A Peace River-area native group has advised regulators that the planned expansion of a Calgary-based oil producer cannot proceed as planned after improper waste disposal triggered one of the largest earthquakes in Alberta history.The Woodland Creek First Nation (WCFN) on Wednesday said it had notified the Alberta Energy Regulator (AER) that Obsidian Energy would not be allowed to access ‘unauthorized’ land and has set up a series of “traditional monitoring camps” to “safeguard” their land. .“Obsidian have not met the basic legal requirements necessary to proceed with development on our territory.“Chief Isaac Laboucan-Avirom .It comes after Obsidian was hit with environmental protection orders related to a series of incidents last spring and the previous fall that triggered a series of “seismic events” including a 5.8 temblor that shook residences and rattled nerves.A subsequent investigation found it to be related to wastewater injection wells designed to dispose of brines and other harmful contaminants from oil drilling. That’s resulted in a war of words and duelling press releases between the company and the First Nation.“Obsidian have not met the basic legal requirements necessary to proceed with development on our territory. They refuse to address any of our environmental, health or safety concerns. This is some of the poorest behaviour from a resource company I have ever seen," Chief Isaac Laboucan-Avirom said.“The Supreme Court of Canada has been extremely clear. If a company wants to develop resources on indigenous land, it has a duty to consult and a duty to address the impacts upon indigenous communities. Our rights under Section 35 of the constitution and under Treaty 8 are not ambiguous." ."Obsidian Energy continues to disagree with the conclusions of the order,”Obsidian CEO Stephen Loukas.For its part, the company said it was “disappointed” with what it said were “misleading statements” from the band. Instead, Obsidian said it believed the impasse is related to failure to address “commercial concerns” after negotiations to forge a “new economic arrangement” broke down last fall.The latest spat arose after Obsidian on February 7 decided to file an appeal of the AER’s environmental protection order. A hearing has been scheduled for November 27 to determine whether it should be “confirmed, varied, suspended or revoked.” “As previously disclosed, Obsidian Energy’s well has operated safely and within regulations for more than a decade. The well is licensed and operated with full regulatory approval and in accordance with standard industry practice. Obsidian Energy continues to disagree with the conclusions of the order,” it said.Instead, it encouraged the WCFN to resume negotiations on a deal that returned $4.3 million to band-owned businesses last year and more than $8 million since 2021 when Obsidian acquired full control of the Peace River assets..The company said it has “long-standing positive relationships” with multiple First Nations, including WCFN, said Obsidian CEO Stephen Loukas.“Obsidian Energy has informed WCFN’s senior leadership that we cannot accept their unrealistic terms that amount to a monopolistic relationship as our sole provider of certain services and as a collector of commissions for incremental services already provided to us by other companies,” it said.“In addition to limiting our ability to operate independently in the area, their proposal is not beneficial to our stakeholders, including our shareholders, local communities and other indigenous groups.”Obsidian produces about 32,000 barrels per day, about 20% of which comes from the Peace River oil sands region. It said it has “the ability to pursue existing regulatory processes” to obtain the required permits and licences to continue a three-year growth plan.
A Peace River-area native group has advised regulators that the planned expansion of a Calgary-based oil producer cannot proceed as planned after improper waste disposal triggered one of the largest earthquakes in Alberta history.The Woodland Creek First Nation (WCFN) on Wednesday said it had notified the Alberta Energy Regulator (AER) that Obsidian Energy would not be allowed to access ‘unauthorized’ land and has set up a series of “traditional monitoring camps” to “safeguard” their land. .“Obsidian have not met the basic legal requirements necessary to proceed with development on our territory.“Chief Isaac Laboucan-Avirom .It comes after Obsidian was hit with environmental protection orders related to a series of incidents last spring and the previous fall that triggered a series of “seismic events” including a 5.8 temblor that shook residences and rattled nerves.A subsequent investigation found it to be related to wastewater injection wells designed to dispose of brines and other harmful contaminants from oil drilling. That’s resulted in a war of words and duelling press releases between the company and the First Nation.“Obsidian have not met the basic legal requirements necessary to proceed with development on our territory. They refuse to address any of our environmental, health or safety concerns. This is some of the poorest behaviour from a resource company I have ever seen," Chief Isaac Laboucan-Avirom said.“The Supreme Court of Canada has been extremely clear. If a company wants to develop resources on indigenous land, it has a duty to consult and a duty to address the impacts upon indigenous communities. Our rights under Section 35 of the constitution and under Treaty 8 are not ambiguous." ."Obsidian Energy continues to disagree with the conclusions of the order,”Obsidian CEO Stephen Loukas.For its part, the company said it was “disappointed” with what it said were “misleading statements” from the band. Instead, Obsidian said it believed the impasse is related to failure to address “commercial concerns” after negotiations to forge a “new economic arrangement” broke down last fall.The latest spat arose after Obsidian on February 7 decided to file an appeal of the AER’s environmental protection order. A hearing has been scheduled for November 27 to determine whether it should be “confirmed, varied, suspended or revoked.” “As previously disclosed, Obsidian Energy’s well has operated safely and within regulations for more than a decade. The well is licensed and operated with full regulatory approval and in accordance with standard industry practice. Obsidian Energy continues to disagree with the conclusions of the order,” it said.Instead, it encouraged the WCFN to resume negotiations on a deal that returned $4.3 million to band-owned businesses last year and more than $8 million since 2021 when Obsidian acquired full control of the Peace River assets..The company said it has “long-standing positive relationships” with multiple First Nations, including WCFN, said Obsidian CEO Stephen Loukas.“Obsidian Energy has informed WCFN’s senior leadership that we cannot accept their unrealistic terms that amount to a monopolistic relationship as our sole provider of certain services and as a collector of commissions for incremental services already provided to us by other companies,” it said.“In addition to limiting our ability to operate independently in the area, their proposal is not beneficial to our stakeholders, including our shareholders, local communities and other indigenous groups.”Obsidian produces about 32,000 barrels per day, about 20% of which comes from the Peace River oil sands region. It said it has “the ability to pursue existing regulatory processes” to obtain the required permits and licences to continue a three-year growth plan.
