BCBusiness

64 BCBusiness NOVEMBER 2015 There is de¢initely no shortage of work for aboriginal law experts, espe- cially in B.C.'s North. A sampling of the big-ticket resource proposals that have had or will require consultation with First Nations include a $2.7-billion modernization of Rio Tinto's aluminum smelter in Kitimat, the $5-billion Kitimat LNG liqueŠed natural gas export facility and a proposal from Petronas, Malaysia's state ener¤y company, to invest $36 billion into an LNG project near Prince Rupert. Meanwhile, in B.C.'s Peace River Valley, the 500-member West Moberly First Nation is dealing with proposals to extract natural gas through drilling and fracking, as well as conventional gas and mine development applications and BC Hydro's $9-billion Site C dam project. Although consultation with First Nations with regard to resource projects is the legal duty of the Crown, in practi- cal terms much of this work is now being handled by resource companies in order to move projects ahead. "Industry seeks certainty and is motivated by time and money," says Robert Janes, principal at JFK Law Corporation, an aboriginal law boutique headquartered in Victoria. Markets and prices can change quickly, notes Janes, which ampliŠes the need for action. "For a junior mining company, four or Šve years is death." Keith Bergner concurs: "Most proponents want to control their own projects and build relationships with the local communi- ties themselves, because if you're going to have a successful project, you need to have a successful relationship with your neighbours—or in some senses, your hosts." As a result, it has become quite com- mon for resource companies to negoti- ate impact and beneŠt agreements (IBAs) with First Nations. These deals help to manage the impact of industrial devel- opment and secure economic beneŠts for local communities, including train- ing, employment and a share of proŠts. With stakes so high and technical details becoming so intricate, it is imperative that First Nations get expert legal coun- sel. "Typically, First Nations are not in favour of development that f lows away from their communities. They are looking for beneŠts that don't end when the project ends," says Janes. "To accomplish this, you have to spend time in the communities. There is a lot of lis- tening involved." The vagaries of market economics and geography have led to some huge disparities between participants in these negotiations. "No one would have imag- ined that small Šshing villages on the coast would be the launching points for an international market gateway to Asia. We're seeing communities of 200 to 300 people sitting down at negotiation tables with multinational corporations," says Alexander. IBAs are not normally made public, but details of the Šnancial o•er made by Petronas to the Lax Kw'alaams Band of northwest B.C. were leaked in May 2015. Citing environmental con- cerns, the Lax Kw'alaams turned down a stunning $1.15-billion package ($319,000 for each member of the band) as com- pensation for the building of a natural gas export terminal in their ancestral territory on Lelu Island, just south of Prince Rupert. Despite such headline-grabbing dollar numbers, the attorneys who represent First Nations insist that the majority of their clients are not anti-development. "Most of the First Nations I deal with are very interested in doing business. They need to develop an economy to keep their kids at home. In the more remote areas, a lot of their brightest youth go o• to school and never come back," says Greg McDade, managing partner at Ratcli• & Company, a North Vancouver Šrm spe- cializing in aboriginal law whose lawyers were involved with the 2004 Haida case. "The growing economic impact of First Nations is one of the most under- reported stories in the province. We're out in front of the rest of the country in the reconciliation process," claims Greg D'Avignon, CEO of the Business Council of B.C. "First Nations have been involved in more than 400 economic projects in the last three years, representing bil- lions of dollars." Despite a failed treaty process ( just four treaties have been signed in the last 20 years), D'Avignon expects that the economic in°uence of First Nations will continue to expand as the number of aboriginal businesses in B.C.—now totalling some 1,100 enter- prises, ranging from tourism and recre- ation to land development and resource extraction—become more sophisticated and ambitious. Q: What advice would you offer aspiring professionals looking to develop their careers as future business leaders? A: Our advice for those wanting to become better leaders is to join a board or become a committee member of a not-for-profi t organization. This will fi ne- tune one's ability to listen to what others have to say, fi nd ways to encourage others to participate in discussions, and recognize the potential of their ideas. Volunteering in this capacity can greatly contribute to one's development as a future business leader. Q: Economic conditions are diffi cult. How can I get a leg up on the competition? A: Internally, a strong leader recognizes that other individuals within their organization may be more capable than they are in many areas and inspires and coaches those people to achieve outstanding results. Externally, leaders of many successful businesses have created advisory boards comprised of individuals with diverse but complementary skill sets. Leaders need to recognize they will never have all the answers and need to empower or encourage others within their organization to lead in those areas where they have specialized knowledge or skill. ASK AN ADVISOR L: David Diebolt, CPA, CA , R: Ryan Ayre, US CPA, CA Have Additional Questions? Call 604-714-3600 Our fi rm takes pride in acting as trusted business advisors to all of our clients. If you would like further insight into your business, contact one of our business advisors today! Offi ces located in Vancouver & Abbotsford, British Columbia, Canada Visit us at www.manningelliott.com

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