University of Calgary PRISM: University of Calgary's Digital Repository Graduate Studies The Vault: Electronic Theses and Dissertations 2013-12-19 Making Federalism through Law: Regulating Socio-economic Challenges of Energy Development, a Case Study of Alberta’s Oil sands and the Regional Municipality of Wood Buffalo Thompson, Chidinma Bernadine Thompson, C. B. (2013). Making Federalism through Law: Regulating Socio-economic Challenges of Energy Development, a Case Study of Alberta’s Oil sands and the Regional Municipality of Wood Buffalo (Unpublished doctoral thesis). University of Calgary, Calgary, AB. doi:10.11575/PRISM/26816 http://hdl.handle.net/11023/1216 doctoral thesis University of Calgary graduate students retain copyright ownership and moral rights for their thesis. You may use this material in any way that is permitted by the Copyright Act or through licensing that has been assigned to the document. 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Downloaded from PRISM: https://prism.ucalgary.ca UNIVERSITY OF CALGARY Making Federalism through Law: Regulating Socio-economic Challenges of Energy Development, a Case Study of Alberta’s Oil sands and the Regional Municipality of Wood Buffalo by Chidinma Bernadine Thompson A THESIS SUBMITTED TO THE FACULTY OF GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF DOCTOR OF PHILOSOPHY Faculty of Law Calgary, Alberta December 2013 © Chidinma Bernadine Thompson 2013 DEDICATION TO MY ROCK, SWORD AND SHIELD, MY BEST FRIEND, JESUS CHRIST; THIS IS ONLY POSSIBLE BECAUSE YOU SAID SO, THAT THE WORLD MAY KNOW THAT YOU ARE TRUE AND THAT WITH YOU ALL THINGS ARE POSSIBLE. ii ABSTRACT Socio-economic challenges of large scale oil and gas development, especially oil sands, within municipal boundaries are not given adequate attention in Alberta’s oil and gas development regulatory framework. There is no forum in the framework that allows a thorough consideration and proactive resolution, by responsible governments, of socio-economic challenges of large scale energy development prior to, or at the time of, project approvals. The jurisdiction of municipal authorities to regulate such development is highly circumscribed. None of the recently adopted initiatives by the province seems to have closed this gap in the regulatory framework. The gap exists because Alberta’s oil and gas regulatory framework adopts the unitary model of governance. Given the critical role of public infrastructure and services in energy resource development, the thesis recommends a reform of Alberta’s legislative and regulatory framework for energy development using federalism and its underlying principle of non-centralization. The thesis recommends a suite of non-centralized intergovernmental mechanisms which can conveniently fit into the regulatory framework and anchored in the energy legislative scheme. Using legally-mandated intergovernmental partnerships, Alberta can proactively obviate severe growth pressures, crippling demands on public infrastructure and services, lower quality of life for workers in the host areas, difficulty in attracting and retaining a workforce, and greater risk to energy resource development and huge private investment. A weather-proof regulatory framework with built-in, federal fail-safe mechanisms that enable energy development projects while preserving the wellbeing of host communities is sine qua non to achieve Alberta’s ambitious global energy leadership goals. iii ACKNOWLEDGMENTS I will always remain indebted to my family Kennedy, Daniel and Pearl for their untold sacrifices. To my mum, Caroline, I say “you are God-sent, and only God who knows how best to reward can repay you for all you have done for me and my family to make this work possible.” I remember my dad, Willy. Dad, I know you are watching and I am proud to be your daughter. My profound gratitude goes to my supervisors, Professors Arlene Kwasniak and Alastair Lucas for their efforts and great patience. I thank the Faculties of Law and Graduate Studies for the rare opportunity of a special case Ph.D, and their financial support for the first few years of this program. I will not forget my employers, the Partners of Borden Ladner Gervais LLP. I very much appreciate your acceptance and full support of this endeavour. To my able assistant and friend, Christine Moggert, I say “Thank you.” To the rest of my family, Paschal and Isiuwa and their children, Chijioke and Ioana, Valentine and his family, my mother-in-law Florence Thompson, the Thompson family and the Okafor family, thank you so much for your enduring love and prayers. Finally, to my church family - my prayer warriors and cheer leaders at Kings’ Christian Center Calgary - thank you for your prayers and encouragement. iv TABLE OF CONTENTS DEDICATION ................................................................................................................................ ii ABSTRACT................................................................................................................................... iii ACKNOWLEDGMENTS ............................................................................................................. iv LIST OF ACRONYMS ................................................................................................................ xii LIST OF FIGURES ..................................................................................................................... xvi INTRODUCTION .......................................................................................................................... 1 A. Federalism and Regulation of Socio-economic Challenges of Energy Development ............ 1 B. Research Questions and Thesis............................................................................................... 9 C. Methodology ......................................................................................................................... 12 D. Importance, Originality and Organization ............................................................................ 13 Chapter One Federalism and Elazar’s Theory of Federalism ....................................................... 16 1.1 What is Federalism?...................................................................................................... 17 1.1.1 Definition and Meaning of Federalism ..................................................................... 17 1.1.2 Federalism Compared with Intergovernmental Relations ........................................ 20 1.1.3 Federalism Compared with Decentralization and Subsidiarity ................................ 22 1.2 Origin of Federalism ..................................................................................................... 26 1.2.1 The Covenantal Origin of Elazar’s Federal Theory.................................................. 30 1.3 Characteristics of Elazar’s Federalism.......................................................................... 35 1.3.1 Compact and Multi-faceted Partnership ................................................................... 35 v 1.3.2 Territorial Division of Power/Democracy ................................................................ 36 1.3.3 Non-centralization..................................................................................................... 37 1.4 The Federal Matrix Model and Other Models of Governance ..................................... 44 1.4.1 The Matrix Model ..................................................................................................... 44 1.4.2 The Pyramid Model .................................................................................................. 47 1.4.3 The Center-Periphery Model .................................................................................... 48 1.5 Why Federalism? .......................................................................................................... 50 1.6 Factors for the Success of Federalism .......................................................................... 55 Chapter Two Canadian Federalism............................................................................................... 58 2.1 Canadian Federalism Today ......................................................................................... 58 2.2 Original Conception of Canadian Federalism............................................................... 62 2.3 Evolution of Canadian Federalism................................................................................ 64 2.4 Non-Centralization in Canadian Federalism................................................................. 68 2.4.1 Co-operative Federalism ........................................................................................... 69 2.4.2 Collaborative Federalism .......................................................................................... 71 2.4.3 Executive Federalism ................................................................................................ 72 2.5 Benefits and Problems of Executive Federalism .......................................................... 73 2.6 Preliminary Conclusion ................................................................................................ 76 Chapter Three Municipal Government in Federal Systems.......................................................... 78 3.1 The Role of Municipal Government in Federal Systems.............................................