Canadian First Nation sends notice of opposition to Obsidian Energy drilling plans (updated)

Obsidian Energy

14/02/2024 19:28

(Adds quotes from Obsidian and Woodland Cree, details on
dispute throughout)
    By Nia Williams
       Feb 14 (Reuters) - A Canadian First Nation on Wednesday
said it has told the Alberta Energy Regulator that oil and gas
producer Obsidian Energy  OBE.TO  cannot proceed with plans to
expanded drilling on its territory due to concerns about
earthquakes.
    The Woodland Cree First Nation in northern Alberta
criticized Obsidian earlier this week for failing to address the
Indigenous community's concerns about a series of earthquakes
that regulators found were caused by the company's wastewater
disposal.
    Calgary-based Obsidian produces roughly 31,000 barrels of
oil equivalent per day (boepd). Around 20% of output comes from
the company's Peace River assets in northern Alberta, some of
which are located within Woodland Cree territory.
    Obsidian plans to increase production by 12% this year and
focus most of its drilling program on the Peace River region,
according to a company presentation.
    "CEO Stephen Loukas and Obsidian have not met the basic
legal requirements necessary to proceed with development on our
territory," Woodland Cree Chief Isaac Laboucan-Avirom said in a
statement. 
    In recent days, Woodland Cree community members have started
establishing "monitoring camps" across their territory to
safeguard their land from Obsidian oil development that the
Nation has not authorized, the statement said.
    Obsidian appealed the regulatory order issued last year that
found it was at fault for the earthquakes. 
    In a statement released late on Tuesday, Obsidian CEO Loukas
said negotiations that started last year over a new economic
relationship agreement with the Woodland Cree had broken down.
    "We have unfortunately reached a negotiating impasse with
WCFN’s senior leadership," Loukas said. 
    Obsidian can use existing regulatory processes to obtain the
permits and licenses needed to execute its three-year Peace
River growth plan and accelerate growth in other Peace River
locations, he added.

 (Reporting by Sourasis Bose in Bengaluru; Editing by Shinjini
Ganguli and Jonathan Oatis)
 ((Sourasis.Bose@thomsonreuters.com;))