PROTECTED B - TAG6415 AUTHORIZATION FOR THE APPOINTMENT OF A MINISTER'S SPECIAL REPRESENTATIVE FOR THE COMPREHENSIVE REVIEW OF THE OPERATIONS OF THE CANADA PETROLEUM RESOURCES ACT IN THE ARCTIC OFFSHORE Box Decision by the Minister DATE: July 10, 2015 [ SUMMARY + On June 29, 2015, you directed the Department to prepare the necessary documents | for the appointment of Mr. Rowland Harrison as a Minister's Special Representative to conduct a comprehensive review of the operations of the Canada Petroleum Resources Act in the Arctic offshore ‘+ Based on your direction and departmental discussions with Mr. Harrison, the review of the Act would include a draft report by October 1, 2015, a final report by March 15, 2016 and engagement with Aboriginal, industry and other key stakeholders. + Retired member of the National Energy Board, Mr. Rowland Harrison, has been identified as a distinguished practitioner and scholar of Canada’s energy regulatory regime. Having held a leading role in the development and enactment of the Canada Petroleum Resources Act and the Canada Oil and Gas Operations Act, Mr. Harrison. | is uniquely qualified to undertake the review. ‘+ Mr. Harrison has been contacted by the Department, he is interested and available in taking on this role, and he agrees with the proposed fees. ‘© Current industry activities are occurring within the Inuvialuit settlement region. A | critical component of the analysis is to seek the views of the Inuvialuit, in addition to other relevant stakeholders, taking into account the rights issued under the Canada Petroleum Resources Act. RECOMMENDATION * That you confirm the appointment of Mr. Rowland Harrison as a Minister's Special Representative, by signing the "Authorization for the appointment of a new contract __ federal negotiator/representative, attached as Annex E. Deputy Minister/ Associate Deputy Minister: Lis. w, concur | do not concur | wish to discuss further Minister DatedoS-0F- (0 000007PROTECTED B ~ TAG6415 MPIRIDING Leona Aglukkaq/Nunavut Ryan Leef"Yukon Dennis Bevington/NWT ANNEXES: Annex A: Rationale for Appointing a Contract Federal Negotiator/Representative and Justification for an Exemption from the Requirement to Solicit Bids Annex B: Selection Criteria for a Contract Federal Negotiator/Representative (CFN) ‘Annex C: List of Candidates and Biographical Notes Annex D: Fee Proposal ‘Annex E: Authorization for the appointment of a new Contract Federal Negotiator/Representative (CFN) Annex F: Letter of Appointment Annex G: Letter of notice to the other parties to the process NewnsHs45-7PROTECTED B - TAG6415 ANNEX A. RATIONALE FOR APPOINTING A CONTRACT FEDERAL NEGOTIATOR/REPRESENTATIVE (CFN) AND JUSTIFICATION FOR AN EXEMPTION FROM THE REQUIREMENT TO SOLICIT BIDS. RATIONALE FOR APPOINTING A CFI INSTEAD OF A FEDERAL PUBLIC SERVANT ‘Check [2 ail of the following conditions that apply to the appointment being considered: Lack of in-house expertise: © _ Lack of internal human resources; CO Acriticalivotatile situation; C1 Apressing emergency as defined in Treasury Board contracting directives; g@ Oo Q (a) Political sensitivity: unwillingness on the part of the Aboriginal group to deal with the federal bureaucracy or assurances sought by the Aboriginal leadership that the MSR will have ease of access to the Minister's Office Political sensitivity: a need to establish federal credibility or commitment when dealing with other levels of government and/or third parties who may have an interest in the claim or process; For comprehensive land claims, a customary practice of appointing a CFN at the Agreement Principle or Final Agreement stage of negotiations where the Annual Table Review has assessed the file as being either productive or challenging in most instances; Other: (Please specify) JUSTIFICATION FOR AN EXEMPTION FROM THE REQUIREMENT To SoLICIT BIOS {A justification for an exemption from the requirement to solicit bids is required in all instances where the Department intends to make use of its Exceptional Contracting Limits Authority (ECLA) to retain the services of a chief federal negotiator of claims, self-government and litigation negotiations by means of a non-competitive contract Does this appointment contemplate the use of the Department's ECLA? Check [X) one: 0 No & Yes It yes, check [3] both boxes below and insert details, where indicated. ‘Specialized Skills: The position of a Minister's Special Representative for comprehensive review [Of the operations of the Canada Petroleum Resources Act in Canada's Arctic requites an individual with 2 special combination of skills, knowiedge and/or experience. Mr. Rowland Harrison meets all of the selection criteria associated with this work as described in Annex B to this document. Highly Sensitive or Confidential Issues: The purchase of consulting services involving issues or matters of a highly sensitive, confidential or privileged nature (e.9. Cabinet mandates) and the [disclosure of those matters through an open tendering process may reasonably be expected to ‘compromise government confidentiality or privilege, cause economic disruption or otherwise be contrary to public (including third party commercial or proprietary interest and competitive advantage) interest ‘000009PROTECTED B ~ TAG6415 ANNEX B SELECTION CRITERIA FOR A CONTRACT FEDERAL NEGOTIATOR/REPRESENTATIVE (CFN) Fue Tme: Type of File: Check [2] only one of the following that apply: @ a Group 1: Claim (comprehensive, specie or special), SeH-Government, Implementation, Outot-Court Settement, Other Process: OR Group 2: cricaivetetie Sivation (Hot Spot inctuding a Pressing Emergency as defined in Treasury Board contracting regulations GROUP 1 SELECTION CRITERIA “Check [all CFN selection enitria that apply to above File: ~ SBO800000 0 ase Knowedge of Aborginal another stakeholder groups incved inthe ise, Knowledge of locaton o history oft fle Knowledge of federal andor provincia err decision-making process: Soin natena oregon usr erate dees a acre re resin egoiaions: Proven experiance a¢ an effective “geal closer ‘Acquired experience in developing a strong viable relationship withthe partes to caimidepute Experience in negotiating wih Aboriginal groups Experience in eadng a negotiation team Experience m media and public relation: Experience in resolving compen. high role or poliicalysanstve ives Experience in handing pressing emergencies Previous expefence in one or more of DIANO's business lines (exource management), Cer criteria: Knowledge ofthe Noth and develuton process. GROUP 2 SELECTION CRITERIA “Check [all CFN selection crtria that apply fo above File: ESSENTIAL CRITERIA Capacity, abit and expenence n negotiating dificuit issves as a professional Proven experience as an effective geal closer” or “problem solver Experience in detering, mitgatng or handing cticavolatlestuations Experience in resolving complex, hgh rote or poliialy sensive Issues; Experience in lacing 2 negotiation team. “To __Exerience i negotiating with Aboriginal groups: ao a Success natinal or exjonal experiance in aerate disput resoluton and achieving postive angie results in negotiations Experience in developing a stong and viable relationship withthe partes oa claim or dispute, VALUE-ADDED CRITERIA oO ooo0o0 Knowledge of Aboriginal and other stakehalser groups inoved inthe iss! Knowledge of location or history of he fe Knowledge of federal andlor provincial: eto decision-making processes: Experience i media and publ relations: Provius in-depth experience n one or more ofthe Daparment's negotiation business ines (@ 9. comprehensive claims, Specie clams specal clams, mplementavon agreements, sot government agreements, ligaton abeyance apreements and exploratory aecussions with store Westy groups). 000010s.19(1) PROTECTED B - TAG6415. ANNEX C LIST OF CANDIDATES Rowland J. Harrison, Q.C. Postal Address. CompanyName = Business Address ia ‘As above cic number ‘Steet name! Tow or iy rownce or Teron, Postal Coe Prone number E-mal andor wobste FaxNumber | Name Postal Address cv umber ‘Sreet name! Town o City Province ox Tettony Postcode | Prone number Emat Fexcumber | Preneruerhe2)——_—_Webito Phone number (be) (CompanyName Business Address | ve number ‘Sveet name! Town or iy! Province or Tertony PostCode | Prone umber emai andr website FaxNumber 000011Pages 12 to/a15 are withheld pursuant to section sont retenues en vertu de l'article 19(1) of the Access to Information Act de la Loi sur I'accés a l'information8.19(1) PROTECTED B - TAG6415 ANNEX D FEE PROPOSAL Fle: Comprehensive Review of Operations of the Canada Petroleum Resources Actin the Arctic Offshore a Naw OF THE MSR | Rowland Harrison Title: Ministers Special Represeriative PERIOD: From, Juy 10, 2075 To: March 31, 2016 ‘Base FEE PER HOUR: STEGORIES OF FEE ey Fee OIFERENTAL ADJUSTMENT FACTORS RANGE + Pojeat aly to Be of maior raion a> trots) nfwinin an elablaned wort plan (8 able Saye pe month). + root iy tobe shore < mont), tensive. 912 Die Sys per mon wih no extabished wok plan and with Satvraios ft arte seni — «+ Projects aniopated be) n otcal dosing mode sage. & AY CORTe) “Agreement-in-Principle or Final Agreement), requires significant $0.00) oe ae time commiment (.e.>12 billable days per month), with ‘SUPPLY) nna conraor conto ove" work Ban. $50.00 + nee sppeabl, nate fie equ a widely recognized Inca ha postive pubic tle ard ois nigh ‘Scmand by med privat sect, nie ro sector andor gowmmen “> GFN's frst assignment with AANDC. 2 Grtinasexprence more hen 1 AANDC busines ne (0. Seite ta gation reson} sonst to cry mare han fi a be oros cried ae for more an 2 years {nds oveved foverable anual perfomance repos + Cr¥nacsucceasy cones amar agrementin te past Track RECORD AND |" {einsing of an Agreomentan-PancplearFira Aareenen) RELIABILITY (VALUE | win oproved federal mandates, FOR MONEY), $40.00 + Eagioratoy aisessionaTooautatans Ramen negotiations vein {pry toa dtm or popes COMPLEXITY AND |. Exploratory discussions/consutations or framework negotiations DEGREE OF ‘eine pores os am or proposal ch moy nouae nto” CHALLENGE (FILE | Goverment or tergovernmentl consuaons. hedre + Restate poser Sen 68 aseete im orton cope and pect CONSIDERATIONS) |, Negotiation of a complex issue or claim thats broad in scope, Cernplosy ara impacto 9 comprhonsve cm or No.of partes and mar | Government agreement, devoltenarangemens). he + Negotiation of a complex set of issues or claims that are, or hae be penal fo become, Mighty plbzed or iigous, Nojandsezpeotteieal | Seti ense mada an te pry seve ard may aft . ‘Canada's strategic interests. SGornmediormchan” | , Gracie susan eng cn cna, chide, agree “reporting and recommendations to Minister. sudectinpaciy | * Presng emergency stator erehass on omnutectinee,. |" feenanananment ar pare oe emsoe Se re '+ Consideration as to whether the CFN is the Minister's primary ee {ct represeratve) or ecandoy (senor reprsenatve), epee required ofa | sPP0htmen wissen 0000168.19(1) PROTECTED B - TAG6415 ANNEX D a 7 GA ell onpioved or has home based business 1 GEN is retained trough a leal, ams-lenath fm or operates 3 loeal law corporation. COverHeaD — | + GrNisretaned rough a major regional or national tw frm or} $0.00 CONSIDERATIONS | consultancy: we 5.00 TOTAL FEE PER HOUR: 000017PROTECTED B - TAG6415 ANNEX E AUTHORIZATION FOR THE APPOINTMENT OF A NEW CONTRACT FEDERAL NEGOTIATOR/REPRESENTATIVE (CFN) fb Appointment of a new CFN | File Name: ‘Comprehensive Review of the Operations of Canada Petroleum Resources Act in the Arctic Offshore holders; tertorial governments; federal government Tappoitment Period From: July 10,2015 To. March3t, 2016 Name of CFN: Rowland Harrison Tie Minister's Special Representative Director General Stephen Traynor Sector! NAO | Representative: Branch: Ministers Offce Contact Greg McFarlane Tite: Chief of Stott [f..BacKanouno: 41.4 File Background! ‘The Canada Petroleum Resources Act governs the allocation of rights to explore and develop petroleum resources on frontier lands, the administration of these rights and the setting of royalties on production, The Act was enacted following a change in federal energy policy direction in 1985, which established a market-oriented regime. Since then, internal reviews and industry stakeholders have identified changes to the regime, which ‘merit consideration, the implementation of which would require either legislative amendment or ‘change in federal policy Cn its 30" anniversary, the offshore oil and gas regime warrants a comprehensive study to ensure that it remains competitive globally and that it continues fo provide a firm basis for achieving Canada’s energy policy objectives in the Arctic offshore. Retaining the services of an independent external advisor would be prudent, primarily due to the specialized nature of the Act and the value of having a regulatory law expert undertake the analysis. 1.2. Stalus of Negotiation Services ~ At Start of Contract: ‘This represents the first time which the department has contracted with Mr. Rowand Harrison for services. eee WA FE onsen ‘To conduct a review of the Canada Petroleum Resources Act to assess whether it continues to provide an effective framework for regulating interests in northern petroleum exploration, development and production in furtherance of Canada's energy policy objectives. 000018PROTECTED B - TAG6415 ANNEX E ‘3. SCOPE OF WoRK: 3.1 The Contractor shall perform the following core roles to the satisfaction of the Project Authority: 3.1.1 Lead specific interventions when political issues arise; 3.12 Lead federal consultations with third parties when sensitive issues are expected to be discussed; 3.1.3 In consultation withthe federal team, provide strategic advice to the Minister and senior departmental management; 3.4.4 Provide strategic advice to the federal team; 3.4.5 Attend meetings at key times when highly sensitive issues are discussed andlor when important messages have to be delivered to the other parties; 3.1.6 Meet with Aboriginal and territorial government officials or leadership as well as other relevant stakeholders, taking into account the rights issued under the Canada Petroleum Resources Act, to seek views; and 3.1.7 Actas the federal spokesperson for enquires from the media, in consultation with the Minister's office and/or the Communications Branch of the Department of Aboriginal ‘Affairs and Northern Development Canada, when so mandated under the terms of the Contract. 3.2 The Contractor shall perform the following specific roles according to the file and to the satisfaction of the Project Authority: 321 Prepare a report that examines key legisation, regulation, policy and contractual arrangemenis that comprise the Northern oll and gas regime; 3.22 Assessment ofthe Act's contribution to achieving the original policy intent ofthe Government of Canada 3.23 Analysis by comparison tothe equivalent regimes of international jurisdictions with petroleum activities in comparable environments (to the extent direct comparisons are possible); 3.24 Communicate and engage directly with Aboriginal communities, stakeholders and other interested partes, taking into account the interests of rights holders under relevant sef- {government and comprehensive land claim agreements, 325 _ Give consideration to changes to the ol and gas management regime and recommendations, including potential legslaive arrendments in Support of Canada's interests in oll and gas matters in the Arctic. 3.26 Draft report: the analysis and recommendation should focus on the length of licence issue and potential associated issues ina fist drat report to be submitted by October 1, 2015. Engagement should focus on parties with an interest in the Beaufort Sea 3.27 Second report: the analysis and engagement should include all the other provisions of the Canada Petroleum Resources Act and the recommendations on the potential changes. 3.2.8 Geoaraphic Scope: This study is directed at frontier lands under the responsibilty ofthe Minister of Aboriginal Affairs and Northern Development Canada, with an initial focus on the Beaufort Sea. ‘4. OUTPUTIDELIVERABLES: 4.1 Barring circumstances beyond the control of the parties to this Agreement, deliver: 4.4.4 Acraft report respecting issues relating to the length of exploration license term under the Canada Petroleum Resources Act, o be delivered to the department by October 1, 2015, 41.2 Asecond report, with recommendation, respecting potentially comprehensive changes to the Canada Petroleum Resources Act, to be delivered to the department by March 15, 2016 4.2 Upon request of the Project Authority, submit short writen reports on: meetings, summaries of Member of Parliament briefings, media interviews and enquiries from key stakeholders in the quantities, formats and on the deliverable dates specified; 00019PROTECTED B ~ TAG6415 ANNEX E 4.3 Upon request ofthe Project Authory, provide proposed key accomplishments and plans for the next month inthe writen monthly activity report; 4.4 Provide monthly invoices which include 4.4.4 Memized monthly activity reports indicating numbers of hours spent daily on each activity - such as person(s) consulted, meetings attended, me spent on travel status, research and preparation work undertaken, negotiating sessions conducted and reports written; 4.42 A summary of eligible expenses and accompanying receints; and, 4.5 When requested by the Project Authority, complete and submit a federal negotiator or representative performance report ~ Paft 1, Contractor's Self-Evaluation on Results to Date, as part of annual table review process. |B: DepartwewraL SuPPoRT: 5.1 The Project Authority sha: 5.1.4 provide relevant background material on the Canada Petroleum Resources Act o the Contractor end access to requited departmental documents: 5.1.2 provide claims, self-government or other relevant policy material, briefings and ongoing policy support. @s required, throughout the discussions and access to those individuals with whom consultation is required: 5.1.3 provide the Contractor with a copy ofthe Indian and Northem Affairs Canada Media Relations Poly and Procedures; and 514 provide a ‘Letter of Introduction" tothe Contractor, a8 required, to be used for identifying Fimselt to third parties for fact-finding and other engagement activites and for obtaining ‘government rates where they are offered individuals or firms working for the Government of Canada under contract. {6. Lookme Bevono Tue Next ConTRACT: ‘The engagement process with stakeholders, along with the analysis developed by the Contractor, may suggest that further engagement or review is required. [T-awncwareo Scueoute: “The Contractor will determine an appropriate schedule of meetings with stakeholders to support the reports required as deliverables on October 1, 2015, and on March 15, 2016, 13, Previous GFN: NA [9. REVIEW oF CFN PERFORMANCE: NIA 10. PROPOSED CONTRACT PERIOD: If approved, the contract will be in effect for the period of July 10, 2015 to March 31, 2016, 000020s.19(1) PROTECTED B ~ TAG6415, ANNEX E 11, CURRENT AND PROPOSED EXPENDITURES: 11.1 Expenditures to Date on the File: . 11.11 Current CEN Expenditure to date onthe fle {Fees: $0.00 al ter: Mati el action ms sth 88 g999 11.1.2 AILCEN Expenditures since July 16, 2002 (Wracking date of previous ECLA’ CFN's ramets} ——— a a0 ‘Other: Atiowoble Expenses (rave, accommodation, meals, hosptaly b> g9. 09 contracts, GST, mscefaneout, ete) Total cumulative CFNs expenditures on the file: (Fees. rave g9.99 accommodation, meas, ospally, subcontracts, GST. miscellaneous. et) 11.2. Proposed Expenditures: Payment for the satisfactory performance of the work during the proposed period of this contract (or contract renewal) shall be based on the following: 11.2.1. For work involving discussions, negotiations, consultations and meetings, review of materials, drafting of documents and related travel time. Billing shall be based on a fixed per diem of ver documented day. Where the time. worked is less than a day, the ‘charge will be on an hour by hour basis at the rate of er documented hour to a maximum of | yours per day. 11.2.2. Reasonable actual expenses for travel, accommodation, meals, sub-contracting, hospitality, miscellaneous and GST incurred by the Contractor as may be authorized by the Project Authority. 11.2.3 The above expenditures are subject to applicable annual and cumulative exceptional contracting limits, as set by the Treasury Board of Canada Secretariat * Exceptional Contracing Limits Authonty 000021PROTECTED B - TAG6415 ANNEX E [;2 racer FoR SOU TREO 1 EOE BE Letter of Appointment Bd Letter of Notice to other Paty or Parties tothe Process. Verba or written nottication by the program only, i required Xf APPROVED NOT APPROVED rd Valcourt, PC, QC, MP 20/5-9 FO Date 000225.19(1) PROTECTED B - TAG6415 ANNEX F LETTER OF APPOINTMENT sub 19 705 Mr. Rowland Harrison, QC 222 Bridle Estates Road SW CALGARY AB T2Y 0G1 Dear Mr. Harrison: | am pleased to appoint you as a Minister's Special Representative to conduct a ‘comprehensive review of the operations of the Canada Petroleum Resources Act, to ‘engage with Aboriginal groups, stakeholders and other interested parties as appropriate, and to provide recommendations as to whether potential amendments should be made to the Act as it applies to the Arctic offshore. This appointment is effective from July 10, 2015 to March 31, 2016, at hourly rate of toa maximum of {© per !i-hour day. For further information on your appointment and contract, please contact Mr. Stephen M. Van Dine, Assistant Deputy Minister, Northern Affairs Organization, at 819-953-3760 or my Chief of Staff, Mr. Greg McFarlane at 819-997-0002. Iwish you every success in your undertaking. Sincerely, Bemard Valcourt, PC, QC, MP 000023PROTECTED B - TAG6415 ANNEX G LETTERS OF NOTICE TO THE OTHER PARTIES TO THE PROCESS UE 19 705 Ms. Nellie Cournoyea Chair and Chief Executive Officer Inuvialuit Regional Corporation Bag Service 21 INUVIK NT XOE 0TO Dear Ms. Cournoyea: Further to my letter of January 20, 2015, | am pleased to inform you that I have appointed Mr. Rowland Harrison, QC, as a Minister's Special Representative to conduct a comprehensive review of the operations of the Canada Petroleum Resources Act as it applies to the Arctic offshore. Mr. Harrison has extensive relevant background and experience. Formerly a member of the National Energy Board, Mr. Harrison also had a leading role in the development and enactment of the Act as well as the Canada Oil and Gas Operations Act. | am confident that this appointment will provide me with informed advice as to whether the Act ‘continues to provide a firm basis for achieving Canada's energy policy objectives, and to ensure that your perspective is taken into account. Sincerely, Bernard Valcourt, PC, QC, MPPROTECTED B - TAG6415, ANNEX G LETTERS OF NOTICE TO THE OTHER PARTIES TO THE PROCESS Bet 19 2015 Mr. Rich M. Kruger Mr. Stephen Willis Chairman, President and CEO BP Regional President, Canada Imperial Oil Limited BP Canada Energy Group ULC 237-4" Avenue SW 240 — 4" Avenue SW CALGARY AB T2P 3M9 CALGARY AB T2P 2H8 Dear Sirs: Further to my letter of March 17, 2015, | am pleased to inform you that | have appointed Mr. Rowland Harrison, QC, as a Minister's Special Representative to conduct a comprehensive review of the operations of the Canada Petroleum Resources Act as it applies to the Arctic offshore. Mr. Harrison has extensive relevant background and experience. Formerly a member of the National Energy Board, Mr. Harrison also had a leading role in the development and ‘enactment of the Act, as well as the Canada Oil and Gas Operations Act. | am confident that this appointment will provide me with informed advice as to whether the Act continues to provide a firm basis for achieving Canada’s energy policy objectives, and, to ensure that your perspective, and that of other stakeholders, is taken into account. Sincerely, Bernard Valcourt, PC, QC, MP Be: 000025PROTECTED B - TAG6415 ANNEX G LETTERS OF NOTICE TO THE OTHER PARTIES TO THE PROCESS wur 19 708 ‘The Honourable Darrell Pasloski, MLA Premier of Yukon Yukon Government Building PO Box 2703 WHITEHORSE YT Y1A 2C6 Dear Premier: {am pleased to inform you that | have appointed Mr, Rowland Harrison, QC, as a Minister's Special Representative to conduct a comprehensive review of the operations of the Canada Petroleum Resources Act as it applies to the Arctic offshore. Mr. Harrison has extensive relevant background and experience. Formerly a member of the National Energy Board, Mr. Harrison also had a leading role in the development and enactment of the Act as well as the Canada Oil and Gas Operations Act. | am confident that this appointment will provide me with informed advice as to whether the Act continues to provide a firm basis for achieving Canada's energy policy objectives, and, to ensure that your perspective, and that of other stakeholders, is taken into account. Sincerely, Berard Valcourt, PC, QC, MP 000026PROTECTED B - TAG6416 ANNEX G LETTERS OF NOTICE TO THE OTHER PARTIES TO THE PROCESS ut 19 705 ‘The Honourable Bob McLeod, MLA Government of the Northwest Territories PO Box 1320 YELLOWKNIFE NT X1A 2L9 Dear Premier: | am pleased to inform you that | have appointed Mr. Rowland Harrison, QC, as a Minister's Special Representative to conduct a comprehensive review of the operations of the Canada Petroleum Resources Act as it applies to the Arotic offshore. Mr. Harrison has extensive relevant background and experience. Formerly a member of the National Energy Board, Mr. Harrison also had a leading role in the development and enactment of the Act as well as the Canada Oil and Gas Operations Act. | am confident that this appointment will provide me with informed advice as to whether the Act continues to provide a firm basis for achieving Canada’s energy policy objectives, and, to ensure that your perspective, and that of other stakeholders, is taken into account. Sincerely, Berard Valcourt, PC, QC, MP 000027