Business
Shell and Fort McKay sign innovative land agreement
Shell and Fort McKay sign innovative land agreement.
About this update from Mapath Capital Corp
[{"type":"text","content":"\n\n\n\n\nCALGARY and FORT MCKAY, AB, April 19 /CNW/ - Shell Canada Limited and\nFort McKay First Nation today announced that they have entered into an\nagreement that outlines an exchange of options to acquire oil sands leases,\nspecifically Shell's Lease 90 and Fort McKay oil sands lands received as part\nof its treaty land claim settlement.\nThis innovative agreement recognizes the right and interest of Fort McKay\nFirst Nation to commercialize land received under its treaty land claim\nsettlement by leasing it to Shell for potential incorporation into the\nAthabasca Oil Sands Project (AOSP), and receiving royalty payments on\nproduction. At the same time, the agreement facilitates the First Nation's\nentry into the oil sands business through an option to acquire and work with\nShell on the development of Lease 90.\n\"A lease of Fort McKay First Nation's land will be an excellent addition\nto our long-term business plan,\" said Clive Mather, Shell Canada's President &\nCEO. \"While additional work with government is still to be done, this\nagreement has the potential to return real value to both Shell and Fort McKay\nfor many years to come.\"\n\"As an owner of oil sands lands and several oil sands service businesses,\nFort McKay has a strong position in the oil sands today,\" said Fort McKay\nFirst Nation Chief Jim Boucher. \"We are currently evaluating our options to\nparticipate with Shell in the development of Lease 90 and have agreed to grant\nShell an option to lease part of our treaty land for development.\n\"We are excited about the possibility of becoming an oil sands developer\nin our own right and in our own way for the benefit of our community.\"\nFort McKay's Lease 90 development plans will be based on project\neconomics and integration with the existing Muskeg River Mine. SNC Lavalin has\nbeen contracted to conduct initial front-end engineering work on which a cost\nestimate can be made. Lease development models under consideration range from\nFort McKay providing mining services on Lease 90 to Fort McKay owning Lease 90\nand managing the oil sands process from mining through to bitumen extraction\nand land reclamation.\n\"We take a balanced view of development and know the effects development\nhas on the land and our traditional way of life,\" said Chief Boucher.\n\"However, development is occurring and from...