Abstract:

Most organisations tend to characterise the "sensitive environment" as that of the biophysical domain. In the case of sour gas1 exploration and development bordering a major urban centre, the City of Calgary, Canada, the sensitivities Nexen Inc. faced were in the social, political, and economic impact of a rapidly encroaching urban and rural population.

Since the early 1990's Nexen has continued its leadership role in establishing meaningful consultation in the face of unprecedented confrontation. Efforts have extended far beyond local regulatory requirements and are producing consistent win/win relationships.

As Nexen's drilling and production on Calgary's urban fringe evolved over a decade ago, so did the Community's concern for the potential of hazards and perceived health and safety risks often associated with sour gas development activities. With escalating opposition and growing community tension around increased sour gas extraction operations, the communities in NE Calgary became progressively more frustrated. Their relationship with the Company was pushed to the near-breaking point. Recognising that a cumbersome regulatory process for adjudicating development would further deteriorate this already fragile relationship, Nexen developed and successfully implemented a voluntary process for public consultation and engagement that embodied the principles of "Open, Honest and Transparent Communication". These principles are embodied in the "International Code of Ethics for Canadian Business" and this remains today, key to many of the successes that Nexen has enjoyed through effective and engaging consultation.

As Nexen looks to the future of public involvement, we are guided by our vision of being leaders in public consultation; encouraging community and industry to see the mutual advantage that comes from meaningful, collaborative relationships.

Introduction:

This paper explores the basic principles and supporting strategies for effective participative community consultation, which build upon the many opportunities, pitfalls, challenges, and successes that Nexen Inc. has experienced in this challenging "sensitive" operating environment over the past 40 years.

Bringing Value to In the 1970's the energy crisis brought North America to realise the urgent need for expanded the Surface: resource exploration. In the 1980's, protection of the environment took centre stage and a more tempered approach to resource development was appropriate in the shadow of events that BLOCK 1 - - FORUM 6 529

CONSULTATION VS. CONFRONTATION: BUILDING PARTICIPATIVE PARTNERSHIPS WITH COMMUNITIES AND STAKEHOLDERS

included Bhopal and the Exxon Valdez. In the 1990's climate change, biodiversity and global warming emerged as the issue

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