Last Updated October 8, 2017

Foundation for a Sustainable Northern Future:

Report of the Joint Review Panel for the Mackenzie Gas Project (2009)


Volume 2

Full Document


CHAPTER 11 — Conservation Management and Protected Areas

11.1 INTRODUCTION.............................................................................................................. 331

11.2 APPROACHES AND METHODS............................................................................................ 332

11.2.1 PROPONENTS’ APPROACH.................................................................................... 332

11.2.2 PARTICIPANTS’ VIEWS........................................................................................ 333

11.2.3 PANEL VIEWS.................................................................................................... 334

11.3 IMPACTS ON PROTECTED AREAS AND AREAS OF HIGH CONSERVATION VALUE............................ 335

11.3.1 EXISTING CONDITIONS........................................................................................ 335

11.3.2 PROPONENTS’ VIEWS.......................................................................................... 338

11.3.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 338

11.4 IMPACTS ON LAND USE PLANS AND OCEAN MANAGEMENT...................................................... 341

11.4.1 EXISTING CONDITIONS........................................................................................ 341

11.4.2 PROPONENTS’ VIEWS.......................................................................................... 342

11.4.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 342

11.5 IMPACT ASSESSMENT: INUVIALUIT SETTLEMENT REGION....................................................... 345

11.5.1 EXISTING CONDITIONS........................................................................................ 345

11.5.2 PROPONENTS’ VIEWS.......................................................................................... 346

11.5.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 348

11.6 IMPACT ASSESSMENT: GWICH’IN SETTLEMENT AREA............................................................ 349

11.6.1 EXISTING CONDITIONS........................................................................................ 349

11.6.2 PROPONENTS’ VIEWS.......................................................................................... 349

11.6.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 350

11.7 IMPACT ASSESSMENT: SAHTU SETTLEMENT AREA................................................................ 350

11.7.1 EXISTING CONDITIONS........................................................................................ 350

11.7.2 PROPONENTS’ VIEWS.......................................................................................... 350

11.7.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 351

11.8 IMPACT ASSESSMENT: DELCHO REGION............................................................................. 352

11.8.1 EXISTING CONDITIONS........................................................................................ 352

11.8.2 PROPONENTS’ VIEWS.......................................................................................... 352

11.8.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 352

11.9 IMPACT ASSESSMENT: NORTHWEST ALBERTA...................................................................... 353

11.9.1 EXISTING CONDITIONS........................................................................................ 353

11.9.2 PROPONENTS’ VIEWS........................................................................................... 353

11.9.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 353

11.10 PANEL VIEWS AND RECOMMENDATIONS............................................................................. 353

11.10.1 PROTECTED AREAS........................................................................................... 356

11.10.2 REGIONAL LAND USE PLANS AND COMMUNITY CONSERVATION PLANS......................... 358


CHAPTER 12 — Harvesting

12.1 INTRODUCTION.............................................................................................................. 365

12.2 IMPACTS ON HARVESTER ACCESS..................................................................................... 366

12.2.1 Proponents’ Views.............................................................................................. 366

12.2.2 Participants ’ Views............................................................................................ 367

12.2.3 Panel Views...................................................................................................... 367

12.3 HARVESTER COMPENSATION (NORTHWEST TERRITORIES)...................................................... 368

12.3.1 Existing Conditions............................................................................................. 368

12.3.2 Proponents’ Views.............................................................................................. 368

12.3.3 Participants ’ Views and Recommendations ............................................................. 371

12.3.4 Panel Views and Recommendations ....................................................................... 373

12.4 HARVESTER COMPENSATION (ALBERTA)...............................................................................374

12.4.1 Existing Conditions............................................................................................. 374

12.4.2 Proponents’ and NOVA Gas Transmission ltd .’s Views................................................ 375

12.4.3 Participants ’ Views............................................................................................ 375

12.4.4 Panel Views and Recommendations ....................................................................... 375

12.5 WORST-CASE SCENARIOS IN THE INUVIALUIT SETTLEMENT REGION: MITIGATION

AND POTENTIAL LIABILITY OF THE PROPONENTS............................................................... 376

12.5.1 Proponents’ Mitigations ...................................................................................... 376

12.5.2 Estimate of Potential Liability................................................................................ 377

12.5.3 Panel Views and Recommendation .........................................................................377


CHAPTER 13 — Land Use and Heritage Resources

13.1 INTRODUCTION.............................................................................................................. 381

13.2 LAND OWNERSHIP AND ACCESS......................................................................................... 381

13.2.1 EXISTING CONDITIONS........................................................................................ 381

13.2.2 PROPONENTS’ VIEWS.......................................................................................... 383

13.2.3 PARTICIPANTS’ VIEWS......................................................................................... 385

13.2.4 PANEL VIEWS..................................................................................................... 386

13.3 GRANULAR RESOURCES..................................................................................................... 386

13.3.1 EXISTING CONDITIONS........................................................................................ 386

13.3.2 PROPONENTS’ VIEWS........................................................................................... 386

13.3.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS....................................................... 388

13.3.4 PANEL VIEWS AND RECOMMENDATIONS................................................................... 389

13.4 TIMBER RESOURCES......................................................................................................... 391

13.4.1 EXISTING CONDITIONS......................................................................................... 391

13.4.2 PROPONENTS’ VIEWS........................................................................................... 392

13.4.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS....................................................... 393

13.4.4 PANEL VIEWS AND RECOMMENDATIONS................................................................... 394

13.5 TOURISM AND OUTDOOR RECREATION................................................................................. 395

13.5.1 EXISTING CONDITIONS........................................................................................ 395

13.5.2 PROPONENTS’ VIEWS........................................................................................... 395

13.5.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 396

13.5.4 PANEL VIEWS.................................................................................................... 397

13.6 HERITAGE AND HISTORICAL RESOURCES.............................................................................. 397

13.6.1 EXISTING CONDITIONS........................................................................................ 397

13.6.2 PROPONENTS’ VIEWS.......................................................................................... 398

13.6.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 399

13.6.4 PANEL VIEWS AND RECOMMENDATIONS.................................................................. 400

CHAPTER 14 — Physical Infrastructure and Housing

14.1 INTRODUCTION.............................................................................................................. 405

14.2 TRANSPORTATION.......................................................................................................... 406

14.2.1 RAIL TRANSPORTATION....................................................................................... 406

14.2.2 ROAD TRANSPORTATION...................................................................................... 409

14.2.3 BARGE TRANSPORTATION..................................................................................... 415

14.2.4 AIR TRANSPORTATION......................................................................................... 420

14.3 LOCAL INFRASTRUCTURE.................................................................................................. 423

14.3.1 EXISTING CONDITIONS........................................................................................ 423

14.3.2 PROPONENTS’ VIEWS........................................................................................... 424

14.3.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS....................................................... 425

14.3.4 PANEL VIEWS AND RECOMMENDATIONS................................................................... 427

14.4 GAS SUPPLY TO COMMUNITIES AND OTHER SMALL-MARKET CONSUMERS.................................. 427

14.4.1 EXISTING CONDITIONS........................................................................................ 427

14.4.2 PROPONENTS’ VIEWS........................................................................................... 428

14.4.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS....................................................... 428

14.4.4 PANEL VIEWS.................................................................................................... 429

14.5 HOUSING...................................................................................................................... 429

14.5.1 EXISTING CONDITIONS........................................................................................ 430

14.5.2 PROPONENTS’ VIEWS.......................................................................................... 431

14.5.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 433

14.5.4 PANEL VIEWS.................................................................................................... 435


CHAPTER 15 — Economic Impacts

15.1 INTRODUCTION.............................................................................................................. 439

15.2 METHODS AND APPROACH................................................................................................ 439

15.2.1 SOURCES AND METHODS..................................................................................... 439

15.2.2 PANEL APPROACH............................................................................................... 441

15.3 PROJECT EXPENDITURES AND GDP IMPACTS........................................................................ 442

15.3.1 PROPONENTS’ VIEWS.......................................................................................... 442

15.3.2 PARTICIPANTS’ VIEWS........................................................................................ 445

15.3.3 PANEL VIEWS.................................................................................................... 445

15.4 PROCUREMENT AND BUSINESS OPPORTUNITIES.................................................................... 447

15.4.1 PROPONENTS’ VIEWS.......................................................................................... 447

15.4.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 450

15.4.3 PANEL VIEWS AND RECOMMENDATIONS.................................................................. 452

15.5 LABOUR FORCE DEVELOPMENT........................................................................................... 453

15.5.1 INTRODUCTION.................................................................................................. 453

15.5.2 EXISTING CONDITIONS........................................................................................ 454

15.5.3 PROPONENTS’ VIEWS.......................................................................................... 458

15.5.4 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 460

15.5.5 PANEL VIEWS AND RECOMMENDATIONS.................................................................. 461

15.6 EMPLOYMENT AND LABOUR INCOME................................................................................... 463

15.6.1 PROPONENTS’ VIEWS.......................................................................................... 463

15.6.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 469

15.6.3 PANEL VIEWS AND RECOMMENDATIONS.................................................................. 471

15.7 REVENUES TO GOVERNMENTS........................................................................................... 473

15.7.1 PROPONENTS’ VIEWS.......................................................................................... 473

15.7.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS...................................................... 475

15.7.3 PANEL VIEWS AND RECOMMENDATIONS.................................................................. 477

15.8 OVERALL PANEL FINDINGS ON ECONOMIC IMPACTS............................................................... 480

15.8.1 CONSTRUCTION PHASE........................................................................................ 480

15.8.2 OPERATIONS PHASE............................................................................................ 481

15.8.3 PROJECT LEGACY................................................................................................ 482

15.8.4 EXPANSION CAPACITY SCENARIO........................................................................... 484


CHAPTER 16 — Social and Cultural Impacts

16.1 INTRODUCTION............................................................................................................... 487

16.2 APPROACH AND METHODS................................................................................................ 488

16.2.1 PROPONENTS’ VIEWS........................................................................................... 488

16.2.2 PARTICIPANTS’ VIEWS......................................................................................... 489

16.2.3 PANEL VIEWS..................................................................................................... 490

16.3 EXISTING CONDITIONS..................................................................................................... 491

16.3.1 HEALTH, SOCIAL WELL-BEING AND COMMUNITY CONDITIONS...................................... 491

16.3.2 HEALTH CARE, SOCIAL SERVICE AND PROTECTION FACILITIES AND SERVICES................ 493

16.4 DIRECT PROJECT IMPACTS................................................................................................ 495

16.4.1 SOUTHERN WORKERS AND POTENTIAL INTERACTIONS WITH COMMUNITIES

IN THE PROJECT REVIEW AREA.............................................................................. 495

16.4.2 PROJECT-INDUCED MIGRATION TO REGIONAL CENTRES.............................................. 498

16.4.3 HEALTH IMPACTS............................................................................................... 499

16.5 IMPACTS ON COMMUNITIES AND GOVERNMENT SERVICES........................................................501

16.5.1 ALCOHOL, DRUGS AND GAMBLING........................................................................... 502

16.5.2 WELL-BEING CONDITIONS AND SOCIAL SERVICE DELIVERY.......................................... 507

16.5.3 POLICING AND SAFETY......................................................................................... 513

16.5.4 CHILD CARE........................................................................................................ 517

16.5.5 HOMELESSNESS.................................................................................................. 518

16.5.6 WOMEN’S SHELTERS............................................................................................ 519

16.5.7 ELDER CARE........................................................................................................ 521

16.5.8 SUICIDE............................................................................................................ 522

16.5.9 TRADITIONAL LANGUAGE AND CULTURE.................................................................... 523

16.6 SHARED RESPONSIBILITY MODEL........................................................................................ 529

16.6.1 PROPONENTS’ VIEWS........................................................................................... 529

16.6.2 PARTICIPANTS’ VIEWS......................................................................................... 530

16.6.3 PANEL VIEWS AND RECOMMENDATION..................................................................... 531

16.7 SOCIO-ECONOMIC MANAGEMENT SYSTEM............................................................................ 532

16.7.1 PROPONENTS’ VIEWS........................................................................................... 532

16.7.2 PARTICIPANTS’ VIEWS......................................................................................... 533

16.7.3 PANEL VIEWS..................................................................................................... 533

16.8 SOCIO-ECONOMIC AGREEMENT.......................................................................................... 534

16.8.1 PROPONENTS’ VIEWS........................................................................................... 534

16.8.2 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS....................................................... 534

16.8.3 PANEL VIEWS..................................................................................................... 535

16.9 MACKENZIE GAS PROJECT IMPACTS FUND............................................................................ 535

16.9.1 PURPOSE, OBJECTIVES AND SCOPE......................................................................... 535

16.9.2 KEY FEATURES AND PRINCIPLES............................................................................. 536

16.9.3 STRUCTURES AND INSTITUTIONAL FRAMEWORK........................................................ 536

16.9.4 IMPLEMENTATION................................................................................................ 537

16.9.5 PARTICIPANTS’ VIEWS.......................................................................................... 537

16.9.6 PANEL VIEWS AND RECOMMENDATIONS.................................................................... 540

16.10 OVERALL VIEWS............................................................................................................. 541

16.10.1 PROPONENTS’ VIEWS.......................................................................................... 541

16.10.2 PARTICIPANTS’ VIEWS........................................................................................ 541

16.10.3 PANEL VIEWS.................................................................................................... 542


CHAPTER 17 — Decommissioning and Abandonment

17.1 INTRODUCTION............................................................................................................... 545

17.2 PROPONENTS’ VIEWS....................................................................................................... 545

17.3 PARTICIPANTS’ VIEWS AND RECOMMENDATIONS................................................................... 546

17.4 PANEL VIEWS AND RECOMMENDATIONS............................................................................... 546

CHAPTER 18 — Monitoring, Follow-up and Management Plans

18.1 INTRODUCTION............................................................................................................... 551

18.1.1 PURPOSE AND IMPORTANCE OF MONITORING AND FOLLOW-UP..................................... 551

18.1.2 TYPES OF MONITORING........................................................................................ 552

18.2 PROJECT MONITORING AND FOLLOW -UP.............................................................................. 553

18.2.1 BIOPHYSICAL MONITORING.................................................................................... 553

18.2.2 SOCIO-ECONOMIC MONITORING............................................................................. 558

18.2.3 GOVERNMENT AND OTHER INSTITUTIONAL ROLES...................................................... 562

18.2.4 PANEL VIEWS AND RECOMMENDATIONS................................................................... 565

18.3 CUMULATIVE IMPACTS MONITORING AND MANAGEMENT.......................................................... 571

18.3.1 EXISTING CONDITIONS......................................................................................... 571

18.3.2 CUMULATIVE IMPACTS MANAGEMENT...................................................................... 572

18.3.3 CUMULATIVE IMPACTS OF FUTURE DEVELOPMENTS.................................................... 574

18.3.4 PANEL VIEWS AND RECOMMENDATIONS................................................................... 576

18.3.5 FOLLOW-UP PROGRAM FOR CUMULATIVE IMPACTS MANAGEMENT AND MONITORING......... 578


CHAPTER 19 — Sustainability and Net Contribution

19.1 INTRODUCTION............................................................................................................... 585

19.2 APPROACH..................................................................................................................... 586

19.3 THE CORE QUESTION....................................................................................................... 586

19.4 THE SCOPE OF DEVELOPMENTS TO BE ASSESSED................................................................. 586

19.5 KEY SUSTAINABILITY ISSUES............................................................................................ 589

19.6 SUMMARY OF PANEL ANALYSIS OF THE FIVE KEY SUSTAINABILITY ISSUES CATEGORIES...............590

19.6.1 Cumulative Impacts on the Biophysical Environment.................................................. 591

19.6.2 Cumulative Impacts on the Human Environment........................................................ 595

19.6.3 Equity Impacts .................................................................................................. 599

19.6.4 Legacy and Bridging Impacts ................................................................................ 602

19.6.5 Cumulative Impacts Management and Preparedness .................................................. 604

19.6.6 Interaction of Project Impacts .............................................................................. 606

19.7 EVALUATION OF THE PROJECT’S CONTRIBUTION TO SUSTAINABILITY....................................... 608

19.7.1 The Project as Filed with a Throughput of 0.83 Bcf/d................................................ 608

19.7.2 The Project as Filed with Expanded Throughput in the Range

of 0.83 to 1.2 Bcf/d..................................................................................................... 609

19.7.3 The Project as Filed Expanded in the Range from 1.2 Bcf/d

to its Design Capacity of 1.8 Bcf/d................................................................................. 610

19.7.4 The Project as Filed and Other Future Scenarios...................................................... 611

19.7.5 The Null Alternative ........................................................................................... 612

19.8 TRADE-OFFS................................................................................................................. 612

19.9 CONCERNS REGARDING THE IMPLEMENTATION OF THE PANEL’S RECOMMENDATIONS

BY GOVERNMENT......................................................................................................... 612

19.10 CONCLUSIONS.............................................................................................................. 614


APPENDICES

Appendix 1: Agreement Establishing the Joint Review Panel for the Mackenzie Gas Project.................. 620

Appendix 2: Biographies of Joint Review Panel Members ............................................................... 630

Appendix 3: Direction on Procedures......................................................................................... 632

Appendix 4: List of Parties ..................................................................................................... 640

Appendix 5: List of Public Informati on Sessions.......................................................................... 641

Appendix 6: List of Hearings, Dates and Locati ons...................................................................... 642

Appendix 7: Determinati on on sufficiency.................................................................................. 645

Appendix 8: Criteria for Confidentiality Orders for Traditional Knowledge Study Reports....................... 647

Appendix 9: Selected Rulings on Motions................................................................................... 649

Appendix 10: Summary Reports of Community Hearings................................................................ 650

Aklavik Community Hearing, June 19, 2007....................................................................... 650

Colville Lake Community Hearing, April 10, 2006................................................................ 651

Déline Community Hearing, April 3, 2006.......................................................................... 651

Fort Good Hope Community Hearing No. 1, April 11, 2006.................................................... 652

Fort Good Hope Community Hearing No. 2, April 12, 2006.................................................... 653

Fort Liard Community Hearing, May 12, 2006.................................................................... 654

Fort McPherson Community Hearing, February 17, 2006...................................................... 655

Fort Providence Community Hearing No. 1, June 14, 2006.................................................... 655

Fort Providence Community Hearing No. 2, June 15, 2006.................................................... 656

Fort Simpson Community Hearing No. 1, May 8, 2006.......................................................... 657

Fort Simpson Community Hearing No. 2, May 9, 2006.......................................................... 657

Hay River Community Hearing, June 9, 2006...................................................................... 658

Hay River Reserve Community Hearing, June 8, 2006........................................................... 658

High Level Community Hearing No. 1, July 5, 2006............................................................... 659

High Level Community Hearing No. 2, July 6, 2006............................................................... 660

Inuvik Community Hearing No. 1, January 8, 2007............................................................... 660

Inuvik Community Hearing No. 2, January 9, 2007............................................................... 661

Jean Marie River Community Hearing, May 15, 2006............................................................ 661

Kakisa Community Hearing, June 13, 2006......................................................................... 662

Norman Wells Community Hearing, April 6, 2006.................................................................. 663

Paulatuk Community Hearing, September 7, 2006................................................................ 663

Sachs Harbour Community Hearing, September 9, 2006........................................................ 664

Trout Lake Community Hearing, May 16, 2006.................................................................... 665

Tsiigehtchic Community Hearing, February 20, 2006............................................................ 666

Tuktoyaktuk Community Hearing No. 1, September 11, 2006................................................. 666

Tuktoyaktuk Community Hearing No. 2, September 15, 2006................................................. 667

Tuktoyaktuk Community Hearing No. 3, June 20, 2007......................................................... 668

Tulita Community Hearing No. 1, April 4, 2006.................................................................... 668

Tulita Community Hearing No. 2, April 5, 2006.................................................................... 669

Ulukhaktok Community Hearing, September 8, 2006............................................................. 669

Wrigley Community Hearing, May 11, 2006........................................................................ 670

Appendix 11: Glossary............................................................................................................ 672