Indian Res0urce Council
• January 30, 2014
• New Approach to the Indian Oil and Gas
Regulation Development
Outline of Presentation
• Why do we need to amend the Act and
Regulations?
• What has taken place to date?
• What is the new approach?
Why do we need to amend the existing
Act and Regulations?
• The previous Indian Oil and Gas Act and Regulations
has not been amended since its enactment in 1974.
• Other oil and gas regimes are updated on a regular
basis to ensure they are current and remain relevant.
• Technological advances in oil and gas development
require regulations to be updated.
• First Nation’s are more involved in not only regulating
oil and gas activity they have became the developer.
What has taken place to date?
• In 1998, IOGC initiated a process to amend the
Indian Oil and Gas Act.
• Bill C-5, Indian Oil and Gas Act, 2009, received royal
assent on May 14, 2009.
• This enabling legislation provides the authority to
make new modern regulations that are intended to
benefit not only Canada in fulfilling their role as a
Fiduciary but First Nations as well.
What has taken place to date?
• The JTC1 was established to ensure FN involvement
and input was provided in the amendment of the
Regulations.
• The regulations were divided into 10 modules, and
once those 10 modules were vetted through the
JTC1 as per the agreed to TOR both the Act and the
new Regulations would coming in force.
What has taken place to date?
• The JTC1 has reviewed and submitted
recommendations for changes on 5 of the 10
modules;
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Drainage and Compensatory Royalties
Surface Tenure
Sub-Surface Tenure
Exploration Module
Conservation Module.
The New Approach
• July 4, 2013, IOGC proposed the “New Approach”
in writing to IRC.
• The Indian Oil and Gas Act, 2009 along with the
following amended regulations would come into
force by December, 2014.
• Sub-surface, Drainage & First Nation Audit Powers
• The remaining modules will be vetted through the
JCT1 process after that date and will come into
force at a later date.
IOGC Rationale-New Approach
• Due to the huge volume of the work and the
increasing complexity of the subject matter, it is not
realistic to have all regulatory amendments
completed by April, 2014;
• IOGC’s initial target completion date.
• First Nations can benefit from some core
amendments that are of immediate importance to
FNs;
• With a “clear commitment” for the completion of
the remaining modules.
Minister Valcourt’s Letter
• On December 3, 2013, the Minister provided the
following commitments in return of our support for the
new approach;
• Canada will work with IRC/JTC1 until the Indian Oil and Gas
Regulations, 1995 have been entirely replaced with modern,
new regulations;
• Commit to provide adequate multi-year funding to carry out
this work.
• The Minister also requested that we respond
confirming whether or not we will support the new
approach.
IRC Members Resolution to New
Approach.
• The member First Nations of IRC met on Jan. 22/14 to make a decision
of the proposed new approach.
• The member First Nations voted to proceed with the new approach with
the following conditions.
• The new approach in no way derogate or abrogate from FN’s s. 35 Inherent,
Aboriginal and Treaty Rights.
• The Crown fully comply with its duty to consult and accommodate individual
FNs.
• IRC/JTC remain fully involved.
• Adequate time and funding be given for IRC/JTC1’s review of changes
• Funding for FN Business Centres in Sk and AB
• All modules will be dealt with inaccordance with Terms of Reference.
• Annual meeting with IRC and Minister of Aboriginal Affairs.
• To date we have not heard if the Minister accepted our conditions.
End of presentation
• New Approach to the Indian Oil and Gas Regulation
Development