Aboriginal Affairs and Northern Development Canada
www.aandc-aadnc.gc.ca
Common menu bar links
Mackenzie Gas Project (MGP) and induced oil and gas exploration and development activities in the NWT
Lead Department(s): Indian and Northern Affairs Canada
Start Date: (Budget 2004, Budget 2005) 2004–05
End Date: 2008–09
Total Federal Funding Allocation: $225,000,000
Description
Increased demand and rising prices for energy-efficient natural gas across North America have led Imperial Oil Resources, Conoco-Phillips Canada, Shell Canada Limited, ExxonMobil Canada (commonly known as the Producers) and the Aboriginal Pipeline Group (APG) to develop natural gas resources in the Mackenzie Delta and transport them via a 1200 kilometre pipeline through the NWT to southern markets. The proposed Mackenzie Gas Project (MGP) is a $7 billion project. Initially, 830 million cubic feet per day of northern Canadian natural gas would be available to transport at start up which is targeted for 2011. Although the pipeline itself will bring economic benefits to Canada, of equal importance is that the transportation infrastructure will spur continued exploration and development of the 82 trillion cubic feet of remaining recoverable natural gas resources located in the NWT, northern Yukon and Beaufort Sea that could be tapped by a Mackenzie Valley pipeline. It would open up a new energy producing region that would be a major contributor to North American energy supply.
In recognition of the significant contribution of oil and gas exploration and development activities to creating economic benefits, contributing to strong and healthy Aboriginal and northern communities and opening up a new frontier energy supply region, the Government of Canada is contributing capacity funds for federal and regional agencies to implement environmental and regulatory responsibilities, to strengthen the government's scientific expertise, to support northerners' participation in the environmental assessment (EA) and regulatory process and their ability to take advantage of economic opportunities.
Shared Outcome(s)
- Coordinated federal response to the MGP's project definition and construction stages and to induced oil and gas activities
- Effective implementation of environmental assessment/regulatory processes
- Research relevant to the environmental assessment and regulatory review of the MGP and induced oil and gas activities
- Supporting northerners' participation in economic opportunities
Governance Structure(s)
- Senior Officials Committee
- Federal Hearings Committee
- Interdepartmental Working Groups
- Crown Consultation Unit
| Federal Partners Involved in each Program | Names of Programs[Note 1] | Total Allocation ($ thousands) | Planned Spending for 2006–07 ($ thousands) | Expected Results for 2006–07 |
|---|---|---|---|---|
| Canadian Environmental Assessment Agency | $2,946 | $888 | Environmental assessment process for MGP; offshore oil and gas projects more aligned with environmental understanding and current practices. | |
| Department of Fisheries and Oceans | $35,013 | $9,559 | Provision of scientific advice on longstanding responsibilities such as the status of fish stocks, while having enough flexibility to respond to newer issues such as the threat of invasive species, increasing oil and gas exploration and development activity, and species at risk. An adaptive organization that is better aligned with the department's requirements for scientific knowledge and Government of Canada priorities. | |
| Indian and Northern Affairs Canada | $90,303 | $22,676 | Coordinated federal government's response to the MGP that avoids duplication and overlap with other federal departments and agencies, as well as northern boards. Undertake EA and regulatory obligations. Implement resource management responsibilities. Support community capacity to participate in the EA/regulatory process and to take advantage of economic opportunities. |
|
| Environment Canada | $41,855 | $10,174 | Carry out legislated responsibilities pursuant to the EA process for the MGP. | |
| Parks Canada | $648 | $162 | Participate in EA process to ensure the ecological and commemorative integrity of the national parks, historic sites and rivers located in the NWT. | |
| National Energy Board | $8,072 | $1,287 | Exercise regulatory mandate in assessing the MGP pipeline. The Board is working with a number of regulatory agencies to ensure that environmental assessment and regulatory issues are dealt with in a coordinated and timely manner. |
|
| Natural Resources Canada | $28,982 | $7,088 | Validate industry assessments (science) to ensure that appropriate mitigation measures have been taken to minimize environmental impacts, protect the public interest and assess the cumulative effects of individual projects on the broader northern landscape and people. | |
| Transport Canada | $17,006 | $3,766 | Responsible for the regulatory oversight of the transportation system. | |
| Total | $224,825 | $55,600 |
1. For purposes of this initiative, provided below is a list of common themes that apply to all eight departments involved in the MGP(return to source paragraph). They are the following:
- Environmental Assessment Process: Activities required in response to environmental assessment processes
- Regulatory and Legal Obligations: Northern Boards, departmental permitting, issuance of authorization etc., and other approvals, legal surveying
- Environment and Resource Management: Responsibilities dealing with water, lands, conservation
- Coordination, Management and Communication: Resources to coordinate the activities of the various oil and gas pipeline actors, and to manage the overall federal responsibilities
- Consultation: Departmental and Crown Consultation Unit consultations
- Science: Research projects supporting EA and regulatory review of the MGP and oil and gas development
- Legal Services: Support for negotiations, litigation and agreements
