Fort McKay First Nation and Suncor Energy announced Thursday they’re partnering on a prospective oilsands lease development on the northeast corner of reserve lands.
Exploratory work will take place on Lease 174C, which is on Fort McKay reserve lands in the Regional Municipality of Wood Buffalo and respectively Fort McKay First Nation Traditional Territory.
Under the memorandum of understanding (MOU), Suncor is conducting “early stage technical and commercial feasibility assessments to determine the quality and quantity of economically recoverable mineable ore,” the First Nation said in a news release.
“With this agreement, we are creating the conditions for sustainable prosperity, growth and health for our nation for generations to come, while leading the way on protecting our land and water,” Fort McKay First Nation Chief Raymond Powder said.
“We will bring our values of stewardship and care to this opportunity. In doing so, we are charting a new path for economic development on our lands.”
Chief Powder said the project will bring economic growth and employment to Fort McKay First Nation, but it will do so much more than that.
“It’s also to assert who we are as First Nations, our sovereignty, in our relationship with the land, the water and the air,” he said.
“Where we can actually have influence over the development of our reserves, and we will have that advantage to that level … It’s to sustain the growth of our nation and our community, that means in programs and services and infrastructure,” Powder said.
“It’s also about protecting the nation’s land, water and air. We can do this and we have done it … No one is more qualified to do this work, growing the economy and protecting the environment than we are in our region.”
The agreement comes after decades of discussion, Powder said.
“We are honoured to be working with Fort McKay First Nation,” said Peter Zebedee, Suncor’s executive vice-president. “Through this partnership, Fort McKay First Nation has the opportunity to govern oilsands activity on their land and fully participate and benefit from responsible resource development. This potential opportunity, which has synergies with Suncor’s existing operations, could provide Suncor with bitumen supply optionality post 2040.”
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Suncor has partnered with Fort McKay First Nation in the past. In 2017, Fort McKay and Mikisew Cree First Nations purchased 49 per cent interest in Suncor’s East Tank Farm Development, which Zebedee called “the single-largest business investment by First Nations in Canada.”
He said the partnership announced Thursday is “a great example of how industry can partner with an Indigenous community in a way that could potentially generate significant economic and social benefits for the community members and for generations to come.”
Both Suncor and Fort McKay First Nation thanked the federal and provincial governments and Wood Buffalo.
“Our people of Fort McKay First Nation have diligently worked hard for years as a collaborative and reliable partner,” Powder said. “This has resulted in building the nation for opportunities while securing future growth in our community.
“This is the true meaning of reconciliation. It puts in our hands the tools we need to bring prosperity and a sustainable future for our people,” the chief said.
Brian Jean, Alberta’s minister of Energy and a Wood Buffalo resident, became emotional at the news conference.
“I’m very excited. This is an amazing day,” he said.
“It’s just good to see Northern Albertans do well. The more money that stays in Alberta, of course, the more Albertans do better right across the province. So, for economic development in Northeastern Alberta — when our prime minister is saying it’s being phased out, the oilsands are being phased out — it doesn’t look very phased out to me,” Jean said.
He said he’s witnessed hard work, positive changes and collaboration in the region over the last several decades.
“I wish the rest of Canada could learn from this,” Jean added.
“Alberta recognizes that the world will need more oil and gas for decades to come. And we intend to empower Albertans, including Indigenous communities, to deliver to the world. Whether it’s oil, gas or lithium, we will continue to work to ensure that the entire world knows that Alberta is energy and energy is Alberta.”
As for a timeline, drilling finished in December and early assessment work is still being done.
The partnership will wait to analyze what was found.
Chief Powder says the aim is for a 2036 opening date.
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