Woodland Cree First Nation (WCFN) has offered discover to the Alberta Power Regulator (AER) that Obsidian Power Ltd.’s deliberate enlargement of wells on their territory can’t proceed.
WFCN grew to become involved about Obsidian’s oil growth plans in its territory after the AER discovered that improper disposal of business waste had brought about a severe earthquake, the First Nation mentioned in a press release Wednesday.
The AER in March 2023 issued an environmental safety order towards Obsidian after the Alberta Geological Survey discovered that Obsidian’s disposal operation induced a sequence of seismic occasions within the Peace River area. The disposal operation included a nicely approved for the disposal of water by way of injection into the Leduc Formation, the regulator mentioned in an earlier information launch, including that the distinctive geological options of the world additionally contributed to the seismic occasions.
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“Whereas there is no such thing as a proof of damages or accidents from these occasions, this Order and subsequent investigation displays our dedication to Albertans to make sure protected, environment friendly, orderly, and environmentally accountable growth. The Order is meant to forestall future occasions and defend Albertans”, the AER mentioned.
WFCN Chief Isaac Laboucan-Avirom mentioned, “CEO Stephen Loukas and Obsidian haven’t met the essential authorized necessities essential to proceed with growth on our territory. They refuse to handle any of our environmental, well being or security considerations”.
“That is a number of the poorest conduct from a useful resource firm I’ve ever seen”, he continued.
“The Supreme Court docket of Canada has been extraordinarily clear. If an organization desires to develop assets on Indigenous land, it has an obligation to seek the advice of and an obligation to handle the impacts upon Indigenous communities. Our rights beneath Part 35 of the structure and beneath Treaty 8 are usually not ambiguous”, Laboucan-Avirom famous.
In an earlier assertion this week, Laboucam-Avirom mentioned that Obsidian “has refused to meaningfully meet or work with Woodland Cree First Nation to handle our considerations”.
“We’re one of the industry-friendly Nations in Canada. We help accountable, respectful, and collaborative manufacturing of oil and fuel, and wish to see this useful resource used to create prosperity for all Albertans and all Treaty peoples. Nonetheless, disrespect by firms like Obsidian places all the sector in danger”, Laboucan-Avirom concluded.
Obsidian has denied the allegations of the WFCN management, calling the statements “deceptive”.
In a separate assertion, Obsidian mentioned negotiations relating to a brand new financial relationship settlement began within the second quarter of final 12 months, however the WFCN cancelled a November 2023 assembly between the events on the final minute. In line with the corporate, WFCN postponed the assembly till early 2024, however the First Nation had not rescheduled it but.
Obsidian mentioned it complied and continues to adjust to the AER’s environmental safety order relating to a produced water disposal nicely by establishing seismic monitoring and accelerometers at its operations close to Peace River, though it “continues to disagree with the conclusions of the order”. The corporate famous that the AER on February 7 scheduled a listening to to start on November 27 to overview the order.
“We’ve sadly reached a negotiating deadlock with WCFN’s senior management”, Obsidian President and CEO Stephen Loukas mentioned within the assertion. “Obsidian Power has knowledgeable WCFN’s senior management that we can’t settle for their unrealistic phrases that quantity to a monopolistic relationship as our sole supplier of sure providers and as a collector of commissions for incremental providers already offered to us by different firms. Along with limiting our skill to function independently within the space, their proposal is just not useful to our stakeholders, together with our shareholders, native communities and different Indigenous teams”.
“Obsidian Power has had long-standing optimistic relationships with a number of Indigenous teams, together with the WCFN”, Loukas continued. “Whereas WCFN senior management rejected our most lately proposed financial relationship settlement, we’re open to assembly with WCFN senior management to additional talk about the potential for an settlement. Regardless, Obsidian Power has the flexibility to pursue present regulatory processes to acquire the required permits and licenses to execute on our three-year progress plan. Moreover, we have now the flexibleness to speed up different Peace River areas inside our in depth portfolio to realize our progress targets.”
Obsidian mentioned it “encourages the WCFN senior management to renew negotiations in direction of a mutually useful financial relationship settlement that builds on a income stream for WCFN-owned companies”.
In line with Obsidian’s web site, Peace River is a “high-quality steady, cold-flow heavy oil Bluesky useful resource with Clearwater upside throughout the coronary heart of the Peace River Oilsands area”. The corporate has full possession in a big, contiguous part space of land at Peace River, “offering substantial alternative for future growth with supportive commodity costs and up to date nicely outcomes”. As of the third quarter of 2023, manufacturing on the core space was measured at 5,920 barrels of oil equal per day.
To contact the writer, e-mail rocky.teodoro@rigzone.com
