Red Pheasant Signs Oil Drilling Agreement
Monday, June 28, 2010 at 13:33
Oil wells could soon be pumping on the Red Pheasant First Nation as a result of a deal between the band and Allstar Energy.
Representatives of the band and the company signed that agreement during a news conference on Friday.
Red Pheasant Chief Stewart Baptiste says one well could be drilled by the end of this year, with many more to come in 2011.
According to Baptiste, a new Red Pheasant company called Kingbird will work with Allstar Energy to bring the oil to the surface.
Allstar Energy will pay royalties on that oil to the band.
In the future, the band plans to do more resource exploration and extraction.
Baptiste notes they have land with gas reserves in the Pierceland area.
But he says it’s too early to know how many jobs will be created.
He says that number will become clearer once seismic work is done and drilling commences.
Meanwhile, Red Pheasant may be closer than ever to getting some jobs on a big construction project near North Battleford.
Toronto-based Northland Power is building a $700-million power station just east of North Battleford.
However, Baptiste says the duty to consult appears to have been ignored in this case.
Some officials say the company doesn’t have to consult, because they bought private land, not crown land.
But Baptiste disagrees.
He says the Supreme Court decision on the duty to consult applies to Treaty 6 territory, and the project lies within Treaty 6 boundaries.
Having said that, Baptiste notes Northland President and CEO John Brace called him recently indicating it may be possible to strike a deal.