Regional Development in the Northern Rockies: Laying the Groundwork for Success

The Northern Rockies region of , in northeastern British Columbia, covers one-tenth of the province. It is a land of great beauty, rich in natural resources. The Northern Rockies Regional Municipality (NRRM) is the regional government for the region. This land is also home to three First Nations and their traditional territories: Fort Nelson First Nation, Acho Dene Koe (Fort Liard First Nation) and Prophet River First Nation. To ensure the Northern Rockies reaches its full potential in the years ahead, NRRM and Fort Nelson First Nation are working together. They are calling on other public and private sector interests to contribute to a new regional development strategy. The Northern Rockies: Tremendous Opportunity. Great Responsibility.

The Northern Rockies region today boasts and work in a region and may make it difficult land use planning, property tax policies and 30% of BC’s natural gas production, and for industry to attract and retain key personnel. business issues that fall within its jurisdiction. has the largest reserves of shale gas in the A better approach is to commit to infrastructure In 2009 the NRRM introduced BC’s first province, possibly in Canada. There are 40 and environmental planning in advance for fixed industrial tax ratios policy. NRRM now natural gas fields in the Fort Nelson area, and growth regions such as the Northern Rockies. applies the same tax rate to utilities, light interest is growing among gas producers in The Province of BC, for example, has invested industry and major industry, and offers each shale gas production, particularly in the Horn in infrastructure for the district, and the advantage of predictability and stability. River Basin. Land sales in the area topped $2 this has helped that region considerably. This single-tier approach to taxation was billion between 2006 and 2008. supported by the Canadian Energy Pipeline Shale gas is an unconventional gas source, the Key Interests in the Region Association (CEPA) and Canadian Association extraction of which demands a considerable Province of British Columbia of Petroleum Producers (CAPP). commitment of time, money and resources. The Province of British Columbia has made A 2007 capital needs assessment conducted While the economic feasibility of exploiting clear its support for natural gas development. by NRRM underscores the importance of shale gas reserves is under evaluation, current Moreover, BC is the only Canadian province infrastructure to secure a good quality of life of land sales and drilling activity suggests an to target the development of unconventional its citizens and to attract a suitable workforce upswing in activity is ahead. resources, including shale gas, as a priority. and service industries, such as those expected Shale gas development holds promise for for the Horn River Basin development. BC’s oil and natural gas producers have investors, producers, all orders of government been offered new incentives. The Province NRRM has stated that it does not want to and the people of the region. Yet success in of BC recently announced a 2% provincial fund infrastructure through new taxation and exploiting this comparatively new resource royalty rate for all wells drilled between is undertaking discussions with the Province will call for an high level of collaboration September 2009 and June 2010, plus a 15% of BC to pursue options for a provincial among sectors. This means a commitment to increase in the existing royalty deductions infrastructure investment. work together to secure the social, economic for deep gas drilling. and environmental health of the region, and to make community, economic and There is opportunity for development in the environmental planning a priority. Northern Rockies, particularly in the Horn River Basin. The timing may be ideal for the Province, Both the NRRM and local First Nations have an together with the Regional Municipality and interest in seeing all natural resource companies First Nations, and with input from industry and hire local people and retain local service the community, to address planning issues, industries. As well, natural resource industries including a regional development strategy. have an interest in working with a community that is able and willing to welcome newcomers. Northern Rockies It is critical that infrastructure and services Regional Municipality keep pace with development. The Northern Rockies Regional Without sufficient planning, there are risks on Municipality was incorporated in February every front. Experience from Alberta shows that 2009. NRRM is a unique entity that came rapid growth related to oil sands development about through a voluntary amalgamation was accompanied by significant environmental of the Town of Fort Nelson (created in 1971 degradation and deficiencies in housing, waste as a resource municipality) and the regional treatment and health care services in some district. The Municipality is now the regional communities. The ripple effects of inadequate authority for 10% of the land in BC and its infrastructure is discouraging for all who live intention is to take a unified approach to Kluane Liar National Park Dezadeash d R. Cormack Lake Kakisa Lake Slave R. Lake Yukon Te Tathlina Lake slin R. Tazin Kusawa Lake Trout Lake Lake The NorthernCopp Lake Rockies Buffalo Lake Acho Dene Koe d R. Liar (Fort Liard First Nation) The NorthernWood BuffaloRockies National Park Regional Municipality and First Nations

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and FNFNolumbia recognize the great tremendous potential for resource Skagit development, including that in the Horn River Basin. At the same time, they want to see projects advance with care. Everett Spokane First Nations This will almost certainly prove true for shale It’s Time to Work Together gas, an unconventional resource that is the The Northern Rockies region of BC lies The Northern Rockies is a region set for focus of production in the Horn River Basin. within the traditional territories of Fort economic expansion. The Northern Rockies Nelson First Nation, Acho Dene Koe (Fort NRRM and local First Nations in the region are Regional Municipality and Fort Nelson First Liard First Nation) and Prophet River First building stronger relationships and working Nation are preparing to embrace change, Nation. Both Fort Nelson First Nation and on shared service delivery, economic initiatives including increased demand for infrastructure Prophet River First Nation are signatories to and infrastructure development. By formalizing and services that is certain to accompany new Treaty 8, a treaty with the British Crown that a working agreement between them, the Fort natural gas exploration. They wish to ensure they joined in 1910. Treaty 8 covers lands Nelson First Nation and NRRM are creating an that issues are managed in the best interests integrated, stable regional environment that is in northeastern BC, as well as certain lands of the region as a whole. in Alberta and Saskatchewan. The ongoing a benefit to investors and producers. In accordance with their recent Regional and future interests of these First Nations It is encouraging to see parallel efforts on the Community Agreement, and a shared vision, in managing their lands, communities, part of the industry. For example, the Horn the NRRM and FNFN plan to work together economic opportunities and quality of life River Basin Producers Group (HRBPG), came are of pivotal importance when it comes to together in 2007. This group represents major on establishing a stable, unified regional development in the region. industry players in shale gas production, presence. They extend an open invitation to including Apache Canada Ltd., Encana, Devon Prophet River First Nation and Acho Dene Koe Natural Gas Producers Canada Corp., EOG Resources Canada, Nexen to join this Agreement. Success in natural resource development Inc., Quicksilver, Imperial Oil Resources/ This is a critical time to bring together local calls for a high degree of collaboration among ExxonMobil Canada, Stone Mountain government, First Nations, the Province of government authorities, producers and the Resources, Conoco-Philips, Pengrowth and BC, the natural gas industry, other resource community as a whole. PetroCanada. They facilitate cooperation and industries and interested members of the coordination between major producers and community to enhance the social, economic regulatory and community interests. This is and environmental well-being of the region. a positive step, as there are many reasons for HRBPG to seek cooperation and collaboration In the fall of 2009, NRRM and FNFN will begin with producer companies, the Provincial a dialogue with multiple interests respecting Government, the Regional Municipality, First new opportunities and a regional development Nations and other key interests. strategy for the Northern Rockies region.

The Northern Rockies Regional Municipality and Fort Nelson First Nation believe their community agreement holds promise of a bright future for the Northern Rockies. They now look forward to forging a strong working partnership among all interests in the region, and will invite industry, local government, First Nations and the Province of British Columbia to a common table. Together we can create a sound regional development strategy and find a way to secure the social, economic and environmental well- being of the Northern Rockies for all who now live, work and play here, and all who will come.

To learn more and to express interest in the initiative, please contact:

Northern Rockies Regional Fort Nelson First Nation Municipality Mile 295 Town Square, 5319 – 50th Ave South Fort Nelson, BC V0C 1R0 Bag Service 399 T (250) 774-7257 F (250) 774-7260 Fort Nelson, BC V0C 1R0 www.fnnation.ca T (250) 774-2541 F (250) 774-6794 Chief Kathi Dickie www.northernrockies.ca (250) 774-7257 | [email protected] Bill Streeper, Mayor [email protected] Randy McLean, CAO [email protected] Colin Griffith,Director of Strategic Initiatives (780) 933-9054 | [email protected]