Participant Funding Program Review Committee's Report - Aboriginal Funding Envelope
Funding Review Committee's Report
Prosperity Copper-Gold Mine Project

Allocation of Funding for Participation in Phase IV of the Environmental Assessment Process

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

A Funding Review Committee (FRC) was established, independent from the environmental assessment of the Prosperity Copper-Gold Mine Project (the Project) being conducted by means of a federal review panel, to assess the funding applications received under the PFP-AFE for Phase IV of the EA for the Project, and to recommend funding allocations to the applicants. A total of $185,500 was made available by the Canadian Environmental Assessment Agency (the Agency) under the PFP-AFE to enable Aboriginal applicants to participate in phase IV of the EA process, specifically to enable Aboriginal groups to participate in consultation activities relative to the panel report. PFP-AFE funding had previously been made available for Aboriginal groups to participate in Phases II and III of the EA process (see below).

On June 14 and 15, 2010, the FRC met to review the three applications received. The FRC members were Mr. Paul Scott, retired Regional Director of the Agency's Pacific and Yukon Office, acting as Committee Chairperson; Mr. Ray Crook, Environmental Assessment Consultant; and Dr. George Kupfer, Environmental and Socio-Economic consultant.

Background

Taseko Mines Limited (the Proponent) is proposing to develop a high volume open pit gold-copper mine to be located 125 km southwest of Williams Lake, British Columbia. In addition to the mine and associated tailings and waste rock areas, the project includes an onsite mill, an approximately 125 km long power transmission line corridor and an access road. The proposed project would have a production capacity of greater than 75,000 tonnes per year of mineral ore.

In January 2009, the Agency informed Aboriginal groups of the availability of funding through the PFP–AFE for Phases II and III of the EA process - the public review of the EIS (Phase II) and preparation for and input to the panel hearings (Phase III). Phase IV of the EA, which is the subject of this second round of AFE funding, is the final phase of the EA, and provides an opportunity for Aboriginal groups to review and comment on the panel report. Under the first phase of AFE funding, four applications were received requesting a total of $914,443.50. Based on the recommendations of the earlier FRC, the Agency allocated a total of $ 470,400 to the four applicants.

On May 28, 2010, notification letters were sent to the three Aboriginal groups that were still participating in the EA process to inform them of the funding that would be made available for Phase IV of the EA process. Under the PFP-AFE, approved activities for this phase of the EA process are:

• review of the panel report;
• consultation meetings both within the communities of the applicants and with the Crown on the panel report; and
• forwarding of a written submission to the Agency.

The consultation process at this phase is specifically intended to address the following questions:

• Has the panel report accurately reflected the concerns brought forward during the earlier phases of the EA?
• Do the mitigation measures in the panel report address these concerns?
• Are there any outstanding issues?

Eligibility

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

To be eligible for funding, applicants must demonstrate that they meet one of the following eligibility criteria. They must:

• have a direct, local interest in the Project, such as a residence in the area or historical or cultural ties to the area likely to be affected by the Project; or
• have community knowledge or Aboriginal traditional knowledge relevant to the environmental assessment; or
• have expert information relevant to the anticipated environmental effects of the Project.

The FRC concluded that all three applicants met the above eligibility criteria.

Under the PFP-AFE, applicants can request funding for eligible costs related to:

• Professional fees;
• Staff salaries and benefits;
• Travel expenses;
• Honoraria for Elders and Chiefs to attend meetings and functions;
• Ceremonial offerings related to receiving traditional knowledge;
• Administration and reporting;
• Other expenses related to local collection and distribution of information;
• Office supplies and telephone charges;
• Rental of office space and meeting rooms;
• Legal fees;
• General media and advertising and promotion;
• Purchase of information material; and
• Other detailed expenses, with supporting information.

Rationale for Allocation

The three applications reviewed by the FRC requested a total of $824,066.66. The FRC was advised by the PFP that the budget available for allocation was $185,500. Since the purpose of AFE funding at Phase IV of the EA process is to support Aboriginal group review and consultation with the Crown on the panel report, the FRC understood that relevant EA process activities that would be eligible for funding include:

1. Panel Report Review: Reviewing the panel report to determine:
   1. If the panel report accurately reflects the concerns of the First Nations that were brought forward during earlier phases of the EA;
   2. If the mitigation measures discussed in the panel report address the concerns that First Nations brought forward during earlier phases of the EA; and
   3. If there are any outstanding issues not adequately addressed in the panel report.
2. Aboriginal Consultation Activities: Preparing for and participating in consultation meetings within the Aboriginal communities and community activities associated with the review of the panel report, particularly as they relate to the questions in 1. a., 1.b., and 1.c.; and
3. Written Submission on the panel report: Comments on the panel report and on any outstanding issue in relation to 1.a. and 1.b.in the form of a written submission to the Agency.
4. Meetings Between the Agency and Aboriginal Groups.

The FRC recommends that any funding agreement entered into between an Aboriginal group and the Agency should contain a clause making a written submission from the Aboriginal group to the Agency on the panel report a condition of funding.

After reviewing the applications, the FRC noted that some of the activities proposed by some of the applicants were outside the scope of Phase IV of the EA process. For this reason, and in view of the amount of AFE funds made available by the Agency, the FRC recommends that the work plans and budgets for each of the applicants be reduced accordingly.

Recommendation

The FRC recommends that a total of $185,500 be awarded to the three applicants.

Participant Funding Program Funding Review Committee
Aboriginal Funding Envelope – EA Process Phase IV

Prosperity Copper-Gold Mine Project

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

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Mr. Ray Crook, Environmental Assessment Consultant

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Dr. George Kupfer, Environmental and Socio-Economic Consultant

Recommended Participant Funding Awards
Aboriginal Funding Envelope – Phase II

Prosperity Copper-Gold Mine Project

Applicants	FRC's Recommended Awards
Esketemc First Nation	$ 50,000
T'silhqot'in National Government	$ 100,000
Canoe Creek Indian Band	$ 35,500
Total	$ 185,500