Feldman told members of a parliamentary committee that the agency could lose 43 per cent of its annual budget and may have to lay off one-third of its staff, at a time when the country is facing a huge surge in major projects in mining, oil and gas and forestry.

"What I'm told is there is up to $500 billion of potential new investments in Canadian natural resource projects in the coming years, and if that is the right figure the agency is going to be very busy," said Feldman.

The Canadian Environmental Assessment Agency reviews a wide range of projects that fall under federal jurisdiction, use federal money or take place on federal land. The projects include mining, hydro, oil and gas projects. The agency's mandate is to make sure that projects don't harm the environment.

The federal government increased the agency's budget in 2007 and again in 2010 to help keep up with the surge in new applications for resource projects. But Feldman told the committee the money runs out at the end of this fiscal year.

"Part of that funding does include money for aboriginal consultation," Feldman said, adding, "We don't know if the... funds will be renewed ... we will just have to wait and see."

The Canadian Government has recently announced that it will no longer fund the Canadian Environmental Network, and will seek to cut more than 700 jobs at Environment Canada. Additionally in 2009 and 2010 the Canadian Environmental Assessment Agency Act was amended through the budgetary process, without the usual opportunities for public review.