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economic matters. But if somebody introduces the societal matters, it's much more difficult," says Abraham. Some provinces, though, are addressing that issue. Last year, the B.C. government announced it would be involved in revenue sharing with First Nations, but details on how that would occur and who would provide the revenue were scant. A release from the B.C. Ministry of Energy Mines and posals in areas with competing claims. "B.C. is by far the major problem. It's a complete mess. It's nobody's fault. It's not been resolved yet." Theoretically, Garrett says, it's the federal Department of Indian and Northern Affairs which is supposed to have a trustee rela- tionship between First Nations and is mandated to arbitrate their interests. He calls the rules for engaging First Nations, "Byzantine." However, he does have ways around the issue. "As counsel to a mining company, we try to iden- tify the most influential people and the most important people in an area. We Fear and emotion beat science and fact every day of the week. — BRIAN ABRAHAM, Fraser Milner Casgrain LLP Petroleum Resources said the indus- try was clear First Nations need to be included in the revenue stream. AMEBC, however, noted the revenue sharing would come from provincial taxation revenue once mines are opera- tional. Abraham says the concept itself is simple. "Carrying it out is going to be very difficult," he adds. He says there will undoubtedly be problems as bands with mining interests could find themselves having to share the pot of cash with other First Nations without mining interests. "You're going to find the bands themselves fighting about this revenue," adds Abraham. "In theory, it's like Santa Claus. We all like Santa Claus, but someone's got to pay for him." But, says Abraham, the industry has gone out of its way to resolve First Nations' concerns "because you need community and First Nation support" for mining projects. "There's a sense out there that the First Nations have an effective veto over development in the process," Abraham says. "It's not a de jure veto; it's a de facto veto." Abraham and Garrett are both con- cerned about conflicting land claims. Garrett says counsel spend a lot of time building consensus around pro- sit down with them and make it their problem to bring other people into the loop." The B.C. government seems to have picked up on the process. In early April, Victoria and the Stk'emlupsemc of the Secwepemc Nation as represented by the Tk'emlúps (formerly Kamloops) Indian Band and the Skeetchestn Indian Band signed a mining and minerals agree- ment with a view to increasing clarity in the consultation process by clearly defining timelines, creating guidelines, and establishing regular meetings. The federal government, as well as indus- try sector groups like AMEBC, do have guidelines and toolkits for assist- ing those starting to work with First Nations negotiations. It's timelines, however, that are part of the shifting sands between the pro- vincial and federal mining approval processes that the industry wants resolved. Dirom says jurisdictions like B.C., Saskatchewan, and the Yukon have legislated timelines for approval processes while the federal level has none. So, says Dirom, groups such as AMEBC have successfully advocated for the establishment of a major project management office in Ottawa under the watch of a deputy minister at Natural Resources Canada. "They can be the go-to people in Ottawa," he says. "These folks are charged with the responsibility to move [projects] through the process, to get it right through the system. In this climate of economic downturn, we need to be more efficient." While Ottawa may be starting to fall into line on regulatory streamlining, MiningWatch Canada claims the fed- eral government is walking a fine line as it promotes "shovel-ready" projects in attempts to stimulate the economy. The pitfall, MiningWatch points out, is that prospects for a sustainable economy could be damaged in the process. And that's something the industry wants to avoid. Garrett says the careful money now is on mining operations that are look- ing at the life of operations up to, and including, environmental clean- ups in post-operational phases. "People just don't decide to start until they're comfortable now," he says. "If you're a responsible miner, you're going to self- regulate." And that's where the smart money will go, Garrett says. "You're valued for your beliefs and your alleged beliefs anywhere in the world. That's a perfect self-regulator." It's a situation that might work in Quebec. While the province is touted as one of the world's most important mining jurisdictions, a provincial audi- tor general's report released April 3 says despite production values in the millions, little is being paid in royal- ties, and the government and Quebec citizens are being left with massive liabilities. Garrett says in situations such as that, it's ultimately the market that will make the hard choices in new projects. "The legacies of environmental cleanup means people are very careful when they look at a project." Dirom adds it's now incumbent on companies and jurisdictions to ensure they build, sup- port, and take responsibility for busi- ness decisions. "It's a new century and a lot of investors are looking for projects they can feel good about," Dirom says. "That just makes good business sense. It's reflected in investor relations. It's a safer, less risky undertaking." IH INHOUSE JUNE 2009 • 33