Canada signs 'historic' deal with Inuvialuit, N.W.T., Yukon gov'ts over offshore oil and gas

A new deal has been signed — billed as the first of its kind in Canada — that's meant to give Northerners more of a say in any offshore oil and gas development in the western Arctic.

Dan Vandal, Canada's minister of Northern Affairs, was in Inuvik, N.W.T., on Thursday to sign the deal, alongside Inuvialuit Regional Corporation (IRC) chair Duane Ningaqsiq Smith, and the premiers of Yukon and the Northwest Territories.

According to a news release on Thursday, the Western Arctic–Tariuq (offshore) Accord is an "historic" agreement, and the first of its kind with an Indigenous government as a full party.

The accord is intended to ensure that Inuvialuit, as well as residents in Yukon and the N.W.T., share in any decision-making about offshore development of petroleum resources, and are the prime beneficiaries of any economic benefits.

"This is a very significant day," Smith said at the formal signing event in Inuvik. He said such an agreement has been talked about for decades.

"It's been a long time coming, and I think everybody has made compromises and reached an understanding in how to move forward."

N.W.T. Premier Caroline Cochrane said her government was waiting for the IRC to be ready to sign the accord, and then "came on board" as well.

"This accord will hopefully guarantee, once it's in legislation, that nothing will be decided about offshore in the Northwest Territories without us being at the table and agreeing in a consensus style," Cochrane said.

Yukon Premier Ranj Pillai said the accord is also about protecting the region, in more ways than one.

"We know how sensitive things are there, not just from an environmental standpoint, but the more activity in the North when we think about Arctic sovereignty," Pillai said.

The 2022 federal budget provided $2.5 million over five years for the IRC to help implement and administer the accord.

The last time the federal government issued offshore exploration licences in the Arctic was in 2014. In 2016, Ottawa unilaterally halted offshore oil and gas licencing in the Arctic indefinitely, and committed to reviewing that decision every five years.

The premier of the N.W.T. at that time, Bob McLeod, then issued a "red alert" accusing the federal government of being "patronizing" and "colonial" — and bypassing local government. 

In 2019, Ottawa prohibited offshore oil and gas activity in the Arctic.