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implemented, the James Smith Cree Nation, the Peter Chapman Cree Nation, and the Chakastapaysin Band of the Cree Nation will be partners with the two large investors, Brookfield and North American construction giant Peter Kiewit Sons Co. The three bands of the James Smith Cree Nation will be equity partners, involved in the devel- opment and ownership of a long-life power asset and providing a sustainable benefit stream for future generations, according to Brookfield. Getting to that partnership wasn't always easy, says Bood. There were a lot of negotiations, and the juggling act wasn't just between the companies and the bands. "Talking to the First Nations also involved how to best approach that [situation] from a political and govern- mental relationship perspective. At the same time, we had to be sensitive to the relationship among the Cree as well, because when you are involving more than one [group], they always have their own dynamic, concerns, and issues that they want to make sure are met." On the technical side, there was also a lot of dialogue between the company and the First Nations on whether the project would ultimately be on reserve land or what location in the river would be best. Internal discussions also focused on the project's term sheet, which is a summary of the key terms to be expand- ed later on in a contract. In-house law- yers played an important role in these negotiations, says Bood. "Probably in the past there was more outside counsel advising on this, but because of it being a much more prevalent issue, especially if your business brings you regularly in contact with First Nations issues, it's a legal skill and understanding that you develop in-house that you might not have otherwise." She adds some discussions for other projects didn't come to fruition when the First Nations wanted a different approach to the relationship — things like money upfront or guaranteed royalty arrangement rather than a partnership that would depend on the prospect of the development like the one set up at the Pehonan Hydroelectric Project, which if completed will be a 250-megawatt facility to be located on the Saskatchewan River. The project's proponents say its devel- opment would increase Saskatchewan's installed renewable generation capacity with proven clean technology that reduc- es greenhouse gas emissions. Should the project proceed to the construction stage, a partnership between Kiewit and the three First Nations will engineer, pro- cure, and construct the project. Devel- opment of the project would increase Saskatchewan's installed renewable gen- eration capacity by approximately 250 megawatts. In other places, where things haven't worked out, it is easy to be entangled in pitfalls that often include misunder- for permission or partnership to devel- op. It goes the other way too. As was the case with Weather Dancer 1, other Aboriginal Peoples have been able to successfully build projects with First Nations-owned corporations that have then set up contracts to sell the energy to the grid. One of the largest of these is the Umbata Falls Generating Station, a two-unit, run-of-river hydroelectric generating facility that has the capacity to generate 25 megawatts of electric- ity. It is located on the White River, approximately 330 kilometres east of Thunder Bay, Ont. The station was developed by Innergex Renewable Energy Inc. for Begetekong Power Corp., the general partner of Umbata Falls LP. Begetekong is majority-owned by the Ojibways of the Pic River First Nation and holds It's important to take the time to establish a posi- tive relationship. It's one of the key features with dealing with First Nations that you need to get community engagement. It can be a more involved process than simply negotiating with a commercial organization. Patience is sometimes what it takes. RON STUBER, Fraser Milner Casgrain LLP standing of the impact of the project and not appreciating the benefits, adds Stuber. "I think it's important to take the time to carefully explain and . . . provide as much information as possi- ble within the bounds of confidentiality to try to avoid any misunderstanding, because misunderstandings can lead to difficulties when First Nations may not be aware of the entire commercial nature of the problem," he says. "So I think as much as possible disclosure is important, if you want to avoid mis- trust." Developing renewable energy proj- ects is not always a one-way street with companies approaching First Nations the majority of shares of Umbata, with the remainder owned by Innergex. The plant is connected to the existing Hydro One Inc. feed into the Ontario electricity market administered by the Independent Electricity System Opera- tor, according to the Ontario Power Authority. Ventures like Umbata Falls were suc- cessful because through First Nations' vested interest in them, they were pushed forward, navigating through dif- fering regulations at different adminis- trative levels. Although the project was not on reserve land, the First Nation in the area was able to develop the site through extending its rights to the Pic INHOUSE AUGUST 2010 • 29