Participant Funding Program—Aboriginal Funding Envelope
Funding Review Committee's Report

Allocation of Federal Funds for the Environmental Assessment of the Harper Creek Mine Project

The Participant Funding Program (PFP) is established pursuant to subsection 58(1.1) of the Canadian Environmental Assessment Act, which states: "For the purposes of this Canadian Environmental Assessment Act, the Minister shall establish a participant funding program to facilitate the participation of the public in comprehensive studies, mediations and assessments by review panels". The PFP also includes an Aboriginal funding envelope (AFE) to strengthen the ability of Aboriginal groups to participate in federal or joint federal–provincial environmental assessment (EA) processes and in related consultation activities.

A funding review committee (FRC), independent of the EA was established for the Harper Creek Mine Project (the Project), which is being conducted by means of a comprehensive study (CS). The purpose of the FRC was to assess applications received under the PFP–AFE for the Project, and to provide recommendations to the President of the Canadian Environmental Assessment Agency (the Agency) on whether funding should be provided, and if so, in what amount.

On April 27, 2011, a total of up to $135,100 was made available under the AFE for the EA of the Project to support Aboriginal participation and related consultation activities in the EA, including:

• preparing for and participating in internal community meetings;
• preparing for and participating in consultation meetings;
• reviewing and commenting on the draft Application Information Requirements/Environmental Impact Statement Guidelines (AIR/EIS Guidelines);
• reviewing and commenting on Yellowhead Mining Incorporated's (the proponent) Application/ Environmental Impact Statement (EIS); and
• reviewing and commenting on the Comprehensive Study Report (CSR).

In addition to the PFP–AFE funding being made available to assist Aboriginal groups to participate in the EA process, funding for this purpose is also being provided by the Province of British Columbia.

The deadline to submit an application was May 30, 2011. Three applications were received for a total funding request of $357,739.79.

On June 16 and 30, 2011, the FRC met to review the applications. The FRC members were Paul Scott, retired Regional Director of the Agency's Pacific and Yukon Office, acting as Committee Chairperson; Ray Crook, Environmental Assessment Consultant; and Patrick Duxbury, Environmental Assessment Consultant.

Background

The proponent is proposing to construct and operate a copper-gold-silver mine with an anticipated production rate of 70,000 tonnes of ore per day (25 million tonnes per year) over an 18 to 24-year life span. The Project is located adjacent to the North Thompson River, approximately 150 kilometres northwest of Kamloops, British Columbia.

The Agency accepted the project description for the Project on January 14, 2011. In consultation with interested federal authorities, the Agency has determined that the Project would be subject to a federal EA pursuant to the Canadian Environmental Assessment Act. The federal EA of the Project is subject to a CS as per Part V, Section 16(a) of the Comprehensive Study List Regulations:

• the proposed construction, decommissioning or abandonment of a metal mine, other than a gold mine, with an ore production capacity of 3,000 tonnes per day or more.

The potential trigger for the EA of the proposed project is the possible need for an authorization under subsection 35(2) of the Fisheries Act. Therefore, Fisheries and Oceans Canada may participate as a responsible authority. Additionally, the Canadian Transportation Agency, Health Canada, Natural Resources Canada, Transport Canada and Environment Canada may participate as federal authorities in the CS.

An initial public comment period on a background document describing the proposed project and the CS process commenced on April 28, 2011, immediately following the posting of the Notice of Commencement. An opportunity to participate in the conduct of the CS will be offered to the public during the review of the Application/EIS submitted by the proponent (anticipated in September 2011). A public comment period will also be held on the CSR to be prepared by the Agency and submitted to the Minister of the Environment (anticipated in March 2012).

The Project has also been identified as a major resource project by the Major Projects Management Office. The proposed project is also subject to a provincial EA pursuant to British Columbia's Environmental Assessment Act. The federal and provincial EAs will be coordinated and conducted in a cooperative manner.

Eligibility

Under the PFP–AFE, funding may be provided to Aboriginal groups to support their input to an EA and to support their engagement in consultation activities with the federal government. These activities must be linked to the EA of a proposed project through a CS, mediation or review panel.

Eligible recipients must plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of the Project and be able to demonstrate that they meet at least one of the following eligibility criteria:

• Have a direct, local interest in the Project, such as living or owning property in the project area.
• Have community knowledge or Aboriginal traditional knowledge relevant to the EA.
• Have expert information relevant to the anticipated environmental effects of the Project.

The applications received were deemed to have met at least one of these criteria; therefore, all of the applicants were found to be eligible for funding.

Under the PFP–AFE, applicants can request funding for expenditures related to:

• professional fees;
• staff salaries and benefits;
• local collection and distribution of information;
• travel expenses;
• honoraria for Elders and Chiefs to attend meetings and functions;
• ceremonial offerings related to receiving traditional knowledge in relation to the EA;
• rental of office space and meeting rooms;
• office supplies and telephone charges;
• administrative and reporting costs;
• legal fees;
• purchase of relevant information material, with supporting documentation;
• general media advertising and promotion; and
• other detailed expenses.

Rationale for Allocation

In reviewing the three applications and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors, including the following:

• Whether Aboriginal groups could demonstrate they plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of the Project and could demonstrate they meet at least one or more of the eligibility criteria listed above.
• The quality, clarity and content of the applications, particularly with respect to the relationship between specific project components and the applicant's traditional lands and resources, and the applicant's proposed EA participation work plan.
• Advice received from the Agency regarding which Aboriginal groups are expected to be participants in the EA, and the role that these groups may play in the EA.
• The eligible activities under the PFP–AFE for the Project, which include preparing and participating in internal community meetings and consultation meetings, and reviewing and commenting on the draft AIR/EIS Guidelines, the proponent's Application/EIS, and the CSR.
• Potential project impacts on traditional lands and resources and treaty rights, and on the related interests and asserted rights and title of the applicants.
• Presence or absence of specific project components within each applicant's traditional lands.

Recommendation

The FRC recommends allocating $126,325 to the three applicants as follows:

• $14,550 to the Métis Nation British Columbia;
• $70,525 to the Simpcw First Nation; and
• $41,250 to the Adams Lake Indian Band.

The FRC further recommends that any funding allocation be conditional on a provision that the recipient provides written comments to the EA manager on any or all of the draft AIR/EIS Guidelines, the proponent's Application/EIS, and the CSR.

The Participant Funding Review Committee
Harper Creek Mine Project

Aboriginal Funding Envelope

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Paul Scott, Committee Chairperson, Retired Regional Director of the Agency's Pacific and Yukon Office

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Ray Crook, Environmental Assessment Consultant

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Patrick Duxbury, Environmental Assessment Consultant

Recommended Participant Funding Allocations
Harper Creek Mine Project

Aboriginal Funding Envelope

Applicant	Total Allocation Amount Recommended
Métis Nation British Columbia	$14,550
Simpcw First Nation	$70,525
Adams Lake Indian Band	$41,250
Total	$126,325