In what could be a precedent, an Alberta First Nation is teaming up with a Calgary-based oil giant to develop prospective oil sands leases on reserve land.Suncor, the world’s largest oil sands producer, announced on Thursday it has signed a memorandum of understanding with the Fort Mckay First Nation to develop indigenous lands located about 60 km north of Fort McMurray.Under the agreement, Suncor is progressing early stage technical and commercial feasibility assessments to determine the quality and quantity of economically recoverable mineable ore on Lease 174C, which is reserve land..Only 5% of Fort Mckay’s annual operating budget comes from federal or provincial governments..“Through this partnership, Fort McKay First Nation has the opportunity to govern oil sands activity on their land and fully participate and benefit from responsible resource development,” Suncor executive VP Peter Zebedee, said in a statement. Added Chief Raymond Powder: “Our people of Fort McKay First Nation have diligently worked hard for years as a collaborative and reliable partner. 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.”Fort Mckay and its 900 residents were already one of the wealthiest native communities in the country, providing oilfield services to Fort McMurray producers. It began with a contract to provide catering — making sandwiches — and washing laundry from companies such as Shell and Imperial. It now has a portfolio of 18 separate entities, all related to oil.Only 5% of its annual operating budget comes from federal or provincial governments..If it proceeds, this would mark its first foray into full-blown oil production which it said facilitates economic self-determination for native communities in addition to reconciliation “based on mutual trust and respect.”For Suncor, it provides a continuing source of mineable oil sands ore when its base mine — which has been in production since 1968 — finally runs out after 2040.In addition to 174C, Fort McKay has Reserves 174A at Gardiner (Moose) Lake and 174B at Namur (Buffalo) Lake, approximately 65 km northwest of the town of Fort McKay, which is situated on the Athabasca River.When asked at a press conference if the agreement goes against the United Nations’ declaration on the Rights of Indigenous Peoples to reject development on their lands, Alberta Premier Danielle Smith said it also allows them to say ‘yes’.Native lands are regulated by the federal government and there is speculation that they might move to block it for environmental or other political reasons. .Smith has been a vocal proponent of her government’s Indigenous Opportunities Corporation which provides loan guarantees for these types of projects.Smith said the announcement “just warms” her heart and she wants to see more like it.“Well, I would say that the United Nations Declaration on the Rights of Indigenous Peoples includes their right to say yes to resource development. And that is one of the messages that has come through loud and clear from the the Indian Resource Council as well as the National Coalition of Chiefs,” she said.“I would hope that the federal government wouldn't stand in the way of the aspiration of a first nation to develop their own source revenue. Because I think that they've signed on to a declaration that affirms that First Nations do have the right to partner in these kinds of projects and I hope we do see more of that.”
