Northern Alberta First Nation reject applications from Obsidian Energy for more drilling, blocks road

A northern Alberta First Nation has blocked access to a worksite owned by Obsidian Energy Ltd. OBE-T after the community rejected the company’s application to expand drilling operations on its traditional territory.

The current standoff between Obsidian and Woodland Cree First Nation started on the weekend, when about 60 members of the First Nation descended on a road that leads to a company site. It is the latest escalation in simmering tensions between the two parties, which have traded barbs through public statements over the past few months.

Obsidian is active in the region and wants to increase its footprint, but last year it was slapped with an environmental protection order for causing earthquakes with its oil sands operations. But Woodland Cree Chief Isaac Laboucan-Avirom says Obsidian has done little to improve its operations since then.

In an interview Tuesday, Mr. Laboucan-Avirom said Obsidian staff and executives have routinely acted without integrity or understanding as the company seeks to expand its operations, making it impossible to negotiate.

“We appreciate doing good business,” Mr. Laboucan-Avirom said. “We just feel like we’re being exploited.”

Obsidian secured a court injunction against members of Woodland Cree on Monday, ordering them to cease blocking access to the site. A video shared with The Globe and Mail showed Mr. Laboucan-Avirom burning the paper in a small firepit at the blockade.

The chief said he expects members of the First Nation will stay at the site until they get certainty around negotiations with the company.

The Alberta government is offering to facilitate a meeting between the two parties. Callum Reid, press secretary for Indigenous Relations Minister Rick Wilson, said in an e-mail that the province is monitoring the situation closely.

“It’s our hope the two parties can resolve this issue quickly,” Mr. Reid said.

Woodland Cree has traditionally been extremely friendly to resource development. But Mr. Laboucan-Avirom said Obsidian has shown little regard for the First Nation and is affecting local businesses in its failure to hire contractors from the region or show respect to the community. He also said there has also been a lack of concern around environmental stewardship.

Obsidian said it had no comment when reached by phone on Tuesday.

In a February statement, however, it said it was complying with the Alberta Energy Regulator’s environmental protection order by establishing seismic monitoring and analyzing data at its operations near Peace River. But it still disputed the regulator’s findings that its operations caused an earthquake.

Stephen Loukas, Obsidian’s chief executive officer, said at the time that the company had reached a negotiating impasse with Woodland Cree’s senior leadership.

Mr. Loukas said the First Nation was pursuing “unrealistic terms that amount to a monopolistic relationship” as the sole provider of services already provided by other companies.

“In addition to limiting our ability to operate independently in the area, their proposal is not beneficial to our stakeholders, including our shareholders, local communities and other Indigenous groups,” he said.

Corporal Mathew Howell, a public information officer with the RCMP, confirmed that members of the Peace River detachment were at the blockade site as of Tuesday afternoon talking to protesters and Obsidian representatives to try and find a peaceful solution to the standoff.

“As of right now, there has been no enforcement,” he said. “It’s really just been talks and trying to facilitate communication between both parties.”