North of 60 Mining News - The mining newspaper for Alaska and Canada's North

The Mackenzie Valley Environmental Impact Review Board released an external report in early October that potentially could lead to significant improvements in the environmental assessment process for mineral exploration and development in a large, natural resources-rich region of the Northwest Territories.

The report, commissioned by the Review Board and dated June 2011, was prepared by Stantec Consulting Ltd. of Yellowknife, NT and focuses on opportunities to improve the timeliness of the regulatory board's environmental assessment process. 
It is viewed as a first step in the Review Board's work to address criticism by industry and others that the regulatory system governing land and water resources in the Mackenzie Valley is increasingly complex and lengthy. Natural resource companies and others have raised concerns that environmental assessments in the region have now become onerous for all participants from the perspective of work load and available resources.

The Review Board, which is responsible for conducting environmental assessments and environmental impact reviews in the Mackenzie Valley, said it is very aware of these concerns and has made timeliness of the environmental assessment process the top priority in its most recent three-year strategic plan.

Under provisions of the Mackenzie Valley Resource Management Act, environmental assessment is the middle step in a three-stage process for environmental impact assessment.

On average, typical environmental assessments are becoming longer and more detailed and may have surpassed the original expectations of the comprehensive land claims agreements and the legislation for the middle stage between preliminary screening and environmental impact review, according to the Review Board.
The Northern Regulatory Improvement Action Plan, initiated by Aboriginal Affairs and Northern Development Canada, is addressing regulatory improvement from a broader perspective, and includes process clarification and efficiencies that can be gained through legislative amendments.

In an Oct. 3 statement, the Review Board said it aims to complement the Northern Regulatory Improvement Action Plan with its own set of internal process improvements.

The Mackenzie Valley Resource Management Act allows for considerable flexibility in the process and the Review Board has the latitude and authority to make changes to its processes.

The first step taken by the administrative tribunal was to hire Stantec to provide its perspective on improving timeliness in the environmental assessment process.

By hiring the consultant, the issue of process timeliness was examined with "new eyes," the board said.
Essentially, the review was intended to identify the main bottlenecks in the assessment process and propose solutions for those matters that are within the Review Board's control.

While focusing on the environmental assessment stage of the EIA process, the review also had to consider linkages to other stages of EIA (preliminary screening and EIR) and other components of the regulatory system established by the Resource Management Act.

In its report, Stantec identified several areas with room for improvement. Some are within the Review Board's control, others require collaboration of parties, and some involve legislative change.


EIA processes compared

The main recommendations focus on improving scoping efficiency, developing a defined process for referrals to environmental impact reviews, developing environmental assessment processes for large versus small projects, improving guidance materials and implementing rules-based timelines.

Though EIA processes across Canada are not directly comparable and the assessments reviewed during the study each have unique attributes, Stantec concluded that the environmental assessment process in the Mackenzie Valley is one of the lengthier processes in Canada.

The consultant examined the timeliness of each phase of the Review Board's assessment process and compared its recent reviews of DeBeers Canada Inc.'s Snap Lake Diamond Mine and Tamerlane Ventures Inc.'s Pine Point Pilot Project with comparable EAs for recent mine development projects in Nunavut, Yukon Territory, British Columbia, Saskatchewan and Newfoundland.

"With the exception of the Galore Creek project in British Columbia, which had significant proponent-caused delay during the scoping phase, the 'EA start-up to issuance of TOR' and the 'EIS conformity to EA determination' phases' were longest for those projects assessed in the Mackenzie Valley," Stantec wrote in its report.

Unlike the Mackenzie Valley, the consultant said most EIA processes in Canada have established time limits for all or specific assessment phases. Where time limits have been implemented, the process is more expedient than most of the similar level assessments conducted by the Review Board.

Stantec said the board also is challenged by the range of projects referred for assessment; it is estimated that more than 50 percent of the projects referred to environmental assessment in the Mackenzie Valley would not be subject to the same level of assessment in other jurisdictions.

In response, the Review Board has adjusted its process on a case-by-case basis to provide a timelier assessment for these "smaller" developments. While improving timeliness, Stantec said the implementation of this development-specific process increases uncertainty for proponents and parties to the assessment.

The consultant also identified a number of legislative, procedural and operational factors that affect the timeliness of the environmental assessment process and land and water regulation as a whole in the Mackenzie Valley.

Stantec recommended a number of improvement initiatives to address the issues affecting timeliness, including some beyond the authority of the Review Board such as legislative change and improving the linkage between environmental assessments and licensing that require the cooperation of other groups.

However, the consultant also outlined improvement initiatives that the administrative tribunal can consider implementing to achieve its goal of a timely environmental assessment process. "Many of these recommendations also will help to improve process predictability and certainty, an important tenet of good regulatory system," Stantec said.

The recommended improvement initiatives within the Review Board's authority include:

Develop best practice for scoping environmental assessments in the Mackenzie Valley which recognizes the interests of the parties and allows a timely environmental assessment;

Develop a two-level environmental assessment process - a simpler more expedient process for developments requiring limited analysis and a second process which provides for increased technical review;

Develop increased guidance material for all parties - this would include updated process guidelines and more specific guidance on topics such as requirements for a project description, the scoping process, draft TOR and formal submissions;

Establish time limits for those phases of the environmental assessment process that the Review Board can control - formal submissions, conformity, technical review, report of the environmental assessment, public comment periods;

Develop a process for efficient referral of a development to EIR during the scoping phase of the environmental assessment; and,

Delegate more responsibility to the Environment Assessment Offices (EAOs) in implementing the environmental assessment process.

In an Oct. 3 statement, the board said it is reviewing Stantec's recommendations along with its own internal analysis and will initiate improvements that it considers appropriate and within its authority to change. "There will be improvements that can be implemented in the short term, while others will require more time. More information on the nature and timing of process improvements will be shared with stakeholders in the coming weeks," the Review Board added.

Vern Christensen, the board's executive director told Mining News Oct. 21 that, "Early in the new year, we anticipate sharing a discussion document with stakeholders on options we feel could improve the 'frontend' scoping process,"

Chamber praises Review Board

The Nwt & Nunavut Chamber of Mines congratulated the Review Board for recognizing that there are problems, for then examining what is within its authority to change, and for taking steps to improve the regulatory environment in the northern territory.

"Making the North an attractive place to work and invest is up to all of us, not just elected leaders. It is up to government, to Aboriginal groups, to regulators Northern Regulatory Improvement Initiative and to industry. The Review Board's positive actions to review its own processes to find improvements join those of the Federal Government in the, and the very positive move the Akaitcho (Treat & Tribal Corporation) made when they signaled their desire to improve mineral investment by signing a memorandum of understanding with the Chamber of Mines this summer," said Chamber President John Kearney.

The chamber said its members have had many positive conversations with representatives of Aboriginal groups in the NWT, and increasingly, these groups are supportive of mining investment that adds to opportunities for northern communities and their businesses.

The chamber also said it is very optimistic that this activity and the Review Board's efforts will help reinvigorate investor perceptions and interest in Northwest Territories and improvements will soon begin.

"This is very important to the economy of the NWT, which is built on a mining foundation.

The Territories' diamond production is now third place in the world by value. In addition, a number of new mining projects are in the regulatory approvals phase. Exploration this current year in the NWT is projected to fall, despite strong commodity markets fueling booming exploration in the adjoining Yukon and Nunavut territories, the group added.