vol 2 section 17 socioeconomic impact assessment · including the project environmental impact...

Cenovus TL ULC Telephone Lake Project Volume 2 – Environmental Impact Assessment December 2011

Table of Contents

SECTION 17.0 – SOCIO-ECONOMIC IMPACT ASSESSMENT TABLE OF CONTENTS

PAGE

17.0 SOCIO-ECONOMIC IMPACT ASSESSMENT ............................................................ 17-1 17.1 Introduction ....................................................................................................... 17-1 17.2 Study Area ........................................................................................................ 17-1

17.2.1 Spatial .............................................................................................. 17-1 17.2.2 Temporal .......................................................................................... 17-3

17.3 Assessment Approach ..................................................................................... 17-3 17.3.1 Issues Identification ......................................................................... 17-3 17.3.2 Scoping Considerations ................................................................... 17-3 17.3.3 Socio-Economic Indicators .............................................................. 17-4

17.4 Methods ............................................................................................................ 17-6 17.4.1 Characterization of Baseline Conditions .......................................... 17-6 17.4.2 Impact Assessment .......................................................................... 17-6

17.5 Baseline Case .................................................................................................. 17-7 17.5.1 Regional Overview ........................................................................... 17-7 17.5.2 Historical Context ............................................................................. 17-7 17.5.3 Population ........................................................................................ 17-8 17.5.4 Economy ........................................................................................ 17-16 17.5.5 Housing and Accommodation ........................................................ 17-21 17.5.6 Community Infrastructure ............................................................... 17-23 17.5.7 Health Services .............................................................................. 17-25 17.5.8 Community and Social Services .................................................... 17-26 17.5.9 Education ....................................................................................... 17-28 17.5.10 Protective and Emergency Services .............................................. 17-32 17.5.11 Recreational and Leisure Services ................................................ 17-33 17.5.12 Transportation ................................................................................ 17-33 17.5.13 Local Fiscal Environment ............................................................... 17-38 17.5.14 Aboriginal Population ..................................................................... 17-39

17.6 Application Case ............................................................................................ 17-43 17.6.1 Project Description ......................................................................... 17-43 17.6.2 Construction Phase ........................................................................ 17-48 17.6.3 Operations Phase .......................................................................... 17-62

17.7 Planned Development Case ........................................................................... 17-68 17.8 Monitoring ....................................................................................................... 17-68 17.9 Summary ........................................................................................................ 17-69

17.9.1 Construction ................................................................................... 17-69 17.9.2 Operations ..................................................................................... 17-70

17.10 Literature Cited ............................................................................................... 17-71


Table of Contents

TABLE OF CONTENTS (cont)

PAGE

LIST OF TABLES

Table 17.3-1: Socio-Economic Indicators ........................................................................... 17-4 Table 17.3-2: Assessment Criteria Unique to the SEIA ...................................................... 17-5 Table 17.3-3: Attributes Likely to Result in a “High” Final Impact Rating ............................ 17-5 Table 17.5-1: Official Population of the Socio-Economic Regional Study Area .................. 17-8 Table 17.5-2: Actual Population of the Socio-Economic Regional Study Area ................... 17-9 Table 17.5-3: Labour Force Participation and Unemployment Rates in RMWB, 2006 ..... 17-16 Table 17.5-4: Experienced Labour Force by Industry Sector, 2006 .................................. 17-17 Table 17.5-5: Workforce Employment by Industry Sector, 2006 ....................................... 17-18 Table 17.5-6: Experienced Labour Force by Occupational Group, 2006 .......................... 17-18 Table 17.5-7: Education Attainment by the Study Area Population (2006) ....................... 17-29 Table 17.5-8: On and Off Reserve First Nation Populations (2011) ................................. 17-39 Table 17.5-9: Selected Demographic Characteristics of On and Off Reserve First

Nation Populations (2006) .......................................................................... 17-40 Table 17.5-10: Selected Educational Characteristics of On and Off Reserve First

Nation Populations (2006) .......................................................................... 17-41 Table 17.5-11: Selected Language Characteristics of On and Off Reserve First Nation

Populations (2006) ...................................................................................... 17-41 Table 17.5-12: Selected Economic Characteristics of On and Off Reserve First Nation

Populations (2006) ...................................................................................... 17-42 Table 17.6-1: Estimated Capital Costs of Project Development ....................................... 17-43 Table 17.6-2: Geographic Distribution of Capital Expenditures ........................................ 17-49 Table 17.6-3: Alberta Portion of Each Cost Component Apportioned to Standard

Industry Classifications ............................................................................... 17-49 Table 17.6-4: Impacts of Project Construction on the Alberta Economy ........................... 17-50 Table 17.6-5: Traffic Volumes on Regional Highways (2010) ........................................... 17-61 Table 17.6-6: Geographic Distribution of Annual Operating Expenditures ....................... 17-62 Table 17.6-7: Annual Impacts of Project Operation on the Alberta Economy ................... 17-63 Table 17.6-8: Annual Impacts of Additional Drilling and Completions .............................. 17-63 Table 17.9-1: Summary of Project Impacts During Construction ...................................... 17-69 Table 17.9-2: Summary of Annual Project Impacts During Operation .............................. 17-71


Table of Contents

TABLE OF CONTENTS (cont)

PAGE

LIST OF FIGURES

Figure 17.2-1: Socio-Economic Regional Study Area .......................................................... 17-2 Figure 17.5-1: Age Composition of the Regional and Provincial Population ...................... 17-10 Figure 17.5-2: Age and Gender of the Regional Population, 2006 .................................... 17-11 Figure 17.5-3: Legal Marital Status of People Aged 15 Years or Older, 2006 ................... 17-12 Figure 17.5-4: Household Characteristics, 2006 ................................................................ 17-13 Figure 17.5-5: Family Characteristics, 2006 ....................................................................... 17-14 Figure 17.5-6: Length of Residency in RMWB ................................................................... 17-15 Figure 17.5-7: Projected Expenditures on Oil Sands Construction .................................... 17-21 Figure 17.5-8: Trends in Average Annual Daily Traffic on Highways in the RMWB ........... 17-34 Figure 17.5-9: Average Annual Daily Traffic Counts on Highway 63 around Fort

McMurray, 2010 .......................................................................................... 17-35 Figure 17.5-10: Composition of Traffic In and Around Fort McMurray ................................. 17-36 Figure 17.6-1: Estimated Annual Capital Costs of Project Development Through 2019 .... 17-44 Figure 17.6-2: Annual Operating Costs in a Typical Year .................................................. 17-44 Figure 17.6-3: Summary of Provincial Employment Impacts from Project Construction .... 17-50 Figure 17.6-4: Labour Market Conditions in Alberta ........................................................... 17-51 Figure 17.6-5: Summary of Regional Construction Employment ....................................... 17-53 Figure 17.6-6: Employment of Regional Residents during Construction ............................ 17-55


Page 17-1

17.0 SOCIO-ECONOMIC IMPACT ASSESSMENT

17.1 Introduction

This section examines the social and economic impacts that could result from construction and operation of the Telephone Lake Project (Project) in northeast Alberta. The socio-economic impact assessment (SEIA) analyzes the potential impacts of the Project on the Province of Alberta and, more specifically, on the socio-economic regional study area (SRSA). The assessment describes current social and economic conditions in the SRSA and identifies economic development projects that have been proposed or are reasonably foreseeable. The potential impacts of the Project on regional social and economic conditions are described in the context of other proposed regional development. Opportunities to mitigate potential negative impacts and to enhance positive impacts are also identified.

17.2 Study Area

17.2.1 Spatial

The SRSA selected for this assessment consists of the Regional Municipality of Wood Buffalo (RMWB) and the communities and reserve lands located within the Wood Buffalo Census Agglomeration (WBCA) area. The WBCA comprises the census subdivision of RMWB and other smaller census subdivisions (i.e., First Nations reserves and settlements) that are closely integrated with RMWB. Data for WBCA includes data for RMWB census division and the smaller census subdivisions. Fort McMurray is the only major urban service area within the SRSA, and is part of the RMWB census subdivision (Figure 17.2-1). Fort McKay is the only distinct non-reserve census subdivision located within the boundaries of the RMWB. Other non-reserve communities in the SRSA include: Fort Chipewyan; Anzac/Gregoire Lake Estates; Chard; and Conklin; these communities are all included statistically in the RMWB. Populated First Nations Reserves located in the SRSA include:

• Gregoire Lake 176 and 176A (Fort McMurray #468 First Nation);

• Allison Bay 219 (Mikisew Cree First Nation);

• Janvier 194 (Chipewyan Prairie First Nation); and

• Dog Head 218 (Mikisew Cree First Nation). The SRSA also includes approximately 84 work camps, most of them located at, or near, oil sands projects (Farkouh 2011). An assessment of Project impacts is presented at the regional scale because potential impacts are usually larger in magnitude than at a provincial scale and impacts are typically managed and mitigated at a regional level. Given the remote location of the Project, there is no local study area for the socio-economic section.

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Page 17-3

Project impacts are assessed relative to the Alberta economy. Provincial economic impacts are identified in general terms only because they are likely to be relatively small with respect to total provincial economic activity and because the ability of Cenovus TL ULC (Cenovus) to manage impacts beyond the regional scale is very limited.

17.2.2 Temporal

The temporal boundaries are based on the Project phases and schedule described in Volume 2, Section 3.0.

17.3 Assessment Approach

17.3.1 Issues Identification

Key socio-economic assessment issues have been identified from a variety of sources, including the Project environmental impact assessment Terms of Reference (Volume 1, Attachment 1), previous experience with oil sands projects and development in the RMWB, and comments raised as part of the Project public consultation program (Volume 1, Section 2.0). During the public consultation program, various parties commented on potential social and economic issues. These comments were general and related to:

• the high cost of living in Fort McMurray and the barriers this presents to people who want to attend school or take advantage of work opportunities;

• how the Project will benefit the First Nations, Metis and other Aboriginal groups in the region;

• Cenovus’s strategy to ensure that the Project does not exacerbate existing drug and alcohol problems;

• the process for awarding contracts and the opportunities that local companies would have to bid on these contracts;

• opportunities for local people to be employed on the Project, including educational requirements, and whether transportation and accommodation will be provided;

• whether Cenovus will adopt an Aboriginal quota hiring policy; and

• the number of people to be hired during plant operations. Cenovus has addressed the environmental impact assessment Terms of Reference and the issues that arose during public consultation in this assessment.

17.3.2 Scoping Considerations

The main regional socio-economic issues relate to the cumulative demands of growth. Regional government organizations responsible for the provision of public services and infrastructure are challenged to plan and respond to anticipated strong future growth associated with oil sands


Page 17-4

development. Issues are anticipated regarding to the capacity of the regional labour market, the capacity of community services and affordable housing, and the capacity of the RMWB to finance the infrastructure expansion. Other key socio-economic issues related to the Project are expected to be:

• the extent to which local residents will participate in the employment and business opportunities associated with the Project;

• the potential for increased vehicular traffic and the implications of increased volumes on highway safety, traffic congestion and slower travel times; and

• the need for a longer term community development approach that involves industry, the public sector in the economic and social development of the communities.

There are unique potential socio-economic issues for Aboriginal communities in the SRSA, tied to their historical and potential ongoing use of land and natural resources for cultural and subsistence purposes (e.g., hunting, trapping, and fishing). Potential social, economic and cultural impacts tied to traditional land and resource use are discussed in detail in Volume 2, Section 14.0.

17.3.3 Socio-Economic Indicators

17.3.3.1 Selection of Socio-Economic Indicators

Nine socio-economic indicators (SEIs) were selected to address most of the issues above. Potential Project impacts on land and resource uses are addressed in Volume 2, Section 13.0. The nine SEIs used in this analysis and their specific attributes are presented in Table 17.3-1.

Table 17.3-1: Socio-Economic Indicators

Socio-Economic Indicator Attributes Considered Alberta Economy Gross domestic product, labour income and employment Alberta Government Revenues Provincial royalties and mineral taxes Regional Employment Employment and wage impacts Regional Population Population growth Regional Housing Demand for housing Public and Community Services Health, education and social services Public and Community Infrastructure Roads, utilities and recreational facilities Transportation Road traffic and use of airports Municipal Government Revenues Municipal taxes

17.3.3.2 Definition of Impacts Rating Criteria

Anticipated changes in the socio-economic environment were evaluated using criteria different than those described in Volume 2, Section 3.0 (Table 17.3-2). Reversibility was not included in the assessment of socio-economic effects, given the dynamic nature of socio-economic issues.


Page 17-5

Table 17.3-2: Assessment Criteria Unique to the SEIA

Attribute DefinitionDirection

Negative Effect is worsening or is undesirable Neutral Effect is not changing compared with baseline conditions and trends Positive Effect is improving or is desirable

Magnitude Low Effect that occurs might or might not be detectable, but is within the normal range of variability Moderate Clearly an effect but unlikely to pose a serious risk to the SEI or to represent a management

challenge High Effect is likely to pose a serious risk to the selected SEI and is a management challenge

Geographic ExtentLocal Effect will be limited to specific persons or communities Regional Effect is limited to the SRSA Provincial Effect extends beyond the SRSA or includes impacts at a provincial level National Effect extends nationally or outside Alberta

DurationShort-term Effect is limited to the construction period Long-term Effect extends throughout operations or beyond

Frequency Once Occurs once Sporadic Occurs at sporadic intervals Regular Occurs regularly and at regular intervals Continuous Occurs continuously

The criteria used for assessing confidence is the same as that described in Volume 2, Section 3.0. The assessment criteria, when applied to socio-economic data, emphasize trends rather than discretely measured quantitative changes. In interpreting impacts, recognition is given to threshold impacts, where Project-related changes may exceed expected normal growth in demand for and/or the capacity of existing infrastructure and organizations to provide the various goods and services required by a growing population. Socio-economic impacts can be either positive or negative in direction and are sometimes both. If the impact is both positive and negative, the net impact is estimated and the predominant direction stated if possible. The overall impact rating for each SEI is based on a combination of subjective and objective considerations, but focuses on three key attributes: magnitude, geographic extent and duration. Based on previous experience, only certain combinations of these attributes are likely to result in a “high” overall rating. These combinations are shown in Table 17.3-3.

Table 17.3-3: Attributes Likely to Result in a “High” Final Impact Rating

Magnitude Geographic Extent Duration Final Impact RatingHigh Regional or greater Short-term High High Local Long-term High Moderate or high Provincial or national Long-term High


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17.4 Methods

17.4.1 Characterization of Baseline Conditions

Information on baseline socio-economic conditions comes from a variety of publicly-available sources, including publications from government and industry. Sources of public domain data included websites of the RMWB and provincial government departments, population and labour forecasts from Alberta Human Resources and Employment and traffic information from Alberta Transportation. However, the primary data source was 2006 Canada Census information from Statistics Canada and the RMWB Census 2010. The most recent Canada Census was in 2006. Such data while potentially dated, is the best readily available for many indicators related to labour force and economy. The most recent Canada Census was undertaken in June 2011, but the results will not be publicly released until February 2012 with stages released through to November 2014. Statistics Canada rounds frequency data to zero or five. When such rounded and imprecise frequencies are converted to percentages, the totals do not always sum to 100%. Given this, certain data presented – particularly for smaller communities – are imprecise and should be interpreted with caution. However, such data are still considered the best available and indicative of the general direction of socio-economic conditions. Where required, information was supplemented through interviews with selected regional representatives including the local Royal Canadian Mounted Police (RCMP) detachment, health region, Keyano College and school boards. Interviews were also conducted with the local housing development corporation, Oil Sands Developers Group (OSDG), Fort McMurray Hotel Group, Alberta Transportation and municipal government public works, regional emergency services and community services.

17.4.2 Impact Assessment

The following combined inputs were considered for the SEIA:

• quantitative analyses, such as supply and demand matching and economic modelling;

• informed source opinions obtained by interviews with officials; and

• professional judgment, based on the training and experience of the analysts. The assessment of Project impacts on provincial and regional employment and income was completed using information contained in Alberta Economic Multipliers 2007 (Alberta Finance and Enterprise 2011a). These multipliers were used to estimate direct, indirect and induced impacts. Direct impacts are generated by the direct-hiring of employees by Cenovus for the Project. The indirect impacts include economic activity that would result from purchases of goods and services for Project construction and operation. Induced impacts result from the spending of earned income generated by direct or indirect employment from the Project. These potential impacts are assessed for the construction and operational phases of the Project.


Page 17-7

Interpretation of how Project employment may affect the regional population, services and infrastructure was based on examining data pertaining to existing regional conditions combined with other demands for labour and relied on previous professional experience assessing the social and economic impacts of other energy projects in Alberta. The importance of potential Project impacts was assessed by comparing the impacts to baseline conditions and future trends that reflect the impacts of approved and reasonably foreseeable projects that are expected to be developed within the near future. Since the impacts of the Project are examined in combination with the impacts of other proposed projects in the study region, this assessment is effectively a cumulative effects assessment. A recent review of the major economic development projects listed by Alberta Employment, Immigration and Industry (Alberta Finance and Enterprise 2011b) reported a total of 111 projects: 12 announced ($7 billion), three completed (less than $1 billion), four nearing completion ($2 billion), eight on hold ($17 billion), 49 proposed ($47 billion) and 35 under construction ($32 billion). Completion of all listed projects would involve capital expenditures of $105 billion. A detailed list of major projects anticipated in the SRSA is presented in Volume 2, Section 3.0. All revenue and cost projections are expressed in terms of 2011 Canadian dollars. Estimates of capital and operating costs associated with construction are considered accurate to within -15% and +30%, while operating cost estimates are accurate to ±25%. Calculations of the economic impacts include the margin of error from the engineering estimates, as well as a small margin of error inherent in the economic multipliers used to predict impacts.

17.5 Baseline Case

17.5.1 Regional Overview

The SRSA, a large and diverse area bounded by the RMWB, has grown rapidly with the expansion of oil sands development. The community of Fort McMurray is the centre of activity in the SRSA and has been transformed from a small northern service centre to a modern urban community comparable to many across the country. Most residents in the region are recent in-migrants from Alberta and the rest of Canada, although Aboriginal peoples make up a significant and longstanding proportion of the population.

17.5.2 Historical Context

Evidence of human settlement has been found as far back as 10,000 years throughout northeast Alberta. The Cree Burn Lake site north of Fort McMurray was a hub for trading and cultural activities that date to about 8,000 years ago. It was designated as a Provincial Historic Site in recognition of its importance. Traditional uses of the land remain an important facet of life for Aboriginal peoples and hold important spiritual significance for them and their communities (Shell Canada Limited 2002).


Page 17-8

Prior to 1900, the Fort McMurray area was a centre for fur trading. Peter Pond opened the area to European fur trading activities in 1778. The first efforts in developing the oil sands began as early as 1910. During the following years, there were various commercial efforts and experimentations with methods to extract and use the bitumen. The first large scale commercial oil sands operation was launched in the 1960s by Great Canadian Oil Sands Ltd. (now Suncor). Since then, the expansion of this industry has been rapid (Fort McMurray Historical Society 2003). Highway transportation to Fort McMurray was limited until Highway (Hwy) 63 was completed as an all-season gravel road in 1967. Prior to that, the railway from Lac La Biche to Waterways was the main connector to the rest of Alberta. The railway passes through the SRSA. Road access for the smaller communities to Fort McMurray became possible when the Secondary Hwy 881 was completed between Conklin and Fort McMurray in 1985. Local government in the SRSA has evolved throughout the 20th century. Fort McMurray was incorporated as a town in 1948. In 1964, it took on a “new town” status to facilitate its rapid growth in response to the Great Canadian Oil Sands Ltd. oil sands project and amalgamated with Improvement District No. 18 in 1995 to form the RMWB.

17.5.3 Population

There is some uncertainty about the overall population of the SRSA. According to Statistics Canada (2007a), the resident population of the SRSA was 52,643 in 2006 (Table 17.5-1). This consisted primarily of people living in the RMWB (51,496 people or 98%). Between 2001 and 2006, the regional population increased by 24% or more than 10,000 people.

Table 17.5-1: Official Population of the Socio-Economic Regional Study Area

Community 1991 1996 2001 2006 RMWB 36,771 35,213 41,445 51,496 Fort McKay 256 347 437 521 First Nation Reserves 380 564 699 626

Total (Wood Buffalo Census Agglomeration) 37,407 36,124 42,581 52,643

Source: Statistics Canada (2002, 2007a). The most recent data from the RMWB 2010 Census provides a different picture. Large numbers of people reside outside the region and commute to the region for work, staying in work camps in the rural areas or in commercial accommodation in Fort McMurray. According to the RWMB, the total population of the SRSA in 2010 was approximately 104,338 (Table 17.5-2). This number includes 81,013 people living in communities in the SRSA and another 23,325 people living in work camps. Of the total regional population, most (74%) live in the community of Fort McMurray, which reported a population of 76,797 in 2010. The other 4,216 people live in other rural areas or on First Nation Reserves.


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Table 17.5-2: Actual Population of the Socio-Economic Regional Study Area

Community 2000 2003 2004 2005 2006 2007 2008 2010Fort McMurray 42,156 47,240 56,111 60,983 64,441 65,400 72,363 76,797Fort McKay 399 186 218 104 536 737 862 441

Other Communities2 2,948 2,828 3,098 2,911 4,391 3,422 3,825 4,172Shadow Population (work camps) 5,903 8,063 7,678 9,178 10,442 18,572 26,284 23,325

Total 51,406 58,317 67,105 73,176 79,810 88,131 103,334 104,338

Source: RMWB (2010a). 1 2010 enumeration only conducted for off-reserve population. 2 Includes First Nations reserves The effective 2010 population may be even larger. In addition to the estimated 23,325 people housed in the major construction camps north of Fort McMurray, various commercial accommodations in Fort McMurray can house another 1,867 people. Thus, the “shadow population”, which consists of temporary workers who live in the municipality for limited periods of time but have permanent residences elsewhere, may amount to as many as 25,192 people (Guillamot 2011). Almost all of the population growth in the SRSA over the past 20 years has occurred in and around Fort McMurray. In 1963, Fort McMurray was a small northern Alberta community of 1,300 people. By 2010, it had grown to 76,797. However, growth in Fort McMurray has been volatile and susceptible to the ebb and flow of activities in oil sands development. Based on Census information, in the RMWB there was a population increase of 1.0% between 2008 and 2010 and an overall population increase of 101% between 2000 and 2010. The average annual growth rate between 2000 and 2010 was 7.4% (RMWB 2010a). Population growth trends are discussed further in Section 17.5.3.6. Communities south of Fort McMurray have experienced growth as bedroom communities for people who commute to Fort McMurray or to operations south of Fort McMurray. Growth in these communities appears to be limited by available housing. Fluctuations in the population of these communities occur from year to year depending on the movement of a few families in or out of their respective communities.

17.5.3.1 Age Composition

The population of the SRSA is younger than that of Alberta. Figure 17.5-1 shows that, compared to the provincial average, the SRSA has a much lower proportion of the permanent population above the age of 54. The characteristics of the shadow population are not included in the figure.


Page 17-10

Source: RMWB (2006) and Statistics Canada (2007a)

Figure 17.5-1: Age Composition of the Regional and Provincial Population The age profile shows that the region had an above average percentage of people aged 20 to 54. The proportion of the regional population under the age of 20 in 2006 is quite similar to the Alberta average but, since 2000, there has been a substantial reduction in the percentage of children in the RMWB. There is a major gender imbalance in the region. Figure 17.5-2 shows that males outnumber females in almost every age category, the exception being the portion of the population aged 70 years or older. The gender imbalance is most striking for the working age population: 20 to 59 years of age. For this age group there were 25,552 males in 2006, compared to 19,358 females. This represents a difference of 6,194 people, or a ratio of 1.32 males per female. If the demographics of the shadow population were included, the imbalance would be even greater. In Alberta, there is an equal mix of males and females (RMWB 2006; Statistics Canada 2007a).

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Source: RMWB (2006).

Figure 17.5-2: Age and Gender of the Regional Population, 2006

17.5.3.2 Ethnicity

The RMWB has a large Aboriginal population. According to 2006 Census information (Statistics Canada 2007b), there were 6,465 people identified as Aboriginal residing in the region. Thus, people of Aboriginal identity accounted for 12% of the regional population. In Alberta in 2006, only 6% of the population was of Aboriginal identity. According to the Census, 83% of Aboriginal people lived in the Fort McMurray urban service area, 52% were male and 16% were under the age of 10 years. Further discussion on the Aboriginal population in the SRSA is in Section 17.5.9. In 2006, approximately 11% of the regional population were immigrants, with 41% of them having immigrated prior to 1991, and 11% of the regional population were visible minorities. For the Alberta population as a whole in 2006, approximately 16% were immigrants and 14% were visible minorities (Statistics Canada 2007a).

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17.5.3.3 Marital Status

Information on the legal marital status of adults in the SRSA is available from the 2006 Census. The information, summarized in Figure 17.5-3, shows that, in general, the legal marital status of adults in the SRSA and in the RMWB was similar to the Alberta average. About half the adult population was married and about 10% were either separated or divorced. The proportion of single people was slightly higher in the SRSA (41%) than in Alberta (34%). The marital status of adults residing in Fort McKay or on the First Nation Reserves was quite different, however. The proportion of single people in these communities was much higher (more than 67%) and only about 19% were married (Statistics Canada 2007a).

Source: Statistics Canada (2007a). Reserves include: Gregoire Lake 176 and 176A, Allison Bay 291, Janvier 194, and Dog Head 218.

Figure 17.5-3: Legal Marital Status of People Aged 15 Years or Older, 2006

17.5.3.4 Household Characteristics

In 2006, about 31% of households in Alberta consisted of couples with children, while 29% were couples with no children. About 25% of Alberta households consisted of single persons. As shown in Figure 17.5-4, the composition of households in the SRSA was different from the Alberta average. In the SRSA, there were fewer single person households (17%) and more couples with children (38%). The proportion of couples without children was approximately the same (27%). The composition of households in the RMWB closely matched the profile for the SRSA, but households in Fort McKay and the First Nation Reserves were somewhat different,

0.0%

10.0%

20.0%

30.0%

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60.0%

70.0%

80.0%

90.0%

100.0%

SRSA RMWB Fort McKay Reserves Alberta

Single Married Separated Divorced Widowed


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with more one-person and other household types and fewer couples without children. It should be noted that household structure may have changed appreciably since 2006. As noted in Figure 17.5-1, the 2006 population of the SRSA has a much lower proportion of children and this suggests that there has been an exodus of couples with children from the region and/or more of the recent additions to the community have been singles or couples without children.


Figure 17.5-4: Household Characteristics, 2006 Figure 17.5-5 summarizes information on the characteristics of families in Alberta and the SRSA in 2006. In general, the SRSA had a higher proportion of common-law couple families (22%) than Alberta (13%). There was a slightly lower percentage of married couple families (66%) in the SRSA, but the proportion of lone-parent families was about the same.

0

20

40

60

80

100

120


Couple with children Couple without Children One‐person Other


-14


Figure 17.5-5: Family Characteristics, 2006 The structure of families in Fort McKay and on the First Nation Reserves was significantly different than the rest of the SRSA. These communities had very low proportions of married couple families (24% or less) and higher proportions of lone parent families (28% or more) and common-law couple households (29% or more) (Statistics Canada 2007a; RMWB 2006).

17.5.3.5 In-Migration

Compared to the rest of Alberta, people living in the RMWB are highly mobile and had moved to the region from other places. Information from the 2006 Census shows that 25% of people living in the RMWB at that time had lived in a different province, territory or country in 2001. Information from the RMWB (2006) indicates that only 35% of people living in Fort McMurray and 58% of people living in rural communities had lived in the RMWB for 11 years or more (Figure 17.5-6). More than half of the residents of Fort McMurray (52%) had lived in the region for less than six years and 17% had lived there for less than one year. The rural population was less mobile, with 28% having lived in the region for less than six years and 8% having lived there for less than one year (Statistics Canada 2007a).

0

10

20

30

40

50

60

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80

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100


Married Couples Common‐law Couples Lone‐parent Families


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Source: RMWB (2006).

Figure 17.5-6: Length of Residency in RMWB

17.5.3.6 Population Growth

As noted in Table 17.5-2, the population of the RMWB doubled between 2000 and 2010, and the region is expected to continue its pattern of rapid growth into the foreseeable future (RMWB 2011c). In 2011, RMWB forecast, based on current and projected oil sands development, an average annual population growth rate of 4.1%.Between 2010 and 2020, given the number of projects that are anticipated to start during this period, population is anticipated to grow by 66% (RMWB 2011c). This would result in a regional population of approximately 173,338 in 2020 (based on 2010 population reports), a net increase of 68,863 people in the region. After 2020, population growth rates are anticipated to stabilize, with further growth anticipated to be more based on indirect and induced employment generated from oil sands development. The regional population is anticipated to grow to over 230,000 by 2030, a net increase of 125,662 people (or 120%) over 2010 population numbers (RMWB 2011c). Ultimately, the rate of population change in the SRSA communities will be driven not only by employment opportunities related to oil sands development, but also by the availability of housing and the decisions of individual families to migrate in or out of the communities. In the absence of major infusions of capital expenditures in housing and infrastructure in communities outside Fort McMurray, only minor changes are expected in the populations of these smaller communities. Between 2000 and 2010, there was an increase in temporary workers living in camps by 295% or 17.1% annually (RMWB 2010a). The number of workers living in the SRSA on a temporary basis is expected to increase in the near future as additional oil sands operations are constructed. According to the RMWB population model, the work camp population could reach 50,000 people by 2028 (Farkouh 2011).

0% 10% 20% 30% 40% 50% 60% 70%

<7 months

7 months to <1 year

1 year to <3 years

3 years to <6 years

6 years to <11 years

>11 years

Rural communities

Fort McMurray


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17.5.4 Economy

The regional economy consists of a broad mix of activities. Much of the economic activity is centered in, or surrounding, Fort McMurray. Leading primary industries include conventional oil and gas, oil sands, mineral exploration, agriculture, forestry, commercial fishing and trapping. There is some manufacturing of wood products, non-metallic mineral products and fabricated metal products and machinery. As well, Fort McMurray serves as the regional service centre, including provincial government administration, health and education services, tourism, retail and wholesale trade and a variety of consumer and business services.

17.5.4.1 Workforce Characteristics

According to Statistics Canada, and as shown in Table 17.5-3, unemployment rates in the SRSA in 2006 were only 2.8% and ranged from 1.7% in Fort McMurray to 4.0% in the rural communities. These unemployment rates are among the lowest in Alberta and according to the RMWB (2006) “the region is considered to be at full employment in statistical terms; however, skilled worker shortages show throughout the region.”

Table 17.5-3: Labour Force Participation and Unemployment Rates in RMWB, 2006

RMWB (%)

Fort McMurray (%)

Rural Communities (%)

Alberta(%)

Labour Force Participation Rate 82.3 82.4 79.5 74.8 Unemployment Rate 2.8 1.7 4.0 3.4

Source: RMWB (2006). In 2006, the SRSA workforce consisted of 52,160 people and 82.3% of the population aged 15 years and older were participating in the workforce. The labour force participation rate for the SRSA was about seven percentage points higher than the Alberta average; this is due to the regional population being younger and the abundant opportunities for employment in the SRSA. Labour force participation rates in the rural communities were lower than in Fort McMurray, but are still higher than the Alberta average (RMWB 2006). As of June 2011, the unemployment rate in the Wood Buffalo-Cold Lake region was 5.4% compared to 5.6% in Alberta (Government of Alberta 2011a). The regional labour force is supplemented by oil sands workers and contract employees housed in work camps located in the rural areas of the RMWB. These work camps housed 7,678 workers in 2004, 9,178 in 2005, 10,442 in 2006, 18,572 in 2007, 26,284 in 2008 and 23,325 in 2010 (RMWB 2006, 2010a). Anecdotal evidence suggests that because of the high demand for labour at the oil sands plants, there is now a shortage of trained and job-ready candidates for other types of employment in the region. For example, the Greater North Central Francophone Education Region reported that it now has problems finding local residents to take support positions (Villeux 2011).


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Table 17.5-4 shows experienced labour force data by industry for the SRSA in 2006. Employment in basic industries (resource-based industries, construction and manufacturing) accounted for 46% of employment in the SRSA compared to only 28% in Alberta. The region has a less developed service and trade sector, with lower levels of employment in health and education and business and other services. For the SRSA, there were 1.2 jobs in the service and trade industries for each basic job; for Alberta, the ratio of non-basic to basic employment was 2.6 to 1 (Statistics Canada 2007a).

Table 17.5-4: Experienced Labour Force by Industry Sector, 2006

Industry Sector SRSA Alberta

Number Percent of Total (%)

Percent of Total (%)

Agriculture and other resource-based 10,665 31.3 11.8 Construction 4,015 11.8 8.8 Manufacturing 875 2.6 7.2 Wholesale trade 1,140 3.3 4.4 Retail trade 3,145 9.2 10.7 Finance and real estate 1,285 3.8 5.1 Health care and social services 1,740 5.1 9.1 Educational services 1,655 4.9 6.2 Business services 4,530 13.3 18.4 Other services 4,985 14.6 18.3

Total 34,045 100.0 100.0

Source: Statistics Canada (2007a). The 2006 RMWB census provides additional information on the regional resident workforce. Table 17.5-5 shows that 44% of the workforce in Fort McMurray was directly or indirectly employed in resource based sectors, with another 6% in construction. Based on this information, the 2006 ratio of non-basic to basic employment in Fort McMurray is 1.02 to 1, suggesting that most of the growth in employment of regional residents since 2001 has been in the resource and construction industries. The industry employment for residents of the rural communities is more evenly balanced, with 32% of the workforce in the resource and construction industries and the balance in the service and trade industries. The non-basic to basic employment ratio for the rural communities is 2.13 to 1; this balance is much closer to the mix of employment observed in Alberta and in other communities. The statistics in Table 17.5-5 do not include employment information for the shadow population of the SRSA.


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Table 17.5-5: Workforce Employment by Industry Sector, 2006

Industry Sector Fort McMurray(%)

Rural Communities (%)

Oil Sands/Oil/Gas/Pipeline/Cogeneration 27.7 15.7 Contractor for Oil Sands/Oil/Gas/Pipeline/Cogeneration 16.0 7.8 Construction 5.8 8.7 Service/retail 19.0 12.9 Government (municipal, provincial, federal) 3.3 5.4 Education 4.8 5.4 Health Care 3.2 1.8 Transportation 1.6 1.3 Other (e.g., student) 18.5 40.9

Total 100.0 100.0

Source: RMWB (2006). Aboriginal employment is similar to the overall regional pattern. According to the RMWB (2006), 31% of the Aboriginal workforce in Fort McMurray were directly employed by an oil sands or gas company, 15% were employed by a contractor providing services to the oil or gas sectors, 20% were taking part in other activities (such as being a student) and 18% were employed in the service or retail sector. Table 17.5-6 provides Census information describing the experienced labour force by major occupational group in 2006. It shows that employment in trades, transport and equipment operator occupations were nearly double the Alberta average. The proportions of the SRSA workforce employed in the other occupational groups were quite similar to the provincial employment patterns, although a smaller proportion of the SRSA workforce was employed in management, business and manufacturing.

Table 17.5-6: Experienced Labour Force by Occupational Group, 2006

Occupational Group SRSA Alberta

Number Percent of Total (%)

Percent of Total (%)

Management 2,430 7.1 9.7 Business, finance and administration 4,520 13.3 17.7 Natural and applied sciences and related occupations 2,935 8.6 7.5 Health 1,100 3.2 5.4 Social science, education, government service and religion 1,450 4.3 7.1 Art, culture, recreation and sport 380 1.1 2.3 Sales and service 7,675 22.5 22.7 Trades, transport and equipment operators and related 11,220 33.0 18.2 Occupations unique to primary industry 1,250 3.7 6.1 Occupations unique to processing, manufacturing and utilities 1,085 3.2 3.4

Total 34,040 100.0 100.0

Source: Statistics Canada (2007a).


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17.5.4.2 Regional Gross Domestic Product

There is no information on the total gross domestic product (GDP) for the SRSA. However, information from the Canadian Energy Research Institute (CERI 2011) suggests that total GDP associated with oil sands projects between 2010 and 2035 will range between $2,283 and $4,926 billion for Canada and $2,165 and $4,663 billion for Alberta over the 25-year period depending on pipeline capacity. In 2010, Alberta’s GDP totalled $263.5 billion dollars (Government of Alberta 2011b).

17.5.4.3 Regional Capacity for New Projects

The resource projects planned for the region will create additional demands for labour, materials and equipment. This development is expected to continue to strain the capacity of the workforce. Information from the Construction Sector Council (CSC) suggests that over 30% of the petroleum industry's core workforce is expected to retire within the next decade, at the same time as traditional labour pools decline. Projections for the industry's workforce by the Petroleum Human Resources Council show that even if energy prices and industry activity levels are low, there remains a need to hire approximately 39,000 workers just to replace workers lost due to age-related attrition (CSC 2011). If energy prices remain high, activity levels will rise and significant labour shortages will hit the industry in 2012, driven largely by the staffing needs of the Services, Exploration and Production and Oil sands sectors. Some of the new demand is inevitable as oil sands companies will hire for plants currently under construction. The petroleum industry may need to add over 130,000 workers between 2010 and 2020 if increased activity levels occur. Other challenges faced by the petroleum industry include:

• high turnover rates in certain occupations;

• attraction and retention of workers in hard-to-recruit locations;

• managing labour costs;

• competition for top talent; and

• development of the workforce to keep pace with technological innovation (CSC 2011). Within the SRSA, the following information points to the regional economy being at, or moving towards, full capacity:

• a spatial price survey of communities in Alberta in 2010 showed that commodity prices for residents of Fort McMurray were 12% higher than for residents of Edmonton and that the price of shelter was 39% higher (Alberta Finance and Enterprise 2010);

• labour market indicators for the region show high participation rates, very low unemployment rates and upward pressure on wages. Local businesses are reporting labour shortages and there are a large number of non-resident workers located in work camps in the RMWB;


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• many major capital investment projects are planned for Alberta, including a large number proposed for the RMWB. As of September 2011, the value of major construction projects that were announced, completed, nearing completion, on hold, proposed or under construction in that region was approximately $105 billion, and this represents 57% of the value of all major construction projects in Alberta (Alberta Finance and Enterprise 2011b); and

• an Alberta rental market report including the Wood Buffalo census region shows a vacancy rate of 6.2% as of April 2011 – a 7% decrease from the previous year. The tight vacancies in the Wood Buffalo census agglomeration resulted in the average apartment rent in 2011 being $2,020, making Wood Buffalo the most expensive urban centre in which to rent across Alberta (CMHC 2011).

17.5.4.4 Labour Supply and Demand

New oil sands operations are anticipated to add almost 13,700 jobs in the RMWB in 2012. OSDG (2009), projects that for each direct job created, three additional jobs will be created locally and six will be created nationally. The high demand by employers in the SRSA for additional workers is expected to take place within a provincial and national context of broad-based labour shortages. Provincial and national unemployment rates in 2006 were at their lowest levels since 1975. At a regional level, as of June 2011, the unemployment rate in the Wood Buffalo-Cold Lake region was 5.4% compared to 5.6% in Alberta (Government of Alberta 2011a). Tightening of Alberta’s labour market has been evidenced by declining unemployment rates, an increase in unfilled job openings and upward pressure on wages. In the past, other provinces have been important sources of in-migrants, but falling participation rates and future growth in the national economy may reduce the availability of this traditional labour source. The Alberta CSC (2011) has reviewed employment and demographic trends and concluded that, for the period between 2011 and 2019, the demand for workers will exceed the available supply, resulting in increased employment of residents of other provinces and other countries. An estimated 40,000 workers will be required from outside of Alberta. By 2017 oil sands construction employment is expected to be 25% greater than 2007 peak levels. The Council’s estimates of expenditures on oil sands projects are provided in Figure 17.5-7.


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Source: (CSC2011).

Figure 17.5-7: Projected Expenditures on Oil Sands Construction Labour shortages have been particularly acute in the Fort McMurray area. Those employers most affected by the tight labour market include the public sector, community organizations and local independent businesses. The public sector, including school boards, community colleges, health authorities and governments, has struggled to retain employees in the face of rising average salaries within constrained budgets. Attraction of new employees has been discouraged by the high cost of living in Fort McMurray (RMWB 2010b).

17.5.5 Housing and Accommodation

Given the growing regional population and the requirements for additional construction workers for oil sands development, housing and accommodation are major issues in the SRSA. Currently, there is a deficiency of housing in the region, and it is an area of planning focus for


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the RMWB government. In 2011, the RMWB estimated that approximately 2,900 hectares of land will be required for new residential housing by 2030, and that 37,000 new housing units will be required (RMWB 2011c). Specific housing issues and characteristics in the region include:

• Available supply – As of August 2011, there was a housing shortage of approximately 3,500 units in Wood Buffalo and approximately 615 units for sale (332 single family, 165 multi-family, with the remainder being other dwelling types) (Mihan 2011);

• House prices – As of July 2011, the average price of a single-family house was $740,266, which is 7.3% higher than July 2010 prices (Mihan 2011);

• Rental rates – Average rent for a two bedroom during 2011 was over $2,000 (CMHC 2011, Mihan 2011), the most expensive in the province;

• Vacancy rates – As of April 2011, the vacancy rate was 6.4% down from 13.4% in April 2010 (Mihan 2011);

• Motels, Hotels and RV Parks – Single occupancy motel and hotel rooms range from $140 to $300/night and serviced RV spots range from $33 to $38/day ($1,000 to $1,200/month), while power only RV spots range from $25 to $40/day ($760 to $990/month) (Mihan 2011);

• Housing starts – While housing starts slowed in late 2010, a 30% gain (1,000 starts) in new home construction is expected for 2011. Total housing starts are expected to increase a further 10% in 2012 to 1,100 units. Between January and November 2010, there was an 18.4% increase in development permits compared to the same period in 2009. Approximately 75% of the 1,850 permits issued in the January to November period of 2010 were residential (Government of Alberta 2011c);

• Residents per household – There are more people per dwelling in the RMWB (3.57 per single family dwelling and 2.33 per apartment/condo) than elsewhere in Alberta (in comparison, Calgary has 2.98 persons per single family dwelling) (RMWB 2010a);

• Housing and living-out allowances – The high allowances paid to oil sands workers are inflationary and in order to retain public sector workers, the provincial government and some public sector agencies have had to implement cost-of-living allowances for their employees, although these allowances are much lower than those paid to industry workers;

• Affordable houses – Even with Wood Buffalo Housing & Development Corporation’s addition of 253 affordable housing units in 2011, there is a combined affordable and social housing waitlist of more than 174 (Hutchings 2011). Phase one of the 800 ha Parsons Creek development at the north edge of Fort McMurray will include 20% of the homes as affordable housing (Edmonton Journal 2009); and

• Land development costs – Due to topography and the challenges of connecting new subdivisions to roads and utilities, land development costs are high (Radke et al. 2006).


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According to the most recent RMWB census (2010), there is a high degree of home ownership in the region. In 2010, 66.7% of private dwellings were owned and 33.3% were rented (RMWB 2010a). According to the Province’s Core Need Income Threshold figures, a Wood Buffalo resident requires an income of $74,500/year to afford a one-bedroom apartment in the region. The area’s campgrounds are often used as housing and campgrounds are typically close to full. The increase in oil sands projects has also corresponded with an increase in applications to the Wood Buffalo Housing & Development Corporation, which was established in 2001 as a non profit entity to build and operate affordable housing (Hutchings 2011). In response to these problems, a number of initiatives have been launched within the RMWB to develop effective responses to current and future housing demand. These initiatives include:

• the 2007 to 2010 RMWB Community Plan on Homelessness and Affordable Housing;

• additional hotels and motels constructed, which has expanded the supply of temporary accommodations and relieved pressure on rental units; and

• Crown lands released in 2006 for up to 11,600 units, a portion of which would be dedicated to additional affordable housing.

As of 2010, the Government of Alberta will contribute $241 million over five years to accommodate approximately 48,000 residents in 15,000 units. This should reduce housing pressure and the new lots will be available in 2012 (Edmonton Journal 2009; Mihan 2011). Additionally, the Government of Alberta is working with the RMWB on an Urban Development Reserve project to assess land for urban development (Government of Alberta 2010). Further, the Comprehensive Regional Infrastructure Sustainability Plan (CRISP) includes development of a new urban growth node for Fort McMurray and a new planned work camp community near Conklin (Government of Alberta 2008). The Government of Alberta is committed to making more Crown land available for residential development (Government of Alberta 2011b).

17.5.6 Community Infrastructure

All utility services are provided locally. Electricity and gas are provided by ATCO, telephone services are provided by Telus, and water is sourced from the Athabasca River. The RMWB provides municipal services including wastewater, solid waste and garbage collection. Many of the municipal infrastructure services have been expanded in recent years to address increased capacity demands. There are five water treatment plants in the SRSA, located in Fort McMurray, Conklin, Janvier, Fort McKay and Fort Chipewyan. The water treatment plant in Fort McMurray has undergone a recent expansion which increased its capacity from servicing a population of about 62,000 to servicing a population of about 125,000, plus some camps. Expansion included spending approximately $6.8 million in 2006, $10 million in 2007, $7.9 million in 2008 and an estimated


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$20 million in 2011. Further expansion of the Fort McMurray water treatment plant is planned - to be completed in the next three to five years – which will double its capacity again. A new water treatment plant is currently under construction in Conklin. The existing plant will be closed when the new plant enters operations. The new plant will have the capacity to service a population of about 750 to 1,000 people, and it could be expanded further to service a population of about 1,500 to 2,000. The water treatment plant in Janvier serves the community and reserve and has a capacity to service a population of about 1,000. The water treatment plant in Fort McKay serves the community and the reserve with a capacity of about 1,000 people. The water treatment plant in Fort Chipewyan serves the reserves and the community with a capacity of about 1,200 people. Upgrades to the Fort Chipewyan water treatment plant are anticipated by 2016 (Guerin 2011; Devon 2010). There is one wastewater treatment plant in the SRSA, located in Fort McMurray. It serves the entire region, plus approximately 75% of camps. It was recently expanded to increase its capacity from servicing about 60,000 people to servicing about 133,000 people. In 2011, the plant operated at approximately 65% capacity. As a phased project, it has the potential to be further expanded. As of 2011 expansion plans were in discussion, and expansion is expected within the next two or three years. Further, wastewater treatment plants are planned for Anzac and Conklin in the near future (Guerin 2011; RMWB 2011a). There are two solid waste facilities in the RMWB. The older facility, while still open, is at capacity. The new solid waste facility, which began operating in 2010, is located in Ward 1 of Fort McMurray and has a capacity to service a population of about 100,000 (based on current diversion rates). As of 2011, it was operating with one cell, but more cells can be added as required. Its lifespan is anticipated to be 20-25 years. The expected lifespan likely will increase with higher diversion rates facilitated by the new recycling program in the region. The facility accepts commercial waste from industrial development. Fort Chipewyan also has its own solid waste facility (Devon 2010; Guerin 2011; RMWB 2011a). In recent years, there has been an approximately 20% increase in demand for water services because of new residents in Fort McMurray, industrial contractors in Fort McMurray hotels and work camps. Continual upgrades to water infrastructure, such as doubling of single pipes and upsizing of pipes when completing upgrades, will ensure that, within three to five years, all of the RMWB water infrastructure will be upgraded (Guerin 2011). Growing regional infrastructure capacity to meet community and industry needs continues to be an area of regional government priority. In March 2011, the Government of Alberta, through the Municipal Sustainability Initiative, allocated $465 million for Alberta municipalities (not including Calgary and Edmonton) to apply to 2011 to 2012 infrastructure and conditional operating projects (Government of Alberta 2011d). Further, the Government of Alberta’s CRISP for the Athabasca Oil Sands Area (AOSA, of which the RMWB is a significant component) also forecasts the need for further expansions to water and wastewater treatment facilities between 2010 and 2025 (Government of Alberta 2008). For example, between 2010 and 2014, four new or upgraded water treatment facilities and five new/upgraded wastewater treatment facilities are


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anticipated in the AOSA. Between 2015 and 2025, one additional water treatment facility and one additional wastewater treatment facility upgrade is anticipated (Government of Alberta 2008).

17.5.7 Health Services

Health services for the SRSA are provided by the North Zone of Alberta Health Services (AHS). Health services are delivered by a range of organizations including the Northern Lights Health Centre, registered physicians in Wood Buffalo Primary Care Network, the Canadian Mental Health Association, Wood Buffalo HIV/Aids Society, and Some Other Solutions Society for Crisis Prevention (Devon 2010). The jurisdiction of the AHS North Zone includes the entire northern region of Alberta (412,081 people). The Northern Lights Regional Health Centre (NLRHC) in Fort McMurray provides acute and continuing care, 24-hour emergency services, laboratory, X-Ray, mental health, general surgery, ambulatory care, rehabilitation, home care, speech and language services and community health. Services are provided 24 hours a day, seven days a week. The total number of beds at the NLRHC is 105 and the Centre runs at approximately 75 to 100% occupancy. The Emergency Department runs at capacity, with a large number of industry-related visits and an average wait time of 142 minutes. An emergency room expansion will include 15 new beds and will be completed within two years. The increase in emergency room capacity parallels the increase in oil sands industry activity. The NLRHC serves residents of Fort McMurray, outlying communities and oil sands project employees with approximately 60 doctors, including 23 family physicians, one orthopaedic surgeon, two general surgeons (expected to increase to 3 in the near future), 3 obstetricians/gynecologists, 3 pediatricians, 14 hospitalists and two psychiatrists. Also, there is an Aboriginal Liaison Coordinator who assists Aboriginal in-patients, clients and their families in accessing programs and services offered within the health centre (Quinsey 2011). The NLRHC receives 70,000 patients/year at emergency. A significant portion of those patients are believed to be industry workers and work injury is the third highest reason that people arrive at NLRHC emergency (Devon 2010). The Wood Buffalo Primary Care Network provides primary health care and includes a team of professionals (nurse, dietician, pharmacist, occupational therapist, kinesiologist and mental health coordinator). The central location is at the Morrison Building (WBPCN 2011). Some smaller communities within the SRSA have local health clinics administered by the AHS, including Anzac, Janvier, Conklin, Fort McKay, and Fort Chipewyan (AHS 2011). The Nunee Health Authority, based in Fort Chipewyan, has signed a memorandum of understanding with AHS to deliver health services to all residents in that community (Nunee Health Authority 2011). Over the past two years, AHS has maintained full services; however, staff recruitment and retention are a challenge. Currently, health care staff members receive northern living allowances and there are 32 housing units available to staff for three months upon hire, 27 of


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those are for ‘hard to recruit’ positions and five are ‘affordable housing’. The current AHS Master Plan review addresses future needs for service delivery and physical capacity. In addition to the ER expansion, an Intensive Care Unit renovation will occur in the coming months and plans are in development to upgrade the Maternal/Child Unit to meet demand (Quinsey 2011). The RMWB has the lowest number of physicians per capita compared to other similarly sized cities in Alberta and the lowest health satisfaction rates in the Province (RMWB 2010c). Currently, individuals can wait 3 to 9 months for a continuing care bed (AHS 2011). The high costs of living, along with housing shortages are challenges to attracting workers. In 2009, 15physicians joined the NLRHC and the Centre is working to attract more physicians (Devon 2010). As of 2011, there are 14 physicians accepting new patients (WBPCN 2011). Health issues in the RMWB include alcohol and substance abuse and related concerns such as traffic accidents, domestic violence and depression. With oil sands expansion and the influx of a younger population came an increase in smoking, alcohol and drug use (Devon 2010). In recognition of the strains on the RMWB health services, the Government of Alberta plans to build 4 Health and Wellness Centres each with capacity to treat 20,000 patients/year (Devon 2010). In addition, the Government’s plan includes expanded emergency and ambulatory care in the existing NLRHC, a 16-bed residential addictions treatment centre and a 100-bed continuing care facility (Government of Alberta 2011e). As of August 2011, one Community Health & Wellness/Urgent Care Centre has been approved and one Continuing Care Centre has been approved and the site selected. Planning for a heli-pad is underway (Quinsey 2011). Furthermore, the CRISP includes approximately 65 new health care spaces in 2010 to 2014, 82 in 2015 to 2025, 71 in 2026 to 2034 and 92 in 2035 to 2045 (Government of Alberta 2008).

17.5.8 Community and Social Services

Community and social services in the SRSA are provided by a combination of local authorities with mandated responsibilities, municipal and band-funded initiatives, non-profit community organizations and private providers. Service providers work closely with the regional health authority, police, corrections and educational institutions among other organizations. They provide a wide range of services in response to the social, psychological, employment, income and crisis needs. The high growth in the population and the high cost of living in the region have made it challenging for service providers to keep up with the demands for social services in the region (RMWB 2011b). The Region 9 Northeast Alberta Child and Family Services Authority (Authority) serves residents of the SRSA and Wood Buffalo National Park. The Authority oversees a range of protective and developmental services for children, including:

• child protection;

• foster care;

• adoption;


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• the prevention of family violence;

• provision of services for children with special needs;

• early intervention; and

• other community based services (Northeast Alberta Child and Family Services Authority 2011).

A wide variety of services is provided through the Family and Community Support Services (FCSS) which is 80% funded by the Government of Alberta and 20% by municipalities. The municipal partners deliver the services through their own staff or provide funding to local societies for the provision of specific services. The RMWB uses FCSS funding to assist communities to identify and address their social needs, support volunteer work, inform the public of available services, promote the social development of children and their families, enrich and strengthen family life and enhance the quality of life for the retired and semi-retired. There are a number of counselling, training and cultural services specific to the needs of Aboriginal people living in the region (Devon 2007). Examples in Fort McMurray include:

• Native Education Parent Support Group;

• Athabasca Tribal Council;

• Aboriginal Wood Buffalo Women's Association;

• Nistawayou Friendship Centre; and

• Wood Buffalo Native Youth Movement. As of 2010, the FCSS is operating at capacity. Additionally, the RMWB Community Services department is working to meet needs in various areas: Child and Youth; Senior; Counselling; Housing; and Social Planning. The RMWB does not experience as much demand for youth, seniors and homelessness services as other municipalities (Makia 2011). Finally, the Homeless Initiatives Steering Committee works with federal, provincial and municipal government to address homelessness and near homelessness in the RMWB (Devon 2010). The economic boom in the region has been a source of economic and social stress for some of the residents. In order to afford the higher living costs and the general pressures of work, some parents are spending increasing amounts of time at work and less time with their children. Financial costs can also result in people living in crowded or substandard housing, which can add to emotional and psychological stress (Radke et al. 2006). Population growth and the boom atmosphere have together created substantial increases in demands on human services providers. Specific areas of need that have been identified include:

• mental health services;

• family violence (Paspew House in Fort Chipewyan);


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• homelessness;

• new people arriving in the region without jobs or accommodation; and

• lack of child care Many human service organizations are not well-equipped to respond to these challenges. They rely extensively on volunteers and are least able to provide competitive salaries to their staff. As of 2011, Fort McMurray counts more than 1,500 volunteers at over 30 organizations contributing about 80,000 hours of service (Government of Alberta 2011e). Community volunteers are overworked (RMWB 2010b). Social and family problems, including violence and addictions, are primary issues in Fort McMurray. A rapid increase in population and rising disparity contribute to these issues, and there are limited resources for social services to support those facing challenges associated with these issues (Radke et al. 2006). To meet these needs, the current Fort McMurray shelter (Unity House) is being expanded. Local officials note that caseloads associated with social and family service provision are increasing due primarily to population growth in general and changes in demographics (i.e., more men than women coming to the region) (Makia 2011). Drug-related and domestic violence crimes continue to be issues in the region, but local policing officials note that crime in Fort McMurray has dropped for two years in a row (Grant 2011). Local municipal officials note that the community is always identifying needs for more social and family services and working to address these needs (Makia 2011). As noted previously, the Government of Alberta has committed to provide a cost of living allowance for all employees of provincially funded organizations in Fort McMurray, including community support workers (Government of Alberta 2007a). In addition, the Government of Alberta agreed to pay $3 million over three years to improve access to child care (Government of Alberta 2007b). The number of affordable child care spaces has increased in recent years. However, there is still room for improvement (Makia 2011). In June 2011, the Government of Alberta started to provide $238,257 over three years from the Safe Communities Innovation Fund to support the Full Circle Mentoring Program that support at-risk youth (through the Big Brothers and Big Sisters Association) in the RMWB (Government of Alberta 2011d).

17.5.9 Education

In terms of post-secondary education, residents of the SRSA show a pattern of education attainment that is quite different from the Alberta average. Although similar proportions of residents of the SRSA and Alberta have no certificate, diploma or degree (21% and 23%, respectively) or have a high school certificate or equivalent (25% and 26%, respectively), 18% of SRSA residents have an apprenticeship or trades certificate or diploma, compared to 11% of Albertans. As shown in Table 17.5-7, 18% of Albertans have a university certificate, diploma or degree compared to only 13% of residents of the SRSA. The proportion of regional and


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provincial residents with college, Collège d'Enseignement Général et Professionnel (CEGEP), other non-university certificate, or a university certificate or diploma below the bachelor level, is nearly equal.

Table 17.5-7: Education Attainment by the Study Area Population (2006)

Highest Level of Schooling RMWB (%) Alberta (%)No certificate, diploma or degree 20.8 23.4 High school certificate or equivalent 24.5 26.2 Apprenticeship or trades certificate or diploma 18.0 10.9 College, CEGEP or other non-university certificate 20.2 18.0 University certificate or diploma below the bachelor level 3.9 4.0 University certificate, diploma or degree 12.7 17.5

Source: Statistics Canada (2007a).

17.5.9.1 Kindergarten to Grade 12

Kindergarten to Grade 12 education in the SRSA is delivered by four main agencies:

• Fort McMurray Public School District;

• Fort McMurray Catholic School District;

• Northland School Division No. 61; and

• Greater North Central Francophone Education Region. Fort McMurray is served by public and Catholic school boards. The Fort McMurray Public School District (District) has 12 schools that provide Kindergarten through Grade 12 and include an outreach school, a dual track English-French Immersion School, a Christian School and a Kindergarten to Grade 3 Islamic School (Fort McMurray Public School District 2011). The District has approximately 5,000 students and is expecting an increase in 2011 enrolment. The District is at or over capacity in the north and expecting to be at capacity in the south within two to five years. One new school was recently approved and two others are awaiting provincial approval. The District is able to fill many support positions locally because they partner with Keyano College for teaching assistant and early childhood education practicum work. However, the District is sometimes challenged to hire for special education positions. Retaining teachers remains a challenge, even with the provincial cost of living allowance, because a single salary household struggles to buy a home in the region (Demers 2011). The Fort McMurray Catholic School District operates 10 schools, which offer Kindergarten through Grade 12, including French Immersion programs, to approximately 4,300 students (Fort McMurray Catholic Schools 2011). The student to teacher ratio is approximately 20 to one and during the last few years enrolment has increased by approximately 3.5%. Factors contributing to the increase include new families moving into the area and the employment opportunities in the area and the demographic of the area – a younger population with school age children. In


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some areas, schools are over capacity, and in other areas, schools are at, or under, capacity. The Catholic School District has been successful in recruiting teachers and support staff; however, their budget does not reflect the higher cost of operating in Fort McMurray(i.e., maintenance costs are 30% higher due to inflation in Fort McMurray than in other areas of Alberta, but the Fort McMurray District’s receive funding similar to that of other districts in Alberta). While the oil sands industry tends to have a high school diploma requirement for hiring, there is a concern that high school graduates do not continue with post-secondary education because of the potential for immediate employment with significant compensation (Gagnon 2011). Despite challenges, the quality of education in the region, based on performance indicators related to the rate of high school completion within three years, was only slightly below the provincial average (Alberta Education 2011). Northland School Division No. 61 is responsible for most other public schools within the northern portion of the province. Northern School Division No. 61 serves predominately Aboriginal peoples and operates schools in Conklin, Janvier (Chard), Anzac, Fort McKay and Fort Chipewyan. Total enrolment in 2010/2011 was 2,787 students (Alberta Education 2011). Each school has a local school board committee, which provides input and guidance on local school operations. There is also an Aboriginal Advisory Committee, which provides guidance to the overall operations of the School Division (Gillespie 2006). The Greater North Central Francophone Education Region operates the Centre Boréal in Fort McMurray and francophone schools in Edmonton, St. Albert, Red Deer and Wainwright. The Centre Boréal offers Kindergarten to Grade 12 education. Total enrolment in the entire region in 2011 was 2,500 students, with a 14 to 1 student to teacher ratio. Enrolment decreased significantly in 2007/2008 with the recession, had a slight increase over the last two years but currently remains below 2006/07 numbers. Schools are generally under capacity. Thus, there is a capacity to accommodate greater enrolment and an increase in demand would be welcomed. There has been some difficulty in attracting and retaining teachers. However, this situation is being addressed to some degree by Alberta government’s cost-of-living allowances to teachers (Villeux 2011). The Chipewyan Prairie Dene First Nation (CPDFN) opened a high school so that the students do not have to relocate to Fort McMurray to continue their education. Chipewyan Prairie Dene High School is located in the multi-purpose community centre (Chipewyan Prairie Education Multi-Plex) that also serves as a satellite campus for Keyano College (INAC 2005 and Keyano 2009). A similar high school called Fort McKay E-Learning Centre has been opened for the same reason. The recent Government of Alberta Northern Student Teacher Bursary Program provides financial support to post-secondary students who will teach in northern Alberta for three years upon completion of their degree (Government of Alberta 2010). Student enrolment is expected to increase and new schools will be constructed to meet demand (RMWB 2011a). The CRISP includes approximately 4,900 new K-12 spaces in 2010-2014, 7,700 in 2015-2025, 7,200 in


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2026-2034 and 9,200 in 2035-2045 (Government of Alberta 2008). As of 24 May 2011, two new schools (one public and one Catholic) will be built – to open in 2014 and the Fort McMurray Composite High School will receive modernization and an addition to meet demand (Government of Alberta 2011b). Further, the Government of Alberta’s CRISP for the AOSA (of which the RMWB is a significant component) also forecasts the need for further expansions to educational facilities between 2010 and 2045. It is projected that approximately 29,000 new desks will be required during this period to respond to increased demand on regional educational facilities (Government of Alberta 2008).

17.5.9.2 Adult Education

Keyano College was first established in Fort McMurray as an Alberta Vocational Centre in 1965 to address the training needs of the oil sands industry. It has since grown to encompass three campuses and four learning centres serving both full and part-time students. Keyano provides training in various trades, including power engineering, steam and pipe fitting, heavy equipment operation, electrician’s training and millwright training and has contracted to provide on-site training at the larger oil sands projects. The College has state-of-the-art simulation equipment for training (Thomas 2011). Most recent Census information indicates that residents within the Wood Buffalo Region have a higher attainment of apprenticeship or trade certification or diploma than Alberta as a whole (Statistics Canada 2007a). The 2009/2010 online enrolment increased by 38%, 2007/2008 credit student enrolment increased by 4% from 2,446 to 2,539 and 2007/2008 continuing education enrolment increased by 19% from 23,674 to 29,219 (Keyano 2011). The May 2011 convocation was the largest in Keyano College history and enrolment has been increasing in recent years and is expected to increase in the future. However, there are challenges to provide programming for increased enrolment, with limited government funding, even though the college is not physically at capacity. The power engineering program is at capacity and construction on a new facility is expected to start in 2012 (Thomas 2011). The College provides outreach programs that are designed to enable adults to upgrade their basic academic qualifications or to obtain their high school equivalency diploma. Distance learning is also available. These outreach programs have been established in Fort McKay, Fort Chipewyan, Gregoire Lake, Janvier and Conklin. There have been joint efforts by community, government, education and industry stakeholders to promote education, training and employment in the local communities. The extent to which apprenticeship training can be offered locally is limited by the high cost of providing training facilities that meet training and safety requirements. Consequently, local area residents wishing to obtain a trades certification will have to attend Keyano College in Fort McMurray, or other colleges elsewhere in Alberta.


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17.5.10 Protective and Emergency Services

17.5.10.1 Policing

Policing services in the region are provided through the Wood Buffalo detachment of the RCMP. In 2006, the RMWB had approximately 120 RCMP members, a heavy caseload and the challenge of staff recruitment and retention caused by the high cost of living and housing (Radke et al. 2006). In 2011, the RMWB had 187 RCMP members and 125 support staff serving the entire regional municipality. There are nine members devoted to First Nations policing within the outlying communities and 12 other members dedicate the majority of their time to the same focus. In 2010, the Government of Alberta Safe Communities Innovation Fund supported a crime prevention and reduction plan in the RMWB (Government of Alberta 2010). Over the past two years, crime rates have dropped in Fort McMurray and this trend is expected to continue for a third year. This success is attributed to plain clothes and uniformed units. The criminal activity that does occur is consistent with that generally experienced in larger communities: drugs, assaults, auto theft, break and enters, domestic violence and driving offences. Since very few camp workers come to town, there have been minimal changes in crime with the expansion of the oil sands (Grant 2011).

17.5.10.2 Emergency Measures

Regional Emergency Services (RES) provides fire, emergency medical services and Alberta Safety Codes Act services to the RMWB. They are fully equipped to deal with municipal fire issues, but have limited equipment to deal with industrial fire issues. As of 2011, RES has approximately 280 people, including 90 volunteer fire fighters that staff the 6 rural fire departments. The RES’s 178 full-time employees include 125 municipal fire and emergency medical services staff plus support staff. There are five training officers, eight safety codes officers and three mechanics in Fort McMurray. Current staff resources are adequate to meet demand. In recent years, emergency calls increased by approximately 7% because of the region’s population increase, the change to a younger age demographic, and the influx of industry workers (MacMillan 2011). As of 11 April 2011, the Government of Alberta and Athabasca County are contributing $1.3 million to improve emergency response capabilities in the Hwy 63 region. Improvements will include hiring up to four full-time emergency responders, developing a regional approach to fire and emergency response, purchasing portable speed indicator devices to alert drivers near emergency scenes and various measures regarding traffic enforcement, driver awareness, public safety and volunteer recruitment (Government of Alberta 2011d).


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17.5.11 Recreational and Leisure Services

The SRSA offers a diverse mix of urban-based and outdoor recreation facilities and organizations. In and near Fort McMurray there are many sports and recreation facilities including the Syncrude Sport and Wellness Centre at Keyano College and as of January 2008, the expanded and renovated MacDonald Island Recreation Complex. Fort McMurray has hosted a variety of provincial and national sports events, which reflects the quality of sports and recreation resources that are in place. The RMWB has an agreement with the Fort McMurray Catholic and Public School Districts that makes available the recreational facilities at reduced rates. Currently, the RMWB is working with the Federal and Provincial governments to formalize schools as community centres (Makia 2011). In 2010, facilities were operating at capacity, with significant staffing requirements given the number of shift workers in the area. In 2009, the RMWB Community Services Department had 186 staff. The RMWB opened a new recreation facility in Fort Chipewyan in 2009 and will open another two facilities in Anzac and Conklin in 2012 and 2013, respectively, to reduce demand at Fort McMurray’s facilities (Devon 2010). Fort McMurray residents enjoy 7 indoor recreation facilities, 21 outdoor fields, 3 golf courses, a skate park, 5 water parks, 19 playgrounds and several tennis courts (Government of Alberta 2011e). The RMWB is continually working to improve recreational and leisure services for citizens, including upgrades to existing facilities and the creation of new facilities closer to areas with higher demand (Makia 2011). Throughout the region there are a wide range of opportunities for outdoor and wilderness pursuits, including hunting, fishing, swimming, snowmobiling, picnicking and camping.

17.5.12 Transportation

17.5.12.1 Roads

Road transportation in and out of the region is via Hwys 63 and 881, which have a carrying capacity of approximately 25,000 to 30,000 vehicles/day (Kahn 2011). Hwy 63 has been upgraded to a divided highway north of Fort McMurray to the Suncor access road near Mildred Lake. Secondary Hwy 881 provides an important access route for forest fire fighting and is an alternative access route in and out of Fort McMurray. As discussed in Volume 2, Section 13.0, the East Athabasca Highway (EAH) was opened in early 2011, and is a two-lane 45 km gravel road (Suncor Energy 2011) that extends south and west of Hwy 63 from the Canterra Road, east of Fort McKay. Canterra Road is a private road that runs in a northeast and then southeast direction from Fort McKay, and is limited to industrial use for several nearby oil sands projects, including Suncor’s Firebag project, Husky Energy’s Sunrise project, Imperial Oil’s Kearl project and Shell Albian’s Jackpine expansion project. The EAH is accessed from Hwy 63 at the Albian Road turnoff. The EAH is privately owned and provides access to Suncor’s Firebag in situ site north of Fort McMurray, Imperial Oil’s Kearl site and Husky Energy’s Sunrise site. Suncor operates and maintains the EAH, which minimizes the impact of large vehicles and heavy loads on area roads.


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Traffic flows on Hwys 63 and 881 have increased over the past few years, mainly due to the industrial traffic associated with oil and gas development. Figure 17.5-8 shows that average annual daily traffic (AADT) volumes have more than doubled between 2001 and 2010. Traffic flows on Hwy 881 have increased by 71% over this period, or an annual rate of 8%. There has been a significant increase in AADT on Hwy 63 both south (54%) and north (72%) of Fort McMurray (Alberta Transportation 2011).

Source: Alberta Transportation (2011).

Figure 17.5-8: Trends in Average Annual Daily Traffic on Highways in the RMWB

Most traffic activity occurs within Fort McMurray, with AADT on the section of Hwy 63 that crosses the Athabasca River exceeding 55,000 vehicles/day. As shown in Figure 17.5-9, traffic volumes decline outside the city core. It shows that traffic volumes decrease substantially on Hwy 63 north of the turn-off to Fort McKay (Alberta Transportation 2010).

0

5000

10000

15000

20000

25000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Hwy 881 E of 63 NW of Anzac

Hwy 63 S of 881 NW of Anzac

Hwy 63 15.4 km N of 63 & 69 Fort McMurray


Page 17-35

Source: Alberta Transportation 2010.

Figure 17.5-9: Average Annual Daily Traffic Counts on Highway 63 around Fort McMurray, 2010

The composition of traffic varies considerably within the region. While passenger vehicles account for the majority of traffic north, south and inside Fort McMurray, a higher proportion of traffic north of Fort McMurray consists of buses and single unit trucks. Figure 17.5-10 shows that there is a much larger portion of the traffic south of Fort McMurray (22%) consists of tractor-trailer trucks. Recreational vehicles account for a larger proportion of traffic on Hwy 63 south of Fort McMurray.

0

10000

20000

30000

40000

50000

60000

Average Annual Daily Traffic


Page 17-36

Source: Alberta Transportation 2010.

Figure 17.5-10: Composition of Traffic In and Around Fort McMurray In the past, numerous concerns were raised regarding the adequacy and safety of both highways. Shift changes in the plants result in large daily pulses of traffic between the plants and Fort McMurray and in major weekly peaks as workers commute to the work camps and plants from their homes in other areas. In addition, Hwy 63 is used to transport oversize loads to the oil sands plants from fabrication sites in central and southern Alberta. To address these problems, the Province has undertaken major improvements to Hwy s 63 and 881. Twinning of Hwy 63 north of Fort McMurray from the Suncor Interchange to near Mildred Lake finished in 2008 (Kahn 2011). Paving of Hwy 881 finished in the fall of 2006. The Government of Alberta continues to plan transportation upgrades to meet the ongoing and anticipated growth in the region. As of July 2011, studies were completed for twinning and future access points of Hwy 63 between Hwy 55 and Hwy 881 and freeway configuration of Hwy 63 between King Street and Confederation Way. Planning is underway for grade widening, highway alignment and other work on Hwy 881 south of Anzac to Gregoire Park. The new five-lane Athabasca River Bridge was completed in 2011. Projects under construction or planned for Hwy 63 are:

• twinning from Wandering Road to House Road;

• widening from Athabasca Road to Thickwood Boulevard and Thickwood and Confederation interchanges;

• twinning from Hwy 28 to north of Ellscott Access;

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

North of Fort McMurray

Fort McMurray

South of Fort McMurray

Passenger vehicles

Recreation Vehicles

Buses

Single Unit Trucks

Tractor Trailer Combination


Page 17-37

• twinning north of Ellscott Access to Hwy 55;

• twinning between Hwy 55 and Hwy 881;

• freeway upgrades in Fort McMurray;

• interchange at Parsons Access Road (Hwy 686); and

• freeway upgrade from Parksons Creek to Suncor. Projects planned for Hwy 881 include widening from Anzac to Gregoire Park (Alberta Transportation 2011). The CRISP for the AOSA includes the following roads improvements: 2011 to 2014

• increased lane capacity for Hwy 63 south of Mariana Lake and North of Fort McMurray;

• Hwy 881 upgrades south of Conklin to improve transport of large loads;

• eastern by-pass around Fort McMurray; and

• bus-based transit north of Fort McMurray. 2015 to 2025

• completion of Fort McMurray ring road;

• new road west from Fort McMurray to Wabasca and Red Earth Creek area;

• extension of Hwy 813 north from Wabasca;

• commuter rail service and freight rail service between Fort McMurray and new urban growth node; and

• extend bus-based transit south and northeast of Fort McMurray. 2026 to 2034

• western highway route north of Fort McMurray to access Project sites on western edge of Surface Mineable Area; and

• extend Hwy 63 north for all season access to Fort Chipewyan. 2035 to 2045

• Northwest highway to connect new urban growth node and planned work camp community to Project sites (Government of Alberta 2008).


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17.5.12.2 Other Surface Transportation Services

Regularly scheduled bus service connects Fort McMurray to Edmonton. Diversified Transportation operates daily bus service between Fort McMurray and the communities in the SRSA. Local taxi service is available in the rural communities (Diversified Transportation 2010).

17.5.12.3 Air Transport Services

The Fort McMurray airport is a full service airport with a paved 2,286 m runway. Annual passenger count increased from 223,000 in 2004 to 704,000 in 2009 (Fort McMurray Airport 2011). The Airport self-funded an $8.2 million dollar expansion to extend the runway and received funding to expand the apron to better accommodate larger, jet aircraft. Construction was completed in 2007. Currently, a further airport expansion and redevelopment project is proposed including a new air terminal building, a new access road off Hwy 69 and an update to the current water distribution system (Fort McMurray Airport 2011). There are a number of industry-focused airstrips/aerodromes in the RMWB. Canadian Natural Resources Limited developed an airstrip to fly workers in and out of its site, and other companies, such as Imperial Oil Limited and Shell, have airstrips to service their projects. The Suncor Firebag Aerodrome is a private, full-service airport equipped to load or unload two 737-800 aircraft at one time. Facilities include a 6,900 foot runway with instrument landing capability, a terminal building and a maintenance and emergency services building (Northern Lights 2007). An Aerodrome Coordinating Committee was formed to ensure that any future airstrips in the RMWB are designed and operated with the strictest of standards (Wightman 2006).

17.5.12.4 Rail Transportation

Rail freight service is available to Conklin, Fort McMurray and Lac La Biche. The rail service terminates at Lynton, although consideration is being given to extending the rail line across the Clearwater River to provide access to the large oil sands projects that have been proposed east of the Athabasca River. In 2004, Regional Issues Working Group and the Government of Alberta funded a study led by a group of private sector proponents (Northeast Alberta Transportation Corporation) to examine the feasibility of constructing a rail line to serve the Wood Buffalo region. The study indicated that such expansion was cost prohibitive. It is estimated that it will cost $250 million to upgrade the line so that it is capable of accommodating the North American standard of 130,000 kg rail cars (RIWG 2005).

17.5.13 Local Fiscal Environment

With a growing population and increasing demands for services, the RMWB is under considerable financial pressure. The RMWB passed a balanced budget of $529 million for 2011, $14 million higher than in 2010. Its capital budget is set at $154 million and its operating budget


Page 17-39

is set at $374 million. Its debt and debt servicing are set at 75% (aligned with Alberta regulations) (RMWB 2010d). Infrastructure and community services spending in the RMWB between 2008 and 2012 will total almost $3,317 million (Devon 2010).

17.5.14 Aboriginal Population

As noted in Section 17.5.3.2, people of Aboriginal identity accounted for 12% of the regional population in 2006. This includes people living on First Nation reserves as well as those living in Fort McMurray or other communities. According to the RMWB, in 2006, 74% of Aboriginal people lived in the Fort McMurray urban service area. The Athabasca Tribal Council was established in 1988 to represent five First Nations in the region. These First Nations include:

• Athabasca Chipewyan;

• Chipewyan Prairie Dene;

• Fort McKay;

• Fort McMurray #468; and

• Mikisew Cree. These First Nations occupy a total of 28 reserves covering an area of 41,458 ha. The Athabasca Chipewyan First Nation has eight reserves (Chipewyan 201 and 201 A to G); the CPDFN has three reserves (Janvier 194, Cowper Lake 194A, Winefred Lake 194B); the Fort McKay First Nation has four reserves (Fort McKay 174, Namur River 174A, Namur Lake 174B, Fort McKay 174C); Fort McMurray #468 First Nation has four reserves (Clearwater 175 and Gregoire Lake 176, 176A and 176B); and the Mikisew Cree First Nation has nine reserves (Devil’s Gate 220, Old Fort 217, Allison Bay 219, Sandy Point 221, Collin Lake 223, Cornwall Lake 224, Charles Lake 225, Dog Head 218, and Peace Point 222). As of June 2011, Aboriginal Affairs and Northern Development Canada indicate these First Nations had a combined population of 5,683 people. As shown in Table 17.5-8, the majority of these people (65%) live off reserve, 21% live on reserves, and the balance (14%) live on crown land (AANDC 2011).

Table 17.5-8: On and Off Reserve First Nation Populations (2011)

First Nation On Reserve Crown Land Off Reserve Total Athabasca Chipewyan 20 212 716 948 Chipewyan Prairie Dene 357 0 390 747 Fort McKay 367 6 328 701 Fort McMurray #468 258 9 366 633 Mikisew Cree 198 572 1,884 2,654

Total 1,200 799 3,684 5,683

Source: AANDC (2011).


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The most recent demographic information available for First Nations is the 2006 Census Aboriginal Population Profiles prepared by Statistics Canada (2007b). This information indicates that in 2006 there were 6,465 people of Aboriginal identity in the RMWB Census area. This included 521 in Fort McKay, 564 on Reserves, and the balance (5,365) living elsewhere in the RMWB, primarily in Fort McMurray. In demographic terms, the Aboriginal populations living on and off reserves in 2006 were quite similar (Table 17.5-9):

• nearly 76% of the Aboriginal population was 15 years of age or older; this is higher than the Alberta average;

• Aboriginal females slightly outnumbered Aboriginal males (1.08 to 1), except on the reserves and in Fort McKay where the ratio was reversed;

• the reserves and Fort McKay have a higher proportion of single people. A higher proportion of Aboriginal people living off reserve were married;

• a higher proportion of Aboriginal people living in Fort McKay and on reserves were in common law relationships; and

• Aboriginal people living in Fort McKay and on reserves were less mobile. Larger proportions were living at the same address one and five years previously compared to Aboriginal people who were living off reserves.

Table 17.5-9: Selected Demographic Characteristics of On and

Off Reserve First Nation Populations (2006)

Regional Municipality of Wood Buffalo2

Alberta Fort McKay Reserves1 Other Total

Percent Aged 15 or Older (%) 76.8 69.8 75.8 75.5 68.9 Male to Female Ratio 0.96:1 1:1 1.12:1 1.08:1 0.95:1 Single (%) – Never legally married 65.8 67.6 56.7 58.0 56.7 Married (%) – Legally married and not separated

17.1 21.6 30.5 28.8 28.6

In a Common law Relationship (%) 34.2 21.6 21.2 22.4 19.4 Lived at Same Address 1 Year Ago (%) 88.8 96.2 79.6 81.8 75.5 Lived at Same Address 5 Years Ago (%) 60.0 79.2 49.6 52.9 48.6

Source: Statistics Canada (2007b). 1 Reserves – Janvier 194 only. 2 The Regional Municipality of Wood Buffalo Census Agglomeration (Total) includes Fort McKay Indian Settlement

(Fort McKay), various Reserves (Reserves) and the Regional Municipality of Wood Buffalo (Other). In terms of educational characteristics (Table 17.5-10), Aboriginal people living on reserves had the lowest levels of educational attainment, with 83% not having a certificate, diploma or degree; this proportion is much higher than the provincial average for Aboriginal people. The proportion of Aboriginal people living in Fort McKay who had no certificate, diploma or degree was also very high (62%).


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Table 17.5-10: Selected Educational Characteristics of On and Off Reserve First Nation Populations (2006)


Alberta (%) Fort McKay

(%) Reserves1

(%) Other

(%) Total (%)

Educational Attainment of People 25-64 YearsNo certificate, diploma or degree 62.0 83.3 24.9 31.0 34.6 High school certificate or equivalent 18.0 16.7 25.6 24.5 20.6 Apprenticeship or trades certificate or diploma

10.0 8.3 21.3 19.0 14.6

College, CEGEP or other non-university certificate or diploma

8.0 0.0 20.3 18.7 19.8

University certificate or diploma below the bachelor level

0.0 0.0 2.2 2.2 3.7

University certificate or degree 4.0 0.0 5.2 4.5 6.7


(Fort McKay), various Reserves (Reserves) and the Regional Municipality of Wood Buffalo (Other). Aboriginal people living off reserves were generally better educated than those on reserve, with nearly 22% having completed a college, CEGEP or other non-university certificate or diploma or a university certificate or diploma below the bachelor level. The proportion of adults in the SRSA who had completed an apprenticeship or trades certificate or diploma was slightly higher than the Alberta average for Aboriginal people. In 2006, large percentages of people living in Fort McKay (Table 17.5-11) had an Aboriginal language as their mother tongue and spoke an Aboriginal language most often at home. However, the data indicate that most Aboriginal people living off reserve did not have an Aboriginal language as their mother tongue nor did they speak an Aboriginal language most often at home. Eighty-two percent of Aboriginal people living off reserve spoke English only, and this was higher than the Alberta average for Aboriginal people.

Table 17.5-11: Selected Language Characteristics of On and Off Reserve First Nation Populations (2006)


Alberta (%) Fort McKay

(%) Reserves1

(%) Other

(%) Total (%)

Knowledge of English only 57.0 26.4 82.0 75.9 76.2 Knowledge of Aboriginal language(s) 43.0 71.7 13.4 20.2 18.8 Aboriginal language first learned and still understood – Mother tongue is an Aboriginal language

36.0 62.3 9.3 15.4 15.5

Aboriginal language still spoken at home – Speak an Aboriginal language most often at home

10.0 32.1 1.6 5.1 8.0


(Fort McKay), various Reserves (Reserves) and the Regional Municipality of Wood Buffalo (Other).


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With respect to employment, the 2006 Census information shows that Aboriginal people living on reserves were the least likely to participate in the labour force. The labour force participation rate for the on-reserve population was 43% and only 39% of the labour force was actually employed (Table 17.5-12). In contrast, Aboriginal people living off reserve had labour force participation and employment rates that were higher than the Alberta average for First Nations. The rates for residents of Fort McKay were higher than for the on-reserve population, but lower than the off-reserve population and were somewhat similar to the provincial averages.

Table 17.5-12: Selected Economic Characteristics of On and Off Reserve First Nation Populations (2006)


Alberta Fort McKay Reserves1 Other Total Labour Force Participation (%) 61.8 29.7 76.0 72.2 68.3 Employment Rate (%) 48.7 21.6 69.9 65.4 60.8 Unemployment Rate (%) 19.1 18.2 7.9 9.4 11.1 Average Earnings (2005) 35,956 30,624 53,602 50,971 29,466 Percent Full Employed (%) 45.8 13.3 46.7 45.9 42.9 Income from Employment (%) 85.0 72.3 94.2 93.0 82.9 Income From Transfer Payments (%) 12.9 27.1 4.4 5.7 13.2

Industry of EmploymentAgriculture and other resource-based industries (%) 22.7 22.2 33.9 32.2 11.5 Construction (%) 20.5 22.2 11.0 12.0 12.6 Manufacturing (%) 4.5 0.0 2.5 2.3 6.1 Wholesale trade (%) 0.0 0.0 2.6 2.5 3.0 Retail trade (%) 4.5 0.0 6.6 6.0 10.5 Finance and real estate (%) 0.0 0.0 2.8 2.6 3.0 Health care and social services (%) 6.8 0.0 3.0 3.6 9.1 Educational services (%) 4.5 0.0 4.9 4.7 5.0 Business services (%) 15.9 22.2 12.7 13.0 14.7 Other services (%) 27.3 33.3 19.9 21.1 24.5

Source: Statistics Canada (2007b). 1 Reserves – Janvier 194 only 2 The Regional Municipality of Wood Buffalo Census Agglomeration (Total) includes Fort McKay Indian Settlement

(Fort McKay), various Reserves (Reserves) and the Regional Municipality of Wood Buffalo (Other). In terms of income, Aboriginal residents of the region had earnings that were nearly 50% higher than the Alberta average. In addition, they were much less reliant on government transfer payments; such payments only accounted for 6% of their annual incomes compared to 13% for all Aboriginal people in Alberta. However, the regional statistics reflect the situation for the majority of Aboriginal people who live off reserve. Residents of Fort McKay reported earnings and income that were less than the off-reserve population. Table 17.5-12 also shows that, of all Aboriginal people in the region who reported earnings in 2005, 46% reported being employed for a full year. This was slightly higher than the Alberta average. Residents of the off-reserve population reported the highest incidence of full-time employment (47%).


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A much higher proportion of Aboriginal residents of the SRSA were employed in resource-based industries (32%) than generally occurred in Alberta (12%). The employment profile of Aboriginal people living on reserves in the SRSA was quite different from that of the off-reserve population. The on-reserve population had very low levels of employment in resource-based industries, no significant employment in the retail and wholesale trade industry, but above average rates of employment in some other services industries. Residents of Fort McKay showed above average employment in business services, but below average employment in the trade and finance and real estate industries.

17.6 Application Case

17.6.1 Project Description

17.6.1.1 Construction

Subject to regulatory approvals, construction of the Project is expected to commence in Q1 2014, and first oil is planned for 2018 with full capacity in 2020. The total capital cost of the Project is estimated to be $3.0 billion dollars, of which 90% will be spent prior to first oil being produced (2018). On-site (i.e., plant) construction will account for about 35.0% of the total cost, with earthworks and infrastructure accounting for another 19.3% (Table 17.6-1). About 14.0% of Project costs will consist of off-site construction. Another 11.0% will involve drilling and completions with another 11.0% being for purchases of major equipment.

Table 17.6-1: Estimated Capital Costs of Project Development

Cost Component Millions ($) Percent (%) Engineering 210 7.0 Major equipment 330 11.0 Earthworks and infrastructure 580 19.3 Plant construction 1,050 35.0 Off-site construction 420 14.0 Drilling and completions 330 11.0 Site services and infrastructure 80 2.7

Total 3,000 100.0 Annual capital spending is expected to increase over time, from $309 million in 2014 to a peak of $789 million in about 2016 (Figure 17.6-1). Initial activities will include engineering, earthworks and site servicing, while the majority of on-site construction will occur from 2015 through 2018. Annual capital spending will decrease to $398 million in 2018 and $102 million in 2019.


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Figure 17.6-1: Estimated Annual Capital Costs of Project Development

Through 2019

17.6.1.2 Operation

The Project is expected to operate for approximately 40 years at a capacity of 14,310 m3 per day (90,000 bbl/d). As production from the initial wells begins to decline, additional wells will be brought on-line to maintain production at about 90,000 bbl/d. Production will begin to decline in 2043. Annual operating costs in a typical year are expected to be $440.6 million, excluding the capital costs of drilling and completing additional wells. This estimate is considered to be accurate to within -15% and +30%. Forty-three percent of these costs ($189.2 million) will be for fuel and power (Figure 17.6-2). About 335 staff and contractors will be required to operate the facility, and labour costs are estimated to be $83.8 million per year, while costs for office staff in Calgary will amount to $20.0 million per year. Another $57.5 million will be spent on maintenance, with $51.2 million being spent on materials and services. The balance of the annual operating costs ($38.8 million) will be required for chemicals and waste disposal.

Figure 17.6-2: Annual Operating Costs in a Typical Year

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Workers will be housed in a camp on the site and staff will work 12-hour days on a seven-day-on/seven-day-off rotation. It is expected that workers will be flown into and out of the region by way of a near-site industry aerodrome and buses will be used to transport workers from the aerodrome to the camp. As production from the initial wells starts to decline, additional wells will be drilled, completed, and connected to the complex by pipeline in order to continue operating at full capacity. Cenovus expects to spend an average of $150 million per year for the subsequent 25 years to drill, complete and develop all planned well pads. The socio-economic effects of drilling these additional wells are considered as part of ongoing operations, even though they would normally be considered capital costs.

17.6.1.3 Mitigation and Enhancement Measures

Corporate Policies

Cenovus has several policies that guide their business activities in communities and regions where they operate, and these policies will be employed for the Project. Corporate policies and principles that will guide Cenovus’s actions during Project include the following:

• “Cenovus conducts our business with respect and care for the people affected by our activities.

• Cenovus applies fair labour practices and treats our workforce with dignity, fairness, and respect.

• Cenovus is committed to building and supporting stakeholder and Aboriginal employment and business opportunities.

• Cenovus strives to provide meaningful and lasting economic and social development opportunities that benefit both our business and the communities where we work and live.

• Cenovus develops partnership approaches based on collaboration and inclusivity in the communities where we work and live” (Cenovus 2011a).

With respect to the potential for hiring Aboriginal workers, Cenovus endeavours to provide opportunities for employment and training wherever practical. Cenovus is a current member of Northeastern Alberta Aboriginal Business Association. Cenovus’s approach to employment and training for Aboriginal communities is guided by the following principles:

“Cenovus works with many Aboriginal communities and organizations in our operating areas to build strong, mutually beneficial relationships. We strive to treat all communities in which we work in a fair and equitable manner. To ensure


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that the interests and concerns of Aboriginal communities are heard and managed, we have increased the level of Aboriginal participation in our activities by:

- Creating opportunities in business and economic development;

- Providing employment and training;

- Lessening environmental and social concerns and impacts; and

- Improving our own guidelines and programs and providing our staff with training and information” (Cenovus 2011b).

Aboriginal residents of the SRSA, including people living on and off reserve, are expected to benefit from implementation of the Project. In terms of hiring local contractors, Cenovus expects that some of the work on the Project will be completed by qualified local contractors. If, however, non-local contracting companies are hired to perform any services for the Project, Cenovus expects that company to provide opportunities for local workers and sub-contractors within the scope of the Project. These policies, practices and guidelines have been used to determine the potential social and economic impacts of the Project.

Shared Responsibility

The success of Project socio-economic impact mitigation and enhancement arrangements ultimately depends on establishing trusting and amicable relationships with local stakeholders. By their nature, socio-economic issues in any Project context are dynamic and are affected by many factors. As such, socio-economic issues cannot be managed by proponent decisions alone and will require a coordinated and collaborative response from Cenovus, Aboriginal and provincial government agencies, and affected communities and individuals. This type of coordinated approach is common in the RMWB region, as demonstrated by the work of the OSDG, a non-profit industry group that works in cooperation with related industries, government, Aboriginal peoples, and other organizations active in the Athabasca oil sands region to define and address regional issues related to oil sands development.

Specific Mitigation and Enhancement Measures

Cenovus and its predecessor companies have a long history of working with stakeholders, including businesses and suppliers, in the SRSA through its Christina Lake and Foster Creek projects. Cenovus is also a member of the OSDG. As a consequence, Cenovus is aware of the challenges of working in the Fort McMurray area and the impacts that rapid industrial expansion are having on the residents and the infrastructure of the RMWB.


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Given its experience in the region, Cenovus has built some core mitigation measures into the Project’s design, policies, and labour strategy to respond to anticipated socio-economic issues. These mitigation measures are described below.

• a fully-serviced camp will be built on the Project site to house all on-site workers during construction and operation to minimize pressures on local housing and community services and infrastructure. Cenovus will require workers, including current residents of the RMWB, to reside in the camp while on work rotation. Exceptions will be made for Aboriginal workers who are residents of SRSA and who require flexibility for the traditional/cultural purposes, where it is reasonable for them to travel to and from the worksite;

• any non-resident workers are anticipated to be flown in and out of the vicinity of the Project site via a near-site industry aerodrome, thus avoiding the use of the regional airport in Fort McMurray and avoiding an increase in commuter vehicles on Hwy 63, Hwy 69 and the East Athabasca Highway (EAH);

• all workers who are residents of the RMWB will be bussed between the work camp and Fort McMurray for their rotations, thus, minimizing incremental commuter traffic on regional highways;

• at the end of work rotations, all non-regional workers will be flown directly from the near-site aerodrome back to their specified home point outside of the RMWB, thus, avoiding community-worker interactions and avoiding some of the problematic social issues related to crime, safety, and drug and alcohol issues that are known to arise in Fort McMurray and surrounding communities;

• the work camp will be largely self-contained and fully-serviced in terms of potable water, security, emergency health and medical services, and recreational facilities for on-rotation workers.

• the work camp will be ‘dry’ (i.e., will not allow the use of alcohol or drugs); Cenovus has a local Community Relations Advisor living in Fort McMurray who is interacting regularly with local stakeholder and Aboriginal groups to keep track of, and work collaboratively to resolve, any emerging issues.

These and any other mitigation strategies that will be employed in response to specific potential issues are discussed in the analysis of each socio-economic indicator in the assessment. While Cenovus will use its general policies relating to business practices, stakeholder and Aboriginal employment, and community relations, as listed above, it realizes that there may be future opportunities to work with local residents, businesses and government to develop additional mitigation, to address any emerging impacts and to further enhance regional benefits. Cenovus is committed to continuing consultations with regional residents, communities and


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governments to monitor changing social and economic conditions, and also to working together to develop mitigation and enhancement measures that respond to changing socio-economic conditions. Key groups for consultation include:

• Aboriginal communities regarding employment and training, local health care and service providers;

• the RCMP for any enforcement issues that may arise in the community;

• the RMWB for issues related to possible Project impacts on regional infrastructure (e.g., housing, traffic); and

• regional health care and other service providers to help address any issues related to regional services that are determined to be a direct result of the Project.

Cenovus will continue to implement corporate strategies to enhance local employment during the operations phase of the Project. Although regional employment strategies have yet to be negotiated, and will depend on labour conditions in the region in 2019 and beyond, Cenovus is planning to provide training or other assistance to engage segments of the regional population that are either unemployed or underemployed. Potential groups include Aboriginal communities, recently retired, or people who are currently employed but could be trained for work at the Project site. In addition to providing training, Cenovus will consider other types of assistance, including transportation for workers living in remote communities. The following analysis of Project effects does not consider such additional mitigation that may emerge through detailed, ongoing consultations. As such, it represents a “worst case” assessment. With implementation of additional (as yet to be negotiated) regional mitigation and enhancement strategies, actual Project benefits can be greater than those shown and any potential negative impacts will be further reduced , if not eliminated.

17.6.2 Construction Phase

17.6.2.1 Provincial Economic Impacts

From a provincial perspective, the Project will generate substantial employment and income during the initial years of construction. It is estimated that about 67% of the total expenditures related to Project construction ($2.02 billion) will be made in Alberta (Table 17-6.2). Most of the other 38% ($0.98 billion) will be used to purchase specialized equipment and construct earthworks using suppliers elsewhere in Canada ($811 million) or from other countries ($165 million). All of the engineering is expected to be provided by Alberta suppliers and the provincial workforce.


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Table 17.6-2: Geographic Distribution of Capital Expenditures

Cost Component

SRSA Elsewhere in Alberta

Elsewhere in Canada Foreign Total

Millions ($)

Percent (%)

Millions ($)

Percent (%)

Millions ($)

Percent (%)

Millions ($)

Percent (%)

Millions ($)

Engineering 10 5 200 95 210 Major equipment 17 5 83 25 66 20 165 50 330 Earthworks 29 35 203 35 174 30 0 0 580 Plant construction 52 5 630 60 368 35 1,050 Off-site construction 34 8 252 60 134 32 420

Drilling 16 5 264 80 50 15 330 Access, Site Services 12 15 48 60 20 25 80

Total 345 11 1,679 56 811 27 165 6 3,000 The estimates in Table 17.6-2 represent the most likely expenditure scenario, and reflect various assumptions about the ability of the Alberta economy to supply all labour, goods and services, given that other major projects will be competing for similar resources. The potential impacts of the Project on provincial employment, labour income and the value of all goods and services produced in Alberta (measured in terms of GDP) can be estimated using information from the Alberta Economic Multipliers, 2007 (Alberta Finance and Enterprise 2011a). Project impacts were calculated by assigning the Alberta portion of various cost components to the following Standard Industry Classifications (SIC) used by Statistics Canada, as shown in Table 17.6-3.

Table 17.6-3: Alberta Portion of Each Cost Component Apportioned to Standard Industry Classifications

Cost Component Alberta Portion

SIC Industry Classification Millions ($)

Engineering 210 541 – Professional, scientific and technical services Major equipment 99 333 – Machinery manufacturing Earthworks

1,089 230 – Construction Plant construction Off-site construction 286 332 – Fabricated metal products manufacturing Access, Site Services 60 213 – Support activities for oil & gas extraction Drilling 280 211 - Oil and gas extraction

Total 2,024 Based on the multipliers for these industries, the potential direct, indirect and induced Project impacts on the Alberta economy are shown in Table 17.6-4.


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Table 17.6-4: Impacts of Project Construction on the Alberta Economy

Direct Indirect Induced TotalGross Domestic Product ($ millions) 1,267 260 267 1,794 Employment (person-years) 3,826 2,437 2,615 8,877 Labour Income ($ millions) 921 186 154 1,261

Thus, the Project, with a construction cost of $2.02 billion (the Alberta portion), would generate about 3,826 person-years of direct employment over the entire construction period, another 2,437 person-years of indirect employment in industries that will supply the goods and services needed for construction, and spending on consumer goods by workers who benefit from direct and indirect employment will create another 2,615 person-years of employment. This means that there will be 1.32 person-years of indirect and induced employment in Alberta for every person-year of direct employment on the Project. Capital spending on the Project is expected to increase the value of goods and services produced in Alberta (GDP) by $1.794 billion and will produce $1,261 billion in labour income. Figure 17.6-3 shows how the Project would provide employment impacts in Alberta for the duration of construction. It shows that Project impacts would be very small in the initial years, with 481 direct jobs in 2014, and then increase to 1,058 jobs in the peak construction year (2016). Employment would then decline in 2017 to 2019.

Figure 17.6-3: Summary of Provincial Employment Impacts

from Project Construction The importance of this Project-related employment will ultimately depend on future provincial employment conditions and the labour demands of competing projects. The CSC(2011) notes that investment in oil sands projects resulted in very high employment in 2008, resulting in a tight labour market. As a result of the economic downturn, construction slowed and demands for labour dropped in 2009. With economic recovery, it is expected that by 2012 the construction labour market will have recovered to 2008 levels. Employment is expected to remain at these

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levels until 2015 when a second wave of new investment is anticipated, which will drive employment even higher. It is expected that by 2017 employment in oil sands projects will be 25% higher than at the height of construction in 2007. These projections are based on current and proposed investments in new oil sands and other projects as reported by Alberta Finance and Enterprise (2011b). Recent lists of major projects include Phase 1 of the Cenovus Borealis steam assisted gravity drainage project, which is valued at $1.0 billion, with possible construction starting in 2014. As the Telephone Lake Project is the renamed Borealis project, it can be concluded that a portion of the labour demands for the Project have already been factored into the employment forecasts of the CSC. The CSC has developed an overall assessment of labour markets in Alberta to 2019 that reflects the proposed and announced oil sands projects, other demands for labour, and predictions on the rates of retirement from, and recruitment to, the construction labour force. This assessment (Figure 17.6-4) indicates that, between 2013 and 2016, total employment in the construction industry will remain fairly steady, but will increase by more than 8,500 workers during 2017 and 2018. This represents a 5.6% increase over two years.

Figure 17.6-4: Labour Market Conditions in Alberta

The CSC (2011) notes that, with rising labour requirements over the period from 2011 to 2019, industry will need to bring 40,000 workers into Alberta, as projected increases in the number of people leaving the workforce due to retirement or mortality (35,000 workers) will more than


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offset the number of new entrants in the Alberta labour force (26,000 workers). It also predicts that there will be increased recruiting of workers from youth, women, Aboriginal people, people working in other industries, and new immigrants. In this context, the new employment created by the Project is expected, in terms of both the total numbers of workers and the reliance on workers from outside Alberta, to fill 30% of labour requirements. Based on expected trends in provincial employment and unemployment, the impacts of Project construction on employment and income in Alberta will be positive, but low magnitude. This is based on the observation that, at peak, the 1,070 person-years of direct construction employment created by the Project would be equivalent to 0.7% of the existing employed Alberta construction labour force. The Project employment and income impacts will be provincial in extent, of short-term duration, and will occur continuously over the construction period. The final impact will be low.

17.6.2.2 Alberta Government Revenues

Construction of the Project will not affect Alberta Government revenues, other than through income taxes payable on Project-related earnings. As much of the Project workforce is expected to consist of Alberta residents who would otherwise be employed, employment on the Project would likely generate little incremental tax revenue. Income tax collected from construction workers who normally reside outside Alberta would accrue to their home provinces, not Alberta. Consequently, Project impacts on provincial government revenues as a result of construction will be provincial in extent, positive in direction, low in magnitude, short-term in duration and continuous. The final impact will be low.

17.6.2.3 Regional Employment and Income

The Project is predicted to purchase $345.0 million in labour, goods and services from residents and companies in the SRSA during construction (Table 17-6.2). Of this, direct hiring of local labour could account for about $113.5 million, while the balance ($231.5 million) may be spent to purchase equipment, supplies and services from local businesses. Based on current understanding of regional labour conditions, Cenovus believes that 5% of total employment in engineering, drilling, and purchases of major equipment can be sourced locally. Cenovus also expects to be able to hire 8% of the labour needed for off-site construction and 15% of the labour needed for miscellaneous site services and infrastructure from within the SRSA. It expects that 35% of the labour required for earthworks and construction can be acquired from within the SRSA. Overall, Cenovus expects to be able to hire about 9% of the construction workforce from within the region. To support this, Cenovus will continue its practice of working with local suppliers and businesses to obtain quality and competitively-priced goods and services and will undertake several enhancement strategies, including:

• use of a Fort McMurray-based Community Relations Advisor to work with local businesses to understand their capacity and to work with local business owners to help them understand available opportunities;


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• working with local business and government organizations to determine the most effective way to share Project-related employment and contracting opportunities in a timely and transparent manner (for example, Cenovus anticipates communicating Project opportunities through open houses and business opportunities workshops);

• requiring Project contractors to maximize, track and report local and Aboriginal content and employment; and

• adjusting select contract sizes to accommodate the capability of local and Aboriginal suppliers and contractors and sub-contractors.

Figure 17.6-5 identifies the estimated number of construction workers from the SRSA required over the seven-year construction period. Construction activities in 2014 will involve earthworks associated with infrastructure and engineering, followed by plant construction in 2015 through 2019. On an annual basis, 105 regional residents would be employed in 2014, and this would increase to 136 people during peak construction (2016) and then drop to 23 in 2019. This amounts to 495 person-years of direct employment over the six-year period, or an average of 71 jobs per year.

Figure 17.6-5: Summary of Regional Construction Employment

Under current conditions, the assumption that local residents will account for 9% of the on-site workforce, or an average of 71 jobs per year, is probably realistic because current information suggests nearly all of the SRSA construction workforce may be fully employed on other projects. As noted previously (Section 17.6-2), about 5.4% of the workforce (1,400 people) in the Wood Buffalo-Cold Lake region was unemployed in June 2011. Given the expectations for the possible development of approximately $105 billion in existing and proposed projects for the RMWB, and the expectations for a relatively tight labour market, the creation of 71 new jobs within the region during the construction period should be attainable.

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There may be opportunities to further increase the percentage of the on-site workforce hired locally. It is expected that, as part of ongoing discussions with Aboriginal and other communities in the region, Cenovus may be able to identify specific groups that may be underemployed or face barriers such as transportation that might prevent them from being employable. Cenovus will work with these groups and regional training institutions to develop specific training programs or employment strategies that will improve their opportunities to be employed on Project construction. For example, Cenovus also has existing operations at Foster Creek and Christina Lake that can allow for training opportunities for potential employees working at Telephone Lake. Cenovus is also undertaking a local recruitment strategy at Foster Creek and Christina Lake, and will be using a similar approach at Telephone Lake. The recruitment advisor allows potential employees to work with Cenovus to remove barriers to employment in a staged approach. The direct hiring of regional residents and purchases of goods and services from local businesses will also generate indirect and induced employment in the RMWB. Indirect and induced impacts are usually much smaller at a regional scale because smaller economies are less diversified and cannot offer the full range of goods and services that are available within Alberta. At a provincial level there were approximately 2.60 jobs in the non-basic sectors (trade and services) for every job in the basic sectors (resource-based industries, construction and manufacturing) in 2006 (see Table 17.5-4). The corresponding ratio for RMWB was only 1.18, which suggests much less economic diversification and relatively low indirect and induced employment for every new direct person-year of employment. Thus, in relative terms, the ratio of non-basic to basic jobs in the region is less than half the corresponding provincial ratio. This suggests a regional employment multiplier of about 0.15 indirect and induced person-years of employment for every direct person-year of employment on the Project. On this basis, Project construction, both on-site and off-site, can be expected to generate another 75 person-years of indirect and induced employment in the region. Overall, the Project is expected to provide 570 person-years of direct, indirect and induced employment in the RMWB for regional workers, businesses providing goods and services for the Project, and consumer goods for regional residents who are directly or indirectly employed in constructing the Project. Peak demand is expected to occur in 2016 when about 155 jobs would be created for regional residents. Depending on future employment conditions in the region, these additional employment requirements may or may not result in new employment in the region. If the Project were to be able to hire existing regional residents who would otherwise be unemployed or underemployed, the work associated with the Project could provide new employment, and there would be sufficient capacity in the local labour market so that local companies would not have to bring in people from outside the region to handle the additional work. However, if there is full employment in the region and local businesses are operating at capacity already, the new employment created by the Project could result in local companies bringing in up to 155 extra workers to work during the peak year of construction.


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The likely outcome will fall somewhere between these two extremes. It is expected that, for much of the proposed construction period, the regional economy will be operating at slightly less than full capacity, such that part of the demands associated with the Project can be accommodated by the existing workforce. However, the incremental demands of the Project are expected to result in some requirements for regional companies to bring in additional workers. About half of the regional direct, indirect and induced employment created by Project construction (285 person-years over the six years of construction, or an average of 47 jobs per year) is assumed to consist of regional workers who would be otherwise unemployed or underemployed. Thus, the other half of the regional workforce will consist of workers who will have to be brought into the region. This amounts to an average of 47 workers per year of construction, but would increase to between 75 and 80 during the peak construction years (2015 and 2016). While some of these workers could move from other projects in the RMWB, the resulting vacancies would create demands for a corresponding number of new jobs for other companies in the region. The overall impacts on employment of residents of the SRSA are provided in Figure 17.6-6. It shows that total employment of regional residents will increase from about 120 jobs in 2014 to a peak of 155 jobs in 2016, and decline thereafter. It also shows that existing regional workers who would be otherwise unemployed or underemployed would account for half of total Project-related employment in the region; nearly 90% of these would be directly employed to construct the Project. However, the regional workforce will have to expand to accommodate all Project demands for regional employment, and this new employment (direct, indirect and induced) would amount to 75 to 80 workers in 2015 and 2016. Overall, Project construction is expected to provide 284 person-years of employment for the existing regional workforce.

Figure 17.6-6: Employment of Regional Residents during Construction

Project impacts on regional incomes would follow the same pattern. Regional income associated with construction will total $115.5 million during construction, including $110.7 million in direct income and $4.8 million in indirect and induced income. At peak (2016), Project construction will provide about $31.3 million in labour income for residents of the SRSA.

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In the context of the overall regional economy, the impacts of constructing the Project in terms of both employment and income will be positive, low, regional, short-term, and continuous over the construction period. The final impact will be low. 17.6.2.4 Regional Population In general, the Project will not have directly observable impacts on the regional population. The bulk of the direct Project workforce will involve labour imported from other parts of Alberta or other provinces. This workforce will be housed in a camp, work 12-hour shifts, seven-days-on and seven-days-off and, based on anticipated plans, will be flown in and out of the region by way of a near-site industry aerodrome. While these workers will add to the shadow population of the region, they will not add to the normal regional population because, by being located in a full-service camp and not interacting with local communities, they will not be placing demands on regional services or infrastructure. The only potential population impacts associated with the Project will result from new employment in the region. Half of the regional employment created by the Project is assumed to involve existing residents who are unemployed or underemployed, but, because of the tight labour markets expected for the RMWB, Project construction will directly or indirectly mean that the regional labour force will need to expand. This new regional employment (see Figure 17.6-6) will amount to up to 80 jobs in 2016 but will average 50 jobs during the six-year construction period. As noted previously, these demands for additional regional workers will be seen as part of the normal economic growth associated with oil sands development expansions and would not be seen as solely the result of the Project. Based on the most recent available demographic characteristics of the region (2006) and assuming that people moving into the region would have similar characteristics and the average new regional construction employment of 50 jobs, 28 new households, and a population increase of about 80 people, including 65 adults and 25 children are anticipated. Given regional population forecasts anticipate increases of about 66% (or 68,863 between 2010 and 2020) (see Section 17.5.3.6), the estimated population increase potentially associated with the Project would account for less than 0.2% of this increase. While the impact of the Project in isolation on regional population would be considered neutral given such a small contribution to the baseline trend of growth, it does nonetheless contribute to the general population growth pattern driven by numerous planned projects. Population growth may be viewed as positive or negative, depending on the perspective taken. Given the RMWB’s interest in positioning itself for economic growth, for the purposes of this analysis population growth is considered desirable. Accordingly, the impacts of constructing the Project on the regional population will be positive, low, regional, short-term, and continuous. The final impact will be low.


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17.6.2.5 Regional Housing

To minimize contribution to regional housing pressures, Cenovus has chosen to house all construction workers in the camp, including workers from SRSA. The majority of the workforce will be housed in a 1,000-person work camp to be constructed on-site for sole use by the Project and which will be in service until the end of the Project. All workers will be expected to stay in camp when on-rotation, including residents of the SRSA (some exceptions will be made for Aboriginal workers who are residents of the SRSA where it is reasonable for them to travel to and from the work site). When shift rotations are finished, non-SRSA resident construction workers will be flown back to their home communities and resident SRSA workers will be bussed back to Fort McMurray. The camp will be largely self-contained and fully serviced However, as noted above, it is expected that indirect and induced employment associated with construction of the Project will contribute to overall population growth in the RMWB, although this contribution will be short-term and very small relative to the overall projected population growth for the region. Given that housing is scarce and prices are high, any direct or indirect employment and population growth may exacerbate existing conditions. Based on RMWB population projections, a total of 36,925 units of all types of housing will be required by 2030, with approximately 21,838 of these units (or 59%) required in the 2011-2020 period, during the construction period of this Project (RMWB 2011c). Solutions to housing problems are a shared responsibility between the provincial government (release of land and financial support programs), the municipal government (plans, zoning and approvals) and land developers (financing and finding contractors). There are numerous current government-led initiatives to respond to regional housing needs, as described in Section 17.5.5. As mentioned, to minimize contribution to regional housing pressures, Cenovus has chosen to house all construction workers in the camp, including workers from RMWB. The very small anticipated population growth associated with the Project (28 households) would equate with a small incremental growth in housing demand, but would be considered largely part of the current and anticipated growth trend in the region. Cenovus will continue to monitor housing conditions in the region through ongoing discussions with the RMWB and may, where conditions warrant, work with the RMWB to help address any housing issues that are determined to be a direct result of the Project. Based on the small short-term regional population impacts associated with the Project and the commitment to monitor and address any housing issues directly related to the Project, the impacts on housing will be negative, low, regional, short-term, and continuous. The final impact will be low.

17.6.2.6 Regional Services

As discussed in Section 17.5, many regional services, including health care, community and social services, and education, are considered to be under stress due to limited infrastructure and/or lack of workers. However, the Province of Alberta has committed additional funds to address these issues, including new health and wellness centres, expansion of emergency and ambulatory care, a new addictions treatment centre, and improved access to child care and youth-at-risk programming. Further, additional funding is being made available for cost-of-living


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allowances for health and education employees. The Government of Alberta has outlined its long-term infrastructure and services needs for the RMWB, and the wider Athabasca Oil Sands Region, in its CRISP. The priorities of CRISP will inform provincial capital spending decisions, with the aim of ensuring services are developed to meet the needs of anticipated oil-sands related population growth. For the most part, the Project construction workforce will not place any additional demands on regional services. As discussed in Section 17.6.2.5, all workers will be expected to stay in the work camp, including most residents of the RMWB (with some exceptions made for Aboriginal workers residing in SRSA). Thus, workers will have no direct contact with Fort McMurray or other communities in the RMWB. As such, Project workers are not anticipated to exacerbate social issues associated with drugs and alcohol or other criminal/dysfunctional behaviour in Fort McMurray and other communities. The camp will have its own recreation facilities and it will be a “dry” camp (i.e., no alcohol or drugs will be tolerated). Camp security will be provided by a private contractor, and Cenovus will continue to communicate directly with the local RCMP detachment on any security-related issues. Emergency health and medical services that meet or exceed the requirements of Part 11 of the Alberta Occupation Health and Safety Code will also be provided on-site by a private contractor. The camp will include a heli-pad to accommodate medi-vac services and will be registered with the Shock Trauma Air Rescue Society (STARS) for prompt dispatch of services. Indirect and induced employment associated with the Project may result in a very small, short-term population increase that would be seen as part of expected regional population growth. As regional services are being expanded to address this anticipated population growth, the impacts of constructing the Project on regional services will be negative, low, regional, short-term, and continuous. Cenovus will monitor its demands on regional services through ongoing discussions with the RMWB and through its participation in OSDG and may, where conditions warrant, work with the RMWB and regional health care and other service providers to help address any issues on regional services that are determined to be a direct result of the Project. Therefore, the final impact will be low.

17.6.2.7 Regional Infrastructure

As noted in Section 17.5-6, regional infrastructure, including water and wastewater treatment facilities, have been recently expanded to meet growing population demand and, as of 2011, operate under capacity. Further, a new solid waste facility is currently operating with a capacity of 100,000 residents and has the capacity to expand the number of operating cells. CRISP outlines the need for new/upgraded water treatment facilities and wastewater treatment facilities in the Athabasca Oil Sands region through 2025 in response to general regional population growth and community expansion (Government of Alberta 2008).


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With the Project’s construction workforce being housed in a camp, potential impacts on regional infrastructure will be limited. Although Cenovus has not determined its final plans for waste disposal, it is considering a number of options including:

• an on-site waste treatment facility for human waste; • roll-off containers with proper containment defined by waste-type, hauled to an

appropriate waste disposal facility; • a dual-chamber incinerator for some construction wastes; and • hauling any special or hazardous wastes, which are expected to be small, to appropriate

waste disposal facilities. All wastes generated will be stored, manifested, transported and disposed of in accordance with all provincial and federal regulations. In terms of its domestic water requirements, Cenovus is proposing to develop its own groundwater wells and wastewater treatment facility (see Volume 1, Sections 7.0 and 9.0 for further details). Thus, most construction activities will not place any direct demands on regional infrastructure. Cenovus will monitor its demands on regional infrastructure through ongoing discussions with the RMWB and through participation in OSDG, and may, where conditions warrant, work with the RMWB to help address any issues on regional infrastructure that are determined to be a direct result of the Project. Indirect and induced employment associated with construction of the Project may result in a very small, short-term population increase; this is considered to be a small part of expected total regional population growth. As regional infrastructure is being expanded to address this anticipated population growth, the overall impact of constructing the Project on regional infrastructure will be negative, low, regional, short-term, and continuous. The final impact will be low. 17.6.2.8 Transportation There is currently no year-round road access to the Project site. In order to establish permanent access to the area, Cenovus is considering two potential new road access options. One option would be to approach the Project from the west via a new road extending from the EAH. The other option would be to approach the Project from the south via an extension from the proposed Clearwater Multi-user Access Road. The development of one or both of these access roads is being considered through the OSDG. There is also a potential road that is part of Cenovus’s oil sands exploration program that would provide access to the Project site. Any new road development is independent of the Project and will be subject to a separate regulatory approval process. As such, the potential for enhanced road infrastructure in the region through the development of the access road is not considered in this assessment. In terms of road transportation, this assessment focuses on traffic volume impacts related to the movement of Project-related vehicles to either of these future access points. Until the future access is developed to connect the Project to existing infrastructure, it is anticipated that winter roads and other existing linear trails will be used for access to the site.


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Construction-related traffic will consist of:

• trucks carrying construction equipment at the beginning (mobilization) and end of the construction period (demobilization);

• periodic but infrequent movements of oversize loads from southern Alberta sources via the designated High Load Corridor (Hwy 63);

• regular daily movements of supplies such as fuel and building materials required for on-site construction as well as food and others supplies for the camp; and

• bus transportation of workers to and from the work camp from a near-site industry aerodrome (for non-resident workers) and Fort McMurray (for residents of RMWB).

Construction workers from outside the region are anticipated to be flown into an industry aerodrome located close to the Project site, thus, not requiring individual passenger vehicle movements between Fort McMurray and the construction site. This is consistent with the RMWB’s desire to promote the safe and efficient use of aerodromes and to promote consolidation of multiple users in an effort to minimize land disruption and duplication of infrastructure. It is estimated that approximately 20 buses per week will travel to and from a near-site aerodrome and work camp at peak construction. Workers who reside in the RMWB will be bussed between Fort McMurray and the site, which will require 10 additional buses a week. Cenovus will work with the RMWB, property owners, and other area operators to determine bus routes, pick up locations and schedules that minimize impacts associated with transportation of workers who reside within the RMWB. Cenovus’s preference to fly workers in and out of a near-site aerodrome and to bus local workers from Fort McMurray will eliminate a potentially significant volume of vehicles that could have been associated with the Project. For supply of construction materials (including equipment modules and pipe rack modules), Cenovus expects the following traffic:

• 400 pipe rack modules with delivery spaced out evenly between Q2 2015 to Q3 2016 (Phase A) and Q3 2016 and Q4 2017 (Phase B);

• 180 equipment modules with delivery spaced out evenly between Q1 2016 to Q2 2017 (Phase A) and Q2 2017 to Q3 2018 (Phase B); and

• 3,600 loads of miscellaneous materials distributed evenly throughout the construction schedule (Q1 2015 to Q4 2019).

These delivery requirements spread out over the noted timeframes equate with very low average daily volumes of commercial traffic. While volumes will vary during the construction period, on average across the construction period there will be approximately three round-trip commercial vehicles per-day. It is anticipated that daily volumes will be notably higher during peak construction periods (2015 to 2017); however, on average, volumes are anticipated to be low. Thus, in total, Cenovus estimates that Project-related traffic volumes on regional highways during the construction phase will average four to five vehicles per day, including the truck movements of equipment and materials as well as bussing resident workers from Fort McMurray. Depending on final site access points, this traffic is anticipated to be primarily on


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Hwy 63 and the EAH, with the potential for use of Hwy 69 (if south access via the Clearwater Multi-user Access Road is used). The bussing of non-regional workers from a near-site aerodrome is not included, as this will not involve regional highways. As discussed in Section 17.5.12.1, traffic flows on Hwy 63 have increased in recent years mainly due to industrial traffic associated with oil and gas development. The Hwy 63 twinning north of Fort McMurray to near Mildred Lake and the paving of Hwy 881 have increased the capacity of the highways to meet anticipated industrial requirements. It is anticipated that the small incremental traffic associated with the construction of the Project can be accommodated. For example as of 2010, AADT on Hwy 63 north of Fort McMurray south of the Suncor access road was 20,330 vehicles, of which approximately 22% were commercial vehicles (Alberta Transportation 2010). Also, in 2010, the AADT on Hwy 69 east of Hwy 53 was 2,810. An increase of four to five vehicles per day over these amounts would be negligible and considered part of normal traffic variability. Table 17.6-5 provides more detail on recent traffic volumes on regional highways.

Table 17.6-5: Traffic Volumes on Regional Highways (2010)

Highway Location Description AADT (2010) 63 Hwy 63, S of 881 NW of Anzac 3,910 63 Hwy 63, 15.4 km N of 63 & 69 Fort McMurray 20,960 881 Hwy 881 E of 63 NW of Anzac 3,180 69 Hwy 69, 6.8 km E of Hwy 63 2,810 63 Hwy 63, S of Suncor access road 20,330 63 Hwy 63, N or Suncor access road 14,030 63 Hwy 63, 2.4 km N of Peter Lougheed Bridge 8,210 63 Hwy 63, S of Syncrude Aurora road 3,070 63 Hwy 63, N of Syncrude Aurora road 310 63 Hwy 63, S of Ft. McKay Access 9,120 63 Hwy 63, N of Ft. McKay Access 8,250

Source: Alberta Transportation 2010. The proposed increased lane capacity on Hwy 63 north of Fort McMurray (Government of Alberta 2008) and the development of the Clearwater Multi-user Access Road will further facilitate the movement of Project-related traffic through the region. Cenovus and its contractors plan to schedule construction-related traffic between shift changes to avoid periods when road congestion would be worst. With respect to moving oversize loads, Cenovus and its contractors will obtain the required permits and will coordinate its movements with other highway activities to ensure that impacts on other vehicles are minimized. No impacts are anticipated on the municipal airport in Fort McMurray or on regional railways, as Cenovus has no currently anticipated plans to utilize these transportation infrastructure services.


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Based on the low anticipated volume of Project-related traffic, the capacities of existing roads, provincial and private plans to expand road capacities in the region, and the use of mitigative strategies to schedule Project-related traffic movements to minimize impacts on existing traffic, the impacts of constructing the Project on transportation will be negative, low, regional, short-term, and continuous. The final impact will be low.

17.6.2.9 Regional Government Finances

Project construction would have no appreciable impacts on the finances of the RMWB, as property taxes would not be paid until such time as the Project is operating. Therefore, the impact direction will be neutral.

17.6.3 Operations Phase

17.6.3.1 Provincial Economic Impacts

It is estimated that about $423.4 million of the $440.6 million annual costs of operating the Project (96%) would be spent in Alberta. As shown in Table 17.6-6, it is expected that the balance ($14.1 million) would be spent to draw some of the Project workforce, and purchase some materials and services, from other parts of Canada. No foreign purchases would be required to operate the Project.

Table 17.6-6: Geographic Distribution of Annual Operating Expenditures

Cost Component SRSA Elsewhere in Alberta Elsewhere in Canada Total

Millions ($)

Percent (%)

Millions ($)

Percent (%)

Millions ($)

Percent (%)

Millions ($)

Direct labour 16.9 31 29.7 55 7.3 13 53.8 General and Administration Employees

0.0 0 20.0 100 0.0 0 20.0

Contractors 10.9 36 18.1 60 1.1 4 30.1 Maintenance 17.3 30 34.5 60 5.8 10 57.5 Materials and services 20.5 40 30.7 60 0.0 0 51.2 Chemicals 12.9 40 19.3 60 0.0 0 32.2 Fuel/Power/Utilities 189.2 100 0.0 0 0.0 0 189.2 Waste Disposal 5.3 80 1.3 20 0.0 0 6.6

Total 272.9 62 153.9 35 14.1 3 440.6

It is anticipated that 335 full-time employees will be required to directly operate and maintain the Project, including 215 Cenovus employees and 120 contractors. An additional 80 general and administrative staff would be located in Calgary. It is expected that about 90% of the Project staff will be from Alberta and the balance (10%) will be from other parts of Canada. Based on this information, it is possible to estimate the overall impacts of operating the Project on provincial employment, labour income and GDP, using information from the Alberta Economic Multipliers 2007. It should be noted that the labour multipliers reported for the oil and


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gas extraction industry are very high: about 3.04 indirect and induced person-years of employment are created for every direct person-year. This high multiplier partially reflects employment in the downstream petroleum industry, where crude oil is processed into a wide variety of refined products. While such high ratios may not be applicable if the heavy oil produced at the Project is exported for processing, rather than upgraded in Alberta, this analysis has adopted the standard multipliers for the oil and gas extraction industry. As shown in Table 17.6-7, operation of the Project is expected to generate a total of 1,100 jobs per year for Albertans, including 186 workers who would be directly employed at the Project site, 80 workers in Calgary and 115 contractors. Annual operating and maintenance expenditures of $423.4 million in Alberta will translate into about $435 million in Alberta GDP and generate $145 million per year in labour income.

Table 17.6-7: Annual Impacts of Project Operation on the Alberta Economy

Direct Indirect Induced Total Gross Domestic Product ($millions) 352 48 45 435 Employment (person-years) 381 330 387 1,100 Labour Income ($ millions) 96 27 22 145

Over time, additional wells will be drilled, completed, and connected to the complex by pipeline in order to continue operating at full capacity. The costs of ongoing drilling and completion activities are expected to average $150 million per year over 25 years. As assumed for the construction phase of the Project, 85% of on-going drilling operations will involve Alberta labour and resources. This translates into 195 jobs per year, with $48.2 million in labour income and benefits. The overall impacts of these activities can be estimated using information from the Alberta Economic Multipliers 2007 for the oil and gas extraction industry. The resulting impacts are shown in Table 17.6-8.

Table 17.6-8: Annual Impacts of Additional Drilling and Completions

Direct Indirect Induced Total Gross Domestic Product ($millions) 96 18 15 129 Employment (person-years) 195 115 150 460 Labour Income ($ millions) 48 11 9 68

When Project operation and ongoing drilling activities are combined, the annual effects of the Project will involve expenditures of $590 million per year for the first 37 years, with this dropping to $440 million for the final 3 years. Annual employment effects, including direct, indirect and induced employment, will amount to 1,560 jobs per year for the first 37years, dropping to 1,100 jobs per year for the final 3years of operation. Annual impacts on Alberta GDP will amount to $564 million per year for the first 37 years of operation and then drop to $435 million per year for the remaining 3 years of operation.


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Annual GDP of $564 million would amount to 0.2% of Alberta’s GDP in 2010 ($263.5 billion – see Section 17.5.4.2) and annual employment of 1,560 people would represent 0.1% of Alberta’s current (September 2011) employment (2.12 million workers). In the context of the overall Alberta economy, the annual impacts of operating the Project will be positive, low, provincial, long-term, and continuous. The final impact will be low.

17.6.3.2 Provincial Government Revenues

Royalties paid to the Province of Alberta over the life of the Project are estimated to be $8.2 billion,. Initial royalty payments will be quite small but will rise as the Project goes into full production and initial capital costs are recovered. In the future, royalty payments will follow a cyclical pattern as additional expenditures are required to bring new drilling pads into production. Alberta taxes over the life of the Project are anticipated to equal approximately $1.5 billion. In terms of potential impacts on Alberta Government revenues, the annual royalty payments from the Project will be positive but relatively small when compared to all provincial revenues sources. However, in absolute terms, the payment of $8.2 billion in royalties will be high in magnitude, positive, provincial, long-term, regular but variable. The final impact will be high.

17.6.3.3 Regional Employment and Income

The operation of the Project is projected to directly provide 335 full-time jobs, of which 215 are expected to be Cenovus employees and 120 are expected to be contractors. Operating staff will consist of professional engineers with annual wages ranging from $80,000 to $120,000; all levels of steam operators, trades people (millwrights, electricians, instrumentation technicians), and safety support personnel with annual wages ranging from $70,000 to $120,000, and labourers and administrative personnel with annual wages ranging from $40,000 to $60,000. Based on current understanding of labour qualifications for Project operations and the availability of skills in the regional workforce, it is estimated that 31% of staff and 36% of contract staff will be residents of the RMWB. This amounts to 110 people hired directly, including 65 staff and 45 contract workers. Indirect and induced employment is estimated to be the equivalent of 45 full-time jobs, based on the observation that the regional non-basic to basic employment ratio is 46% of the provincial non-basic to basic employment ratio. This also reflects annual purchases of $245 million in goods and services from businesses in the RMWB. Thus, Project operations are expected to generate a total of 155 full-time jobs for regional residents. This employment will result in about $30.9 million in annual labour income for regional residents, with average wages and benefits of about $199,500 per job. Ongoing drilling and completion activity will provide employment for another 10 residents of the RMWB, on the assumption that 5% of labour requirements will be sourced from within the SRSA. Indirect and induced employment associated with annual purchases of $4.7 million from businesses in the RMWB and consumer spending by local workers, will generate another five jobs. This employment will result in another $2.8 million per year in labour income.


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Thus, the operational phase of the Project, including additional drilling and completions, is expected to create 170 jobs per year for the first 25 years of the Project, dropping to 155 jobs for the remaining 15 years. The annual labour income generated by this employment will total $33.7 million during the first 25 years, and decreasing to $30.9 million for the final 15 years of production. The additional people directly employed to operate the Project, including drilling and completions will not reside in the region and will be transported to the job-site on a weekly basis. Staff will work 12 hours per day for seven days and then have seven days off. All staff will reside in camp while on the job-site, and only the regional residents directly or indirectly employed in operations will return to Fort McMurray or other regional communities when their shifts are completed. It is expected that Project operations will result in some new employment. Cenovus will continue to implement corporate strategies to enhance local employment during the operations phase of the Project. Although regional employment strategies have yet to be negotiated, and will depend on labour conditions in the region in 2019 and beyond, Cenovus is planning to provide training or other assistance to engage segments of the regional population that are either unemployed or underemployed. Potential groups include Aboriginal communities, recently retired, or people who are currently employed but could be trained for work at the Project site. In addition to providing training, Cenovus will consider other types of assistance, including transportation for workers living in remote communities. From a socio-economic perspective, the worst case scenario would occur if all the regional residents to be employed by Cenovus would otherwise be employed elsewhere in the region. While employment on the Project would benefit the individual workers by providing them with higher incomes than their other jobs, leaving their job to work at the Project could create vacancies. The net result of job displacement in a fully employed economy will be that 170 additional people will have to be added somewhere in the regional economy to offset the number of regional residents hired by Cenovus. In turn, this could increase the regional population and add to existing pressures on housing, services and infrastructure. Cenovus’s approach to maximizing regional benefits and minimizing negative impacts involves ongoing monitoring of conditions in the RMWB and working with local government agencies and training institutions to develop strategies for local training and hiring that will be most effective for the labour conditions that exist just prior to commencing operations. From the perspective of regional employment, the impacts of operating the Project will be both positive (i.e., contributing to economic growth) and negative (i.e., adding to regional labour shortages and contributing to wage inflation pressures), but low in magnitude. The 170 jobs for regional residents would represent 0.5% of the existing workforce in the SRSA. These employment impacts will be regional, long-term, and continuous over the operating period. Regardless of direction, the final impact will be low.


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17.6.3.4 Regional Population

While Project operations will add to the shadow population of the region, with 440 workers (including staff and contractors) commuting in and out of the camp, these people will not contribute to overall regional population change. Under the worst case scenario described above, 170 new jobs would be created in the region and require in-migration to fill them. Based on the most recent demographic characteristics of the region, and assuming that people moving into the region would have similar characteristics, 170 new jobs translates into 95 new households, and a population increase of about 275 people, including 200 adults and 95 children. Regional population forecasts suggest that the regional population will be over 230,000 by 2030 (an increase of approximately 125,662 people over 2010 population counts); therefore, the estimated population increase potentially associated with the Project would account for about 0.2% of this increase. As the population impacts will last for the duration of Project operations (as opposed to short-term construction impacts), the additional population will contribute to sustained long-term regional growth and will be positive, but low. The final impact will be low.

17.6.3.5 Regional Housing

The operations workforce will be housed in the on-site work camp. Current residents working on the Project will commute from their normal residences when on rotation. Non-resident workers are not expected to relocate to the region so there will be no requirements for additional housing in the SRSA in direct response to the Project. Under the worst case scenario, the addition of 170 new jobs in the region would generate demand for 95 new housing units. As discussed in Section 17.5.5, there are current government-led initiatives to respond to long-term regional housing needs, which are anticipated to meet any incremental growth in demand related to the Project. The Project (as Borealis) has already been considered in the population growth forecasts that are driving future housing plans. Cenovus will continue to monitor housing conditions in the region into the operations phase and may, where conditions warrant, work with the RMWB to help address any housing issues that are determined to be a direct result of the Project. Based on the very small regional population impacts associated with operating the Project, the existing initiatives underway to address housing issues in the region, and the commitment to monitor and address any housing issues directly related to the Project, the impacts on housing will be negative, low, regional, long-term, and continuous. The final impact will be low.

17.6.3.6 Regional Services

It is expected that the majority of the Project operational workforce will not place any additional demands on regional services. While on shift, workers will reside in the camp and they will have no direct contact with Fort McMurray or other communities in the RMWB. The camp will have its own recreation, health and security services, and will not allow alcohol or drug use. Once their


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shift has been completed, workers will return to their homes without passing through Fort McMurray. It is anticipated that workers will be flown in and out of the near-site industry aerodrome and transported to the site by bus. Under the worst case scenario, Project operations will result in 275 new regional residents. As regional services are being expanded to address expected population growth, of which the Cenovus operational workforce would comprise a small part, it is expected that the demands of the new regional residents would be very small and already largely accounted for in baseline trends. Additionally, Cenovus will monitor its demands on regional services through ongoing discussions with the RMWB and through its participation in OSDG, and may, where conditions warrant, work with the RMWB to help address any issues on regional services that are determined to be a direct result of the Project. For this reason, the impacts of operating the Project on regional services will be negative, low, regional, long-term, and continuous. The final impact will be low. 17.6.3.7 Regional Infrastructure While Cenovus has not identified the waste disposal facilities that it will use, long-term government infrastructure plans for the region anticipate expanding waste and water infrastructure in parallel with estimated bitumen production, in which the Project is included. As such, no incremental impact on regional waste management infrastructure is anticipated related directly to Project operations. Further, the majority of the operational workforce will be living in a self-contained camp and returning home between shifts, so they will not place any incremental demands on regional infrastructure. Under the worst case scenario, the introduction of up to 170 workers and their families to the region would add to demands for regional infrastructure. However, as discussed in Section 17.5.6, there are current plans for infrastructure expansion to account for major population increases, and the population increase of 275 people associated with operating the Project is a very small proportion of this expected population growth. For this reason, the overall impacts of operating the Project on regional infrastructure will be negative, low, regional, long-term, and continuous. Cenovus will monitor its demands on regional infrastructure through ongoing discussions with the RMWB and through participation in OSDG, and may, where conditions warrant, work with the RMWB to help address any issues on regional infrastructure that are determined to be a direct result of the Project. As a result, the final impact will be low. 17.6.3.8 Transportation Operation of the Project will have minimal impacts on the existing regional transportation system. The proposed plan is that operational workers will be flown into site by way of a near-site aerodrome so there will be very little Project-related passenger vehicle traffic on roads in and around Fort McMurray. Workers who are residents of the SRSA would be given the option of staying in camp or be transported by bus from Fort McMurray. The only ongoing fixed requirements for transportation relate to regular daily movements of camp and other supplies


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needed to support operations. Maintenance traffic will be limited to approximately 10 support vehicles per day (one-tonne trucks with tool capabilities). Support traffic for waste management and materials will be approximately 10 tractor/trailers per week. The impacts of adding 10 to 20 vehicles on a daily basis, plus the potential for small volumes of weekly worker transport buses to and from Fort McMurray, will be small because Hwy 63 north of Fort McMurray has been twinned to near Mildred Lake and has adequate capacity to accommodate the minimal additional traffic. The proposed development of the Clearwater Multi-user Access Road will further facilitate the movement of Project-related traffic through the region. Based on the low anticipated volumes of traffic, the capacities of existing roads and the potential use of mitigative strategies to schedule Project-related traffic movements to minimize impacts on future traffic flows, the impact of constructing the Project on transportation will be negative, low, regional, long-term, and continuous. The final impact will be low.

17.6.3.9 Regional Government Revenues

Cenovus expects to pay about $10.5 million per year in property taxes to the RMWB for the duration of Project operations. As noted in Section 17.5.13, total revenues for the RMWB in 2011 are estimated to be $529 million of which property taxes will amount to $442 million (84% of total municipal tax revenues). Thus, based on current rates of taxation, the property taxes that would be paid by Cenovus for the Project would account for 2.4% of all property taxes collected by the RMWB. For this reason, the Project’s impact on regional government revenues will be positive, low, regional, long-term, and continuous. The final impact will be low.

17.7 Planned Development Case

The standard practice in assessing potential Project impacts on socio-economic conditions is to evaluate Project-related impacts in the context of current conditions and future trends. This requires identifying other economic development activities that may occur in the region and assessing the incremental impacts that the Project may have. This approach, which is inherently a cumulative effects assessment, has been employed in assessing the potential Project impacts as described in Section 17.6.

17.8 Monitoring

Monitoring of regional socio-economic conditions is the key element of Cenovus’s approach to managing Project impacts on employment and any subsequent impacts on the regional population, housing, services and infrastructure. The social and economic environment of Fort McMurray and the RMWB is very dynamic, with many other projects initiating employment, training and other social and economic programs in the region between now and 2013 when construction of the Project is scheduled to commence.


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Given this uncertainty, Cenovus plans to continue to consult with regional residents, communities and governments during the period prior to 2013 to monitor changing conditions and to identify regional residents or groups or businesses that would otherwise be unemployed or underemployed and who, with appropriate training or other support, could be employed on the Project, either during construction or operation. Cenovus will also continue to consult with local service and enforcement agencies and the RMWB to identify any arising social or economic problems associated with other projects in the region and proactively work to prevent these problems from happening at the Project or to effectively address these problems if they do arise. These consultations will continue during both the construction and operation phases of the Project to ensure that regional benefits are maximized and any negative impacts are effectively mitigated. Cenovus will continue to be a member of regional multi-stakeholder initiatives such as CEMA and OSDG to ensure that a coordinated approach is taken to the minimization of socio-economic impacts.

17.9 Summary

17.9.1 Construction

Table 17.9-1 summarizes the potential socio-economic impacts of constructing the Project for each of the nine SEIs. Project impacts on three SEIs (provincial and regional employment and regional population) will be positive. Project impacts on regional housing, services, infrastructure and transportation will be negative (though low). Impacts on provincial and municipal government finances will be neutral.

Table 17.9-1: Summary of Project Impacts During Construction

However, in all cases these impacts will be low in magnitude because the impacts are small relative to current conditions or are within the range of variability expected in the RMWB over the construction period. All of the impacts will be short-term and continuous, lasting only for the initial construction period, although there will be some small ongoing and intermittent impacts associated with the development of additional well pads.

Socio-Economic Indicator Direction Geographic

Extent Magnitude Duration Frequency Confidence Final

Impact Rating

Provincial economy Positive Provincial Low Short-term Continuous Moderate Low Provincial government revenues Positive Provincial Low Short-term Continuous Moderate Low

Regional employment and income Positive Regional Low Short-term Continuous Moderate Low

Regional population Positive Regional Low Short-term Continuous Moderate Low Regional housing Negative Regional Low Short-term Continuous Moderate Low Regional services Negative Regional Low Short-term Continuous Moderate Low Regional infrastructure Negative Regional Low Short-term Continuous Moderate Low Transportation Negative Regional Low Short-term Continuous Moderate Low Regional government finances Neutral - - - - - -


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This assessment of Project impacts is based on knowledge of existing socio-economic conditions in the RMWB, expected population growth based on projections prepared by the RMWB that reflect the demands of other major proposed oil sands developments, and current plans for expanding regional services and infrastructure to meet these demands. Due to the amount of economic activity that has already occurred in the RMWB and the plans for future development, this part of Alberta has been more extensively studied than most parts of Alberta and there is generally a good understanding of the impacts that any new construction activities may have on the region. However, many external factors will ultimately determine the actual rate of development, so there will always be some uncertainty as to how socio-economic conditions in the region will change in the interval between now and when Project construction actually commences. In addition, the estimates of employment and population impacts are based on preliminary cost estimates that are considered accurate to -15 to +30%, and this uncertainty carries over into the predictions of Project impacts. Cenovus recognizes this uncertainty in both future regional conditions and potential Project impacts. It will continue to monitor conditions in the region through its membership in OSDG and has committed to ongoing communications with the RMWB for purposes of monitoring its impacts on the communities and to adjust its mitigation strategies to ensure that any negative impacts are minimized and regional benefits are maximized. As a result, there is moderate confidence in all of the predictions made in this assessment. The final impact rating for each of the SEIs is low, with the exception of Regional Government Finances, which has a neutral direction impact and is consequently not rated.

17.9.2 Operations

The potential socio-economic impacts of operating the Project are summarized for each of the nine SEIs in Table 17.9-2. Impacts on four of the SEIs are expected to be positive. The Project will benefit both the provincial and regional governments in terms of income generation through taxes and royalties. While total royalty payments will be relatively low compared to all provincial revenues, the payment of $8.2 billion in royalties over the total life of the Project is rated as “high” in absolute terms. Other provincial benefits include the following: employment and income created by Project operations; the small population growth that may occur as part of long-term sustained regional population growth; and revenue generation from the RMWB through Project property taxes. When viewed in the context of existing and future provincial economic activity and regional employment, revenues and population, all of these Project impacts will be low in magnitude.


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Table 17.9-2: Summary of Annual Project Impacts During Operation

Depending on how many regional residents are hired away from other jobs in the region or are otherwise unemployed, Project impacts on regional employment can be seen as positive and negative, but also low. While operational employment may result in some additional regional residents who would place additional demands on housing, services and infrastructure, these impacts are also concluded to be low. This conclusion is based on the observation that expansion of housing, services and infrastructure is currently planned in anticipation of significant population growth in the RMWB, of which the Project would account for a very small part. With the exception of Project impacts on provincial revenues, which has a high final impact rating, the final impact ratings for all other SEIs are expected to be low. As was the case for assessing the impacts of construction, there is considerable information on existing regional conditions and the potential impacts of Project operations. However, there is some uncertainty, given the rapid pace of development in the region, and that estimates of impacts are based on operational costs estimates that are accurate to -15% to +30%. Thus, there is moderate confidence in all of the predictions made in this assessment. To address this uncertainty and to ensure that any negative regional impacts are minimized and benefits and enhanced, Cenovus will continue to work with the RMWB and through OSDG to monitor potential impacts of its operations on the communities and to adjust its mitigation strategies as required.

17.10 Literature Cited

Aboriginal Affairs and Northern Development Canada (AANDC). 2011. First Nations Profiles. Available at: http://pse5-esd5.ainc-inac.gc.ca/fnp/Main/Search/SearchFN.aspx?lang=eng. Alberta Education. 2011. Available at: http://education.alberta.ca/. Accessed July 2011.

Alberta Education. 2011. Available at: http://education.alberta.ca/. Accessed 21 July 2011.

Valued Socio-Economic Indicator Direction Geographic

Extent Magnitude Duration Frequency Confidence Final

Impact Rating

Provincial economy Positive Provincial Low Long-term Continuous Moderate Low Provincial government revenues Positive Provincial High Long-term Continuous Moderate High Regional employment and income

Positive/ Negative Regional Low Long-term Continuous Moderate Low

Regional population Positive Regional Low Long-term Continuous Moderate Low Regional housing Negative Regional Low Long-term Continuous Moderate Low Regional services Negative Regional Low Long-term Continuous Moderate Low Regional infrastructure Negative Regional Low Long-term Continuous Moderate Low Transportation Negative Regional Low Long-term Continuous Moderate Low Regional government finances Positive Regional Low Long-term Continuous Moderate Low


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Alberta Finance and Enterprise. 2010. 2010 Alberta Spatial Price Survey. September 2010. Available at: http://www.albertacanada.com/documents/SP-CS_2010-alberta-spatial-price-survey.pdf. Accessed December 2011.

Alberta Finance and Enterprise. 2011a. Alberta Economic Multipliers, 2007. Available at: http://www.finance.alberta.ca/publications/statistics/index.html Accessed June, 2011.

Alberta Finance and Enterprise. 2011b. Inventory of Major Alberta Projects – September 2011. Via email from Alberta Finance and Enterprise Economic Development Department.

Alberta Health Services (AHS). 2011. Alberta Health Services. Available at: www.albertahealthservices.ca. Accessed December 2011.

Alberta Transportation. 2010. Traffic Count Publications. Available at: http://www.transportation.alberta.ca/3459.htm. Accessed December 2011.

Alberta Transportation. 2011. Projects. Available at: http://www.transportation.alberta.ca/projects/northeast.aspx. Accessed December 2011.

Canada Mortgage and Housing Corporation (CMHC). 2011. Rental Market Report – Alberta Highlights. Spring 2011. Available at: http://www.cmhc-schl.gc.ca/odpub/esub/64483/64483_2011_B01.pdf?lang=en. Accessed December 2011.

Canadian Energy Research Institute (CERI). 2011. Economic Impacts of Staged Development of Oil Sands Projects in Alberta (2010-2035). Accessed June 2011.

Cenovus Energy (Cenovus). 2011a. Corporate Responsibility Policy. Available at: http://www.cenovus.com/about/docs/CR.pdf. Accessed October 2011.

Cenovus Energy (Cenovus). 2011b. Aboriginal Relations. Available at: http://www.cenovus.com/responsibility/aboriginal-relations.html. Accessed October 2011.

Construction Sector Council (CSC). 2011. Construction Looking Forward, An assessment of labour markets from 2011-2019 for Alberta. Available at: http://www.csc-ca.org/en/catalog/labour-market-information/construction-forecast-reports. Accessed September 2011.

Demers, Lorraine. 2011. Personal Communication. Partnership Facilitator, Fort McMurray Public School District.

Devon Canada Corporation (Devon). 2007. Jackfish 2 Project Environmental Impact Assessment. Available form: http://environment.alberta.ca/02120.html. Accessed June 2011.


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Devon NEC Corporation (Devon). 2010. Devon Jackfish 3 Project, Volume 2 – Environmental impact Assessment. August 2010. Available form: http://environment.alberta.ca/03745.html. Accessed June 2011.

Diversified Transportation. 2010. Website. Available at: www.dtl.ca. Accessed August 2011.

Edmonton Journal. 2009. Province Unveils Fort McMurray. Available at: expanisionhtt://www.edmontonjournal.com/business/Sound+Fort+McMurray+expansion/2038209/story.html. Accessed October 2009.

Farkouh, Dianne. 2011. Personal Communication. Operations Manager, Oil Sands Developers Group.

Fort McMurray Airport. 2011. Expansion. Available at: http://flyfortmac.ca/AirportAuthority/Expansion.aspx. Accessed July 2011.

Fort McMurray Catholic Schools. 2011. About Us. Available at: http://www.fmcsd.ab.ca/about-us/ft-mcmurray-cath-schools. Accessed July 2011.

Fort McMurray Historical Society. 2003. Timeline. Available at: http://www.collections.ic.gc.ca/fortmc/home. Accessed December 2011.

Fort McMurray Public School District. 2011. About Us. Available at: http://fortmcmurraypsd.sharpschool.com/cms/One.aspx?portalId=4557255&pageId=6297504. Accessed July 2011.

Gagnon, Francois. 2011. Personal Communication. Superintendent Business and Finances, Fort McMurray Catholic School District.

Gillespie, L. 2006. Personal Communication. Aboriginal Education Advisor. Northland School Division No. 61.

Government of Alberta. 2007a. Cost of Living Allowances Extended to all Employees of Provincially Funded Organizations in Fort McMurray. Available at http://www.gov.ab.ca/home/NewsFrame.cfm?ReleaseID=/acn/200706/216964570EB55-F67F-68C4-FB42ABCC0BF98690.html. Accessed December 2011.

Government of Alberta. 2007b. Funding for Fort McMurray Helps Meet Urgent Needs Brought on by Oil Sands. Available at http://www.gov.ab.ca/acn/200702/21083FEE10ED0-02C5-4D66-36A829A8522FEDCE.html. Accessed December 2011.

Government of Alberta. 2008. Comprehensive Regional Infrastructure Sustainability Plan for the Athabasca Oil Sands Area. Available at: http://treasuryboard.alberta.ca/docs/AOSA_CRISP_Final.pdf. Accessed October 2011.


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Government of Alberta. 2010. Responsible Actions: A Plan for Alberta’s Oil Sands, Annual progress Report 2010. Available at: http://treasuryboard.alberta.ca/docs/Responsible_Actions_Progress_Report_2010.pdf. Accessed June 2011

Government of Alberta. 2011a. Employment and Immigration. June 2011. Available at: http://employment.alberta.ca/documents/LFS-June11-package.pdf. Accessed September 2011.

Government of Alberta. 2011b. Alberta Quick Economic Facts. May 2011. Available at: http://albertacanada.com/documents/SP-EH_AlbertaEconomicQuickFacts.pdf. Accessed June 2011.

Government of Alberta. 2011c. Wood Buffalo Update. Winter 2011. Available at: http://www.woodbuffalo.net/PDFs/WBEconomicUpdate2011Q2.pdf. Accessed December 2011.

Government of Alberta. 2011d. News Release (Funding for Municipal Infrastructure Remains Secure – March 3, 2011). Available at: http://alberta.ca/home/news.cfm. Accessed July 2011.

Government of Alberta. 2011e. Living in Fort McMurray. February 2011. Available at: http://www.oilsands.alberta.ca/FactSheets/FS-LivingInFtMac.pdf. Accessed December 2011.

Grant, Stephen. 2011. Personal Communication. Inspector, Royal Canadian Mounted Police, Wood Buffalo Detachment.

Guerin, Richard. 2011. Personal Communication. Rural Water Foreman, Regional Municipality of Wood Buffalo Utilities.

Guillamot, Jean Marc. 2011. Personal Communication. Director, Fort McMurray Hotel Group.

Hutchings, Joan. 2011. Personal Communication. Manager Corporate Administration, Wood Buffalo Housing & Development Corporation.

Indian and Northern Affairs Canada (INAC). 2005. 2004/2005 Year in Review Alberta Region. Available at: http://publications.gc.ca/collections/Collection/R1-11-2005E.pdf. Accessed December 2011.

Kahn, Fayyaz. 2011. Personal Communication. Transportation Engineer – Fort McMurray, Alberta Transportation.

Keyano College (Keyano). 2009. Yours, Mine, Ours – Aboriginal Education @ Keyano College. Available at: http://keyano.ca/media/keyano.viewbook.aboriginal.pdf. Accessed December 2011.


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Keyano College (Keyano). 2011. Keyano College. Available at: http://www.keyano.ca/. Accessed June 2011.

MacMillan, Greg. 2011. Personal Communication. Deputy Chief of Administration, Regional Municipality of Wood Buffalo Emergency Services.

Makia, Emmanuel. 2011. Personal Communication. Social Planning Supervisor, Regional Municipality of Wood Buffalo Community Services Department.

Mihan, Karina. 2011. Personal Communication. Economic Development Officer, Stakeholder Relations Department, Regional Municipality of Wood Buffalo.

Northeast Alberta Child and Family Services Authority. 2011. About Us. Available at: http://www.northeastalbertacfsa.gov.ab.ca/home/index.cfm. Accessed July 2011.

Northern Lights. 2007. Northern Lights Partnership Acquires Interest in Aerodrome Joint Venture. Available at: http://www.infomine.com/index/pr/PA532689.PDF. Accessed October 2011.

Nunee Health Authority. 2011. Nunee Health Authority. Available at: http://www.nunee.org/index.htm. Accessed December 2011.

Oil Sands Developers Group (OSDG). 2009. Oil sands Industry Overview. Presented by Jacob Irving, Executive Director OSDG to Fort McMurray Rotary Club on January 28, 2009.

Quinsey, Una. 2011. Personal Communication. Executive Associate, Alberta Health Services – North Zone.

Radke, D., L. Lyster, J. Flett and G. Haynes. 2006. Investing in Our Future: Responding to the Rapid Growth of Oil Sands Development. Available at http://www.gov.ab.ca/home/documents/Investing_in_our_Future_TofC.pdf. Accessed December 2011.

Regional Issues Working Group (RIWG). 2005. Wood Buffalo Business Case 2005. Available at http://www.oil sands.cc/pdfs/Wood%20Buffalo%20Business%20Case%202005.pdf. Accessed December 2011.

Regional Municipality of Wood Buffalo (RMWB). 2006. 2006 Municipal Census. Available at http://www.woodbuffalo.ab.ca/business/demographics/pdf/2006_census.pdf. Accessed December 2011.

Regional Municipality of Wood Buffalo (RMWB). 2010a. 2010 Municipal Census. Available at: http://www.woodbuffalo.ab.ca/Assets/Corporate/Census+Reports/2010+Municipal+Census.pdf. Accessed December 2011.


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Regional Municipality of Wood Buffalo (RMWB). 2010b. Economic Development Strategy. March 29, 2010. Available at: http://www.woodbuffalo.ab.ca/Assets/Departments/Stakeholder+Relations/Economic+Development/pdf/2010+-+2014+Economic+Development+Strategy.pdf. Accessed December 2011.

Regional Municipality of Wood Buffalo (RMWB). 2010c. Wood Buffalo Regional Business Inventory and Gap Analysis 2010. Available at: http://www.woodbuffalo.ab.ca/Assets/Departments/Stakeholder+Relations/Economic+Development/pdf/Business+Inventory+Gap+Analysis+2010.pdf. Accessed December 2011.

Regional Municipality of Wood Buffalo (RMWB). 2010d. 2011 Budget. Available at: http://www.woodbuffalo.ab.ca/Assets/Departments/Financial+Services/pdf/2011+Municipal+Budget.pdf. Accessed December 2011.

Regional Municipality of Wood Buffalo (RMWB). 2011a. What’s the Big Idea Wood Buffalo? Available at: http://www.bigideawoodbuffalo.ca/The-Plan.htm. Accessed July 2011.

Regional Municipality of Wood Buffalo (RMWB). 2011b. Social Services. Available at: http://www.woodbuffalo.ab.ca/living_2227/Newcomers/Getting-Help-in-Wood-Buffalo/Social-Services.htm. Accessed December 2011.

Regional Municipality of Wood Buffalo (RMWB). 2011c. Municipal Development Plan (Public Draft , August 23 2011). Available at: http://www.woodbuffalo.ab.ca/Assets/MDP+Assets/Draft_MDP/Draft+Printable.pdf. Accessed December 2011.

Shell Canada Limited. 2002. Jackpine Mine – Phase 1: Vol. 7, Socio-Economic Impact Assessment. Available from: http://www.ceaa.gc.ca/050/05/documents-eng.cfm?evaluation=59540 Accessed June 2011.

Statistics Canada. 2002. 2001 Census, Community Profiles. Available at http://www.statcan.ca/english. Accessed December 2011.

Statistics Canada. 2007a. 2006 Census, Community Profiles. Available at http://www.statcan.ca/english. Accessed December 2011.

Statistics Canada. 2007b. 2006 Census Aboriginal Population Profiles. Available at: http://www12.statcan.ca/census-recensement/2006/dp-pd/prof/92-594/index.cfm?Lang=E. Accessed December 2011.

Suncor Energy. 2011. East Athabasca Highway. Available at: http://sustainability.suncor.com/2011/en/responsible/3635.aspx. Accessed October 2011.


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Thomas, Russell. 2011. Personal Communication. Director of Marketing and Communications, Keyano College, Fort McMurray, Alberta.

Villeux, George. 2011. Personal Communication. Finance Officer, Greater North Central Francophone Education Region.

Wightman, D. 2006. Personal Communication. CEO, Fort McMurray Regional Airport.

Wood Buffalo Primary Care Network (WBPCN). 2011. Wood Buffalo Primary Care Network. Available at: www.wbpcn.ca. Accessed December 2011.

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