stands to benefit, directly and indirectly, from the proposed activity. Flexibility would allow governments, industry and residents gain proposed port on the Beaufort Sea. including power lines and fiber optic lines and a development. ACTIONS knowledge and experience from petroleum 1.1 Advance northern corridors to facilitate regulators, Indigenous governments, the federal The GNWT must work collaboratively with sector. activity in the NWT’s petroleum resources 1.2 Support the expansion of marine government, and industry to define regulatory improvements that support efficient, timely and infrastructure. standards for environmental protection and transparent processes while maintaining high respect for northern values. NORTHWEST TERRITORIES Petroleum Resources | 2018 24

The Petroleum Resources Act (PRA) and the Oil and Gas Operations Act (OGOA) must ensure balanced continues to study NWT petroleum potential The Northwest Territories Geological Survey (NTGS) and effective administration and oversight of related activities in the NWT that serve GNWT explorers and investors to seek out and develop the to provide a compelling, scientific rationale for policy objectives and the public interest. development of NWT petroleum resources.

ACTIONS expand our understanding of NWT resources and Increased geoscience information and data will our ability to target and attract investment. 2.1 Review and improve the PRA. ACTIONS 2.2 Review and improve the OGOA. 3.1 Promote and market NWT oil and gas 2.3 Review and improve existing oil and gas resources and investment opportunities 2.4 Increaseregulations coordination under the PRAand cooperationand OGOA. nationally and internationally.

regulatory process. 3.2 Characterize NWT resource potential across government and with partners in the

standards and guidelines throughout the via petroleum geoscience research with 2.5 Establish and support best practices, service regulatory system. Northwest Territories Geological Survey and with partners. and encourage existing investors to remain 3.3 Consider incentives to attract new investors GREATER2.6 Publish INVESTMENT NWT Oil and Gas Regulatory Guide. committed to the NWT. IN NWT PETROLEUM RESOURCES

Finding new and different ways to promote and encourage investment in the NWT’s petroleum resource potential will work to strengthen the growth potential of the industry. NORTHWEST TERRITORIES 25 Petroleum Resources | 2018

GREATER PUBLIC AWARENESS AND LAND USE CERTAINTY RELATED TO UNDERSTANDING OF THE NWT’S RESPONSIBLE PETROLEUM DEVELOPMENT PETROLEUM RESOURCES SECTOR position the NWT for increased interest from The settlement of outstanding land claims will potential investors. Settled land claims offer With increased awareness and understanding, resource development that is conducted in a much-needed clarity regarding the access and NWT residents will gain confidence to support responsible and sustainable manner. include protocols for petroleum exploration and Increased access to plain-language development of specific land areas; and can development. environmental, economic and social information relevant to petroleum development and road mapping is key. This includes information on To ensure all benefits of development are regulatory requirements and industry practices realized or considered, they must be known that comes from cross-departmental collaboration developed, amended or updated. and understood when land use plans are being supported by a transparent regulatory regime. As outstanding land claims are settled, the ACTIONS and the territorial government must also continue 4.1 Develop and distribute public information relationship between Indigenous governments to be strengthened to ensure that all parties materials addressing issues and opportunities in involved in petroleum development can realize

4.2the NWT’s Promote petroleum open and resources transparent sector. dialogue on the benefits. issues and opportunities surrounding petroleum ACTIONS development in the NWT. provide prompt information and advice. 5.1 Collect and maintain accurate data and NORTHWEST TERRITORIES Petroleum Resources | 2018 26 PILLAR II: ENSURING BENEFITS FOR NWT RESIDENTS The development of the NWT’s petroleum resources has traditionally been associated with large projects, designed

to pay dividends in the long term.

As the global energy sector goes through a LOCALLY PRODUCED ENERGY FOR period of unprecedented transformation, RESIDENTS AND BUSINESSES technological and methodological innovations The completion of the Inuvik-Tuktoyaktuk are making small-scale, modular solutions increasingly economic and ideal for northern and accessible in the Beaufort Delta Region. This may Highway makes local natural gas resources more remote applications. We can realize value from our petroleum resources at home; providing alternative to importing diesel and natural gas offer a sensible, lower-cost and lower-emissions from Southern Canada, reducing the traditional

energy security and lowering energy costs and emissions from imported diesel by using our own reliance on diesel and flowing greater economic communities and businesses. natural gas resources for heating and powering Thebenefits use ofto locally-availableBeaufort Delta communities. natural gas resources GOALS 6. Locally produced energy for residents and will also reduce the risk of energy supply fuels - and contribute to greater resiliency in NWT businesses disruptions when compared to diesel or other communities and businesses.

7. NWT workforce and business capacity to In displacing imported diesel for power needs, participate in and benefit from activities in the an optimal energy mix will be sought based on 8. GNWTNWT’s ispetroleum a full partner resources in offshore sector oil and gas and natural gas all being considered. Companies community geography, with hydro, wind, solar policy and governance a similar determination for their energy needs. pursuing development projects in NWT will follow NORTHWEST TERRITORIES 27 Petroleum Resources | 2018

Initiatives that increase the capacity of northern and Indigenous businesses to participate and Natural gas, when used as a heat and power than diesel fuel. Using NWT natural gas in place invest in the full lifecycle of projects, including source, emits 25 percent less greenhouse gas of imported diesel not only reduces the emissions residents are maximized. remediation, will help to ensure benefits to NWT from its transportation. from burning diesel, it will also reduce emissions Maximizing opportunities for training and ACTIONS 6.1 Develop partnerships to advance community development within the territorial petroleum a better understanding of the skills required, the and regional natural gas projects. resources sector will be key to its growth. With GNWT, Aurora College, schools, businesses and

6.2 Attract interest and investment in community and regional natural gas projects. employers will be able to identify the training and capacity building opportunities that will help having to leave the NWT. NWT WORKFORCE AND BUSINESS residents find meaningful employment without CAPACITY TO PARTICIPATE IN AND ACTIONS BENEFIT FROM ACTIVITIES IN THE NWT’S PETROLEUM RESOURCES SECTOR the opportunity to develop and acquire the The NWT must realize its fair share of resource 7.1 Provide NWT residents and businesses with

activities throughout project lifecycles. Partnerships and collaborations have traditionally skills and capacity necessary to benefit from development benefits to build prosperity. served the NWT petroleum resources sector energy companies, NWT businesses and 7.2 Research partnership options between governments. well. Cooperative arrangements provide mutual and risks for each participant. benefits to all participants while reducing costs development in the NWT. 7.3 Report on benefits of petroleum In order to be active in the NWT’s petroleum resources sector, proponents must confirm how NWT residents will benefit from their projects. The public reporting of these plans and benefits will increase awareness and understanding of the residents and governments to capitalize on them. benefits that these activities bring, and allow NWT NORTHWEST TERRITORIES Petroleum Resources | 2018 28

THE GNWT IS A FULL PARTNER IN ACTIONS OFFSHORE OIL AND GAS POLICY AND 8.1 Negotiate Beaufort Sea offshore oil and gas GOVERNANCE co-management and revenue sharing. To advance the economic and environmental 8.2 Partner in Arctic offshore environmental and socio-economic research and full partner in setting policy and governance for interests of the NWT, it is the GNWT’s goal to be a assessment. energy development in the Beaufort Sea and other 8.3 Partner in Arctic offshore policy and decision processes. TheseNWT offshore elements waters. range from co-management and revenue-sharing agreements to regional strategic environmental assessment, to building shipping and navigation capability, emergency and spill response capacity, ports, ice breakers, satellite stations, remote sensing and monitoring capability and innovative marine technologies for a changing Arctic environment and economy. NORTHWEST TERRITORIES 29 Petroleum Resources | 2018

“We can realize value from our petroleum resources at home; providing energy security and lowering energy costs and emissions from imported diesel by using our own natural gas resources for heating and powering communities and businesses.” NORTHWEST TERRITORIES Petroleum Resources | 2018 30 PILLAR III: CREATING A SUSTAINABLE AND INNOVATIVE SECTOR

Northern innovation today will unlock the responsible resource development opportunities of tomorrow and align our petroleum resources sector to better meet the new

realities we will face.

DECISIONS ABOUT THE DEVELOPMENT OF and solutions and embrace innovation and the NWT PETROLEUM RESOURCES INCORPORATE We need to turn our attention to new technologies SCIENCE AND TRADITIONAL KNOWLEDGE sector in the future. The persistence, patience and Baseline environmental monitoring, regular Knowledge Economy to ensure a sustainable ingenuity of Northerners can make this happen. evaluation and research and public reporting are

GOALS for building public support for territorial policy. critical to the GNWT’s decision-making process and 9. Decisions about the development of NWT petroleum resources incorporate science and regulatory processes to ensure that projects are Research and monitoring will inform policy and adaptable to changing conditions and minimize 10. traditional A sustainable knowledge petroleum resources sector

their risks and impacts on water, air, climate Economy backed by innovation and the Knowledge change, wildlife, health, safety and infrastructure. NORTHWEST TERRITORIES 31 Petroleum Resources | 2018

Established programs such as the Cumulative Impact Monitoring Program (CIMP) and research initiatives and experimental or pilot The NWT is well positioned to benefit from Environmental Studies Research Fund (ESRF) environment, climate and conditions. projects utilizing and studying the North’s unique relevant to the development and management of support science and traditional knowledge petroleum resources. petroleum resources sector – including its Integrating and promoting study of the NWT’s The GNWT is committed to strengthening the reclamation - can result in insights and innovations degree to which traditional knowledge is also that will, in turn, advance or sustain the safe - and in the delivery of programs and services to shared or exported nationally and globally. considered and reflected in its decision making development of these resources, and which may be NWT residents.

improve the rationale for the development of ACTIONS Reduced costs and environmental impacts will NWT petroleum resources. 9.1 Support the advancement of environmental ACTIONS ESRF and other science programs. and socio-economic knowledge through the funding partners to attract research and 10.1 Work with academia, stakeholders and in decision processes involving the NWT 9.2 Ensure traditional knowledge is incorporated petroleum resources sector. petroleum resources sector. pilot projects centred around the NWT’s A SUSTAINABLE PETROLEUM RESOURCES 10.2 Support the creation of Centres of SECTOR BACKED BY INNOVATION AND THE Excellence and advance the NWT Science KNOWLEDGE ECONOMY Agenda to promote innovation and the Innovation, founded in the experience and expertise of NWT residents and businesses, can Knowledge Economy. Economy developments on the petroleum 10.3 Identify opportunities to focus Knowledge realize new ways of developing and rehabilitating strengthen the sustainability of the sector. NWT petroleum resources. Meanwhile, the resources sector to improve efficiencies and advancement of the NWT’s Knowledge Economy will facilitate the collection, application and sharing of applicable knowledge and data sets. NORTHWEST TERRITORIES Petroleum Resources | 2018 32 APPENDIX A: SUMMARY OF GOALS PILLAR I PILLAR II IMPROVING OUR COMPETITIVE EDGE GOALS ENSURING BENEFITS 1. Necessary infrastructure in place to facilitate FOR NWT RESIDENTS GOALS 6. Locally produced energy for residents and sector businesses activity in the NWT’s petroleum resources 2. An improved NWT oil and gas regulatory 7.

NWT workforce and business capacity to 3. Greater investment in NWT petroleum framework participate in and benefit from activities in the resources 8. GNWTNWT’s ispetroleum a full partner resources in offshore sector oil and gas 4. policy and governance of the NWT petroleum resources sector Greater public awareness and understanding Land use certainty related to responsible petroleum development 5. PILLAR III CREATING A SUSTAINABLE AND INNOVATIVE SECTOR GOALS 9. Decisions the development of NWT petroleum resources incorporate science and traditional

10. knowledge A sustainable petroleum resources sector

Economy backed by innovation and the Knowledge NORTHWEST TERRITORIES 33 Petroleum Resources | 2018 APPENDIX B: STRATEGY IMPLEMENTATION The implementation of this Strategy will be monitored by the Department of Industry, Tourism and Investment (ITI) and its measures reported on every three years. Unless noted, the implementation of action items will be led by ITI.

TIMELINES EXPLAINED: SHORT TERM – 1-3 YEARS MEDIUM TERM – 4-7 YEARS LONG TERM – 8-15 YEARS

PILLAR I: IMPROVING OUR COMPETITIVE EDGE

SUPPORTING GNWT GOALS ACTION ITEMS TIMELINE LINKS TO GNWT STRATEGIES DEPARTMENTS

1.1 Advance northern corridors NWT Multi-Modal Transportation Strategy to facilitate Corridors to Canada III Medium to 1. Necessary activity long term infrastructure in the NWT’s in place to petroleum Mineral Development Strategy - Strategic Priority 1.3 facilitate activity resources sector Infrastructure (Lead) in the NWT’s petroleum Energy Action Plan - Action 7.2.5 1.2 Support resources sector the expansion of Medium to Economic Opportunities Strategy - Objective 4A, 4B marine long term infrastructure NWT Transportation Strategy NORTHWEST TERRITORIES Petroleum Resources | 2018 34

SUPPORTING GNWT GOALS ACTION ITEMS TIMELINE LINKS TO GNWT STRATEGIES DEPARTMENTS 2.1 Review and improve Justice; Executive and Short to medium the Petroleum Indigenous Affairs term Resources Act (EIA); Finance (PRA) 2.2 Review And improve Justice; EIA; Lands; Short to medium the Oil and Gas Environment & Natural term Operations Act Resources (ENR) (OGOA) 2.3 Review and improve existing Medium to long Justice; EIA; Finance; oil and gas term Lands; ENR regulations under the PRA and OGOA 2.4 Increase coordination and 2.An improved Justice; EIA; cooperation across NWT oil and gas Infrastructure; Lands; Economic Opportunities Strategy: government and Ongoing regulatory ENR; Regulatory Objectives 5E, 5F, 6B with partners in framework Partners the regulatory process 2.5 Establish best practices, Justice; EIA; service standards Infrastructure; Lands; Ongoing and guidelines ENR; Regulatory throughout the Partners regulatory system

2.6 Publish NWT Oil and Gas Short term ENR; Justice; Lands Regulatory Guide NORTHWEST TERRITORIES 35 Petroleum Resources | 2018

SUPPORTING GNWT GOALS ACTION ITEMS TIMELINE LINKS TO GNWT STRATEGIES DEPARTMENTS

3.1 Promote and market NWT oil Unlocking Our Potential and gas resources and investment Ongoing Infrastructure opportunities nationally and China Strategy and Action Plan internationally Energy Action Plan Action 7.7

3.2 Characterize NWT resource potential via Economic Opportunities Strategy - Objective 1A petroleum 3. Greater geoscience investment in NWT Ongoing research at petroleum the Northwest resources Territories NWT Geological Survey Strategic Plan Geological Survey and with partners 3.3 Consider incentives to attract new investors and encourage existing Medium to Long Finance investors to Term remain committed to the NWT

4.1 Develop and distribute public information ENR; Lands; Education, materials Culture & Employment addressing issues Ongoing (ECE); EIA; and opportunities Infrastructure; Justice in the NWT’s 4. Greater public petroleum awareness and resources sector understanding of the NWT’s petroleum 4.2 Promote open resources sector and transparent dialogue on issues ENR; Lands; and opportunities Ongoing Infrastructure; Justice; surrounding ECE; EIA petroleum development in the NWT NORTHWEST TERRITORIES Petroleum Resources | 2018 36

SUPPORTING GNWT GOALS ACTION ITEMS TIMELINE LINKS TO GNWT STRATEGIES DEPARTMENTS

Land Use Sustainability Framework 5. Land use 5.1 Collect certainty related and maintain to accurate data and EIA; Lands; ENR; NWT Recovery Strategy for Boreal Caribou responsible provide prompt Ongoing Infrastructure; Justice NWT oil and gas information development and advice NWT Water Stewardship Strategy

Healthy Land, Healthy People: GNWT Priorities for Advancement of Conservation Network Planning

PILLAR II: ENSURING BENEFITS FOR NWT RESIDENTS

SUPPORTING GNWT GOALS ACTION ITEMS TIMELINE LINKS TO GNWT STRATEGIES DEPARTMENTS

6.1 Develop partnerships to advance Infrastructure; ENR; Energy Action Plan - Action 7.2.4, 7.7.1 Short to long term community and Lands regional natural 6. Locally gas projects produced energy NWT Power Systems Plan for residents 6.2 Attract interest and businesses and investment in NWT 2030 Energy Strategy community and Medium to long Infrastructure regional natural term NWT Climate Change Strategic Framework gas projects Economic Opportunities Strategy - Objective 4A, 5H NORTHWEST TERRITORIES 37 Petroleum Resources | 2018

SUPPORTING GNWT GOALS ACTION ITEMS TIMELINE LINKS TO GNWT STRATEGIES DEPARTMENTS

7.1 Provide NWT residents and businesses with the opportunity Skills 4 Success - Goals 1 &4 to develop and acquire the skills Medium to long Education, Culture and and capacity term Employment (ECE) necessary to benefit from Economic Opportunities Strategy Objective 2C activities - Target 6, Target 7 7. NWT workforce throughout project lifecycles and business Mineral Development Strategy - Strategic Priority 4.6 capacity to participate in 7.2 Research and benefit from partnership activities in the options between Medium to long Finance; Infrastructure; NWT’s petroleum energy companies, term EIA resources sector NWT businesses and governments

NWT Labour Force Development Framework 7.3 Report on benefits of Short to Medium petroleum Term Schools North Apprenticeship Program development in the NWT Workforce Planning Strategy

8.1 Negotiate Beaufort Sea offshore oil Short to long term EIA and gas co- management and 8. GNWT is a full revenue sharing partner in offshore 8.2 Partner in oil and gas policy Arctic offshore NWT Lands and Resources Devolution Agreement - and environmental and Sections 3.20; 5.3 Short to long term ENR; Lands; EIA governance socio-economic research and assessment 8.3 Partner in Arctic offshore EIA; ENR; Lands; Short to long term policy and decision Infrastructure processes NORTHWEST TERRITORIES Petroleum Resources | 2018 38

PILLAR III: CREATING A SUSTAINABLE AND INNOVATIVE SECTOR

SUPPORTING GNWT GOALS ACTION ITEMS TIMELINE LINKS TO GNWT STRATEGIES DEPARTMENTS

9.1 Help advance environmental and socio-economic ENR; Mineral Development Strategy - Strategic Priority 1.1 knowledge Ongoing Infrastructure 9. Decisions about through the ESRF NWT oil and gas and other science development programs incorporate 9.2 Ensure science and Economic Opportunities Strategy - Objective 3A traditional traditional knowledge knowledge is ENR; incorporated in oil Ongoing Infrastructure; Lands; and gas decision Justice processes NWTWSS

10.1 Work with academia, stakeholders and funding partners ENR; to attract research Short to long term Infrastructure; Lands; and pilot projects ECE centred around the NWT’s petroleum resources sector. 10.2 Support the creation of Centres 10. A sustainable of Excellence and petroleum advance the NWT ENR; resources Science Agenda Ongoing Traditional Knowledge Policy Infrastructure; ECE sector backed by to promote innovation and innovation and the Knowledge the Knowledge Economy Economy 10.3 Identify opportunities to focus Knowledge Economy developments on the petroleum Ongoing ENR; ECE resources sector to improve efficiencies and strengthen the sustainability of the sector NORTHWEST TERRITORIES 39 Petroleum Resources | 2018 APPENDIX C: MONITORING AND EVALUATION FRAMEWORK

PILLAR I: IMPROVING OUR COMPETITIVE EDGE

GOALS PERFORMANCEINDICATOR(S) PERFORMANCE MEASURES

• Annual capital investment ($) • Annual number of kilometers completed • Number of infrastructure projects in regulatory process • Construction of transportation • Number of infrastructure projects under infrastructure 1. Necessary infrastructure in place to facilitate construction activity in the NWT’s petroleum resources • Number of infrastructure projects sector completed

• Bill introduced to amend the • Amendments to the Petroleum Resources Petroleum Resources Act Act • Bill passed • Come into force order • Bill introduced to amend the • Amendments to the Oil and Gas Operations Oil and Gas Operations Act Act • Bill passed 2. An improved NWT oil and gas • Come into force order regulatory framework

• Development of Regulations • Regulations in force NORTHWEST TERRITORIES Petroleum Resources | 2018 40

PILLAR I: IMPROVING OUR COMPETITIVE EDGE

GOALS PERFORMANCEINDICATOR(S) PERFORMANCE MEASURES

• Number of exploration licenses • Increase in exploration projects • Number of Significant Discovery Licenses 3. Greater investment in NWT petroleum • Increase in development projects • Number of Production Licenses resources • Increase in production projects • Value of work commitments ($) • NWT spend ($)

• Increased opportunities for public • Number of attendees at public engagement engagement sessions • Public understanding of NWT oil and gas • Public awareness, understanding and 4. Greater public awareness and understanding resources attitude (survey methodology) of the NWT’s petroleum resources sector • Amount of publications, resource materials, • Number of publications online resources • Number of website visits

• Amount of land under ILW • Amount of land categorized as proposed • Number of hectares under ILW conservation/protection • Percent of NWT land base under ILW 5. Land use certainty related to responsible • Amount of land accounted for under Land • Number of hectares under LUPs petroleum development Use Plan • Percent of NWT land base under LUPs • Land Use Plans • Protected Areas NORTHWEST TERRITORIES 41 Petroleum Resources | 2018

PILLAR II: ENSURING BENEFITS FOR NWT RESIDENTS

GOALS PERFORMANCEINDICATOR(S) PERFORMANCE MEASURES

6. Locally produced energy for residents and • Amount of displaced imported energy • Units of natural gas produced for local use businesses

• Number of NWT residents employed • Jobs filled by NWT residents (Northern, Northern Indigenous) 7. NWT workforce and business capacity to • Procurement value sourced from NWT • Percent employed (Northern, Northern participate in and benefit from activities in the businesses Indigenous) NWT’s petroleum resources sector • Dollar value of procurement • Percent value of procurement • Negotiations underway • GNWT partnering in arctic offshore • Agreement-in-principle signed 8. GNWT is a full partner in offshore oil and gas decision processes • GNWT-Federal Agreement signed policy and governance • GNWT-Federal Agreement implemented

PILLAR III: CREATING A SUSTAINABLE AND INNOVATIVE SECTOR

GOALS PERFORMANCEINDICATOR(S) PERFORMANCE MEASURES

• Continuing integration of science • Percent of regulatory decisions requiring and Traditional Knowledge into science and Traditional Knowledge 9. Decisions about the development of NWT regulatory processes throughout a project lifecycle petroleum resources incorporate science and • Integration of science and Traditional • Percent of ESRF funded studies traditional knowledge Knowledge into Environmental Studies incorporating science and Traditional Research Fund (ESRF) funded research Knowledge

• Indexed average cost of allowable expenses • Lower cost of doing business ($) 10.A sustainable petroleum resources sector • Lower environmental impact • Ratio of amount of water used per unit backed by innovation and the Knowledge • Attract research and development activity energy Economy relevant to oil and gas • Number of research and development projects in the NWT