Balancing Extractive Industries and Indigenous Communities: BG Group Experience

1. Extractive Industries and Indigenous Peoples BG Group experience of operating in areas of IPs Hugh Attwater, Social Performance Manager 4 December 2008

2. BG Group • Integrated gas major: • FTSE top 10 company • Market capitalisation ~£30bn • 5 000 employees; 65% outside UK • Gas and Oil: • Production approximately 70% gas; 30% oil • Active across the entire gas chain from source field to market

3. Norway UK Canada Kazakhstan Italy Israel / PA USA India Oman China Tunisia Thailand Algeria Libya Philippines Trinidad & Tobago Malaysia Egypt Nigeria Singapore Brazil Bolivia Uruguay Chile Argentina Madagascar Australia Countries of current operation Active in 27 countries

4. Canada India Bolivia Australia Operating in areas of IPs

5. BG Group SP Standard and Guidelines • Socio-economic Baseline • Impact Assessment • Consultation • Involuntary Resettlement • Indigenous Peoples • Cultural Heritage • Social Investment • Social Performance Plans • Mngt, integration & metrics Understanding the context Managing impacts, risks and opportunities Rigorous processes Closely linked to IFC Performance Standards

6. BG Group SP Standard, section 5: Indigenous Peoples and Vulnerable Groups • BG Group guidelines linked to IFC PS7 • Identifying IPs and seeking to avoid impacts • Ascertaining whether a particular group is considered indigenous may require technical judgement • Scheduled Tribes, Aboriginals, First Nations, Native Americans etc. • Understanding the scale and nature of IP issues • Defining informal land rights and natural resource ownership • Host country legislation / gap analysis against requirements of IFC PS7 • Appointing experts to develop and Indigenous Peoples Plan (IPP) • Consultation, good faith negotiation and partnerships • Develop, implement, monitor IPP • Independent review of consultation process, impact management measures, compensation and benefits package, plus commentary on degree of IPs support and consent

7. 2007 – 08 exploration activity in Colville Hills, Fort Hope, NWT K’asho Gotine Charter Community agreement for 2D seismic survey Winter drilling 2008 – 09 requires more extensive agreements: Land Access Agreement $$ sum negotiated Impact management agreed Benefits Agreement K’asho Gotine Fund established Employment, training, capacity building, infrastructure and community development initiatives agreed Canada – NWT exploration

8. Australia – Queensland Curtis LNG • 1993 Native Title Act • Ethnographic / cultural heritage studies underway • 8 Native Title parties identified • Indigenous Land Use Agreements (ILUAs) • ‘One project’ principle • ‘As if’ principle • Benefits to be negotiated • QCLNG Project Fund proposed • Quantum terms to be determined

9. Bolivia – Chaco Region gas production • Weenhayek IPs territory • Annual benefits agreements negotiated • Challenging political context • Constitutional reform • 2005 Hydrocarbons Law • Pro-autonomy / pro-Morales tensions • BG Bolivia Palo Marcado project • Test case for new requirements on consultation and participation

10. Summary • Consultation • Early identification of IPs; early engagement • Baseline / ethnography / expert input to ensure full representation • FPIC through good faith negotiations resulting in life-of-project benefits • Life-of-project benefits agreements – no ‘one size fits all’ • How are they negotiated • Setting the quantum / value • How are the benefits divided • Capacity building for those benefitting • What’s the role of the government? • Factoring in sustainability and flexibility? • Dispute resolution • Accessible, responsive, scaled to meet needs of project and communities • Use of third parties • Access to legal remedies maintained