UPDATE May 15: In a lengthy press release issued early this morning Obsidian Energy, which had thus far declined meaningful comment, described the situation as a “commercial dispute” with the Woodland Cree, accusing them of making “misleading statements” and “attempting to coerce us.” 

The aggressively worded release claims the blockade is a response to a lost service contract, and amounts to a shakedown attempt. American CEO Stephen Loukas is quoted saying “it is currently difficult to see a clear path to a negotiated resolution of our commercial dispute with the WCFN.” 

Loukas goes on to threaten legal action and civil litigation over lost revenue and shut-in production — although the release does not mention the legal action they have already taken that is reported in this story. The company describes the land in question as Crown land, and does not mention that it is the traditional territory of the Woodland Cree, or that the land was never surrendered to the Crown by the nation. Treaty 8 territory spans three provinces and a portion of the Northwest Territories, and is home to 39 First Nation communities, including 23 nations in Alberta. It has been stewarded by WCFN and governed by Indigenous law for generations.

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May 14: Facing escalating opposition to a drilling project in northern Alberta, an oil and gas company is seeking the arrest and jailing of a Cree chief who has refused to allow the development to proceed on his nation’s territory.

The Woodland Cree First Nation set up a new blockade earlier this month to prevent Obsidian Energy employees from accessing a drill site in Woodland Cree traditional territory near Peace River, after notifying the company last week that its expansion plan had been rejected by chief and council.

Obsidian Energy obtained an injunction on May 6 against Woodland Cree First Nation and people occupying the blockade camp. The First Nation has denounced the company’s “intimidation tactics,” calling the company’s conduct “the worst we’ve ever seen.” 

In the face of growing opposition, Obsidian CEO Steven Loukas flew into the area for scheduled talks with the Woodland Cree on Monday. In the conference room of a Peace River hotel, Loukas and others from Obsidian sat down with Chief Isaac Laboucan-Avirom, council members and a lawyer for the nation.

Within minutes, those talks broke down, and the Woodland Cree delegation stormed out of the meeting.

RCMP officers were then seen going in and out of the room where Obsidian staff remained, presumably trying to facilitate a return to the negotiating table. A short time later Woodland Cree Councillor Joe Whitehead Jr. and the nation’s lawyer returned, without Chief Laboucan-Avirom. They departed again after about five minutes. 

While exiting the hotel, Laboucan-Avirom told Ricochet and IndigiNews that Obsidian “had no intent to negotiate.” Meanwhile, Loukas left through a back door, offering only “Rangers in six!” — an unprompted reference to the ongoing Stanley Cup playoffs — when asked for comment. Requests for comment directed to Obsidian’s corporate offices did not receive a response by publication time. 

Shortly after 1 p.m., within an hour of talks breaking down, the Woodland Cree received an email indicating that the company intended to take legal action against the First Nation and ask the court to order the Chief’s arrest. 

That request was filed in court today. The company is asking a judge to find the Woodland Cree First Nation and Chief Laboucan-Avirom in contempt of court for violating the injunction. The company is also asking the court to issue an arrest warrant for Chief Laboucan-Avirom and other members of the nation, and hold them in jail until the blockade is removed. 

The application, filed in a Calgary court on Tuesday and obtained by Ricochet and IndigiNews, alleges that the blockaders are “obstructing Obsidian’s lawfully permitted activities and causing loss and damage to Obsidian.”

Among other requests, the company is seeking “an order directing that the respondents [members of the Woodland Cree Nation present at the blockade] and Chief Isaac Laboucan-Avirom be placed into custody” and held until the blockade is removed. 

The court filing alleges that “the RCMP are unwilling to enforce this Honourable Court’s order, and have indicated that they have no plans to enforce.” 

RCMP officers have been present at the blockade but a liaison told IndigiNews and Ricochet that at this point they have no plans to enforce the injunction, instead preferring to facilitate “peaceful negotiations” between the two parties.

Obsidian are asking the court to order the RCMP to forego those efforts, enforce the injunction and start making arrests. 

Nation wants fair deal and control over their territory

Chief Laboucan-Avirom said he wants his nation to have a fair share of the profits Obsidian is making by extracting oil from Woodland Cree traditional territories. 

“If I get arrested for sticking up for our lands, sticking up for our treaty, sticking up for what we believe in,” said Chief Laboucan-Avirom in an interview earlier this week, “I think that will be a shame on the province, on the country, and on industry. We’re more sophisticated than that, and we’re here to stay. This is our traditional lands, this is our backyard.

It shouldn’t have gone this far… we need to develop a process that works for everyone. And that process needs to be within the AER system, and the ACO system.” 

He also cites concerns over a series of earthquakes, which the Alberta Energy Regulator found Obsidian caused in the area by disposing of industrial wastewater underground. One of the earthquakes was the largest recorded in Alberta’s history, with a local magnitude of 5.6. Chief Laboucan-Avirom is also seeking adequate consultation and input on environmental standards applied to Obsidian’s operations.

Obsidian, meanwhile, alleged in its latest filing that negotiations broke down because the Woodland Cree First Nation’s proposed terms would create “a monopoly in its favour” which the company cannot grant because it has partnered with other First Nations in the area.

In a press release issued Monday, WCFN said it has the support of “a growing number of First Nations in Alberta” in its fight against Obsidian Energy, and many have now joined their protest camp.

They listed nine First Nations groups which they said are now flying solidarity flags, and another six First Nations that have issued coordinated letters of support. 

“We know WCFN as a very respectful and pro-business Nation and were shocked to hear of the business practices and tactics being employed by Obsidian towards the WCFN,” reads a joint statement from supporting First Nations.

“If a company is allowed to do that out there, what is stopping them from treating other Nations the same way? What message does that send to Industry in their own backyard? If permitted to continue, what does this say about the integrity of the regulatory processes in our province?”

Laboucan-Avirom added in a brief interview with Ricochet and IndigiNews that, “There was definitely no offer and attempt to negotiate.”

“That is unfortunate. Why waste a lot of time and anticipation?” he said. “Hopefully, there’s some quick resolve. I always want to have quick solutions, where it’s a win-win for everybody.”

An unusually large blockade

Approximately 100 Woodland Cree, surrounding First Nations members and even allied industry partners are occupying the blockade set up in the style of a traditional Cree camp along the Walrus industry road about 40 minutes east of Peace River, a key access route for Obsidian’s work operations. Vehicles and heavy equipment line both sides of the gravel industry road, along with a teepee, mobile kitchen, porta potties and lawn chairs. Elders are transported in by bus daily where they visit, play cards, swap stories, and offer support to elected leadership. Nearby, youth cut and hung to dry fresh moose harvested from the territory over a smoldering fire.

Chief Laboucan-Avirom said the Woodland Cree were forced out of their traditional territories decades ago because oil was discovered there. The band was eventually made to settle on allotted reserve sites, but have never abandoned their original homeland and still utilize it for ceremony, hunting, trapping, fishing and development. 

“We want to continue to enhance our understanding of what’s going on because there’s also cumulative impacts and effects that surround us, whether it’s from pipeline spills, produced water spills, earthquakes, forest fire, drought. We want to control what’s in our backyard,” said Laboucan-Avirom.

The Woodland Cree first informed the AER in February that Obsidian cannot move forward with its drilling expansion plans on their land. Obsidian, based in Calgary, currently produces around 31,000 barrels of oil equivalent per day, with about 20 percent of its output coming from assets in the Peace River region, some of which are situated within Woodland Cree territory. Obsidian aims to boost production by 12 per cent this year, with a focus on the Peace River area. Chief Laboucan-Avirom said CEO Stephen Loukas and Obsidian have not fulfilled the necessary legal requirements to proceed with development on their territory.

“I feel the manipulation, especially as a chief. If they want to sustain development, they have to work with us in a meaningful way. It might be a lack of understanding. If you have an American company that does business in a certain way,” said Laboucan-Avirom, adding CEO Loukas, who is based in the United States, may not understand the importance of working with Indigenous Peoples.

The chief stressed the Woodland Cree aren’t anti-industry. They have extensive partnerships with surrounding industries and operate resource extraction activities via the band-owned Woodland Cree Industries Ltd.

Ultimately, they’re looking for Obsidian to demonstrate due diligence towards the Indigenous territories they’re making money from, he said. Though Obsidian Energy’s head office is in Calgary, WCFN says the company is being run by people based in Greenwich, Connecticut.

“To me, Treaty is a very strong word that has to be respected because a treaty is nation to nation. It holds sovereignty and holds certain privileges that are maintained even in the court.

We’re willing to stay on the land for as long as it takes. And I know I’m getting support from other nations across this country.”