Oil and gas and energy are an important part of the Canadian economy. The cost of energy, the development of renewable energy sources, and the need to reduce greenhouse gas emissions are becoming increasingly important to all Canadians.
Aboriginal Affairs and Northern Development Canada (AANDC) is committed to engaging Aboriginal peoples and northern communities in strategies to develop knowledge, capacity and tools to improve access to renewable energy sources; especially in remote communities.
Through our special operating agency, Indian Oil and Gas Canada (IOGC), we are ensuring equitable production, fair prices and proper collection of royalties for oil and gas production on reserve lands.
Indian Oil and Gas Canada (IOGC) is a special operating agency with an Executive Director who reports to the Assistant Deputy Minister of Lands and Economic Development at AANDC. IOGC is responsible for carrying out the legal obligations of the federal government related to the management of oil and gas resources on First Nation lands, and to support First Nation initiatives for managing and controlling their oil and gas resources.
IOGC operates under the authority of the Indian Oil and Gas Act and the Indian Oil and Gas Regulations, 1995 . The Indian Oil and Gas Act was amended in 2009. The amendments will help to ensure environmental protection of First Nation lands, increase regulatory compliance, and facilitate the collection of royalties and other monetary compensation due, as well as modernize outdated regulations and provide greater certainty for all stakeholders. Work is proceeding on new regulations under the new Act. Once the regulations are finalized the new Act will come into force. This will create a modern up-to-date system for regulation of oil and gas production on reserve lands.
IOGC represents more than 50 First Nations with oil and gas agreements in the provinces of British Columbia, Alberta, Saskatchewan and Manitoba. In the last five years IOGC has collected over $1 billion from oil and gas activities on behalf of First Nations.
The First Nations Oil and Gas and Moneys Management Act (FNOGMMA) was developed through a collaborative effort by the federal government, Siksika, Blood Tribe and White Bear First Nations. This federal legislation provides First Nations with the option to manage their reserve oil and gas resources currently managed on their behalf by Canada and also provides First Nations with the option of managing moneys currently held in trust for them by Canada. First Nations can choose to opt into either part of FNOGMMA, or both. It is not necessary to have oil and gas resources for First Nations interested in the moneys management component of FNOGMMA.
Future options for participation under the FNOGMMA are currently being explored by AANDC. If you would like further information on the oil and gas option, please contact Indian Oil and Gas Canada. Learn more about the moneys option here.
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