Volume 2 - Section 17 - Socio-Economic Impact Assessment€¦ · Alberta (2006) ... Provincial Pa rk B ea v rL kC First Nation B eav r L k 13 Heart Lake First Nation Heart Lake 167

Devon NEC Corporation Pike 1 Project Volume 2 – Environmental Impact Assessment June 2012

Table of Contents – Page i

SECTION 17.0 – SOCIO-ECONOMIC IMPACT ASSESSMENT TABLE OF CONTENTS

PAGE

17.0 SOCIO-ECONOMIC IMPACT ASSESSMENT ............................................................ 17-1 17.1 Introduction ....................................................................................................... 17-1

17.2 Study Area ........................................................................................................ 17-1 17.2.1 Revised Municipal Boundaries ......................................................... 17-1 17.2.2 Temporal Boundary ......................................................................... 17-3 17.2.3 Spatial Boundary .............................................................................. 17-3

17.3 Assessment Approach ..................................................................................... 17-5 17.3.1 Socio-economic Issues Identification ............................................... 17-5 17.3.2 Socio-economic Indicators ............................................................... 17-5 17.3.3 Assessment Scenarios .................................................................... 17-6 17.3.4 Assessment Criteria ......................................................................... 17-6

17.4 Methods ............................................................................................................ 17-8 17.4.1 Baseline Data Collection .................................................................. 17-8 17.4.2 Effects Analysis Methods ................................................................. 17-8

17.5 Baseline Case ................................................................................................ 17-10 17.5.1 Regional Overview ......................................................................... 17-10 17.5.2 Economic Investment in the SESA ................................................ 17-15 17.5.3 Labour Force Indicators, Earnings and Income in the SESA ......... 17-18 17.5.4 Population Growth in the SESA ..................................................... 17-23 17.5.5 Education ....................................................................................... 17-25 17.5.6 Housing .......................................................................................... 17-30 17.5.7 Protective Services ........................................................................ 17-32 17.5.8 Health ............................................................................................. 17-35 17.5.9 Recreation ...................................................................................... 17-36 17.5.10 Social Services .............................................................................. 17-37 17.5.11 Utilities ........................................................................................... 17-39 17.5.12 Traffic and Transportation .............................................................. 17-40 17.5.13 Aboriginal Profile ............................................................................ 17-41

17.6 Application Case: Regional Effects ................................................................ 17-46 17.6.1 Project Description ......................................................................... 17-46 17.6.2 Economy ........................................................................................ 17-49 17.6.3 Demography .................................................................................. 17-56 17.6.4 Education ....................................................................................... 17-58 17.6.5 Housing .......................................................................................... 17-59 17.6.6 Protective Services ........................................................................ 17-59 17.6.7 Health ............................................................................................. 17-62


Table of Contents – Page ii

TABLE OF CONTENTS (cont)

PAGE

17.6.8 Recreation ...................................................................................... 17-63 17.6.9 Social Services .............................................................................. 17-64 17.6.10 Utilities ........................................................................................... 17-65 17.6.11 Traffic and Transportation .............................................................. 17-66 17.6.12 Aboriginal Benefits ......................................................................... 17-66 17.6.13 Other Local Effects ........................................................................ 17-67

17.7 Planned Development Case ........................................................................... 17-68 17.7.1 Effects on Economy ....................................................................... 17-68 17.7.2 Effects on Traffic and Transportation ............................................. 17-69 17.7.3 Effects on Health Services ............................................................. 17-69

17.8 Summary ........................................................................................................ 17-69

17.9 References ..................................................................................................... 17-71


Table of Contents – Page iii


PAGE

LIST OF TABLES

Table 17.3-1: Valued Socio-economic Components and Indicators .................................. 17-6 Table 17.3-2: Social and Economic Effect Attribute Definitions ......................................... 17-7 Table 17.5-1: Labour Force Indicators in the Regional Municipality of Wood

Buffalo, Alberta and Canada (2006) .......................................................... 17-18 Table 17.5-2: Labour Force by Industry in the Regional Municipality of Wood

Buffalo and Alberta (2006) ......................................................................... 17-21 Table 17.5-3: Economic Indicators in the Town of Lac La Biche, Lakeland County

and Alberta (2006) ..................................................................................... 17-22 Table 17.5-4: Population in the Regional Municipality of Wood Buffalo .......................... 17-24 Table 17.5-5: Populations in the Town of Lac La Biche and Lakeland County ................ 17-25 Table 17.5-6: Education Profile for the Regional Municipality of Wood Buffalo

and Alberta (2006) ..................................................................................... 17-27 Table 17.5-7: Education Profile for the Town of Lac La Biche, Lakeland County

and Alberta (2006) ..................................................................................... 17-28 Table 17.5-8: Total Crime Rates in the RMWB (2011) .................................................... 17-34 Table 17.5-9: Economic Indicators for the Aboriginal Population in the RMWB,

Lac La Biche County and Alberta (2006) ................................................... 17-42 Table 17.5-10: Education Profile for the Aboriginal Population in the Regional

Municipality of Wood Buffalo, the Lac La Biche County and Alberta (2006) ............................................................................................ 17-44

Table 17.5-11: Fort McMurray First Nation Reserves ........................................................ 17-45 Table 17.5-12: Beaver Lake Cree Nation Reserves .......................................................... 17-45 Table 17.5-13: Chipewyan Prairie First Nation Reserves .................................................. 17-45 Table 17.5-14: Heart Lake First Nation Reserves .............................................................. 17-46 Table 17.6-1: Project Costs ............................................................................................. 17-49 Table 17.6-2: Summary of Provincial Economic Effects During Construction ................. 17-50 Table 17.6-3: Summary of Provincial Economic Effects During Operations .................... 17-50 Table 17.6-4: Types of Jobs/Skill Categories of Construction Workforce ........................ 17-51 Table 17.6-5: Types of Jobs/Skill Categories of Operations Workforce .......................... 17-54 Table 17.9-1: Final Impact Ratings – Application Case ................................................... 17-70


Table of Contents – Page iv


PAGE

LIST OF FIGURES

Figure 17.2-1: Revised Municipal Boundaries as of January 2012 ..................................... 17-2 Figure 17.2-2: Socio-economic Study Area ........................................................................ 17-4 Figure 17.5-1: Economic Indicators in the Study Area, Alberta and Canada .................... 17-19 Figure 17.5-2: Labour Force by Industry in the Study Area and Alberta ........................... 17-20 Figure 17.5-3: Education Attainment in the Study Area .................................................... 17-29 Figure 17.5-4: Owned and Rented Dwellings in the Study Area and Alberta ................... 17-31


Page 17-1

17.0 SOCIO-ECONOMIC IMPACT ASSESSMENT

17.1 Introduction

The socio-economic impact assessment (SEIA) section examines the social and economic effects that could result from construction and operations of the Pike 1 Project (the Project). It analyzes the potential effects of the Project on the Province of Alberta and, more specifically, on the socio-economic study area (SESA) as defined below. It describes current social and economic conditions in the SESA and identifies economic development projects that have been proposed or are reasonably foreseeable. The potential effects of the Project on regional social and economic conditions are described in the context of other proposed regional development. Opportunities to mitigate potential negative impacts and to enhance positive effects are also identified. The overall objective of this section is to fulfill the Project Terms of Reference with respect to potential socio-economic effects, and specifically:

1. to address how the construction and operations phases of the Project may affect economic and social conditions in the region;

2. to integrate the results of the public consultation component in the socio-economic effects assessment and discuss socio-economic mitigation measures; and

3. to identify and assess environmentally induced socio-economic effects.

17.2 Study Area

17.2.1 Revised Municipal Boundaries

Effective 01 January 2012, the political division at the south boundary of the Regional Municipality of Wood Buffalo (RMWB) and the north boundary of Lac La Biche County (the County) was revised. Lands from the southern portion of the RMWB were annexed to the County and additional lands from the RMWB along with lands from the eastern portion of the County were annexed to the newly created Improvement District 349. In total, 20 townships formerly within the RMWB were annexed to the County. The RMWB boundary changes affected two oil sands operators, Devon and Canadian Natural Resources Limited, who will, effective January 2012, remit their municipal taxes to Lac La Biche and not to RMWB. The RMWB still includes Conklin and other oil sands developments in the area, including the Cenovus and MEG Christina Lake projects, Cenovus Narrows Lake project and Harvest Operations Corp.’s BlackGold project, among others (Municipal Messenger 2012). With this change in municipal boundaries, the Project is now located within the County (Figure 17.2-1). However, because the change in boundaries occurred during preparation of this SEIA, the assessment is based largely on information for the RMWB along with the available information for the County, as information reflective of the new political boundaries was not yet available. This is particularly the case for socio-economic baseline data related to oil sands activity, developed and published within the context of activity in the RMWB through Q4 of 2011. Prior to the boundary change, the County did not report on socio-economic indicators related to oil sands activities as oil sands projects were not located within the County.

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Baseline conditions in the SEIA are described within the context of the baseline data available during report preparation, and in particular describe conditions existing and projected as of Q4 2011. The SEIA presents the socio-economic profile of the RMWB first, providing context for the various socio-economic indicators in the region, followed by information for the County and then Conklin, as socio-economic data for these areas are currently limited.

17.2.2 Temporal Boundary

The SEIA assesses potential Project impacts associated with construction and operations. It is based on the Project schedule outlined in Section 17.6.1.

17.2.3 Spatial Boundary

The Project is located approximately 25 km southeast of Conklin, Alberta. The SESA was selected to consider both regional interests and interests of the communities in proximity to the Project. Figure 17.2-2 shows the SESA, the communities included in the assessment and the location of the Project. As described in Section 17.2.1, for consistency with the data presented in this assessment, the SESA reflects the RMWB and County boundaries as of Q4 2011, prior to annexation of lands to the County. The assessment will focus on the RMWB, and primarily on Fort McMurray, and on the County. This report will refer to the County as the single amalgamated municipality, comprising the Town of Lac La Biche and Lakeland County. Exceptions are where specific data are described for years prior to the 2007 amalgamation of the two municipalities. The following First Nations and Métis communities in proximity to the Project have also been included in this assessment:

• Heart Lake First Nation; • Chipewyan Prairie Dené First Nation; • Beaver Lake Cree Nation; • Fort McMurray First Nation; • Conklin Métis Local 193; • Chard Métis Local 214; • Fort McMurray Métis Local 1935; and • Alberta Métis Nation of Alberta Region 1.

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17.3 Assessment Approach

17.3.1 Socio-economic Issues Identification

Socio-economic issues related to construction and operations of the Project were identified through:

• the ongoing Devon public consultation process; • Alberta Environment and Water Terms of Reference; • Devon’s Jackfish 1, Jackfish 2 and Jackfish 3 Applications; • review of recent socio-economic assessments prepared for steam assisted gravity

drainage (SAGD) projects in the area south of Fort McMurray (principally Devon Jackfish 3 and CNRL Kirby); and

• previous experience with similar oil sands development projects in the SESA. The socio-economic issues include:

• the extent of economic investment in the RMWB and Lac La Biche, and the extent to which local residents participate in the employment and business opportunities associated with the Project;

• changes in population; • changes in demand for education and training conditions and services; • changes in the housing market; • changes in the demand for protective conditions and services; • changes in the demand for health conditions and services; • changes in the demand for community recreation and leisure facilities and services; • changes in the demand for social conditions and services; and • changes in the demand for utility services.

17.3.2 Socio-economic Indicators

Valued socio-economic components (VSCs) and associated indicators are presented in Table 17.3-1. The VSCs guided the data collection, analysis and organization of the assessment.


Page 17-6

Table 17.3-1: Valued Socio-economic Components and Indicators

VSC IndicatorEconomy Economic investment in the RMWB and in the County.

Labour force indicators (participation rate, employment and unemployment).

Earnings and income (percentages of people 15 years and older with earnings and income and median earnings and income).

Population Population growth.

Education and training services School enrolment. Industry training. Education attainment.

Housing Housing availability and affordability.

Protective Services Fire protection services availability and capacity. Emergency services availability and capacity. Police services availability and capacity. Crime rates.

Health Health services availability and capacity. Health issues.

Recreation and Leisure Services Recreation services availability and capacity.

Social Services Social services availability and capacity.

Utilities Utilities capacity and availability.

Traffic and Transportation Traffic impact assessment (TIA) (Volume 1, Section 7.0). Aboriginal Benefits Aboriginal community employment and business opportunities.

The assessment is presented such that baseline conditions and assessment of potential impacts are organized by VSCs. This approach provides an overall perspective of anticipated changes to each VSC in the SESA.

17.3.3 Assessment Scenarios

The SEIA assesses the following three scenarios:

1. Baseline Case – describes current socio-economic conditions within the SESA; 2. Project Case – describes the potential changes in the socio-economic conditions as a

result of the Project; and 3. Planned Development Case – assesses the potential socio-economic conditions

resulting from operation of existing/approved projects, the Project, and other projects that have been disclosed to the public as of December 2011.

17.3.4 Assessment Criteria

Anticipated changes in the socio-economic environment were evaluated using the criteria in Table 17.3-2.


Page 17-7

Table 17.3-2: Social and Economic Effect Attribute Definitions

Attribute Definition

Direction Negative Effect is worsening or is undesirable.

Neutral Effect is not changing compared with baseline conditions and trends.

Positive Effect is improving or is desirable.

Geographic Extent* Local Effect will be limited to specific persons or communities (Conklin and First Nation in close

Proximity).

Regional Effect is limited to the study area (RMWB and Lac La Biche County).

Provincial Effect extends beyond the study area or includes effects at a provincial level (Alberta).

National Effect extends outside Alberta or nationally.

Magnitude Low Effect that occurs might or might not be detectable, but is within the normal range of variability.

Moderate Effect is detectible but is unlikely to represent a substantial change in, or pose a serious risk to, the VSC or to represent a management challenge.

High Effect is likely to represent a substantial change in, or pose a serious risk to, the selected VSC and is a management challenge.

Duration Short Term Effect is limited to the construction period.

Long Term Effect occurs during the operations period.

Confidence Poor No clear understanding of cause and effect because of lack of relevant information base.

Moderate Moderate understanding of cause and effect from existing knowledge base, but potential for site and time-specific variability and/or moderate level of site-specific data available, but limited predictive ability due to variability over time and/or space.

High High understanding of cause and effect from existing knowledge base and/or high level of site-specific data available and limited potential for site and/or time-specific variability.

Final Impact Rating

Low This is based upon professional judgment and takes into account the various rankings for each attribute (direction, magnitude, geographic extent, duration, likelihood, reversibility, and confidence) following the application of mitigative measures. Moderate

High

Note: * The socio-economic effects attribute definition is slightly different than other components in this environmental

impact assessment where Local is defined as Conklin and First Nations in close proximity and Regional is defined as the RMWB and the County.

For assessment of each VSC, a final impact rating of low, moderate or high is stated. This is based upon professional judgment that takes into account the various rankings for each attribute (direction, magnitude, geographic extent, duration and confidence). Final (residual) impact ratings that take into account mitigation measures are discussed at the end of each VSC’s assessment.


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17.4 Methods

17.4.1 Baseline Data Collection

Considerable background information on social and economic conditions in the study region was obtained from a variety of publicly available information sources and environmental impact assessments previously completed for other oil sands developments in the area. Information was validated and updated through phone interviews with knowledgeable informants in the study region and in conjunction with public consultation activities. Collection of baseline information focused on anticipated Project-related effects that are typically associated with oil sands developments in the study region. Both primary and secondary baseline data were collected. Primary data were collected through in-person and phone interviews with various public officials and representatives of government agencies in the SESA. In addition, Devon’s relevant information was reviewed and analyzed, including information from:

• meetings with Devon personnel and their consultants; • communication materials, such as media articles and releases; and • minutes from government and community meetings. Secondary data were collected from various governmental websites, particularly: Statistics Canada, Aboriginal Affairs and Northern Development Canada, Government of Alberta, the RMWB and the County. The assessment incorporates the relevant socio-economic statistics from the complete 2006 Canada Census data set (Statistics Canada 2006a, b). Limited data were available from the 2011 Census at the time of reporting (i.e., population, dwellings data), and these data are presented in text form to supplement the 2006 census data, providing an indication of current conditions where possible.

17.4.2 Effects Analysis Methods

The SEIA considers two principal types of effects: economic and social. Economic effects, such as Project expenditures and employment and income generated from the Project are assessed at the local, regional and provincial levels. The focus of the assessment is on the effects of: 1) direct expenditures; 2) employment; and 3) business opportunities. Social effects of construction and operations on workers and their dependants include:

• population; • infrastructure services and conditions (housing and utilities); • education and training services and conditions; • protective services and conditions (RCMP, fire and emergency); • health services and conditions;


Page 17-9

• social services and conditions; and • recreation and leisure services and facilities. Assessments previously undertaken for Devon projects in the same SESA, namely the Jackfish 1, Jackfish 2 and Jackfish 3 projects (recently combined as the Jackfish project under an amending Environmental Protection and Enhancement Act approval), are particularly relevant to this SEIA. Mitigation and management measures to address potential socio-economic effects of the Jackfish project are being implemented and are well-developed. Devon commits to continuing these policies and programs for the Project, and the effects assessment reflects Devon’s current practices, which will be extended to the Project. Hence, the effects summaries presented in Section 17.5 show little difference between initial assessment and final impact ratings. However, the applicable mitigative influences are identified.

Economic Effects Analysis Methods

The economic analysis assesses Project economic effects at the regional and provincial scale. The approach used was as follows:

• described current economic conditions in the SESA and compared them with provincial conditions. The description included economic indicators, as well as quantitative and qualitative information on labour force indicators, occupations and incomes;

• considered the potential changes that could take place in the regional economy and in Alberta as a result of the Project;

• identified other projects in the SESA and examined Project effects in combination with the effects of other projects in the SESA;

• identified economic effects on the SESA and Alberta using a multiplier approach. The Alberta economic effects were estimated using the Statistics Canada 2005 Interprovincial Input-Output Model – Open Version (Statistics Canada, Input-Output Division 2006);

• applied the assessment criteria to define the magnitude, duration, geographic area, direction and confidence level of identified effects; and

• identified appropriate mitigation measures that are expected to reduce negative and promote positive Project effects.

Social Effects Analysis Methods

The following approach was used to conduct the social effects analysis:

• described the current social conditions in the SESA, and compared them when appropriate with provincial norms and averages. Descriptions included social indicators, and quantitative and qualitative information;

• considered the potential changes in conditions within the SESA as a result of the Project;

• identified social effects based on the potential changes in the SESA;


Page 17-10

• applied the assessment criteria to define the magnitude, duration, geographic area, direction and confidence level of identified effects; and

• proposed appropriate mitigation measures that are likely to reduce negative effects and promote the positive effects of the Project.

Planned Development Case Effects Analysis Methods

The standard practice in assessing potential effects on socio-economic conditions is to evaluate Project-related effects in the context of current conditions and future trends. This requires identifying other economic development activities that may occur in the region, and assessing the incremental effects that the Project may have. The SEIA is inherently cumulative. However, in order to produce a focused assessment of planned development, the following approach was used:

• identified a list of approved and planned oil sands projects in close proximity to the Project study area;

• discussed the sensitivity of the selected VSCs to these cumulative influences, particularly with respect to temporal overlaps;

• identified socio-economic effects based on the potential changes in the study area; • applied the assessment criteria to define the magnitude, duration, geographic area,

direction and confidence level of identified effects; and • proposed appropriate mitigation measures that are likely to reduce negative effects and

promote the positive effects of the Project.

17.5 Baseline Case

17.5.1 Regional Overview

The SESA has three main components: the RMWB, the County and Conklin. As stated in Section 17.2, effective 01 January 2012, lands were annexed from the southern portion of the RMWB to the County. Lands from the southern portion of the RMWB were annexed to the County and Improvement District 349 (operated by the Province), increasing the size of the County by 2 092 km2. The RMWB boundary changes affected two oil sands operators, Devon and Canadian Natural Resources Limited, who will, effective January 2012, remit their municipal taxes to Lac La Biche and not to RMWB. This Regional Overview, however, provides narratives for both the RMWB and the County before the municipal change. The RMWB is located in the northeast corner of Alberta bordering the Northwest Territories and Saskatchewan, and encompasses an area of approximately 68 454 km². It is the focal point of the oil sands industry, where the pace of expansion has substantially accelerated in the last 10 years. The community of Fort McMurray is the commercial and administrative centre for the RMWB and the oil sands region. During the expansion of oil sands mining in the RMWB, Fort McMurray transformed from a small northern service centre to a modern urban community (RMWB 2003).


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The rapid growth of the oil sands industry has challenged the infrastructure and social services in the RMWB, where the majority of oil sands projects are located, and in Fort McMurray, the urban center of the oil sands region. Fort McMurray became a boomtown, with all the escalating costs and quality-of-life issues that boomtowns face. Those issues include short supply in housing, expensive rental rates, difficulty in attracting and retaining workers for occupations apart from oil sands exploration and development (including health care workers, teachers and municipal employees), and additional pressures on health services. Further, infrastructure was becoming inadequate for the growing population and was unable to meet the demands created by the growing oil sands industry (IHS CERA 2009). To address immediate challenges associated with oil sands development, the Government of Alberta released Responsible Actions, a comprehensive 20-year strategic plan for Alberta’s oil sands (Government of Alberta 2009). This plan aims to reduce the environmental footprint, optimize economic growth and increase the quality of life in Alberta’s oil sands regions. The plan provides a platform to balance oil sands development with environmental protection, social responsibility, and economic success. The plan outlines six strategies, three of which focus on social and economic growth as follows:

• Strategy 2 – Promote healthy communities and a quality of life that attracts and retains individuals, families and businesses;

• Strategy 3 – Maximize long-term value for all Albertans through economic growth, stability and resource optimization; and

• Strategy 4 – Strengthen our proactive approach to Aboriginal consultation with a view to reconciling interests.

Two years after the release of Responsible Actions, over 50 projects and initiatives reflected in the strategic plan have made steady and, in some cases, significant progress. Additionally, policies and processes have been established to achieve the recommended actions, Alberta’s oil sands communities are further developing, and the government’s commitment to clean energy technology continues (Government of Alberta 2011a). Important progress and activities for Year 2 (2010) of the plan at the ‘strategy’ level include the following: Progress in support of Strategy 2:

• housing: more serviced land is available for sale for developers to build homes; • traffic: reduction in traffic-related deaths and injuries with the release of the Alberta’s

Traffic Safety Plan; • infrastructure: the release of Comprehensive Regional Infrastructure Sustainability Plan

for the Athabasca oil sands area; • land use: work is continuing on the Urban Development Reserve project; • infrastructure and social services: the Social and Infrastructure Assessment Model was

completed in 2010 and is currently under examination; • health: the Government of Alberta is committed to working with Alberta residents to

better understand their health concerns;


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• school education: the release of Northern Student Teacher Bursary Program; • post-secondary education: the release of Alberta Education’s Career and Technology

Studies program; • emergency services (workplace safety): a workplace health and safety plan was

developed to support workers; and • emergency services (crime prevention): the Safe Communities Innovation Fund

supported two new safe communities projects in the RMWB. Progress in 2010 in support of Strategy 3:

• Bitumen royalty-in-kind and other value-added initiatives are intended to add value to hydrocarbon resources, including bitumen, diversify Alberta’s economy, increase resource revenues and create jobs in the province. The following activities are underway to further support this approach:

to maximize the potential for Alberta to increase value-added activities and cleaner energy development, work is being completed to leverage bitumen royalties through developing value-added products. The Government of Alberta completed a Request for Proposal process and negotiations have concluded with the selected party to process royalty bitumen within Alberta;

the Government of Alberta has developed bitumen royalty-in-kind implementation alternatives and will consult with stakeholders in 2011 and 2012 to finalize the royalty design and implementation framework;

the Government of Alberta has developed and refined a governance and organizational structure for a Crown agent to market bitumen royalty-in kind; and

the Crown initiated several projects to better understand the opportunities available to leverage Crown barrels of bitumen royalty-in-kind in the future. These initiatives include an evaluation of the North American refined product market. A team has been established by Alberta Energy, Finance and Enterprise and International and Intergovernmental Relations to investigate options to gain west coast tide water access for oil sands products.

• The Government of Alberta sees increasing tidewater access and diversifying to Pacific Rim markets as a significant benefit to Alberta’s oil industry. Enbridge filed its Gateway facilities application in May 2010, and the National Energy Board is expected to set a hearing schedule in 2011. The Government is monitoring the process and will be filing evidence supporting the economic benefits. The Government is also chairing a panel to support its position. Once the process gets underway, it is expected to continue for a period of at least one year.

a multi-use corridor strategy for Alberta is being developed. The strategy will support regional growth for the future development of needed provincial transportation and energy infrastructure;


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a Short-Term Employment Forecasting tool was developed to better forecast labour shortages. The methodology will help create a list of occupations under pressure in the short term, from one to three years. This list will assist government, contractors and partners in making decisions and taking actions to ease labour shortages in Alberta;

to validate future workforce trends and challenges, as well as identify actions required by industry and government to address gaps, the Government of Alberta hosted a Minister’s Forum in October 2010 with 120 senior representatives from a range of industry sectors, labour and government departments. The gathered information will assist the Government and stakeholders with future labour force planning, and will act as a catalyst for continued collaboration and cooperation in addressing these issues throughout the province, including in the oil sands regions;

through funding from the Government of Alberta, the Athabasca Tribal Council developed a Work Culture Attraction and Retention DVD targeted to Aboriginal people exploring work opportunities in the oil sands sector, and employers looking to recruit. The DVD looks at the impact of living away from home, life in work camps, making informed choices regarding work in the oil sands sector, coping strategies and cultural diversity in the workplace;

a number of First Nations and Aboriginal Training to Employment Partnership agreements have been developed between the Alberta Government, the Athabasca Tribal Council, Rupert’s Land Institute (formerly the Métis Nation of Alberta Labour Market Unit) and industry. The goal of these partnerships is to address Aboriginal labour pool training needs and meet labour market demand in the region;

industry, government and stakeholders have partnered to develop a Local Opportunity Centre in the community of Conklin, which is located within the RMWB. The centre provides career, employment and entrepreneurship development for local and surrounding area Aboriginal people, and supports employers with attraction and retention strategies and labour market information;

in 2010, the MLA Committee on the First Nations, Métis and Inuit Workforce Planning Initiative submitted a report and recommendations to the Ministers of Employment and Immigration and Aboriginal Relations. The overall goal of the recommendations is to increase the participation of Aboriginal people in Alberta’s workforce and economy; and

the Government of Alberta continued to engage with policy makers, government agencies, investors, corporations and others in Canada, the United States and abroad. The focus is to build understanding of Alberta’s ability and commitment to manage the responsible development of our secure, reliable and geopolitically important energy resources.


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Progress in support of Strategy 4:

• The Development of a First Nations Consultation Policy on Land Management and Resource Development. This policy was introduced in 2005. Associated guidelines for policy implementation were released in 2006 and updated in 2007. With input from First Nations, industry and municipalities, the Consultation Policy and Guidelines are currently under review (Government of Alberta 2011a).

The County is a recently incorporated rural and urban municipality situated approximately 160 m northeast of Edmonton. The County has published a ‘Sustainability Plan – 2009-2011’ which outlines areas of economic growth and development of the County, with the focus on various governance-related issues, infrastructure requirements for a growing municipality, and anticipated social needs/expectations of residents (Lac La Biche County 2009). Given its strategic location at the crossroads of two major oil sands producing areas in Fort McMurray and Cold Lake, drilling, seismic, and pipeline construction contribute significantly to the local economy. Opportunities for expansion and new ventures exist in servicing SAGD developments (Community Futures 2011). The oil and gas industry represents a large part of the County’s economy and a large percentage of the tax revenue is derived from this industrial base. The County is looking for ways to diversify its economy. Action steps are being considered to increase the diversity of the county’s tax base through actively promoting the region’s marketability and making it easier for new industry to locate in the Lac La Biche area. Further action steps have been developed to address the importance of maintaining a high level of qualified staff working for the County. Oil sands development in the area and the County’s role in delivering goods and services to oil sands projects minimized the effects of the last recession and promoted the role of the County as a service provider (Community Futures 2011). Conklin is located 140 km southeast of Fort McMurray at the confluence of the Jackfish River and Christina Lake with a population of 338 residents in 2006, most of which were of Métis decent. Conklin is linked to Anzac to the north and Lac La Biche to the south by Highway 881. Most goods and services available in Conklin are sourced from Fort McMurray. Local commercial developments include a gas bar, post office, store and related facilities, which cater primarily to the oil and gas industry. In addition, the Christina Lake Recreation Resort includes lodging, a café and a lounge. Much of the community's subdivided land base is held by the municipality; however, there are also lots under private ownership (RMWB 2009).


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17.5.2 Economic Investment in the SESA

The economic investment climate in the SESA could be summarized by the following:

• the regional economy in the SESA is moving towards full capacity; • more than half of the value of major construction in the SESA is planned for the RMWB; • the SESA was affected by the 2008 recession; however, current expansion plans reflect

considerable growth; and • labour shortage is a major challenge due to both age-related attrition and the increase in

demand for workers associated with economic growth. The regional economy in the SESA is moving towards full capacity. A spatial price survey of communities in Alberta in 2010 showed that commodity prices for residents of Fort McMurray were 12% higher than for residents of Edmonton and that the price of shelter was 39% higher (Alberta Finance and Enterprise 2010). Labour market indicators for the region show high participation rates, very low unemployment rates and upward pressure on wages. Local businesses are reporting labour shortages and there are a large number of non-resident workers located in work camps in the RMWB. Further, many major capital investment projects are planned for Alberta, including a large number proposed in the SESA. As of December 2011, the value of major construction projects that were announced, completed, nearing completion, on hold, proposed or under construction in Alberta was estimated at $208,779.2 million. Almost $129,829.6 million are planned in the SESA and this represents 62.2% of the value of all major construction projects in Alberta (Dumaresq pers. comm. 2012). The worldwide economic recession of 2008 had a notable impact on the Canadian oil sands. However, the Alberta oil sands industry is once again expanding with a number of major projects under development and still more proposed for the future, reflecting considerable growth. ‘Economic Impacts of New Oil Sands Projects in Alberta (2010-2035)’ focuses directly on the economic impacts of the Alberta oil sands between 2010 and 2035. It examines the impacts of oil sands operations (existing and future) given pipeline export capacity assumptions. In it, four capacity scenarios, or cases, are discussed:

• Case 1 – Existing pipelines operations. This case examines the economic impacts of existing oil sands operations and those that are still under construction. It assumes no new pipeline capacity and serves as a baseline scenario;

• Case 2 – Existing pipelines operations + TransCanada Keystone XL Pipeline. This case considers the economic impacts of existing oil sands operations and those currently under construction. It assumes the Keystone XL pipeline comes on stream in 2013, and that a portion of approved oil sands projects not yet under construction will in fact become operational;


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• Case 3 – Existing pipelines operations + TransCanada Keystone XL Pipeline + Enbridge Northern Gateway Pipeline. Case 3 includes all of the projects considered in Case 2 and adds an additional portion of approved projects that can be accommodated by the Northern Gateway pipeline in operation by 2016; and

• Case 4 – Announced and Potential Capacity. This case assumes that, in addition to Case 3, all other remaining oil sands projects will proceed and that the required pipeline capacity to move new product will be constructed, including projects such as Kinder Morgan’s Northern Leg expansion.

Key findings of Case 1, the most conservative case, show that over the 2010 to 2035 period, the estimated investments, reinvestments, and revenues from the operations of the existing and under construction oil sands projects are estimated at $2,197 billion. Total Canadian gross domestic product (GDP) impact as a result of these investments is estimated at close to $2,283 billion over the 25-year period and Canadian employee compensation will reach almost $650 billion over this time period. Employment in Canada (direct, indirect, and induced) is expected to grow from 390,000 jobs to a peak of 490,000 jobs in 2020. And finally, Alberta royalties are expected to grow from $3.56 billion in 2010 to a peak of $22.6 billion in 2020 (CERI 2011). With the above anticipated growth, labour supply will be a challenge. Information from the Construction Sector Council (CSC) suggests that over 30% of the industry's core workforce is expected to retire within the next decade, at the same time as traditional labour pools decline. Projections of the industry's workforce by the Petroleum Human Resources Council show that even if energy prices and industry activity levels are low, there remains a need to hire approximately 39 000 workers just to replace workers lost due to age-related attrition (CSC 2011). If energy prices remain high over the next few years, activity levels will rise and significant labour shortages are expected to impact the industry in 2012, driven largely by the staffing needs of the services, exploration, production and oil sands sectors. Some of the new demand is inevitable as oil sands companies will hire for plants currently under construction. The petroleum industry may need to add over 130,000 workers between 2010 and 2020 if anticipated activity levels occur (CSC 2011). The insitu oil sands labour market environment for Q3 and Q4 of 2011 was extremely competitive. Top workforce challenges included:

• attraction and retention of workers in hard-to-recruit locations; • labour and skills shortages; • managing employee turnover/retention; • benefits and compensation expectations; and • productivity and employee engagement (Petroleum HR Council 2011).


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Following is a list of insitu oil sands-related jobs that were cited to be in-demand (or particularly difficult to recruit for) during the same period:

• geoscience professionals, particularly geologists and geophysicists; • experienced engineers for various disciplines: reservoir/development,

production/operations, drilling, completions, pipeline integrity, process and field development;

• completions specialists; • certified trades and apprentices: heavy duty mechanics, welders, pipefitters, machinists,

insulators, scaffolders and instrumentation technicians (field services); • plant operators, SAGD operators, field operators with intermediate- to senior- levels of

experience and steam ticketed operator roles such as chief steam engineers, power engineers, second and third class steam operators;

• drilling and service rig crews: experienced derrickhands, rig managers and supervisors, drillers, motorhands, floorhands and leasehands;

• supervisors in pipeline and facility construction, field operations, seismic, fracturing, coil tubing, slickline and wireline;

• heavy equipment operators and drivers, particularly experienced Class 1 and 3 drivers; • seismic workers such as line crew helpers, observers, etc.; • experienced electric line (or eline) and production testing employees; and • business and operations support roles such as compensation analysts, document

control, specialty IT systems resources, and various roles in quality, health, safety and environment including Alberta Peatland Inventory (API)-certified inspectors, Environmental Health and Safety (EH&S) specialists and field advisors.

Companies are using a mix of attraction and retention practices to deal with worker shortages and competition in the insitu oil sands market. Partnerships with organizations and programs that target underutilized labour pools such as youth, women, immigrants or Aboriginal groups is seen as a good practice to attract new workers. Currently, and despite growth, the overall petroleum industry demographics did not change as the percentages of women, immigrants and Aboriginals in the petroleum workforce remained quite low and close to 2001 levels. The high demands for qualified workers together with improving company competitiveness, safety requirements and future growth expectations are driving increased training requirements. Retention practices vary and a common objective is to retain baby boomers. Companies are offering retired and retiring staff either consulting contracts or flexible work arrangements to retain them longer. In addition, companies are considering different levels of knowledge retention transfer programs to manage baby boomers retirements (Petroleum HR Council 2011).


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17.5.3 Labour Force Indicators, Earnings and Income in the SESA

Labour force indicators, earnings and income are discussed for the two major regions of focus in the SESA: the RMWB and the County. The County’s statistics of economic indicators are provided for the Town of Lac La Biche and Lakeland County before the amalgamation, as statistics following the amalgamation are not yet available. There are no separate labour force indicators for Conklin. Figure 17.5-1 provides a comparison of economic indicators in the study area, Alberta and Canada and Figure 17.5-2 provides a comparison of labour force by industry in the SESA and Alberta The 2006 census shows the RMWB has higher labour force participation (82.3%) and employment rates (79.5%), and a lower unemployment rate (2.8%), compared to both provincial and national rates (Table 17.5-1) (Statistics Canada 2006b).

Table 17.5-1: Labour Force Indicators in the Regional Municipality of Wood Buffalo, Alberta and Canada (2006)

Area Labour Force

Participation Rate1 (%)

Unemployment Rate2 (%)

Employment Rate3 (%)

RMWB 82.3 2.8 79.5 Fort McMurray 82.4 2.7 79.7 Rural Communities 79.5 4.0 75.5 Alberta 74.8 3.4 72.3 Canada 68.0 6.1 63.8

Notes: 1 Labour force participation rate: labour force in the week prior to Census Day, expressed as a

percentage of the population 15 years of age and over. 2 Unemployment rate: number of unemployed persons expressed as a percentage of the labour

force in the week prior to Census Day. 3 Employment rate: number of persons employed in the week prior to Census Day, expressed as

a percentage of the total population 15 years of age and over. Source: RMWB (2006).

A more recent survey prepared by Alberta Employment and Immigration shows that the unemployment rate in the RMWB increased to 5.4% in June 2011 (Government of Alberta 2011b). Despite this increase, the unemployment rate in the RMWB was still below the provincial rate of 5.6% and the national rate of 7.4% in June 2011 (Government of Alberta 2011b). The 2006 census also shows that of the RMWB population of 51,496, the total experienced labour force 15 years and over was 33,615 people (31.4% in agriculture and other resource-based industries, 14.3% in manufacturing and construction, 13.2% in business services, 12.7% in wholesale and retail trade, 9.9% in health and education, 3.8% in finance and real estate, and 14.4% in other services).

Economic Indicators in the Study Area,Alberta and Canada

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Earnings statistics show that 70% of people 15 years and over in the RMWB have earnings from employment, compared to 62.5% in Alberta. Median earnings were $47,860 and $29,738 in the RMWB and Alberta, respectively. Income statistics suggest that the percentage of people 15 years and over with any income in the RMWB is 76.5%, compared to 76.4% in Alberta. The median total income is considerably different, however, with $43,920 in the RMWB and $28,896 in Alberta as a whole. Earnings as a percentage of total income was 95.2% in the RMWB, compared to 82.3% in Alberta. Table 17.5-2 provides a comparison between labour force indicators in the RMWB and Alberta as a whole in 2006.

Table 17.5-2: Labour Force by Industry in the Regional Municipality of Wood Buffalo and Alberta (2006)

Industry RMWB Alberta Total experienced labour force1 (#) 33,615 1,928,635 Agriculture and other resource-based industries (%) 31.4 11.8 Manufacturing and construction industries (%) 14.3 15.9 Wholesale and retail trade (%) 12.7 15.1 Finance and real estate (%) 3.8 5.0 Health and education (%) 9.9 15.3 Business services (%) 13.2 18.3 Other services (%) 14.4 18.2 Earnings and Income Persons 15 years and older with earnings (%) 87.6 77.4 Median earnings persons 15 years and older ($) 47,860 29,738 Persons 15 years and older with income (%) 95.8 94.5 Median income persons 15 years and older ($) 43,920 28,896 Composition of Total Income Earnings as % of total income 95.2 82.3 Government transfer as % of total income 2.4 7.2 Other money as a % of total income 2.5 10.6

Note: 1 Experienced labour force: persons 15 years and over, excluding institutional residents, who were

employed or unemployed during the week prior to Census Day, and who had last worked for pay or in self-employment in either that year or the previous year.

Source: Statistics Canada (2006b).

Fort McMurray’s economy is heavily dependent on oil sands exploration and development. However, the Fort McMurray economy also relies on natural gas and oil distribution, forestry, and tourism. Fort McMurray's growth is characteristic of a boomtown and urban service centre that supplies goods and services to oil sands development, workers and residents in the area. There are more than 1,502 companies in Fort McMurray, comprising the following categories:

• business services (343); • consumer products and services (487); • food and beverage (106); • health (52); • industrial (316); • public sector (174); and • technology and communications (24).


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The Town of Lac La Biche serves as a business hub to the area, and is a growing and thriving community (Lac La Biche County 2008). Main industries in the County include oil and gas, forestry, tourism and agriculture. In 2006, in the Town of Lac La Biche had a population of 2,758 and the total experienced labour force was 1 420 people (15.5% in wholesale and retail trade, 14.7% in manufacturing and construction, 18.3% in health and education, 8.8% in agriculture and other resource-based industries, 11.6% in business services, 3.1% in finance and real estate, and 27.1% in other services) (Statistics Canada 2006b). Earnings statistics show that 56.2% of people 15 years and over in the Town of Lac La Biche had earnings compared to 62.5% in Alberta. The median earnings were $24,753 and $29,738 in the Town of Lac La Biche and Alberta, respectively. Income statistics suggest that the percentages of people 15 years and over with income in the Town of Lac La Biche and Alberta are 71.2% and 76.4%, respectively. The median income was $22,197 in the Town of Lac La Biche and $28,896 in Alberta. Earnings as a percentage of total income were 79.9% in the Town of Lac La Biche, compared to 82.3% in Alberta (Statistics Canada 2006b).Table 17.5-3 provides a comparison between economic force indicators in the Town of Lac La Biche, Lakeland County and Alberta as a whole in 2006.

Table 17.5-3: Economic Indicators in the Town of Lac La Biche, Lakeland County and Alberta (2006)

Economic Indicator Town of Lac La Biche Lakeland County Alberta

Labour Force Labour force participation rate (%) 70.6 71.2 74.0 Employment rate (%) 67.7 67.8 70.9 Unemployment rate (%) 4.2 4.8 4.3 Percent employed full time (%) 95.8 95.2 95.7 Average earnings ($) (2000) 29,626 27,695 32,603 Industry Agriculture/other resource-based industries (%) 8.8 23.3 11.8 Manufacturing and construction industries (%) 14.7 15.3 15.9 Wholesale and retail trade (%) 15.5 10.2 15.1 Finance and real estate (%) 3.1 2.3 5.0 Health and education (%) 18.3 18.6 15.3 Business services (%) 11.6 13.9 18.3 Other services (%) 27.1 16.4 18.2 Earnings and Income Persons 15 years and older with earnings (%) 56.2 60.8 62.5 Median earnings persons 15 years and older ($) 24,753 26,110 29,738 Persons 15 years and older with income (%) 71.2 72.03 76.4 Median income persons 15 years and older ($) 22,197 25,515 28,896 Composition of Total Income (100)% Earnings as % of total income 79.9 83.1 82.3 Government transfer as % of total income 13.2 11.2 7.2 Other money as a % of total income 6.9 5.7 10.6

Notes: See Table 17.5.1 for definitions of participation, employment and unemployment rates. Rates are for experienced labour forced aged 15 years and older. Source: Statistics Canada (2006b).


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Before the amalgamation, in Lakeland County (population of 6,365 in 2006) the total experienced labour force was 3,430 people (23.3% in agriculture and other resource-based industries, 18.6% in health and education, 15.3% in manufacturing and construction, 13.9% in business services, 10.2% in wholesale and retail trade, 2.3% in finance and real estate, and 16.4% in other services) (Statistics Canada 2006b). Earnings statistics show that 60.8% of people 15 years and over in Lakeland County had earnings, compared to 62.5% in Alberta. The median earnings were $26,110 and $29,738 in Lakeland County and Alberta, respectively. Income statistics suggest that the percentage of people 15 years and over with income in Lakeland County and Alberta was 72.3% and 76.4%, respectively. The median income was different, however, and was almost $25,515 in Lakeland County and $28,896 in Alberta. Earnings as a percentage of total income were 83.1% in Lakeland County compared to 82.3% in Alberta.

17.5.4 Population Growth in the SESA

Oil sands investments and the related inputs to the RMWB economy have resulted in a significant population increase over the last seven years. According to the RMWB 2006 census, prior to major investments in the oil sands, the rate of population change for 1986 to 1996 was 1% (from 36,810 to 37,222). For the period 1996 to 2006, which coincided with major oil sands investments, the population increased by 86% (from 37,222 to 67,067). This was substantially higher than the provincial population change (22%) during the same period. Adding the population of workers staying in camps (the so-called shadow population) in the RMWB (10,442) increases the population growth rate in the regional municipality to 114% during that timeframe. Most of population growth occurred in Fort McMurray and the surrounding work camps (RMWB 2006). According to 2011 census data, the population of Fort McMurray was 61,374; population change between 2006 and 2011 was 28.7% (Statistics Canada 2011). No additional census data were released at the time of Project filing. Table 17.5-4 provides further information on the population of the RMWB (RMWB 2010).


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Table 17.5-4: Population in the Regional Municipality of Wood Buffalo

Area 1999 2010 Fort McMurray1 36,452 76,797 Anzac 397 785 Conklin 215 337 Darper 47 254 Fort Fitzgerald n/a 8 Fort Chipewyan2 1,020 1,261 Fort McKay3 262 443 Gregoire Lake Estates 163 248 Janvier (Chard) 207 195 Mariana Lake 7 0 Saprae Creek 509 926 The hinterland4 n/a 158 Work camps5 (Shadow Population) 3,568 23,325

Total 42,847 103,334

Notes: n/a Population not available. Source: RMWB (2010). 1 The work camp, hotel/motel and campground population residing in Fort McMurray are included in the total. 2 The increase in population in Fort Chipewyan is likely due to growth, but also because the enumerators were

trained in person in 2010, which may have resulted in more accurate data. 3 The 2010 Municipal Census enumeration for Fort McKay was only conducted on the off-reserve population. The

population that resides on-reserve, including the recent reserve expansion, was not enumerated in 2010 and is thus not reflected in the 2010 census figures. Population figures prior to 2010 reflect both on-and off-reserve population.

4 “Hinterland” means sparsely populated region outside of Urban and Rural Service Areas, and does not include Work Camps and Campgrounds. A higher number in 2010 is in part due to better coverage of hinterland areas by enumerators.

5 “Shadow Population” means temporary residents of a municipality who are employed or will be employed by an industrial or commercial establishment in the municipality for a minimum of 30 days.

The populations of Fort McMurray and the RMWB are projected to grow to 133,000 and 205,000 people respectively by 2028 (RMWB 2009). Compared to the actual population in 2010, these projections indicate population increases in the next 18 years of 56,203 and 100,662 people, respectively. The population change for 2001 to 2006 was -0.6% in the Town of Lac La Biche (from 2,776 people to 2,758) and +20% in Lakeland County (from 5,306 to 6,365) (Statistics Canada 2006b). The rate of population change in the Town of Lac La Biche was significantly lower than the provincial average, while the population change in Lakeland County was above the provincial average. As of Q4 of 2011, there was no shadow population in the County as all camps were located within the municipal boundaries of the RMWB (Table 17.5-5) (Given the recently revised boundaries of the County described in Section 17.2, however, Devon’s camps will be located within the County as of January 2012).


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Table 17.5-5: Populations in the Town of Lac La Biche and Lakeland County

Area Town of Lac La Biche

LakelandCounty Alberta

Population in 2001 2,776 5,306 2,974,807 Population in 2006 2,758 6,365 3,290,350 Population change -0.6% +20.0% +10.6%

Note: Source: Statistics Canada (2006b).

According to 2011 census data, the population of the County was 8,402; population change between 2006 and 2011 was -7.9% (Statistics Canada 2011). No additional census data were released at the time of Project filing. During the last 10 years, there has been an increase in temporary workers living in camps. Between 2000 and 2010, the work camp population increased by 295% or 17.1% annually (RMWB 2010). The number of workers living in the SESA on a temporary basis is expected to increase in the near future as additional oil sands operations are constructed. Depending on the number and size of projects that actually proceed, there could be an ongoing presence of construction workers living in camps in the area through to 2015.

17.5.5 Education

17.5.5.1 School Enrolment and Vocational Training in the SESA

Fort McMurray is served by public and Catholic school boards. The Fort McMurray Public School District has 12 schools that provide kindergarten through Grade 12 and include an outreach school, a dual track English-French Immersion School, a Christian school and a Kindergarten to Grade 3 Islamic school (Fort McMurray Public School District 2011). As of 2012, the Public School District has approximately 5,500 students; almost 500 new students enrolled in 2011. The demography of Fort McMurray is changing; the change is attributed to natural growth characterized by high birth rates as well as growth associated with the in-migration of young families. This demographic change created additional demand for schools particularly kindergarten and elementary. There are also a growing number of students needing English as a Second Language given that Fort McMurray also is attracting workers from outside the country. To accommodate the growing demand, one new school is approved and will be operational in 2014 with a capacity of 400 students and two others are awaiting provincial approval. The District tries to maintain a student to teacher ratio of 20 to 26 students per teacher in elementary and 26 to 30 in junior high and high schools. The District is able to fill many support positions locally because they partner with Keyano College for teaching assistant and early childhood education practicum work. However, the District is sometimes challenged to hire for special education positions (Demers pers. comm. 2012).


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The Fort McMurray Catholic School District operates ten schools, which offer kindergarten through Grade 12, including French Immersion programs, to approximately 4,300 students (Fort McMurray Catholic Schools 2011). The student to teacher ratio is approximately 20 to 1; 2011 enrolment has increased by approximately 8% and the District was able to accommodate an additional 400 students during 2011. In some areas, schools are over capacity, and in others schools are at or under capacity. To accommodate the growing demand, one new school is approved and will be operational in 2014 with a capacity of 600 students. Although the oil sands industry tends to have a high school diploma requirement for hiring, there is a concern that high school graduates do not continue with post-secondary education because of the potential for immediate employment with significant compensation (Gagnon pers. comm. 2012). Despite challenges, the quality of education in the region, based on performance indicators related to the rate of high school completion within three years, was only slightly below the provincial average (Alberta Education 2011). Keyano College was first established in Fort McMurray as an Alberta Vocational Centre in 1965 to address the training needs of the oil sands industry. It has since grown to encompass three campuses and four learning centers serving both full and part-time students. Keyano provides training in various trades, including power engineering, steam and pipe fitting, heavy equipment operation, electrician’s training and millwright training and has contracted to provide onsite training at the larger oil sands projects. The College has state-of-the-art simulation equipment for training as well (Thomas pers. comm. 2012). Census information from 2006 indicated that residents within the Wood Buffalo Region have a higher attainment of apprenticeship or trade certification or diploma than Alberta as a whole (Statistics Canada 2006b). The 2010/2011 credit student enrolment increased by 2.5% from 2,995 to 3,069 and 2010/2011 continuing education enrolment increased by 21% from 23,185 to 28,105. The May 2011 convocation was the largest in Keyano College history and enrolment has been increasing in recent years and is expected to increase in the future. However, there are challenges to provide programming for increased enrolment, with limited government funding, even though the college is not physically at capacity. The power engineering program is at capacity and construction on a new facility is expected to start in 2012 (Thomas pers. comm. 2012). School education services in the County are offered by the Northern Lights School Division, while adult education is offered by Portage College. The Northern Lights School Division operates 10 public schools in the County, offering provincially certified instruction for Grades K–12. The schools have seen continuous growth in recent years, which has resulted in substantial upgrading of facilities and expansion of curriculum to include language training in French, Arabic, Cree and Russian. Additional expansions include child care, paramedic programs, health aid and a mobile trades lab (Lac La Biche 2011).


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Currently, the total number of teachers and support staff within the Lac La Biche School Area (Lac La Biche and the surrounding 25-minute driving area) is 225, comprising 125 teachers and 100 support staff. The division has enough resources and staff retention is not a major issue. The division is not running at its maximum capacity and could easily accommodate 100 more students. The division is working with the provincial government to build two additional 800-student schools to accommodate the needs of potentially upcoming projects in the area. A new 800-student high school (approved, to be operational in 2014) and an 800-student elementary school will be attached to the Multiplex Educational Facility Project (awaiting approval) (Taylor pers. comm. 2012). Portage College offers seven different areas of study with over 30 different certificates and diplomas ranging from career programs, trades and technical training to academic upgrading programs. Fields of study include business, university studies, human resources, health and wellness, native arts and culture, trades and technical, and academic upgrading (Lac La Biche County 2012). Conklin has a small office for Keyano College, which is primarily based in Fort McMurray, that is open once a week. Before 2010, the community of Conklin was not of sufficient size to support a local high school. As a result, children used to travel away from the community to Fort McMurray to complete high school. Bussing was not provided and students were required to find accommodation in Fort McMurray. As a result of being removed from the family environment and support mechanisms, the majority of students struggled to succeed. Devon, together with the community, built the Sunchild E-Learning centre in Conklin to offer students the opportunity to complete their Grade 12 in Conklin. The Sunchild E-Learning high school offers flexible on-line courses, particularly suited for the needs and interests of Aboriginal students.

17.5.5.2 Educational Attainment in the SESA

In 2006, the RMWB had a higher percentage of persons with trades certification than Alberta as a whole (18.2% for the RMWB and 10.8% for Alberta) and a lower percentage of persons with university credentials (13.0% for the RMWB and 17.5% in Alberta). This finding is consistent with the demand for oil sands industry jobs that call for technical and highly trained, skilled workers. More information on the education profile of the RMWB is available in Table 17.5-6.

Table 17.5-6: Education Profile for the Regional Municipality of Wood Buffalo and Alberta (2006)

Education Profile RMWB AlbertaThe total population 15 years and over 41,055 2,625,145 No certificate, diploma or degree (%) 19.7 23.4 High school certificate or equivalent (%) 24.6 26.2 Apprenticeship or trades certificate or diploma (%) 18.2 10.8 College, CEGEP or other non-university certificate or diploma (%) 20.5 18.0 University certificate or diploma below the bachelor level (%) 4.0 4.0 University certificate or degree (%) 13.0 17.5

Note: Source: Statistics Canada (2006b).


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Fort McMurray residents achieved higher levels of education than residents in the smaller rural communities in the RMWB. The percentage of people with a high school diploma in Fort McMurray was 20.1%, compared to 14.7% in the rural communities. Further, the percentage of people with a college or technical certification/diploma in Fort McMurray was 17.4%, compared to 8.7% in rural communities (RMWB 2006). In 2006, the population percentages in the Town of Lac La Biche and Lakeland County without a certificate or diploma were 33.3% and 38.4% respectively, and percentages of people with a high school certificate or equivalent were 21.2% and 21.0%, respectively (Statistics Canada 2006b). Lakeland County had a higher percentage of people with a trades certificate or diploma or a college degree than the Town of Lac La Biche (14.7% and 16.3% in Lakeland County versus 9.4% and 15.3% in the Town of Lac La Biche) and a lower percentage of people with a university certificate or diploma below the bachelor level and university certificate or degree (2.7% and 7.0% in Lakeland County versus 3.7% and 16.8% in the Town of Lac La Biche) (Table 17.5-7). Figure 17.5-3 illustrates levels of education attainment in the SESA.

Table 17.5-7: Education Profile for the Town of Lac La Biche, Lakeland County and Alberta (2006)

Education Profile Town of Lac La Biche

Lakeland County Alberta

The total population 15 years and over 2,025 4,825 2,625,145 No certificate, diploma or degree (%) 33.3 38.4 23.4 High school certificate or equivalent (%) 21.2 21.0 26.2 Apprenticeship or trades certificate or diploma (%) 9.4 14.7 10.8 College, CEGEP or other non-university certificate or diploma (%) 15.3 16.3 18.0 University certificate or diploma below the bachelor level (%) 3.7 2.7 4.0 University certificate or degree (%) 16.8 7.0 17.5

In 2009, the number of applications at Portage College increased by 19% over 2008, with a total of 1,258 prospective students applying for programs at the college. The number of students accepted into college programs also increased (by 17%). Despite the economic slowdown the spike in applications and enrolments correlates to the increase in program choices and the flexible modes of program delivery. The college started to offer more modes of program delivery that include face-to-face instruction as well as and video conferencing and online training, allowing much more flexibility and convenience for the students. In 2010 to 2011, there were 1,208 students’ enrolled at Portage College Lac La Biche Campus. Trades training expanded in the Lac La Biche Campus with an increase in Carpentry programming. The University of Alberta’s Aboriginal Teacher Education Program was also delivered to this campus allowing students to take third year university programming (Portage College 2012).

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17.5.6 Housing

17.5.6.1 Housing Availability and Affordability in the SESA

Between 1996 and 2005, due to high population growth associated with the oil sands industry, the supply of housing in Fort McMurray did not keep pace with demand. As a result, Fort McMurray has experienced rapidly escalating house prices and rental rates and a vacancy rate approaching zero (Government of Alberta 2006). As of 2011, there was a housing shortage of approximately 3,500 units and approximately 615 units for sale (332 single family and 165 multifamily). The average price of a single-family house was $740,266, which is 7.3% higher than July 2010 prices; and, average rent for a two bedroom in April 2011 was $2,152. The vacancy rate was 6.4% in April 2011, down from 13.4% in April 2010. Temporary accommodation includes motels, hotels and campgrounds. Single occupancy motel and hotel rooms range from $140 to $300 per night and serviced RV spots range from $33 to $38 per day ($1,000 to $1,200 per month), while power only RV spots range from $25 to $40 per day ($760 to $990 per month). Although the Wood Buffalo Housing & Development Corporation is planning to add 253 affordable housing units in 2011, there is a combined affordable and social housing waitlist of more than 174 (Hutchings pers. comm. 2011). Phase one of the 800 ha Parsons Creek development at the north edge of Fort McMurray will include 20% (almost 400 houses) of the homes as affordable housing (Edmonton Journal 2009). As of 2012, there were 75 listings for homes in the County. The average price for a new home was $400,000. Prices range from $200,000 for a mobile home to $1 million for some lake front houses. There has been a 10% increase in the demand for housing during 2011. To accommodate the growing demand, the County recently released more lots for housing. By 2013, there will be 25 additional new houses and more lands will be available for housing developers (More pers. comm. 2012). Figure 17.5-4 presents a comparison of owned versus rented dwellings in the Study Area. Between 2007 and 2011, building permit values in the urban part of the County for commercial, industrial and institutional increased from $2 million to $4.6 million; residential permits values decreased from $18 million to $3.1 million during the same period. Overall building permit values in the rural part of the County for commercial, industrial and institutional developments decreased from more than $105.5 million to $55.4 million; overall residential permit values decreased from $23.1 million to $19.6 million during the same period (Lac La Biche Region 2011). In Conklin, most residents live in single-family, owner-occupied houses. There are some small bed and breakfast businesses in Conklin which offer accommodation to construction workers.

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Owned Dwellings

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Owned and Rented Dwellings in the Study Area and Alberta

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June 11, 2012

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17.5.7 Protective Services

17.5.7.1 EMS Services Availability and Capacity in the SESA

The RMWB Regional Emergency Services (RES) provides emergency services for the people who work and live in the municipality; it provides an integrated program of emergency fire, medical response, and fire prevention. It has a full range of emergency response services, including fire inspections, firefighter recruitment and training, public safety education, 9-1-1 communications, fire suppression, emergency medical services, and dangerous goods response. RES provides emergency response services to the urban and rural communities in the Municipality. It operates five volunteer fire departments in the rural communities of Conklin, Anzac, Saprae Creek, Fort McKay, and Fort Chipewyan. The RES facilities in the urban center of Fort McMurray include four fire halls. Three of these fire halls are operational, and one is home to the Fire Prevention Branch and 9-1-1 Communications Centre (RMWB 2012). The RES is fully equipped to deal with municipal fire issues, but have limited equipment to deal with industrial fire issues. As of 2012, the RES had 129 full-time firefighters and 90 volunteer fire fighters that staff the five rural fire departments. There are five training officers, eight safety codes officers and three mechanics in Fort McMurray. Current staff resources are adequate to meet demand. There has been an increase in the demand for emergency services during the last few years as a direct result of population increase (Clarte pers. comm. 2012). The County has five volunteer fire departments that serve the region. The fire departments are located in Lac La Biche, Hylo, Owl River, Rich Lake, and Plamondon. The Lac La Biche Fire Department has 10 members, a rescue van with jaws-of-life, three pumper trucks and one suburban. Ambulance services, including air ambulance, are also available through Lac La Biche regional emergency medical services (EMS). The Town of Lac La Biche and Lakeland County have cooperated with respect to fire protection for many years, and entered into a fire protection agreement. The town volunteer fire department provides fire protection services to the Fire District surrounding the Town of Lac La Biche. The County also shares in the cost of operating the hall and covers a portion of the Fire Chief expenses and fire department training (Lac La Biche Region 2011). Alberta Sustainable Resources Development (ASRD) has an office in Lac La Biche that is responsible for the Lac La Biche forest fire protection area. As of September 2012, the office had 150 firefighters and 30 support staff. During big fire events, the office covers the demand by seeking help through the resources sharing agreement with other provinces, the United States and sometimes with Mexico. This office works with developers in the fire protection area to ensure that their construction and operation camps are FireSmart compliant. The office coordinates with developers on the timing of construction activity to avoid the fire season (01 April to 31 October - building during the winter, if possible) and keeps all developers informed about fires in the area (Lozinski pers. comm. 2012). Devon complies with the ASRD Forest and Prairie Protection Act through FireSmart planning as described in Volume 1, Section 3.2.


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The Conklin volunteer fire department is located in the community of Conklin across from Conklin Community School. It includes a Fire Chief, Deputy Chief, and 15 volunteer firefighters. It has fire equipment, a pumper truck, two water tanker trucks, a rescue truck, and a utility vehicle.

17.5.7.2 Police Services Availability and Capacity in the SESA

As of 2012, the Wood Buffalo RCMP Detachment had 166 members and 123 municipal support staff serving the entire regional municipality. There are nine members devoted to First Nations policing who work in both the Aboriginal Community Program and the Enhanced Policing Program; those nine staff are assigned to various rural communities in the municipality (Macintyre pers. comm. 2012). The RCMP Detachment at Lac La Biche serves Lakeland County, the Town of Lac La Biche, the Hamlet of Plamondon and the surrounding area (Lac La Biche County 2008). Currently, Lac La Biche RCMP consists of 20 regular staff and six full-time support staff. The detachment has enough capacity to cover the demand for policing services within its jurisdiction (9 km north and 12 km south of Conklin). During the last few years, traffic on Highway 881 has become a major concern (Visnoski pers. comm. 2012). Oil sands developments generate high traffic volumes on Highway 63, especially on Thursdays and Sundays when workers travel to and from home. The high traffic volume is accompanied by a high motor vehicle accident rate to which the RCMP must respond. There is also an increase in motor vehicle traffic on Highway 881 at the end of the week when workers are driving to and from their primary residences outside the RMWB. Along with the increase in traffic, there has been some increase in motor vehicle accidents on Highway 881 (Visnoski pers. comm. 2012). Devon Corporate Security is working with the RMWB to transition from private funding of the two RCMP enhanced community police positions to publicly funded dollars. The goal is not to abandon the region, but to more appropriately have the RMWB work with the Solicitor General Public Safety to have these positions funded in the RCMP budget. Devon will not be providing funds in 2013 for enhanced policing and other industry representatives are also taking the same path to get these positions funded by the Province. Devon Corporate Security has established a mentorship program for entry level security positions offered to First Nations in and around Conklin. Devon works with a third party security firm to bring provincial training to these regions and recruit its uniformed guard services from the candidates. The candidates are hired by the security service provider for Devon sites. Devon has four security professional contractors hired to train and mentor the recruits at its sites.

17.5.7.3 Crime Rates in the SESA

Crime statistics for the urban and rural areas of the RMWB vary in both the number and the nature of the offences. In rural areas, the highest number of incidents recorded were property crime offences (667 incidents in 2011), followed by person crime offences and criminal code


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offences (397 and 316 incidents, respectively, in the same year). There was a 17% decrease from 2010 to 2011. In addition to the above rural crime offences, there were 141 drug offences in 2011, representing a 1% increase from 2010 (Table 17.5-8).

Table 17.5-8: Total Crime Rates in the RMWB (2011)

Offences Type 2011 % Change (2010-2011)

Rural Person Crime Offences 397 -23% Property Crime Offences 667 -15% Criminal Code Other Offences 316 -13% Totals 1,380 -17% Drug Offences 141 1% Traffic Total Collisions 54 -10% Urban Person Crime Offences 1,723 -5% Property Crime Offences 4,012 5% Criminal Code Other Offences 3,464 -8% Totals 9,199 0% Drug Offences 766 25% Traffic Total Collisions 13 -24%

Note: Source: Macintyre pers. comm. 2012.

In the urban centre, Fort McMurray, the highest number of incidents recorded were property crime offences (4,012 incidents in 2011), followed by criminal code other offences and person crime offences (3,464 and 1,723 incidents, respectively, in the same year). There was no change in the total number of recorded incidents compared to the year before. In addition to the above urban crime offences, there were 766 drug offences in 2011, representing a 25% increase (Macintyre pers. comm. 2012). Improvements in traffic safety in the RMWB are reflected in the change in total motor vehicle collisions. In rural areas, collisions decreased by 10% from 2010 to 2011, while for the urban centre the decrease was 24% during the same period. Over the past two years, crime rates have dropped in Fort McMurray and this trend is expected to continue for a third year. This success is attributed to plain clothes and uniformed units. The criminal activity that does occur is consistent with that generally experienced in larger communities: drugs, assaults, auto theft, break and enters, domestic violence and driving offences. Since very few camp workers come to town, there has been minimal changes in crime with the expansion of the oil sands (Grant pers. comm. 2012). In 2011, the Lac La Biche RCMP reported a total of 2,890 criminal charges. The highest occurrence rates for all violations were property crimes (1,165 or 40%), followed by person crimes (748 or 26%) (Visnoski pers. comm. 2012).


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In 2011, Conklin RCMP reported a total of 327 criminal charges. The highest occurrence rates for all violations were those related to traffic offences (111 or 34%) and about half of these were motor vehicle collisions and the other half were provincial traffic violations. Drugs and alcohol offences accounted for about 14% of the charges (Macintyre pers. comm. 2012).

17.5.8 Health

17.5.8.1 Health Services Availability and Capacity in the SESA

Health services for the SESA are provided by the North Zone of Alberta Health Services (AHS). The jurisdiction of the AHS North Zone includes the entire northern region of Alberta (412,081 people). The Northern Lights Regional Health Centre (NLRHC) in Fort McMurray provides acute and continuing care, 24-hour emergency services, laboratory, X-Ray, mental health, general surgery, ambulatory care, rehabilitation, home care, speech and language services and community health. Services are provided 24 hours a day, 7 days a week. The total number of beds at the NLRHC is 105 and the Centre runs at approximately 75 to 100% occupancy. The NLRHC Emergency Department runs at capacity, with a large number of industry-related visits and an average wait time of 142 minutes. The emergency department expansion will include 15 new beds and will be completed within 2 years. The increase in the capacity parallels the increase in oil sands industry activity. The NLRHC serves residents of Fort McMurray, outlying communities and oil sands project employees with approximately 60 doctors, including 23 family physicians, 1 orthopaedic surgeon, 2 general surgeons (expected to increase to 3 in the near future), 3 ob/gyns, 3 paediatricians, 14 hospitalists and 2 psychiatrists. There is an Aboriginal Liaison Coordinator who assists Aboriginal in-patients, clients and their families in accessing programs and services offered within the health centre (Quinsey pers. comm. 2012). The RMWB has the lowest number of physicians per capita compared to other similarly sized cities in Alberta and the lowest health satisfaction rates in the Province (RMWB 2010). Currently, individuals can wait three to nine months for a continuing care bed (AHS 2011). In June 2011, there were 14 physicians accepting new patients (WBPCN 2011). In recognition of the growing demand for health services in the RMWB, the Government of Alberta plans to build four Health and Wellness Centres each with capacity to treat 20 000 patients per year. In addition, the Government’s plan includes expanded emergency and ambulatory care in the existing NLRHC, a 16-bed residential addictions treatment centre and a 100-bed continuing care facility (Government of Alberta 2011c). As of August 2011, one Community Health & Wellness/Urgent Care Centre has been approved and one Continuing Care Centre has been approved and the site selected. Planning for a heli-pad is underway (Quinsey pers. comm. 2012). Furthermore, the Comprehensive Regional Infrastructure Sustainability Plan includes provision for approximately 65 new health care spaces from 2010 to 2014, 82 from 2015 to 2025, 71 from 2026 to 2034 and 92 from 2035 to 2045 (Government of Alberta 2008).


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Health services in the County are delivered out of Lac La Biche Health Care Centre, also known as William J. Cadzow Community Health Centre. The Centre meets the personal and family health care needs of the local residents. It is a modern acute care medical facility equipped with up-to-date medical equipment and staffed by well-trained professionals. The facility also houses an Extended Care unit with rehabilitation services. The Centre includes a 23 bed hospital, 1 medical clinic, 2 dental clinics, 1 denture clinic, 4 pharmacies, 1 optometrist, 2 chiropractors, a holistic health centre and ground and air ambulance service (Lac La Biche Region 2011). As of 2012, the centre included 200 full time and support staff. The centre has enough capacity to deal with local demands for health services but is short of five full-time registered nurses. High living costs in the County are impeding the centre’s recruitment efforts (Moehrle pers. comm. 2012). Some southern Athabasca oil sands producers use services out of the Lac La Biche Health Care Centre to augment onsite medical services.

17.5.8.2 Health Issues in the SESA

Existing health issues in the RMWB and the County include alcohol and substance abuse and related health concerns such as traffic accidents, domestic violence and depression. With the rapid expansion in oil sands exploration and development in recent years and the arrival of the younger population of construction and operations workers, there has been a noticeable increase in the use of alcohol and drugs and in the number of smokers, which is linked to other health issues including domestic violence, loneliness and depression and poor diet (Quinsey and Moehrle pers. comm. 2012).

17.5.9 Recreation

17.5.9.1 Recreation Services Availability and Capacity in the SESA

The Community Strategies Branch of the RMWB consists of four work units: Facilities, Recreation, Beautification and Culture that work with community members to develop partnerships, programs and services to encourage and support self-sufficiency with a focus in recreation, sport and leisure, and culture. The most recent winter bookings for the local arenas saw a 98% usage level compared to 80 to 85% in the summer. Ice arena usage during the daytime remains high as a large portion of the Fort McMurray population are shift workers, which results in higher daytime use of recreation facilities. For example, arena service ratio goals were set at 10,000 people/arena but the demand greatly exceeds the supply and the service ratio is almost 25,000 people/arena. The shadow population does not greatly impact recreation facilities as there is no predictable pattern of usage combined with a preference to use recreation facilities at or near the work site to minimize traveling. Rural residents in the RMWB are current users of Fort McMurray’s recreation facilities. The Community Development Department in the RMWB decided to expand the recreation facilities in rural communities to reduce the pressure on Fort McMurray’s facilities. New recreation facilities were opened in Fort Chipewyan in 2009 and two more will be opened in Anzac by 2013/2014 and Conklin by 2014/2015. The Fort Chipewyan Facility is operated by Municipal staff (Agozzino-organ pers. comm. 2012).


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Recreation facilities in the urban area that are subsidized by the municipality but operated by a volunteer Board of Directors within the community include: Aquatics Centre at MacDonald Island, the Frank LaCroix Minor Hockey Arena, MacDonald Island Park Recreation Complex, Thickwood Heights Community Centre (now known as the Casman Centre), and Vista Ridge All Seasons Park. Lac La Biche recreation facilities and activities provided in the community by the County include an 18-hole golf course, Portage Swimming Pool, Centennial Arena, ball diamonds, curling rinks (located in Lac La Biche, Plamondon and Hylo), bowling alley, skating rinks, shooting range, archery lanes, boxing, soccer fields, scouting, karate, cross country skiing/trails/club, paved walking trails, numerous campgrounds and a variety of other activities. In addition, community halls and recreational facilities are also available in the following areas: Owl River, Hylo, Rich Lake, Craigend, and Hamlet of Plamondon. The County is known as a tourist destination, and includes several provincial/municipal recreation areas and private campgrounds. The newly opened Bold Center is a recreational multiplex. It includes twin ice rinks, a field house, a fitness and boxing area, a four-sheet curling rink, a running track, a community hall and a fun and entertaining children’s area (Lac La Biche Region 2011). The County’s recreation facilities have enough capacity and staff to deal with local demands and can cover additional demands. A potential increase in the population would require additional staff members. (White pers. comm. 2012). Most of the facilities are busy during the evenings. Recreation facilities in Conklin include the Christina Lake Recreation Resort which includes a camp, café and lounge. The Conklin Community Centre, which includes a covered/sheltered ice rink and conference/recreation room, is managed by the RMWB and operated by the community of Conklin (Agozzino-organ pers. comm. 2012).

17.5.10 Social Services

17.5.10.1 Social Services Availability and Capacity in the SESA

Social support services of the RMWB are provided by the Neighbourhood and Community Development Branch which includes Family and Community Social Services (FCSS) and The Homelessness Initiatives Steering Committee. The FCSS works to enhance individual, family and community life by assisting persons to identify and act on their own social needs. FCSS is a partnership between the province, municipalities and Métis settlements that develops locally-driven preventative social initiatives to enhance the well-being of individuals, families and communities. Currently, the Neighbourhood and Community Development Branch in the RMWB is running at maximum capacity. Users of social services include residents in Fort McMurray, rural residents in the RMWB, job seekers from outside the RMWB, and construction workers during their off days.


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There has been an increase in the demand for social services for the homeless population with the emergence of the oil sands industry. The demand for social support services is mainly from the residents in Fort McMurray and rural residents in the RMWB, while the demand for homeless shelters is primarily from job seekers from outside the RMWB and construction workers during their days off. Although most of the developers in the area offer camp accommodation, those that run a rotating work schedule do not allow the workers to stay in the camp during their off days (rotating schedule six days on and six days off). Workers that choose to stay in the RMWB on their days off often seek hotel accommodations, which may or may not be available or are available but not affordable; these workers therefore may seek accommodation at the homeless shelters. Job seekers also arrive in the RMWB from other parts of the country seeking employment. If they are not able to find work they too may utilize the homeless shelters, support services and public housing programs of the municipality (Evasiuk pers. comm. 2012). The social support services of the County are provided by FCSS and the Homelessness Initiatives Steering Committee. The FCSS social and welfare services in the County include the following:

• adult and geriatric social services centers;

• child related social services;

• counselling services;

• education and information services;

• emergency services;

• emergency victim services; and

• marriage and family counsellors. Currently, FCSS in the County has enough capacity to deal with the current population and can accommodate moderate growth in population. The Homelessness Initiatives Steering Committee has two shelters; a women’s shelter and a homeless shelter for men that accepts homeless men on cold winter days. The demand for homeless shelters does not exceed the supply (Polturak and Johnson pers. comm. 2012). The FCSS Rural Coordinators work with community groups in Conklin to promote and encourage the development of stronger communities through preventative social programs. Support is also provided for board development, budgets, human resource management and general consultation. The FCSS Rural Coordinators in Conklin also promote and encourage the development of stronger communities and enhance local social wellbeing by participating in the development of preventative social programs (FCSS 2009).


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17.5.11 Utilities

17.5.11.1 Utilities Capacity and Availability in the SESA

In the RMWB, all required utility services are available locally; electric power is supplied by ATCO Electric; natural gas is supplied by ATCO Gas; residential, commercial and industrial telephone services are provided by Telus; water supply is available from the Athabasca River and provided by the RMWB; sewage treatment is handled by an aerated lagoon operated by the RMWB; and residential solid waste disposal is handled by the RMWB (RMWB 2006). In 2006, it was noted that municipal infrastructure required significant upgrades to accommodate additional demands created by population growth. It was estimated that almost $700 million in capital expenditures would be required by 2010 (RMWB 2006). In 2009 and 2010, the RMWB announced its municipal infrastructure expansion plans; these plans are described below:

• the existing water treatment plant was designed to serve a population of 62,000. Expansion during the last five years ($6.8 million in 2006, $10 million in 2007, $7.9 million in 2008 and an estimated $20 million in 2011) increased the capacity of the plant to service a population of 133 000 (Guerin pers. comm. 2012);

• the existing wastewater treatment plant was designed to serve a population of 60,000. this plant is under a phased expansion. The first phase of the expansion finished in 2010 and raised the capacity of the plant to 113,000 people. This expansion represents 65% of the overall designed capacity. Additional expansion phases are under discussion (Guerin pers. comm. 2012); and

• the solid waste facility reached capacity in 2009. A new solid waste facility with a capacity of 100 000 residents began operating in 2010 and is currently operating with one cell but more cells can be added as required. The facility accepts commercial waste from industrial development (Guerin pers. comm. 2012; Devon 2010).

A full range of utility services are available within the County. The county has a water treatment plant with piped delivery to homes, a piped sewage collection system, a municipal lagoon and residential waste pickup system. Electric power and natural gas are supplied by ATCO and telephone service is provided by Telus (Lac La Biche County 2012). Before amalgamation, utility services were provided by Lakeland County and private companies. Electricity was provided by Electric Power, natural gas was provided by Lac La Biche & District Natural Gas Co-op and waste was accommodated at various landfill sites. The Town of Lac La Biche operates the Beaver Lake Modified Class II Landfill and provides residential waste collection through a private contractor that bills the town for the service. The Town of Lac La Biche and Lakeland County jointly owned the water treatment facility, with the town operating the facility (Austrom 2007). After amalgamation, the County began piping water to various subdivisions and is in the process of building a new water treatment plant (with greater capacity) to replace the current one. The County is also building a wastewater treatment plant to address growth, and will service a population of 16,000 at capacity, to be operational by


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2013. The County operates seven landfills with recycling programs in the early stage of development. The landfills are reaching their maximum capacity and the County is considering collection systems and a municipal (regional) landfill (Hill pers. comm. 2012). A full range of utility services are available in Conklin, including natural gas (ATCO), telephone (Telus), a local water treatment plant and delivery service, sewage disposal via individual sewage tank pump outs and septic field systems, and a local sewage treatment lagoon. Weekly pick-up of residential waste is also available, as is a recycling program (RMWB 2009). Currently, the water treatment plant in Conklin is running at its maximum capacity. The RMWB started constructing a new water treatment plant in Conklin in the spring of 2010. The water source is Christina Lake. This new water treatment plant will be operational by summer 2012; within a few months of commencing operation, the municipality plans to decommission the current treatment plant. The municipality is currently in the design stage of a piping system for Anzac and a design for Conklin is planned during the next five years. A small underground distribution system with pumps to transfer water to households rather than truck transport is under construction and may be operational in two to five years; timeframe is dependent on local development (Guerin pers. comm. 2012). There is currently no commercial usage of the water treatment plant in Conklin. The plant is running at 100% of its capacity and has been for the past five years. The municipality designed the plant to meet the projected population growth in the community and did not plan for commercial usage. However, the new water treatment plant under construction will likely have capacity for some limited commercial use. Some local developers in the Conklin area use contractors to transfer/truck wastewater to the municipality treatment facility or setting ponds for a fee. There is ongoing consideration of either expanding the current wastewater pond and/or adding a small plant near it to treat the wastewater (Guerin pers. comm. 2012). The municipality is building a regional transfer station for solid waste near Janvier. Currently, the solid waste landfill in Conklin is closed and there is a transfer system to transport waste to the Fort McMurray landfill twice a week. The solid waste transfer system is for residential waste only and does not cover commercial waste. The construction industry near Conklin generates large volumes of solid waste that is transferred by local contractors to the Fort McMurray landfill at a cost. There is a possibility that operations waste from industry operators could be handled through the regional transfer system given its relatively small volumes, but this has not been confirmed (Guerin pers. comm. 2012).

17.5.12 Traffic and Transportation

A traffic impact assessment (TIA) was completed (Volume 1, Section 7.0) to describe current traffic conditions in the vicinity of the Project, to assess potential traffic impacts of the Project and to provide recommendations to maintain traffic movements at satisfactory levels, as appropriate. The TIA is an update to the joint transportation impact assessment completed in October 2011 for Cenovus Energy Inc., Devon Canada Corporation and Harvest Operations Corp.


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The TIA study area comprises Highway 881 at its intersections with two privately-maintained access roads: Cenovus Bypass (7 km south of Conklin entrance) and Sunday Creek Road (4 km south of Cenovus Bypass). It considers the existing (2012), 5-year (2017), 10-year (2022), and 20-year (2032) analysis horizons, as required by Alberta Transportation. Traffic from the above developments is specifically directed to designated bypass routes rather than traveling through Conklin. Since all development traffic will bypass Conklin, potential traffic effects will be limited to Highway 881, and to residents of Conklin who use Highway 881 to travel south. Potential traffic effects are anticipated and were assessed at two intersections: Highway 881 and the Cenovus Bypass, and Highway 881 and Sunday Creek Road. According to the TIA study (Volume 1 Section 7.0), the two intersections with Highway 881 within the SESA are currently operating at good levels of service (LOS) (LOS A to B), even during the peak hours of shift change traffic, and will continue to operate at an acceptable capacity (LOS B to C) beyond the 2022 horizon. Highway 881 is paved along its extent, and runs south-north in two sections, from Highway 13 in Hardisty to Highway 55, then from Highway 55 in Lac la Biche to Highway 63 south of Fort McMurray. There is a 72 km break between the two sections south of Lac La Biche, where Highway 55 can be used to join them. Highway 881 links Conklin to Anzac and connects to Lac La Biche further south. It intersects with two privately-maintained access roads: Cenovus Bypass (7 km south of Conklin entrance) and Sunday Creek Road (4 km south of Cenovus Bypass). The Sunday Creek Road is a multi-user road constructed by Devon and funded by both Devon and Cenovus. The road provides access to Devon’s Jackfish projects and Cenovus’ Christina Lake operations. The road was built to reduce the flow of traffic through the Hamlet of Conklin, in response to concerns raised during the Devon Jackfish 2 Project. Devon is a member of the Coalition for Safer 881 and 63. The Coalition is an organization aimed at changing driving behaviours by engaging drivers and helping them to identify potentially dangerous driving habits and foster long term change. Members of the coalition include other insitu and construction industry users, the Alberta Motor Association, and the RMWB.

17.5.13 Aboriginal Profile

17.5.13.1 Demography

According to the Statistics Canada Aboriginal census, in 2001 there were 5,130 people of Aboriginal identity residing in the RMWB and in 2006 there were 5,365 (Statistics Canada 2006a). Of these, 45.2% were North American Indian, 47.1% were Métis and 4.0% Inuit. In 2006, there were 925 people of Aboriginal identity residing in the Town of Lac La Biche, 21% were North American Indian and 79% were Métis. In Lakeland County, there were 1,335 people of Aboriginal identity residing in Lakeland County, 22.8% were North American Indian and 76.4% were Métis (Statistics Canada 2006a).


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17.5.13.2 Economy: Employment and Business Opportunities The 2006 census shows that of 5,365 people of Aboriginal identity in the RMWB, the total experienced labour force 15 years and over was 3,035 people (33.9% in agriculture and other resource-based industries, 13.5% in manufacturing and construction, 9.2% in wholesale and retail trade, 2.8% in finance and real estate, 7.9% in health and education, 12.7% in business services and 20.0% in other services). Earnings statistics show that 83% of Aboriginal people 15 years and over have earnings in the RMWB, compared to 71.2% in the Alberta Aboriginal population. The median earnings were $44,491 and $21,010 in the RMWB and Alberta, respectively. The percentage of Aboriginal people 15 years and over with income in the RMWB is 95.3%, compared to 93.3% in Alberta as a whole. The median income is very different: $38,322 in the RMWB and $18,335 in Alberta. Earnings as a percentage of total income are 94.2% in the RMWB, compared to 82.9% in Alberta. Table 17.5-9 provides a comparison between labour force indicators for Aboriginal people in the RMWB and Alberta as a whole in 2006.

Table 17.5-9: Economic Indicators for the Aboriginal Population in the RMWB, Lac La Biche County and Alberta (2006)

Economic Indicator RMWB Lac La Biche County Alberta

Aboriginal Population


Lakeland County

Labour Force Labour force participation rate (%) 76.0 69.4 63.2 68.3 Employment rate (%) 69.9 66.9 59.7 60.8 Unemployment rate (%) 7.9 3.5 4.7 11.1

Industry Agriculture/other resource-based industries (%) 33.9 7.0 19.7 5.05 Manufacturing and construction industries (%) 13.5 19.7 21.2 7.2 Wholesale and retail trade (%) 9.2 7.0 12.6 15.8 Finance and real estate (%) 2.8 2.3 3.1 4.0 Health and education (%) 7.9 9.3 13.4 23.9 Business services (%) 12.7 16.2 21.2 13.4 Other services (%) 20.0 37.2 10.2 30.4

Earnings and Income Persons 15 years and older with earnings (%) 83.0 68.8 74.1 71.2 Median earnings persons 15 years and older ($) 44,491 13,869 20,683 21,010 Persons 15 years and older with income (%) 95.3 94.4 95.5 93.3 Median income persons 15 years and older ($) 38,322 15,582 20,112 18,335

Composition of Total Income (100)% Earnings as % of total income 94.2 71.8 80.2 82.9 Government transfer as % of total income 4.4 25.2 17.4 13.2 Other money as a % of total income 1.3 2.7 3.1 3.9

Notes: See Table 17.5-1 for definitions of participation, employment and unemployment rates. Rates are for experienced labour forced aged 15 years and older. Source: Statistics Canada (2006a).


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The 2006 census shows that the Aboriginal labour force participation rate was 69.4% in the Town of Lac La Biche. This is higher than the participation rate in Lakeland County (63.2%) and the provincial average (68.3%). In terms of earnings, the Town of Lac La Biche reported lower average earnings ($13,869) than Lakeland County ($20,683), but the latter is close to the provincial average ($21,010). As for income, the average income was $15,582 in the Town of Lac La Biche and $20,112 in Lakeland County. Aboriginal people in the Town of Lac La Biche were more reliant on government transfers (25.2%) than the average Aboriginal person in Lakeland County (17.4%) and in Alberta (13.2%) (Table 17.5-9). As for employment by industry, agriculture and other resource-based industries employed 7.0% of the Aboriginal labour force in the Town of Lac La Biche and 19.7% in Lakeland County, significantly higher than the provincial average (5.0%). In the Town of Lac La Biche, the other two major industries were other services (37.2%) and manufacturing and construction (19.7%). In Lakeland County, they were manufacturing and construction (21.2%) and business services (21.2%).

17.5.13.3 Educational Attainment

Northland School Division No. 61 is responsible for most public schools within the northern portion of the province. Northern School Division No. 61 serves predominately Aboriginal peoples and operates schools in Conklin, Janvier (Chard) and Anzac. Total enrolment in 2010/11 was 2,787 students. Each school has a local school board committee, which provides input and guidance on local school operations. There is also an Aboriginal Advisory Committee, which provides guidance to the overall operations of the School Division (Alberta Education 2011). In the RMWB, of the total Aboriginal population 15 years and over of 4,065 people in 2006, 33% had no certificate, diploma or degree, which is lower than the provincial average of 44.3%. Almost 26% had a high school graduation certificate, which is higher than the provincial average of 21.3%. The percentage of people with a trade, college or other non-university diploma was 35.1%, which is higher than the provincial average of 26.7%. Finally, the percentage of people with a university certificate or diploma below the bachelor level was 5.8% in the RMWB, which is close to the provincial average of 7.6% (Table 17.5-10) (Statistics Canada 2006a).


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Table 17.5-10: Education Profile for the Aboriginal Population in the Regional Municipality of Wood Buffalo, the Lac La Biche County and Alberta (2006)

Education Profile RMWB Lac La Biche County

Alberta Aboriginal Town of Lac

La Biche Lakeland County

The total Aboriginal population 15 years and over 4,065 620 1,005 129,745 No certificate, diploma or degree (%) 33.0 50.0 50.7 44.3 High school certificate or equivalent (%) 26.0 18.5 17.4 21.3 Apprenticeship or trades certificate or diploma (%) 18 12.0 13.9 11.5 College, CEGEP or other non-university certificate or diploma (%) 17.1 12.0 13.0 15.2 University certificate or diploma below the bachelor level (%) 1.6 2.4 4.5 2.7 University certificate or degree (%) 4.2 4.0 1.0 4.9

Note: Source: Statistics Canada (2006a).

In the Town of Lac La Biche in 2006, the total Aboriginal population 15 years and over was 620 people. Of that total, 50% had no certificate, diploma or degree, which is higher than the provincial average of 44.3%. Almost 18.5% had a high school graduation certificate, which is lower than the provincial average of 21.3%. The percentage of people with a trade, college or other non-university diploma was 24%, which is lower than the provincial average of 26.7%. Finally, the percentage of people with a university certificate or diploma below the bachelor level, university certificate or degree was 6.4% in the Town of Lac La Biche which is close to the provincial average of 7.6% (Table 17.5-10) (Statistics Canada 2006a). In Lakeland County, the total Aboriginal population 15 years and over was 1,005 people in 2006. Of that total, 50.7% had no certificate, diploma or degree, which is higher than the provincial average of 44.3% (Table 17.5-10). Almost 17.4% had a high school graduation certificate, which is lower than the provincial average of 21.3%. The percentage of people with a trade, college or other non-university diploma was 27%, which is close to the provincial average of 26.7%. Finally, the percentage of people with a university certificate or diploma below the bachelor level, university certificate or degree was 5.5% in the Town of Lac La Biche which is close to the provincial average of 7.6% (Statistics Canada 2006a).

17.5.13.4 First Nations Profile

Fort McMurray # 468 First Nation

The Fort McMurray #468 First Nation (FMFN) consists of four reserves: three are located near Anzac on Gregoire Lake and the fourth is located about 20 km east of Fort McMurray. These reserves include Clearwater 175, Gregoire Lake 176, Gregoire Lake 176A and Gregoire Lake 176B. Table 17.5-11 provides a list of the FMFN reserves (both populated and unpopulated), their locations and total area. According to Aboriginal Affairs and Northern Development Canada, as of August 2011, the total registered population of the FMFN was 636; 266 on reserves, 369 off reserve and 1 on Crown lands (Indian and Northern Affairs Canada (INAC) 2011).


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Table 17.5-11: Fort McMurray First Nation Reserves

No. Name Location Total Area (ha)

06721 Clearwater 175 On Clearwater River, 7 miles southeast of Fort McMurray; Twp 88 Rge 7 W4M 915

06722 Gregoire Lake 176 35 km southeast of Fort McMurray 2 232 06723 Gregoire Lake 176A Twp 86 Rge 8 W4M, Frac Sec 10 and portion of SW1/4 Sec 15 67 06724 Gregoire Lake 176B Twp 86 Rge 8 W4M 17

Note: Source: INAC (2011).

Beaver Lake Cree Nation (BLCN)

The Beaver Lake Cree Nation (BLCN) has two reserves, Beaver Lake 131 and Blue Quills First Nations. Table 17.5-12 provides a list of the BLCN reserves, their locations and total area. As of August 2011, the total registered population for the BLCN was 981, with 371 people residing on reserves, 599 off reserves and 11 on Crown lands (INAC 2011).

Table 17.5-12: Beaver Lake Cree Nation Reserves


06701 Beaver Lake 131 105 km northeast of Edmonton 6 145 09138 Blue Quills First Nation 16 km northwest of Mayerthorpe 96


Chipewyan Prairie First Nation #470 (CPDFN)

Members of the CPDFN live in the community of Janvier (Chard) and on the following reserves: Janvier 194, Cowper Lake 194A and Winefred Lake 194B. Table 17.5-13 provides a list of the CPDFN reserves (both populated and unpopulated), their locations and their total areas. As of August 2011, the total registered population was 750, of which 358 people were on reserves and 392 were off reserves (INAC 2011).

Table 17.5-13: Chipewyan Prairie First Nation Reserves


06726 Janvier 194 97 km southwest of Fort McMurray 2 486 09204 Cowper Lake 194a North shore of Cowper Lake; Twp 80 Rge 3 W4M 143 09205 Winefred Lake 194b North end of Winefred Lake; Twp 76 Rge 4 W4M 450

Note: Source: INAC (2011)..


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Heart Lake First Nation (HLFN)

The HLFN has two reserves: Heart Lake 167 and Heart Lake 167A. These two First Nations also share a remote reserve with other regional First Nations. The HLFN signed Treaty 6, but is geographically located within Treaty 8. The First Nation is a member of Tribal Chiefs Ventures Inc. Table 17.5-14 provides a list of the HLFN reserves, their locations and total area. As of August 2011, the total registered population for the HLFN was 309, with 198 people residing on reserves and 111 off reserves (INAC 2011).

Table 17.5-14: Heart Lake First Nation Reserves


06725 Heart Lake 167 45 km northeast of Lac La Biche 4 496 09171 Heart Lake 167A Portion NE1/4 Sec 26 & SE1/4 Sec 35 Twp 69 Rge 12 W4M 8


Métis Métis near the Project site belong to two locals: Métis Local #193 in Conklin and Métis Local #214 in Janvier (Chard).

Conklin The population of Conklin has remained fairly constant since 1999. However, population growth is expected in Conklin because of its proximity to industry development. As of 2009, Conklin had 213 residents, mostly of Métis origin.

17.6 Application Case: Regional Effects

17.6.1 Project Description

The Project consists of a thermal heavy oil central processing facility (CPF) and associated offsite facilities. The regulatory application is for an estimated production volume capacity of up to 109 000 bbl/d. A Pike district camp will be used to house the workforce required for construction and operation of the Project. The proposed camp is outside the scope of this application. However, the camp and associated management plans are discussed for their applicability to the SEIA. Project Schedule and Workforce The anticipated duration of the initial construction phase (i.e., to construct facilities required for full production) is approximately five years, starting in Q1 2014. The average size of the initial construction workforce is 1,500 and will peak at 1,850. This workforce includes facilities construction, commissioning and startup, SAGD drilling and completions, appraisal drilling,


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seismic, operations, EH&S, security and camp staff. An estimated 15% of the construction workforce will be recruited from the SESA, 45% from elsewhere in Alberta and 40% from outside Alberta. The anticipated duration of the operations phase is 25 to 30 years with initial production anticipated in 2016. The average size of the workforce will be about 700 workers annually. This workforce includes the operations and the sustaining capital workforce. It is anticipated that 15% of the operations workforce will be recruited from the SESA, 45% from elsewhere in Alberta and 40% from outside Alberta. Based on Devon’s experience at the Jackfish project to-date, it is expected that a majority of the 15% recruitment from within the SESA will be from the County and areas within the southern RMWB near the Project. Camp Management Plan To support the wellness of the workforce at the Pike district camp, a health professional team consisting of paramedics and occupational nurses will be available and onsite 24/7. All Devon sites are registered with STARS Air Ambulance. The major health center used for treating sick workers will be Lac La Biche Health Centre (the William J. Cadzow Community Health Center in Lac La Biche County). Devon maintains a Code of Conduct and has numerous policies that support the values of the company and the appropriate conduct expected of its employees including harassment and violence prevention and drug and alcohol policies in camp. As such, the district camp will be drug and alcohol free. It will be regularly inspected using dogs that are specially trained for this purpose. The Pike district camp will meet all regulatory codes for fire safety including fire alarms, fire suppression and sprinkler systems. An Emergency Response Plan will be developed and maintained for the camp. The district camp recreation amenities will include hockey rinks, a gymnasium, squash courts, a theatre, a weight room, wireless internet, satellite TV and VOIP phone system - sized to cover the demands of all workers. The Devon district camp will be completely self-sustaining and will include the following:

• drilled water wells and water treatment plant; • waste water treatment plant; • electrical power; • back-up electrical power; • fuel gas system; • surface water management; • fire protection system; • telephone, satellite and internet infrastructure; and • security infrastructure.


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Devon’s Industrial Training Program

Devon is committed to the safe, environmentally responsible and efficient operations of its facilities. Within Devon’s Thermal Heavy Oil department, employees receive extensive safety training before beginning their roles. New employees are brought to Calgary where they are provided with two days of orientation to the company. In addition to introducing the company’s vision, policy and procedures, this orientation includes sessions that explain camp life. Employees also receive six days of safety training with the affiliated safety training partner, Global Safety Training (Global). New employee training at Global includes the following courses:

• H2S Alive; • gas detection; • standard first aid; • fall arrest for the active user; • confined space entry; • confined space rescue; • ground disturbance; • spill awareness; • defensive driving; and • industrial fire fighting. Operations and maintenance staff within Devon’s Thermal Heavy Oil department undergo extensive training prior to operating the facilities. In addition to the training required to obtain their trade certification, Devon also provides individuals with site-specific training for each of the facilities that they operate. The site-specific training is conducted using a fully customized online learning system designed by Contendo Training Systems. It is a computer based training system that provides instruction on the entire facility and how it operates. In the training package, the facility is broken down into sections; each of the sections has associated subsections and tests. Staff are taught and tested on process flow, operating pressures, temperatures and equipment to name a few. Devon staff are also trained using EDGE (Employee Development Generating Excellence), a tool developed in partnership with Keyera. Over 40 industry partners utilize this system to teach and assure competency. Devon has successfully used this system with its conventional assets. Devon and Keyera have customized new competencies for thermal assets; staff learn about, and are tested on, the facility that they are operating. This learning system is designed to have staff learn about, practice under supervision, then independently demonstrate their ability to perform a specific task. Devon ensures that the staff's theoretical training is paired with supervised on the job training.


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Project Cost

Table 17.6-1 provides a breakdown of the Project’s cost by the following categories: engineering and Project management, equipment and materials and labour costs including benefits. It also includes the percentage of expenditures expected to occur in the SESA, elsewhere in Alberta, elsewhere in Canada and outside Canada.

Table 17.6-1: Project Costs

Cost Category $ CDN Value, Total Project

(millions) % Spent in the SESA

% Spent Elsewhere in

Alberta

% Spent Elsewhere in

Canada

% Spent Outside of

Canada Engineering and management 350.8 0.0% 98.4% 0.8% 0.8% Equipments and materials 2,145.1 11.6% 53.0% 16.0% 19.4% Labour costs including benefits 1,327.5 20.3% 53.8% 26.0% 0.0%

Total Construction Costs 3,823.4 10.6% 68.4% 14.3% 6.7%

Construction capital expenditures during the construction phase of the Project are estimated at $3.8 billion. Operations phase expenditures are estimated at $704 million per year, including sustaining capital expenditures of $179 million per year plus operating expenditures of $525 million per year.

17.6.2 Economy

17.6.2.1 Provincial Economic Effects during Construction

Construction capital expenditures are estimated at $3.8 billion over a five year period. It is anticipated that 11% of the construction expenditure will be spent in the SESA, 68% elsewhere in Alberta, 14% elsewhere in Canada and 7% outside of Canada. The size of the construction workforce will be around 1,500 workers, peaking at 1,850. The construction workforce includes facilities construction, commissioning and startup, SAGD drilling and completions appraisal drilling, seismic, operations, EH&S, security and camp staff. It is anticipated that Devon’s contractors will recruit 15% of the construction workers from the SESA, 45% from elsewhere in Alberta and 40% from elsewhere in Canada. Based on Devon’s experience at the Jackfish project to-date, it is expected that a majority of the 15% recruitment from within the SESA will be from the County and areas within the southern RMWB near the Project. Based on 2007 Alberta economic multipliers, for the entire construction period, expenditures of $2,672 million in Alberta (70% of the construction expenditure $3.8 billion) would directly increase Alberta GDP by approximately $1,046 million, labour income would be directly increased by $849 million and 10,128 person-years of direct employment would be created. This would result in an additional 6,705 person years of indirect employment and up to 6,680 person years of induced employment. The total economic impact (direct, indirect and induced) would total $2,525 million in GDP, $1,766 million in labour income and 23,513 person-years of employment (Table 17.6-2).


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Table 17.6-2: Summary of Provincial Economic Effects During Construction

Project's Effects

on GDP (millions)

Project's Effects on Employment

(person-years)

Project's Effects on Labour Income

(millions) Average Income

per Job

Direct $1.046 10,128 $849 $83,835 Indirect $782 6,705 $516 $76,996 Induced $697 6,680 $401 $60,000

Total $2,525 23,513 $1,766 $75,114

Notes: All estimates of the Project’s effects on employment GDP and labour income were calculated by applying Alberta Economic Multipliers for the construction industry. This is higher than Devon’s estimate (a total of about 7 500 person-years) as the construction multipliers used represent the construction industry in general which is more labour intensive than oil sands projects.

17.6.2.2 Provincial Economic Effects During Operations The operations phase of the Project will start in 2018 and will have a minimum production life of 20 years. It should be noted that operations will start in 2016 with the first steam produced from the first phase of the CPF; however, full operation of all three phases of the CPF will not occur until 2018. Operations phase expenditures are projected to be approximately $704 million per year. Almost 30% of the operations phase expenditure will be spent in the SESA and 70% elsewhere in Alberta. Devon anticipates that the size of the operations workforce will be around 700 people annually. It is anticipated that 15% of the operations workforce will be recruited from within the SESA, 45% from elsewhere in Alberta and 40% from outside Alberta. Based on 2007 Alberta economic multipliers, direct annual operations expenditures of $704 million per year would increase Alberta GDP by approximately $530 million per year for 20 years, labour income would increase by $74 million annually and 474 direct long-term jobs would be created. This would result in an additional 793 indirect jobs and up to 704 induced jobs annually. The total annual economic impact (direct, indirect and induced) would amount to $705 million in GDP, $178 million in labour income and 1,971 jobs. Over a 20-year economic life, the total economic impact (direct, indirect and induced) would be $15,320 million in GDP, $4,825 million in labour income and 42,780 person-years of employment. Provincial effects are summarized in Table 17.6-3.

Table 17.6-3: Summary of Provincial Economic Effects During Operations Project's Effects on GDP

(millions) Project's Effects on

Employment (person-years)

Project's Effects on Labour Income

(millions)

Average Income per

Job Annual Total Annual Total Annual Total Annual

Direct $575 $11,500 514 10,280 $80 $1,600 $156,058 Indirect $117 $2,340 861 17,220 $70 $1,400 $81,616 Induced $74 $1,480 764 15,280 $43 $860 $56,000

Total $766 $15,320 2,139 42,780 $193 $4,825 $90,357

Note: In this table, the estimate of Project’s effects on GDP, employment and labour income were calculated by applying Alberta Economic Multipliers for the oil and gas industry during the operations phase. Devon has estimated that the direct number of jobs during the operations phase will be about 700. Devon’s estimate is different than the multiplier estimate as the multipliers represent the oil and gas industry in general and not SAGD specifically.


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17.6.2.3 Regional and Local Economic Effects during Construction The regional and local economic effects assessment focuses on the effects on: 1) direct expenditures; 2) employment; and 3) business opportunities as discussed below. Direct Expenditures Approximately 56% of the construction expenditure is anticipated to be spent on equipment and materials, 34.7% on labour costs including benefits and 9.2% on engineering and management. Almost 11.6% of the equipment and materials cost will be spent in the SESA and 20.3% of the labour costs and benefits will be spent in the SESA. For Project construction expenditures by component and region, see Table 17.6-1. Employment Estimates of direct employment created onsite (or in the region) are confirmed by Devon’s experience in construction of the Jackfish project and are considered more accurate than estimates obtained by reliance only on provincial multipliers. Devon estimates that they will create 1,500 person years of direct employment annually during construction. Applying the Alberta multipliers results in potential indirect and induced employment of 1,992 person-years annually for a total of 3,492 person-years per year for five years or an overall total of 17,460 person-years. The large gap between the provincial totals and the regional estimates is likely due to the high level of pre-fabrication of components in other parts of Alberta and the higher labour intensity of total construction industry activity (on which the multipliers are based) as compared to oil sands construction. The expected distribution of employment by trade or skill category during initial construction is shown in Table 17.6-4. The data includes pad construction, but excludes well drilling and completions. Actual requirements will vary from month to month depending on the specific activities underway.

Table 17.6-4: Types of Jobs/Skill Categories of Construction Workforce

Trade or Skill Person-Years (%) Boilermakers 3 Carpenters 7 Electricians 15 Insulators 9 Ironworkers (structural steel) 5 Ironworkers (rebar) 2 Labourers 6 Operators (equipment) 1 Pipefitters 13 Welders 28 Sheet metal 5 Surveyors 1 Others (instrumentations, millwrights, painters, etc.) 5

Total 100


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All of these construction skills are present in Alberta and to a lesser extent in the SESA. Given other oil sands developments in the area and dependent on timing, some trades may be in short supply and may have to be obtained from outside the province. This will be discussed further in Section 17.7. Based on Devon’s experience, some engineering, procurement and construction supervision activities will be conducted outside of the SESA but within Alberta. These work opportunities would be primarily for professionals. Prefabrication will occur in either Edmonton or Calgary and would involve mainly welders, ironworkers, electricians and labourers. During the construction phase of the Project, Devon and its contractors will be implementing the following to promote regional and local employment:

• communicating upcoming opportunities to local area residents in advance of actual hiring. Communication of opportunities will be through mechanisms established with local organizations or directly with interested individuals;

• hiring eligible, qualified local residents;

• training and mentoring local hires while they are on the job;

• continuing and enhancing training in cross-cultural awareness for all employees and management associated with site construction; and

• employing a permanent liaison to help local employees deal with job-related issues and to help resolve possible barriers to employment. As required, the liaison function will, among other activities:

deal with cultural issues as they arise; and work with regional educational organizations and local groups to provide

appropriate training programs in recognition that residents may require further education and training to meet job qualifications.

Business Opportunities Devon’s contractors are estimated to be able to recruit 15% of the construction workers from within the SESA. If meeting this objective by direct employment is found to be challenging due to labour shortages in the area, Devon could meet this objective through local business participation, particularly for the following list of opportunities:

• gravel and concrete; • pile drivers; • site clearing; • earthworks and roads; • hauling; • general labour; • insulation; • fencing;


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• catering; • courier services; • maintenance support; and • sales of supplies from regional vendors. Devon is committed to the participation of local businesses in the construction and subsequent operations of the Project. Through the construction of the Devon Jackfish project, Devon identified and put in place a range of practices that have been helpful in encouraging local business participation. Devon will continue practices that are found to be successful for prior projects and will seek ways to improve local business participation in the Project. Specific commitments by Devon to support local business participation in the Project are:

• give preference to local businesses that are committed to safety for people and the environment and have the required capacity, competitive pricing and are reliable with respect to quality and timeliness;

• seek ISNetworld qualified contractors. ISNetworld assists Devon and their contractors in ensuring that due diligence with service providers is realized. As such, Devon requires contractors to be pre-qualified through ISNetworld before a service can be utilized. If companies are not on ISNetworld, Devon will assist the contractors to ensure they are registered accordingly;

• provide information on a regular basis to local businesses and individual entrepreneurs in order that they understand Devon’s bidding and contracting requirements. In addition, Devon will provide an overview of external resources that can be accessed to establish or strengthen business management capabilities;

• implement a bidding and contracting process that is tailored to local business capabilities and ensures that competitive bids are received. Consideration will be given to pre-qualifying bidders and to inviting competitive, negotiated or sole-sourced bids;

• continue and enhance training in cross-cultural awareness for all employees and management associated with site construction;

• support or develop community endeavours intended to further business and economic development opportunities;

• employ a permanent liaison to facilitate the implementation of Devon commitments, including:

dealing with cultural issues as they arise; seeking local business participation as opportunities arise; liaising with the local community; and establishing a 1-800 telephone line to receive and respond to telephone inquiries.

The above described effects and applied mitigation are expected to result in a final economic impact rating of moderate and positive during construction.


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17.6.2.4 Regional and Local Economic Effects During Operations

Direct Expenditures

The operations phase will start in 2018 and will continue throughout the 25 to 30-year operating life. These activities include operations and maintenance of the central plant, associated infrastructure and field facilities as well as activities associated with sustaining capital (i.e., development and drilling of new well pads and abandonment and reclamation of depleted well pads). Operating expenditures are projected to be approximately $704 million annually. Direct impacts on the SESA from these expenditures include local taxes, operating labour, electricity, natural gas and other operating expenses. Devon estimates that 30% ($211 million annually) of the operations expenditures will be spent in the SESA.

Employment

Operations phase employment of 700 (500 employees and 200 contractors) full-time equivalent positions are anticipated to be staffed as follows: 15% (105 workers) from the SESA, 45% (315 workers) from the rest of Alberta and 40% (280 workers) from outside Alberta. Table 17.6-5 includes a list of the jobs/skill categories of the operations workforce.

Table 17.6-5: Types of Jobs/Skill Categories of Operations Workforce

Operations Manpower Pike 1 Manpower % Devon Employee

% Contractor

Drilling 67 2 98 Completions 20 5 95 Direct Operation 190 70 30 Direct Maintenance Operations 75 70 30 District Ops/Maintenance 30 70 30 District Support Operations 20 70 30 Asset Integrity 3 67 33 Surface Land 10 0 100 District Administration, Management & Indirects 70 70 30 Occupation Health Services 1 0 100 Facilities - Sustaining Capital 135 1 99 Camp Coordinator & Administration 4 0 100 Safety 11 55 45 Camp Staff 10 to 1 Ratio 64 0 100

Total 700

Efforts to increase local employment for construction of the Project will be carried forward to the operations phase, as follows:

• increase communication of upcoming opportunities to local area residents; • hire eligible qualified local residents; • train and mentor local hires while they are on the job;


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• continue and enhance training in cross-cultural awareness for employees and management;

• employ a permanent liaison to support local employees; and • work with regional educational organizations and local groups to provide appropriate

training programs. Additional commitments specific to the operations phase include:

• training and mentoring to assist local employees to develop the communication and interpersonal skills required for sustainable employment in an industrial work setting;

• establishing a specific New Trainee Program focused on locals seeking entry level employment. Employees in these positions will be provided with training and support regarding the cultural barriers that they may face; and

• identifying residents interested in employment at the Project and providing them with guidance in achieving their career goals.

Business Opportunities

For Project operations, the types of contract services, materials and supplies that could be obtained from the SESA include:

• mechanical trades and labour;

• safety supplies and apparel;

• gaskets and fittings;

• well servicing materials (polish rods, collars and pumps);

• waste disposal and road grading;

• package operations;

• security;

• emergency services;

• catering; and

• bussing. Through past projects, Devon has identified and put in place a range of practices that have been helpful and successful in encouraging local business participation. Devon will continue the practices that are found to be successful for prior projects and will seek ways to improve local business participation in the Project. Specific commitments by Devon to support local business participation in the Project are:

• give preference to local businesses that are committed to safety for people and the environment and have the required capacity, competitive pricing and are reliable with respect to quality and timeliness;


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• seek ISNetworld qualified contractors. ISNetworld assists Devon and their contractors in ensuring that due diligence with service providers is realized. As such, Devon requires contractors to be pre-qualified through ISNetworld before a service can be utilized. If companies are not on ISNetworld, Devon will provide the contractor with assistance to ensure they are registered accordingly;

• provide information on a regular basis to local businesses and individual entrepreneurs so they understand Devon’s bidding and contracting requirements. In addition, Devon will provide an overview of external resources that can be accessed to establish or strengthen business management capabilities;

• implement a bidding and contracting process that is tailored to local business capabilities and ensures that competitive bids are received. Consideration will be given to pre-qualifying bidders and to inviting competitive, negotiated or sole-sourced bids;

• continue and enhance training in cross-cultural awareness for all employees and management associated with site construction;

• support or develop community endeavours intended to further business and economic development opportunities;

• employ a permanent liaison to facilitate the implementation of Devon commitments, including:

dealing with cultural issues as they arise; seeking local business participation as opportunities arise; liaising with the local community; and establishing a 1-800 telephone line to receive and respond to telephone inquiries.

The above described effects and applied mitigation are expected to result in a final economic impact rating of low and positive during operations.

17.6.3 Demography

17.6.3.1 Construction

The estimated duration of the construction phase is five years, resulting in an average of 1,500 workers annually of direct employment during the construction phase. It is anticipated that 15% (225 workers) of the construction workforce will be recruited from the SESA, 45% (675 workers) from elsewhere in Alberta and 40% (600 workers) from outside Alberta. The peak construction workforce will be approximately 1,850 people. Based on Devon’s experience at the Jackfish project to-date, it is expected that a majority of the 15% recruitment from within the SESA will be from the County and areas within the southern RMWB near the Project. Devon has procedures in place and dedicated people to ensure that the construction workforce accommodation plan meets and/or exceeds regulatory requirements and follows best industry practices. The construction workforce will be housed in the Pike district camp. The Pike district camp will have sufficient capacity to provide space for other Devon projects’ workers.


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Devon will operate a fly in/fly out camp and will utilize the Kirby Aerodrome as its airstrip. In addition, Devon will also bus in/bus out a portion of the workforce during construction. In order to deal with any traffic-related effects, Devon will provide daily bussing services for workers between the CPF, the Kirby Aerodrome and the Pike district camp. As Devon will house construction workers in a district camp and provide bussing between the airport and the construction site, it is expected that construction workers hired from outside the SESA will neither establish residence themselves nor relocate their families to the SESA during the construction phase. As a result, there will be no appreciable population effect on the communities of the SESA. The Project final impact rating on SESA demography will be low during the construction phase and no additional mitigation is required.

17.6.3.2 Operations

The total number of operations workers is estimated at 700. Devon intends to hire 15% (105 workers) of the operations workforce from the SESA, 45% (315 workers) from the rest of Alberta and 40% (280 workers) from outside Alberta. Operations workers hired from within the SESA (105 workers) will be local residents in the SESA and will, therefore, have no effects on the demography of the study area. Based on Devon’s experience at the Jackfish project to-date, it is expected that a majority of the recruitment from within the SESA will be from the County and areas within the southern RMWB near the Project. The portion of the operations workers from outside the SESA that chose to relocate to the SESA will have effects on the population of the SESA due to the employment multiplier effect. In order to estimate this effect the following assumptions are made:

• Devon’s Pike district camp and the fly in/fly out operations will encourage the majority of the workers to maintain their residence elsewhere and live in the camp during the rotation schedule;

• those who choose to relocate to the SESA will choose to live in the County because of the fact that living in Fort McMurray would require a longer commuting distance and housing costs are significantly higher,

• as is the case with the Jackfish projects only 5% of the non-local operations workforce will choose to relocate to the County and 95% will maintain their residence elsewhere and commute per the rotation schedule;

• the average family size in the SESA, Alberta and Canada is three persons;

• according to the Oil Sands Developers Group for every one operations job, three jobs are created in the local region (indirect and induced); and

• there are 2.3 employed persons per family in the SESA (Statistics Canada 2006b).


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Based on the above, the Project would directly add 30 workers to the local population and an additional 90 workers due to the indirect and induced multiplier effect (i.e., 30 x 3) for a total of 120 workers. Assuming that there are 2.3 employed persons per family moving into the region, this would result in 52 families or a total of 157 people (3 persons/family) as the Project’s contribution to the population of the SESA. The arrival of approximately 157 people to the County could result in a minor change in its demography (less than 2% increase), which is within the accommodating capacity of the County. The Project final impact rating on SESA demography will be low during the operations phase and no additional mitigation is required.

17.6.4 Education

17.6.4.1 Construction During the construction phase of the Project, the Project’s potential effects on education services will be limited to labour force demand for industry related training courses offered by Portage College in the County and Keyano College in Fort McMurray. With the Pike district camp, there will be no additional demand on regional schools as construction workers from outside the SESA are not expected to bring their families. Given the current capacity of Keyano College and Portage College and their ability to offer these training courses for industry, the Project final impact rating on SESA education will be low and positive during the construction phase and no additional mitigation is required.

17.6.4.2 Operations During the operations phase of the Project, potential regional effects on education services could include the labour force demand for industry related training courses offered by Portage College and Keyano College and the demand for primary and secondary schooling by family members of Devon’s staff that move to the SESA. As calculated earlier, the Project’s contribution to the population of the SESA is approximately 52 families or a total of 157 people (3 persons/family). Given that the average number of persons in all census families in Alberta is 3.0 (an assumption is made that there is one child of school age for each family), there could be approximately 52 dependents who require schooling. Taking into account current enrolment and capacity of schools in SESA the arrival of 52 additional students could be accommodated. As for demand for industry training, given the current capacity of Portage College and Keyano College and their ability to offer training and education services for the industry in a growing community, the effect on adult education would be positive. Devon will support educational and training activities in the SESA by collaborating with educational institutions (Portage College and Keyano College) to increase the participation of local residents in the Project. Therefore, the Project final impact rating on education in the region will be low during the operations phase and no additional mitigation is required.


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17.6.5 Housing


The construction workforce will be housed in the Pike district camp, which will have capacity to accommodate the anticipated peak demand of 1,850 workers. The camp will include security, first aid and space and equipment for leisure and recreational activities. Approximately 15% of the construction workforce will be local residents in the SESA. Workers from outside the SESA are unlikely to bring their families (Section 17.6.3), therefore, the Project final impact rating on SESA housing will be low during the construction phase, and additional mitigation is not required.

17.6.5.2 Operations

Devon anticipates hiring 15% of the operations workforce from within the SESA and 85% from outside the SESA. Based on Devon’s experience, only 5% of non-local hires are expected to relocate with their families to the County. Arrival of up to 52 families or 157 people in the SESA will require about 52 accommodation units (the average household size in the SESA is 2.8). As of 2012, there were 75 listings for homes in the County. Further, to accommodate the growing demand, the County released more lots for housing; by 2013, there will be 25 additional new houses and more lands will be available for housing developers. There is enough housing supply in the County to easily accommodate the need of operations workers who choose to relocate to the County. Therefore, the Project final impact rating on SESA housing will be low during the operations phase, with no additional mitigation required.

17.6.6 Protective Services

Devon’s existing policies and practices related to protective services issues will be applied during the Project’s construction and operations phases, including:

• regular communication with the County and protective and emergency service providers;

• implementation of a site-specific construction emergency response plan;

• implementation of a Pike operations emergency response plan following construction;

• adherence to all safety regulations;

• implementation of employee training, safe work permits and hazard assessments; and

• compliance with policies regarding safe driving practices.


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Devon will minimize additional demand on fire and emergency services in the SESA during the construction phase as follows:

• fire and emergency services will be provided as required to adhere to Alberta’s Occupational Health and Safety requirements. In accordance with the requirements, there will be a fully equipped first aid facility onsite staffed with trained medical personnel, there will be an Emergency Medical Technician (EMT) and ambulance or dedicated vehicle for ground transportation of workers to the nearest hospital and there will be arrangements for air med-evac of seriously injured or ill workers to an appropriate medical facility;

• firefighting equipment and workers with firefighting training will be available at the worksite and camp;

• given that the Project is within the forest fire protection area, Devon will consult with the ASRD office regarding the construction plans and schedules;

• the Pike FireSmart plans will be developed and submitted in accordance with ASRD guidance once field contacts are in place and prior to commencement of production operations (Volume 1, Section 3.2); and

• Devon will follow Alberta’s Occupational Health and Safety Guidelines for isolated worksites.

Following implementation of the above measures, the Project final impact rating on SESA fire and emergency services will be low during the construction phase, with no additional mitigation required. Devon will implement the following mitigation to reduce Project requirements for policing services during the Pike construction phase:

• a no firearms or hunting bows policy for Devon-controlled sites;

• an alcohol and substance abuse policy;

• a motor vehicle safety policy;

• a respectful workplace policy (addresses harassment, fighting, theft and cross cultural awareness);

• a camp and work site security plan and security personnel; and

• a bussing service to transport construction workers between the airport and/or other designated collection points and the Pike district camp at the time of work rotation and daily bussing between the camp and the work sites during Project construction to reduce single vehicle traffic.


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Another potential effect on policing services includes the Project’s potential contribution to motor vehicle accidents to which the RCMP highway patrols based in Fort McMurray and Lac La Biche must respond. The Project will avoid using Highway 63 and will use Highway 881 and Sunday Creek Road to discourage traffic through Conklin. The TIA completed for the Project (Volume 1, Section 7.0) further describes anticipated traffic levels and recommends improvements to maintain satisfactory levels of service and in turn, maintain safety related to traffic volumes. The potential for increased traffic volumes and associated motor vehicle accidents is expected to be low. With Devon’s mitigation measures and the recent increase in police numbers in the region coupled with the associated improvements in policing services, the Project’s final impact rating on SESA policing services will be low during the construction phase, with no additional mitigation required.

17.6.6.2 Operations

Devon will minimize additional demand on fire and emergency services in the SESA during the operations phase, similar to the construction phase, as follows:

• fire and emergency services will be provided as necessary to adhere to Alberta’s Occupational Health and Safety requirements. For example, there will be a fully equipped first aid facility on the site staffed with trained medical personnel, an EMT and ambulance or dedicated vehicle for ground transportation of workers to the nearest hospital and arrangements for air med-evac of seriously injured or ill workers to an appropriate medical facility;

• firefighting equipment and workers with firefighting training will be available at the worksite;

• given the Project is within the forest fire protection area, Devon will consult with the ASRD office regarding the construction plans and schedules;

• the Pike FireSmart plans will be developed and submitted in accordance with ASRD guidance once field contacts are in place and prior to commencement of production operations (Volume 1, Section 3.2);

• Devon will follow Alberta’s Occupational Health and Safety Guidelines for isolated worksites; and

• Devon’s operations workforce will have appropriate health and safety training. With implementation of the above mentioned measures, the Project final impact rating on SESA fire and emergency services will be low during the operations phase and no additional mitigation is required. As for the Project demands for policing services, the same mitigation measures will apply during the operations phase as in the construction phase, but the workforce will be much smaller. The arrival of up to 157 people from outside the SESA is expected to have a low effect on RCMP policing services in the SESA.


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Given the mitigation measures described, the Project final impact rating on SESA policing services will be low during the operations phase with no additional mitigation required.

17.6.7 Health


The Project is not expected to generate a substantial increase in demand for regional health services. Devon will ensure the following mitigation measures to reduce the Project’s effects on regional health services:

• first aid and transportation provisions onsite will be provided in accordance with Occupational Health and Safety requirements. In accordance with the requirements, there will be a nurse or EMT and an ambulance or dedicated ground transportation vehicle at the Project work site;

• Devon’s internal camp policies will promote a healthy diet and good hygiene as ways to reduce the spread of infectious disease;

• contingency plans will be developed to procure air med-evac services to transport seriously injured or ill workers to an appropriate medical facility beyond ground transportation range;

• Devon’s contractors will provide bussing services for the construction workforce between the airport and/or other designated collection points and camp to prevent workers from bringing their personal vehicles to the site. Hence, the magnitude of incremental traffic increases and associated motor vehicle accidents on Highway 881 and the Sunday Creek Road will be reduced; and

• the construction sites will have safety programs that address the unique functions and hazards of a major construction site and operations facility.

Devon’s Project site is located in Lac La Biche County and is closer to Lac La Biche than Fort McMurray (172 km to Fort McMurray and 124 km to Lac La Biche). Therefore, workers requiring health services exceeding those available to them onsite are expected to use the Lac La Biche Health Centre. This centre has ample capacity to accommodate the demand of the local population and it occasionally receives patients from Fort McMurray. In addition, during the last two years the centre assessed and treated many patients (nearly 1,000 in one year) associated with pipeline installation and exploratory drilling activities in the southern portion of RMWB. Taking into consideration the Project mitigation measures mentioned above, incremental demand for health care services in Lac La Biche during construction of the Project is expected to be low and within the existing capacity of Lac La Biche Heath Centre. The Project final impact rating on SESA health services will be low during the construction phase, with no additional mitigation required.


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17.6.7.2 Operations

The same mitigation measures will apply during the operations phase as for the construction phase, but the workforce will be much smaller. Further, an assumption is made that similar to the Jackfish project, only 5% of the non-local operations workforce will choose to move to the County and 95% will maintain their residence elsewhere. With the in-migration of up to 157 people from outside the SESA, the Project final impact rating on SESA health services will be low during the operations phase, with no additional mitigation required.

17.6.8 Recreation


The construction workforce will be housed in the Pike district camp. The camp will include indoor leisure and recreation activities as well as outdoor sport/activity area(s). Availability of indoor and outdoor recreation equipment and activities at the camp should greatly reduce the demand by Project workers to use other recreation facilities in the County or the RMWB. Devon will implement the following measures to reduce the Project’s effects on SESA recreation and leisure facilities:

• communicate community concerns to workers regarding access to recreational parks; and

• continue to discuss with community and other stakeholders in the SESA, the recreational needs of short-term residents and community residents.

The Project final impact rating on SESA recreation and leisure services will be low during the construction phase, with no additional mitigation required.

17.6.8.2 Operations

Operations workers hired from within the SESA will have no additional effect on the existing recreation facilities. When the in-migration of up to 157 people from outside the SESA occurs in 2018, new recreation facilities in rural areas will be opened (two in Anzac by 2013/2014 and one in Conklin by 2014/2015). In addition, the County’s Multiplex Facility has ample capacity. The Project in-migration of up to 157 people to the County will have a low effect on recreation and leisure facilities. The Project final impact rating on SESA recreation and leisure services will be low during the operations phase, with no additional mitigation required.


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17.6.9 Social Services


Most of Devon’s construction workforce will be temporary residents in the region without their families. Demands for social services are expected to be minimal as family violence, marriage and parental conflicts (the three most common issues for which social services are sought) should be minimal among workers in the camp. If some construction workers choose not to return to their primary residence during work rotation, demands for homeless shelters should not be an issue. Temporary accommodations are available in the County at reasonable costs compared to Fort McMurray and are in close proximity to the Project. Devon’s contractors will provide transportation services for workers within and outside the SESA during the work rotation. As such, workers are not expected to remain in the SESA when not on shift. Devon’s contractors are expected to provide Environmental Health and Safety Policies and programs that meet or exceed Devon’s requirements, including Drug and Alcohol Policies and Health Benefits Plans. The Pike district camp will have information pamphlets available on social and family issues, infectious diseases and other social and health matters in common areas of the camp for workers to view at their convenience. The Project final impact rating on SESA social services will be low during the construction phase, with no additional mitigation required.

17.6.9.2 Operations

The operations workforce that will be recruited from within the SESA will create no additional pressure on the social services in the SESA as they are already included in current demands on social services. The in-migration of up to 157 people from outside the SESA will not create additional pressure on the County’s social services as the County has capacity to accommodate moderate population growth. Further, all Devon’s employees will have access to the corporate social counselling services. As a result, the Project final impact rating on SESA social services will be low during the operations phase, with no additional mitigation required.


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17.6.10 Utilities

17.6.10.1 Construction Devon’s utility plan includes the following:

• potable and non-process utility water for the CPF will be obtained from a local aquifer; • domestic wastewater from the CPF will be trucked to the Pike district camp for

treatment; and • solid waste will be kept in appropriate containers and will be trucked for disposal or

recycling to an appropriate facility (i.e., the County, which has ample capacity). The Pike district camp will be self-sufficient and will not require locally provided potable water or domestic wastewater treatment. Devon has established a comprehensive reuse and recycling program for all thermal heavy oil operating sites. This program will be extended to the Project and include the following initiatives:

• using energy efficient lighting and recycling light bulbs (e.g., compact fluorescent light bulbs);

• reusing computers through donations to local community groups; • recycling all used batteries; • recycling paper and cardboard; • recycling non-contaminated plastics; • collecting and donating beverage containers to local charities for recycling; • recycling non-contaminated wood waste; • recycling scrap metal; • recycling lube oil and filters through the Alberta Used Oil Management Association

program; and • placing recycling bins along the facility access roads to encourage recycling and

discourage litter. With Devon’s utility services plan, the Project final impact rating on SESA utilities will be low during the construction phase, with no additional mitigation required. 17.6.10.2 Operations Devon’s utility use during Project operations will be the same for potable water, domestic wastewater, solid waste and recycling as in construction. In addition, saline groundwater will be used for process makeup water in place of fresh water. An increase of up to 157 people to the SESA population will not create substantial additional pressure on utility services. The County is planning expansions to their utility services. By the time the Project begins operations utility services in the SESA will have enough capacity to handle any additional demands created by the arrival of operations workers and their families from outside the SESA.


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Therefore, the Project final impact rating on SESA utilities will be low during the operations phase, with no additional mitigation required.

17.6.11 Traffic and Transportation

According to the TIA prepared for the Project, by 2032, Sunday Creek Road could be operating beyond capacity (LOS F). Proposed improvements on this intersection will improve the LOS to B or C and will result in a final impact rating of low with no additional mitigation required. Details of the TIA and recommendations are provided in Volume 1, Section 7.0.

17.6.12 Aboriginal Benefits


Aboriginal people are expected to benefit from the economic effects of the Project. Devon estimates that it will hire 15% of the construction workforce from the SESA and spend 13% of the construction expenditures within the SESA. These estimates include benefits to local residents and businesses. Devon intends to enable Aboriginal benefits from the economic effects of the Project by working with First Nations and Métis communities and groups and other local residents and businesses, particularly those who have the relevant skills listed in Table 17.6-5. Devon intends to apply the measures listed below to allow the Project to meet objectives related to hiring local Aboriginal people:

• local advertising of goods and services required by the Project;

• encouraging contractors to break down the scope of their work packages such that local businesses could bid for a portion of the work package;

• considering local content in the award of work packages; and

• informing local Aboriginal and other local businesses of the procurement process and Project standards in advance of the request for bids and awarding of work packages.

With the above, the Project final impact rating on Aboriginal businesses in the SESA will be low and positive during the construction phase and no additional mitigation is required.

17.6.12.2 Operations

Devon estimates that 15% of the operations workforce will be hired from within the SESA, these people are expected to benefit from the economic effects of the Project, particularly from job opportunities. Further, Devon will maximize efforts to secure services from local providers in Aboriginal communities in close proximity to the Project to generate economic benefits for those communities. The local business enhancement measures listed for the construction phase will also be applied during the operations phase of the Project. The Project final impact rating on Aboriginal businesses in the SESA will be positive and low during the operations phase.


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17.6.13 Other Local Effects

Regional and local economic effects of the Project are discussed in Section 17.6.2. Other social effects specific to the local communities (Conklin and First Nations in close proximity) are discussed below. The local communities possess some community services such as schooling, utility services and temporary accommodation. Most other services including health care, protective services, education beyond Grade 9 and public roads and transportation services are administered and delivered regionally by the County or the RMWB. During the construction phase of the Project, the arrival of the construction workforce could result in a peak shadow population of 1,850 people. Given the short duration of the construction phase and utilization of the Pike district camp, construction workers are not expected to bring their families to the area. As a result, no additional demand on education services, housing, utilities or roads in local communities is expected during construction. In addition, there will be opportunities for local hiring and local businesses may benefit economically. Local businesses that provide goods and services such as clearing, grading, vacuum and hydro-vac trucks, road maintenance and snow removal are likely to benefit. Gas bars/stores and the Christina Lake resort could experience an increase in business as a result of construction-related people traveling to or from the Project site or in the event that some construction workers bring their RVs and families to Christina Lake during summer months. The construction workforce from outside the SESA will create additional demand for health and protective services. Because these services are provided out of Lac La Biche and Fort McMurray, potential effects were regionally assessed and local effects are not expected. The Project will generate an increase in traffic volumes on Highway 881 and local Sunday Creek Road but will avoid Conklin and traffic volume increases will be managed using bussing and fly-in/fly-out transportation options where feasible. Construction of the Project is expected to have negligible effects on education, health care, protective services and utilities in local communities. However, some economic and educational benefits may be generated for local residents and businesses. Devon worked in partnership with the Northland School Division and the Conklin Local School Board to provide funding for capacity and infrastructure to implement Sunchild E-Learning. This program allows students to achieve schooling in Grades 9 through 12 while living at home in Conklin instead of moving to Fort McMurray. The aim of this program is to increase the local number of high school graduates, thereby facilitating opportunities for post-secondary education and the professional and technical job opportunities available in the oil sands industry. During the operations phase of the Project, it is estimated that up to 157 people could arrive from outside the SESA. However, because the local communities are small, with few amenities, services, utilities and available housing, it is not anticipated that operations workers would choose to live in these communities. Experience with Devon’s Jackfish project indicates that


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none of the operations workers from outside the SESA chose to live in Conklin and it is expected this will be the case for the Project. As a result, there will be no effects on local community services, infrastructure and utilities, with no mitigation required. However, it is expected that local businesses providing goods and services required during Project operations will benefit.

17.7 Planned Development Case

Although a wide range of capital projects have been identified in the SESA, the main drivers of cumulative effects for the Project are other oil sands developments in the County and other oil sands projects located in the southern part of the RMWB near Conklin. Cumulative effects of infrastructure and oil sands projects, both existing and planned, and located at or north of Fort McMurray in the SESA are briefly discussed in terms of their numbers, costs and distance from the Project but for the reasons outlined in Section 17.4.2, these effects are already considered in the inherently cumulative SEIA for the Project. Cumulative effects of local oil sands projects are given more attention due to their proximity to the Project (spatial overlap) and their potential to more directly affect local VSCs. The focus of this discussion is the sensitivity of selected VSCs to these cumulative influences, particularly due to temporal overlaps. Cumulative socio-economic benefits are sensitive to the capacity of the local economy to absorb incremental opportunities – there may be competition for human and business resources. Cumulative negative socio-economic effects are sensitive to the ability of service providers, usually local, regional and the Provincial governments, to adjust to increased demands for infrastructure and public services. Although there is usually a time-lag between when increases in this demand first occur and when government revenues from increased economic activity are received, adjustments do occur over time. Overlapping construction periods represent the highest risk for a demand-capacity gap and could represent a management challenge.

17.7.1 Effects on Economy

Oil sands projects in proximity to Conklin are in various stages of approval, development and operations. The overlap of the Project’s construction phase with other identified oil sands projects should not affect Devon’s ability to hire 15% of the construction workforce from the local labour pool. Devon will achieve its socio-economic objectives by the use of local contractors and providing Aboriginal business opportunities. In addition, major contractors will be required to provide opportunities to local and regional Aboriginal and non-Aboriginal businesses on the basis of best total value criteria. This will be a requirement of the bid process for potential engineering, procurement and construction contractors and its subcontractors. During the operations phase, the overlap of Devon with other projects will create competition for local and regional suppliers and labour. Devon expects to meet the objective of hiring 15% from the SESA through contracting work during the operations phase. This may include camp operations/maintenance, road maintenance and snow removal, water supply or solid waste transportation.


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The competition for skilled labour during Project construction and operations will be a management challenge for Devon and the other oil sands developers in the region. However, Devon is confident of being able to effectively compete for the skilled labour needed during construction and operations phases of the Project through the following:

• provision of competitive wages and benefits; • application of best practices for attracting and retaining workers; and • implementation of the management measures discussed previously in relation to

Project-specific effects. 17.7.2 Effects on Traffic and Transportation The TIA study (Volume 1, Section 7.0) was used to assess cumulative effects on traffic volumes and transportation infrastructure. Since Devon intends to use Highway 881 and Sunday Creek Road for access to the Project, cumulative effects on Highway 63 from the Project during construction and operations are not expected. 17.7.3 Effects on Health Services Construction phase activities typically represent a higher risk of accident and injury than do routine operations. Project mitigation measures should attenuate direct effects as discussed above and the Project’s contribution to cumulative effects should be minor and no specific additional mitigation is suggested. 17.8 Summary Devon’s existing mitigation and management measures will be applied to the Project to address potential socio-economic effects. Hence, the effects summary presented below shows little difference between the initial assessment and final impact ratings (Table 17.9-1). The Project will have positive economic effects at the provincial, regional and local levels. The Project will create increased employment, labour income and GDP. Devon will hire qualified local residents and procure the services of qualified local contractors and suppliers where possible. Devon’s socio-economic objectives include optimization of opportunities for qualified local Aboriginal and other local workers, contractors and service providers for construction and operations. The final impact rating for economic effects is moderate for the construction phase and low for the operations phase. During the construction phase, the workforce will be housed in the Pike district camp near the site. The final impact rating for demography is low. There will be some additional demand for industry training offered by local colleges, but Portage and Keyano have ample capacity to address the oil sands industry’s demand for training courses; therefore, the final impact rating on adult education is low. Devon’s Pike district camp and CPF facilities will be self contained and will not place additional demands on local infrastructure for the provision of potable water or the disposal of wastewater. The Project’s final impact on utility services is low.


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Table 17.9-1: Final Impact Ratings – Application Case

VSCs Direction Geographic Extent Magnitude Duration Confidence

Final Impact Rating

Construction Phase Economy Positive Provincial and

Regional Moderate Short Term High Moderate

Demography Negative Regional Low Short Term Moderate Low

Education Positive Regional Low Short Term Moderate Low

Housing Negative Regional Low Short Term Moderate Low

Utilities Negative Regional Low Short Term Moderate Low

Protective Services Negative Regional Low Short Term Moderate Low

Health Services Negative Regional Low Short Term Moderate Low

Recreation and Leisure Negative Regional Low Short Term Moderate Low

Social Services Negative Regional Low Short Term Moderate Low

Transportation Negative Regional Low Short Term Moderate Low

Aboriginal Benefits Positive Regional and Local

Moderate to Low

Short Term High Low

Operations Phase Economy Positive Provincial and

Regional Low Long Term High Low

Demography Negative Regional Moderate on the County and Low on RMWB

Long Term Moderate Low

Education Positive Regional Low Long Term Moderate Low

Housing Negative Regional Low Long Term Moderate Low

Utilities Negative Regional Low Long Term Moderate Low

Protective Services Negative Regional Low Long Term Moderate Low

Health Services Negative Regional Low Long Term Moderate Low

Recreation and Leisure Negative Regional Low Long Term Moderate Low

Social Services Negative Regional Low Long Term Moderate Low

Transportation Negative Regional Low Long Term Moderate Low

Aboriginal Benefits Positive Regional and Local

Moderate to Low

Long Term High Low


Page 17-71

Devon has developed mitigation measures that will reduce the potential effect on roads and transportation. The final impact rating on traffic is low during construction and operations. Devon’s security, emergency, health and safety, and transportation plans, respectful workplace policy, alcohol and substance abuse policy, and health and safety training will minimize additional pressure on protective and social services in the SESA. The final impact rating on protective and social services is low. During construction and operations, Devon will comply with Alberta Occupational Health and Safety requirements. The nearest hospital is located in Lac La Biche and has excess service capacity. The Project will have a low final impact rating on health services in the SESA. The Project’s local impacts are limited to Conklin and First Nations in close proximity to Conklin. There will be neutral effects on education, health care, protective services, utilities and roads as those services are delivered and administered out of Fort McMurray. Local businesses are expected to benefit from the Project. The final impact rating of the Project on Conklin and the local Aboriginal economy is low and positive. The presence of other operating oil sands projects and the planned oil sands projects in close proximity to Devon will have cumulative effects on the economy, transportation infrastructure and health services. The competition for skilled labour during Project construction and operations may present a challenge. However, Devon is confident in being able to effectively compete for skilled labour needed during construction and operations phases of the Project through provision of competitive wages and benefits, well run camps with security, medical facilities and amenities as well as respectful workplace and camp policies. The Project’s contributions to cumulative effects on transportation infrastructure will be low, as Project traffic will be routed via Highway 881 and Sunday Creek Road. Cumulative effects on socio-economic indicators are predicted to be low.

17.9 References

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Austrom Consulting Ltd. (Austrom). 2007. Town of Lac La Biche and Lakeland County Amalgamation Study. Available at: http://www.townllb.com/Website/. Accessed January 2010.


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Canadian Energy Research Institute (CERI). 2011. Economic Impacts of Staged Development of Oil Sands Projects in Alberta (2010-2035). June 2011.

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Government of Alberta. 2009. News Release. Available at: http://alberta.ca/home/ NewsFrame.cfm?ReleaseID=/acn/200902/252966B25FDCF-B78F-6234-37A51BDA1C4B50E1.html. Accessed in March 2010.

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Grant, S. 2012. Inspector, Wood Buffalo RCMP Detachment. Personal Communication.

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Indian and Northern Affairs Canada (INAC). 2011. First Nations Profiles. Available at: http://pse5-esd5.ainc-inac.gc.ca/fnp/Main/Search/SearchFN.aspx?lang=eng.

Johnson, L. 2012. Clerk: Lac La Biche County FCSS. Personal Communication.

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Lac La Biche County. 2012. Department and Services. Available from: http://www.laclabichecounty.com/departments-services Accessed February 2012.

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Moehrle, G. 2012. Health Care Centre Manager: Lac La Biche Health Care Centre. Personal Communication.

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Petroleum HR Council. 2011. HR Trends and Insights: A Look at Current and Short-Term Workforce Trends within the Canadian Petroleum Industry Q3/Q4 2011 Report. Available at: http://www.petrohrsc.ca/tools--resources/media/december-13,-2011-q3q4-2011-hr-trends-report-press-release.aspx Accessed January 2012.

Polturak, A. 20120. Manager: Lac La Biche County FCSS. Personal Communication.

Portage College. 2012. Portage College Comprehensive Institutional Plan 2011-201. Available at: http://www.portagecollege.ca/Documents/about%20us/ CIP%202011%20Final %20Version.pdf.

Quinsey, U. 2012. Executive Associate, Alberta Health Services – North Zone. Personal Communication.

Regional Municipality of Wood Buffalo (RMWB). 2003. Regional Profile. Available at: http://www.woodbuffalo.ab.ca/residents/regional_profile/RegionalProfile.pdf. Accessed November 8th, 2009.

Regional Municipality of Wood Buffalo (RMWB). 2006. 2006 Municipal Census. Available at http://www.woodbuffalo.ab.ca/business/demographics/pdf/2006_census.pdf.

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Regional Municipality of Wood Buffalo (RMWB). 2010. 2010 Municipal Census. Available at: http://www.woodbuffalo.ab.ca/Assets/Corporate/Census+Reports/2010+Municipal+ Census.pdf.

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Taylor, R. 2012. Associate Superintendent HR in Lac La Biche, Northern Lights School division No. 69. Personal Communication.

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