Chiefs, province publicly call out feds for taking back unspent oil and gas clean-up dollars

Updated March 12 at 8:49 a.m. (Alberta) with comments from provincial and federal department representatives.

Alberta chiefs are asking the Liberal government to allow them to keep millions in unspent federal dollars and dedicate that money to oil and gas site rehabilitation on reserves.

As an economic driver for the energy industry that had work shut down due to COVID-19 pandemic health measures, the federal government in 2020 allotted $1.7 billion to the three prairie provinces through the Site Rehabilitation Program (SRP) to perform well, pipeline and oil and gas site closure and reclamation work.

Of the $1 billion received by Alberta, the Indian Resources Council (IRC) and Indigenous leaders were successful in lobbying the Alberta government to allocate 10 per cent to be used for work in Indigenous communities. The SRP fund was administered by the province.

That funding was topped up by $33 million to $133 million due to a redistribution of unused funding prior to the Feb. 12, 2021 application date for Indigenous communities to apply for funding.

However, at the end of the program, there is still $137 million unused overall. Alberta Energy would not answer Windspeaker.com on how much of the unused money had been allotted to Indigenous communities. Instead they sent a comment from Alberta Energy Minister Brian Jean that did not deal directly with our question.

Treaty 6, 7 and 8 chiefs wrote Natural Resources and Energy Canada Minister Jonathan Wilkinson last December asking him to allow them to keep the $137 million and continue the reclamation work.

Wilkinson’s press secretary Carolyn Svonkin confirmed receipt of a letter from the Treaty 7 First Nations Chiefs’ Association.

In an email to Windspeaker, she said the minister explained that the funding had been allocated primarily “in response to the market volatility” caused by COVID-19. As a program brought in to address the economic uncertainty of those times specifically, “all unspent funds are to be returned to the government.”

Wilkinson also highlighted other provincial and federal programs that could address the chiefs’ concerns.

“I’m kind of appalled by Canada trying to keep this money because we have unfinished work here. So I hope Canada releases the money and let Alberta keep the money so we can clean up the rest of our wells,” said Cold Lake First Nation Chief Kelsey Jacko.

Jacko was joined this morning by other chiefs, along with provincial ministers Rick Wilson (Indigenous Relations) and Jean, to publicly call out Canada for not doing enough to clean up the mess the federal government allowed to be created by not regulating the oil and gas industry effectively on reserves.

“There’s too many oil and gas companies that simply walked away from their obligations to remediate their well sites on First Nations lands,” said Tsuut’ina Nation Chief Roy Whitney.

“The SRP is a way for First Nations to have abandonment sites (reclamation). Accordingly, it’s such a great disappointment that we hear the…federal government is attempting to abandon its responsibility to us as First Nations to assure appropriate funding is allocated for such clean up.”

Jean said the only reason why there was money left over from the federal government was because the program “timed-out.”

Indigenous communities weren’t invited to apply for funding until nine months after the province opened applications for SRP dollars. In accordance with Alberta’s SRP guidelines, the first $100 million of funding went to sites where the province was paying compensation to landowners under the Surface Rights Act.

That nine months could have made a difference, said Stephen Buffalo, CEO for IRC, but that was the time required to convince the province of a 10 per cent set aside.

As the SRP was administered by the federal department of Finance, spokesperson Katherine Cuplinskas said in an email “given (Alberta) failed to invest a large portion of the $1 billion we provided them, even with an extension of timelines, and that the economy is well into its recovery, we expect the Government of Alberta to abide by the agreement that they signed, and return all unspent funds, as other provinces have.”

She also pointed out Alberta’s “significant surplus,” the health of the oil and gas industry, and an unemployment rate that has dropped from 14.5 per cent in May 2020 to four per cent in February 2024.

“Any allegation that the federal government is not helping Indigenous Peoples share in Canada’s economic prosperity, including from the energy industry, is false,” said Cuplinskas, noting Ottawa was developing an Indigenous Loan Guarantee program.

In the statement received by Windspeaker from Alberta Energy, Minister Jean said, "the Site Rehabilitation Program provided dedicated federal funding for an economic relief program that included reserve lands. If the federal government is serious about reconciliation, we encourage them to release the funds so this important work can continue."

Buffalo said it isn’t the first time Indigenous communities have been turned down by the federal government for clean-up work on reserves.

As the SRP was winding down, Buffalo said, he asked Ottawa for $300 million over four years to continue the work. His request was denied.

Grand Chief of the Confederacy of Treaty Six Nations Cody Thomas said the program was valuable to First Nations. He pointed out that Enoch Cree Nation, where he is also chief, has been able to reclaim land and prepare it for the Oksya business park.

According to provincial numbers, 103 Indigenous contractors participated in the program. Work was undertaken on 32 First Nations and all eight Métis settlements restoring 5,000 acres of land and 1,600 sites.

Thomas said more sites needed to be reclaimed so First Nations can continue to build up their communities to serve the needs of their members.

Loon River First Nation Chief Ivan Sawan said that the federal government allowing the unspent money to remain with Alberta and to be used by First Nations was an opportunity for collaboration for all parties involved.

Sawan pointed to the negative impact abandoned infrastructure had on both the environment and the traditional way of life.

“I think it’s high time that we push for the health and well-being of our people and it starts with environmental clean up,” he said.

Local Journalism Initiative Reporters are supported by a financial contribution made by the Government of Canada.