Panel Report

14.1 Northern Participation in Regulatory Agencies

The government agencies responsible for regulating the mines have very low northern participation in their work forces. Although the mining industry is required to maximize northern employment, the regulatory agencies do not appear to have taken this as a serious responsibility for themselves. Greater employment participation by northerners would facilitate community consultation, thereby enhancing the credibility of regulatory agencies in the impact communities, and increasing the opportunities for finding northern solutions to northern problems. It is recommended, therefore, that federal and provincial agencies providing regulatory services for the northern mines adopt human resource objectives for themselves that result in an increased participation by northern residents in the regulatory work force, comparable to the expectations for the mining industry.

Failure to take this recommendation seriously could produce a situation where northerners attempt to establish agencies of their own in which they would have more confidence. For example, in a letter commenting on a previous panel report, the Prince Albert Grand Council stated that, "the continuation of advisory roles for northerners on environmental issues is totally inadequate. We require an independent environmental protection and monitoring capacity, with full decision-making participation in northern Saskatchewan". It would be far better to have one integrated regulatory system that everyone trusts than a fragmented arrangement in which each interest group attempts to do its own monitoring of environmental impacts.

We would like from our own standpoint to conduct our own environmental review process, we would like to make sure that the mining companies or forestry companies or people who are proposing any type of development pass our requirements in terms of how those activities can happen...

A. Adam, Vice Chief, Federation of Saskatchewan Indian Nations, Transcript of Cigar Lake Public Hearings, Saskatoon, Saskatchewan, September 19, 1996, p. 120.

14.2 Revenue Sharing

It is evident from their words and actions that northern leaders wish to have the issue of revenue sharing resolved in a political forum rather than as part of an environmental review process. We agree with that approach and encourage the participation of both levels of government in a multipartite discussion of revenue sharing with northern leaders.

In a previous report, we noted that the issue of revenue sharing is broader than most others that have been dealt with in this review process and urged that the governments jointly initiate discussions with northern leaders on the implementation of a program of revenue sharing. Although not all northern communities participated in the review, most seemed to favour this approach in their formal responses to the report. Max Morin, writing on behalf of the Saskatchewan Association of Northern Communities, attached a resolution "fully supporting the panel's recommendations". The Prince Albert Grand Council's response, submitted by Vice Chief John Dantouze, stated that they were encouraged by the panel's recommendation on revenue sharing, and Blaine Favel, Chief of the Federation of Saskatchewan Indian Nations, commented that "The FSIN strongly supports this recommendation and the acknowledgement that resource royalty revenue-sharing should not be specific only to the uranium industry but more generally to resources in the province of Saskatchewan". It appears from these comments that there is almost universal acceptance in northern Saskatchewan of the idea that a cooperative effort should be made to develop a workable program of revenue sharing.

In response to a previous report, representatives of the Government of Saskatchewan met with northern leaders on May 12, 1997 to discuss revenue sharing and related issues. [Government and northern leaders meet to discuss northern issues, News Release, Executive Council, Government of Saskatchewan, May 12, 1997.] Following that meeting, it was announced that the Province had entered into a tripartite agreement with Canada and the FSIN to negotiate fiscal arrangements on several related financial issues, including revenue sharing. [T. Penikett, Submission of the Government of Saskatchewan to the Federal-Provincial Review Panel on Proposed Cigar Lake and Midwest Uranium Mine Developments, La Ronge, Saskatchewan, August 28, 1997, p. 4.] We commend the participants on this agreement and urge them to proceed as quickly as possible to a resolution of these issues. To be effective, any program of revenue sharing should be implemented before the resource is further depleted.

14.3 Public Participation in Future Planning

Many of the environmental impacts of this project cannot be predicted with certainty in advance. Although the current plans for this mine have been reviewed in detail with full public participation, there will be a need for continual planning and monitoring. If the operators expect, as they have indicated, to develop this project in harmony with the wishes of northern people, continued northern participation in the planning process will be required. Such participation should be at an early enough stage to influence decisions. It is not sufficient to explain why a decision was taken, after the fact. It is clear that northerners wish to be involved at a much earlier stage in the planning processes.

The Environmental Quality Committees and the Athabasca Working Group provide avenues through which public participation can be solicited on a routine basis. Meaningful communication between the operators, the Environmental Quality Committees and the Athabasca Working Group is essential, as is the need for periodic community meetings.

14.4 Harmonization of Regulations

Both the provincial and federal governments have responsibilities for licensing and regulating uranium mining, a fact which the public and the industry find confusing and inefficient. Although each government department has a specific mandate, it often appears that there is overlap between the departments, and between governments.

In responding to a recommendation in a previous panel report, Cameco stated that, "Anything that can be done to reduce duplication in effort between the province and the federal agencies, including more agencies than just the AECB, would be beneficial by simplifying an overly complex set of regulatory requirements and reporting schemes. This should improve safety in the operations by allowing staff to devote more time to safety activities and less to duplicated inspections and reporting activities". [McArthur River Project, Response to the Report of the Joint Federal-Provincial Panel, Cameco Corporation, April 2, 1997, p. 17.] The public's demand for assurance that there be adequate protection in place to safeguard health and protect the environment also requires a less complicated, more transparent regulatory system.

Furthermore, at a time of scarce public resources, cooperation is a practice that governments can ill-afford to neglect. It would not only reduce red tape for the operators of the mine, but also make it easier for interested members of the public to understand and evaluate the impacts of the mines.

Harmonization of federal and provincial regulations would reduce confusion and increase efficiency; it is an appropriate long-term goal. Initiatives presently being undertaken by federal and provincial officials to eliminate overlap and regulatory duplication, under the Efficiency of the Federation Initiative, are encouraging and should be continued.

14.5 Cost Recovery of AECB Fees

One respondent to a previous panel report has suggested that the contributions Cameco and Cogema make to the Government of Canada for AECB regulatory services detract from the apparent objectivity and independence of the Board, and concluded that it is, "No wonder that there have been few interventions by the AECB in uranium mining operations in Sask." [Bill Adamson, letter of comment on the panel report on the McArthur River Project, March 14, 1997, p. 6.] Although the principle of cost recovery is well-understood, the use of this approach for the financing of regulatory agencies can create the impression that they are no longer independent.

JOINT FEDERAL-PROVINCIAL PANEL ON URANIUM MINING DEVELOPMENTS IN NORTHERN SASKATCHEWAN
-- CIGAR LAKE PROJECT --

• Dr. Donald Lee, Chariperson
• Dr. James F. Archibald
• Dr. Richard Neal