The tiny hamlet of Conklin, a Métis community in the heart of the next wave of oil-sands development in northern Alberta, is signing an historic deal Wednesday that marks a new chapter in the relationship between the oil-sands industry and aboriginal communities.

The deal with Cenovus Energy Inc. will give the 300 members of the community benefits worth an estimated $40-million to $60-million over 40 years tied to the growth of oil production from nearby projects - a form of royalty because the more the company produces, the higher the benefits.

The agreement - the details of which Cenovus wants to keep secret, but the community wants to tell everyone about - marks a major win for aboriginal communities seeking to reap long-term benefits from escalating oil-sands activity that is impacting their environment and way of life.

Making aboriginals find common ground with oil-sands companies and their aggressive plans for growth helps both sides to move away from their traditional adversarial relationship.

While the right thing to do, at issue is the impact on the rest of the oil industry, which is bracing for a domino effect that could be costly and unpredictable.

Eoin Treacy's view The appetite for resource exploration and the development of green field sites took a blow during the credit crisis as liquidity evaporated. However, with the mining sector regaining confidence and money pouring into small caps, it is in miners interests to ensure local communities are supportive of their operations. Profit share agreements seem a sensible way of keeping local people on side provided they do not impact margins too onerously.

Cenovus Energy has performed in line with the oil price, posting a progression of higher reaction lows since early last year. It found support near $34 last week and a sustained move below that level would be required to question potential for some additional upside.