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Canada's Indigenous peoples have benefited from the fees paid to them for the construction and operating services they have provided in relation to major energy projects. But now more than ever, they are looking for opportunities not just to work on, but to own all or part of those undertakings and to participate in the decisions required in their development and management. Ownership interests in long life energy infrastructure assets and the reliable financial returns that they can produce are seen by Indigenous peoples as a way to participate in the broader economy and improve their standards of living. And more importantly, as a necessary part of the spirit of economic reconciliation. Early Equity Positions Examples of Indigenous peoples' equity participation in energy projects include the Haisla Nation's ownership rights in several proposed LNG export projects on the West Coast including Kitimat LNG, and the options entered into by the First Nations bands in proximity to the 695 MW Keeyask Hydropower Dam project with the province of Manitoba regarding the construction, ownership and operation of that project. Ownership of energy projects has sometimes evolved from the not insignificant amounts paid by project developers to Indigenous peoples through benefit agreements, adverse impact arrangements and other programs. These payments have spawned successful businesses in the energy sector for Indigenous groups and given them the financial capacity to acquire equity interests in energy assets. An example is the Fort McKay and Mikisew Cree First Nations' purchase of an aggregate 49% interest in the East Tank Farm from Suncor in 2017 for $503 million. The Growing Trend Indigenous peoples' pursuit of ownership opportunities is increasing. Recently various coalitions of First Nations and Métis groups have expressed interest in acquiring all or parts of the TransMountain Pipeline. Potential investors include the Western Indigenous Pipeline Group, Project Reconciliation who are looking to acquire a 51% share, the Iron Coalition who want between 50% and 100% of TransMountain, and the Indian Resource Council who want to make the pipeline 100% owned and operated by Indigenous peoples. In addition, TC Energy wants to sell up to 75% of the Coastal GasLink pipeline that will deliver natural gas to the LNG Canada project on the West Coast. Various First Nations along the right of way of Coastal GasLink are interested in acquiring ownership interests in the pipeline. Proposed Projects Indigenous groups are not only interested in buying into existing energy projects. They are also participating in new undertakings. Eagle Spirit Energy has proposed a pipeline that would carry up to 2 million barrels a day of medium to heavy crude oil from Fort McMurray across northern BC. The CEO of Eagle Spirit is a member of the Lax Kw'alaams Band. The project is supported by several major producers. In addition, two private investor groups, Generating for Seven Generations and Alberta Alaska Rail Development Corp. are proposing to build railways that would run from Alberta's oil sands to Alaska. Equity interests in those proposed projects have been offered to various Indigenous communities. Government Support Canadian governments are also fostering the involvement of Indigenous groups in energy and energy infrastructure projects. Ontario Power Generation's calls for renewable power proposals, the second round of Alberta's Renewable Electricity Program and Alberta Infrastructure's solar RFP all required that bidders have minimum levels of Indigenous participation. Those requirements resulted in numerous projects where developers partnered with First Nations and Métis communities. In addition, the Province of Alberta announced its intention to form the Indigenous Opportunities Corporation to facilitate Indigenous communities' financial participation in major resource projects, including pipelines. The IOC will assist those communities in assessing opportunities to invest in energy projects and will provide guidance in how to finance those investments. The province will also provide $1 billion to backstop that financing. Conclusion There may be skepticism about whether these proposed equity investments by Indigenous peoples will actually occur. However, the levels of participation and successful results that Indigenous peoples have experienced in their energy sector activities to date are encouraging. Importantly, federal and provincial governments strongly support Indigenous ownership as furthering reconciliation and as a step towards Indigenous peoples' economic self-sufficiency. And given the current environment of increasing opposition to proposed energy projects the model of involving Indigenous peoples as equity participants in these projects may be an effective way of confirming their support and mitigating completion risks. Indigenous Peoples' Ownership of Energy Projects Chrysten E. Perry Managing Partner, Calgary Office Stikeman Elliott LLP cperry@stikeman.com +1 403 266 9010 Keith R. Chatwin Partner, Stikeman Elliott LLP kchatwin@stikeman.com +1 403 266 9088 Stikeman Elliott LLP / stikeman.com For further information Stikeman Elliott's publications on Canadian Energy Law can be found at stikeman.com/kh/canadian-energy-law Our complete library of publications is available on our Knowledge Hub at stikeman.com/kh

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