Oilsands and First Nations: `Opportunity' or `stranglehold?'

Some Indigenous communities in northern Alberta hope the Trans Mountain pipeline expansion will mark the start of a new chapter in their relationship with Canada's oilsands industry.

The $34-billion pipeline project from Alberta to the B.C. coast promises improved access to export markets for oilsands producers, which are forecast to achieve all-time-high output this year.

The pipeline's expected opening on Wednesday is a big deal for the Fort McKay First Nation, located about an hour's drive north of Fort McMurray and home to around 800 people of Dene, Cree and Métis descent.

“It matters to the Fort McKay First Nation. When there's an opportunity like the Trans Mountain pipeline, the question is, how can we actually leverage it to transfer that opportunity to Fort McKay?” said Chief Raymond Powder in an interview.

“Because I've shared that with my industry partners across the table from time to time — I've said, `You know, if you guys want to grow and want to expand and all that, that's not an issue for us.'”

But Fort McKay also needs opportunities for growth as the industry expands, he said.

Located smack-dab in the middle of the Athabasca oilsands, Fort McKay is the bull's-eye on the dart board of the world's third-largest crude oil reserve.

The First Nations community is surrounded by industrial development, and the acrid scent of nearby oilsands facilities can be detected in the breeze. Band members like to point out the black, tarry-smelling soil that lines residents' roads and driveways here — evidence of the rich bitumen deposits that lie so close to the surface.

In Fort McKay, the complicated relationship that the oilsands industry has with Indigenous people is evident. The First Nation is one of the wealthiest in the country, thanks to revenue generated from impact benefit agreements with oilsands developers as well as from the many Nation-owned businesses that serve the oil and gas sector.

Because of these spinoff benefits, the community boasts a beautiful long-term care centre that fronts onto the Athabasca River, a firstclass arena, a virtual golf facility and other amenities not commonly found on reserves.

Fort McKay also has significant current concerns about the safety and environmental impact of the massive oilsands waste water tailings ponds in the area.

“And so the arrival of industry had a huge impact on our own traditional livelihood and way of life,” said Powder.

“But on the positive side of all of that, we've had the opportunity to grow our programs, grow our services, grow our infrastructure.”

Not all First Nations see their industrial neighbours this way.

Eriel Deranger is a member of the Athabasca Chipewyan First Nation, which is currently suing the Alberta Energy Regulator in the wake of a series of toxic tailings pond leaks from Imperial Oil's Kearl oilsands facility.

She's also the executive director of Indigenous Climate Action, an advocacy group focused on the water, air and health impacts of the oilsands on First Nations communities.

Deranger describes the relationship between Indigenous communities and the oilsands industry as an “economic hostage situation,” explaining that many communities see the negative impacts of oilsands development but don't speak up because there are no other economic opportunities to be had.

“It's really important that we don't get bogged down in the argument of, ` Well, if Indigenous peoples are business partners in pushing these projects forward, then they must be OK,'” Deranger said.

“The problem is that this industry has such a stranglehold economically. But we cannot continue to say we need this for our economy, because there will be no economy if our province burns down this summer because of wildfires due to climate change.”