Drawing of the moneys cycle

The drawing of the moneys cycle related to IOGC shows companies submitting moneys to IOGC for bonuses, royalties, rents and considerations. In turn, IOGC submits the moneys to INAC and the First Nation trust fund accounts. First Nations may access the money in their trust fund accounts through INAC. The moneys collected are deemed to be either capital moneys or revenue moneys. Bonuses and royalties are considered to be capital moneys, while rents and considerations are deemed to be revenue moneys.

Oil and gas moneys earned by First Nations from companies operating on their reserve lands are initially collected by Indian Oil and Gas Canada on behalf of First Nations. The funds collected by IOGC then flow to the First Nation Trust Fund Accounts administered by Indian and Northern Affairs Canada (INAC) for their respective communities.

First Nations can gain access to their revenue or capital moneys for the use and benefit of their communities by the signing of a Band Council Resolution to that effect.

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