Management Plan

IOGC prepares a management plan each fiscal year. Following are highlights from IOGC's Management Plan.

IOGC 2014-15 Management Plan

Message from the CEO

I am pleased to present IOGC's Management Plan for 2014-15. This plan outlines our strategic priorities and operational deliverables for the fiscal year and has been built with input from our clients and partners. The plan builds upon the foundation of our Strategic Framework, which sets out our four directional priorities of:

  • Excellence in Governance;
  • Excellence in Oil and Gas Management;
  • Workplace of Choice; and
  • Effective Relationships.

Our plan aligns with the objectives of the Lands and Economic Development Sector, as specified in the Federal Framework for Aboriginal Economic Development: IOGC aims to increase and unlock the value of Aboriginal assets via modernization and excellence in oil and gas management, ensuring that First Nations benefit from the administration of their lands and resources.

IOGC began last year with a renewed organizational structure designed to optimize the administration and enforcement of the Indian Oil and Gas Act, 2009 and the new Indian Oil and Gas Regulations when they come into force. This year, we will continue with our MARS (Modern Act, Regulations and Systems) project. MARS is made up of two components: regulations development; and, on the informatics side, the Resource Information Management System (RIMS). A new RIMS2 will be focused on royalty management while the existing RIMS1 will receive enhancements since IOGC must rely on it for all other business lines. In October 2013, IOGC's request for membership in Canada's Petroleum Information Network (Petrinex) – the industry's and provinces' recognized authoritative source of oil and gas data – was approved by Petrinex. IOGC membership and data exchange with Petrinex will improve the timeliness and certainty of royalty assessments.

 The MARS project has the following major milestones for this year:

  • Completing new Indian Oil and Gas Regulations;
  • Completing federal/provincial agreements for administration and monitoring services;
  • Continuing consultations with First Nations, industry and provincial governments; and,
  • Beginning RIMS2 construction, including: completing the Treasury Board approval process; procurement of contractors for systems construction; establishing the foundation for Petrinex data exchange; and initiating creation of a new royalty calculation engine.

I acknowledge and thank the Indian Resource Council (IRC) and the Joint Technical Committee (JTC) for the critical role they played over the past year in developing the new regulations and I expect another year of continued collaboration.

Changes this year are not limited to those related to the MARS Project. Virtually every tool our staff use in their daily work will be replaced by new, modern tools this year including: electronic mail, document management, financial and procurement systems. The scope of MARS and these changes represents a significant challenge to IOGC and its staff.

I look forward to the challenges and opportunities ahead for our organization with excitement and confidence.

Sincerely,

Strater Crowfoot
CEO and Executive Director

Executive Summary

Indian Oil and Gas Canada (IOGC) is responsible for the management of oil and gas on Indian reserve lands across Canada, primarily south of the 60th parallel.

IOGC's Management Plan for 2014-15 is focused on advancing IOGC's strategic framework, established in 2010‑11, which encompasses the following four directional priorities, as outlined in Figure 1:

  • Excellence in Governance;
  • Excellence in Oil and Gas Management;
  • Workplace of Choice; and
  • Effective Relationships.

These strategic directions help move the organization towards achieving its vision to be a ‘modern regulator' of First Nation oil and gas resources, and also support IOGC's mandate to:

  • Fulfill the Crown's fiduciary and statutory obligations related to the management of oil and gas resources on First Nation lands; and
  • Further First Nation initiatives to manage and control their oil and gas resources (i.e., governance).

Core to the success of the organization are our values of respect for democracy, respect for people, integrity, stewardship and excellence.

The IOGC Management Plan is aligned with the objectives of the Lands and Economic Development Sector, and is designed to strengthen the contribution IOGC makes to enhance the value of Aboriginal assets by supporting development of First Nation oil and gas resources and ensuring First Nations benefit from the administration of their lands and resources. Oil and gas on reserve lands represents economic potential that can be activated or developed as a result of business opportunities. The result is revenues that improve the economic prosperity of First Nations, reducing the gap in economic well-being between oil and gas First Nations and other Canadians. These deliverables fall within the ‘Land and Economy' strategic outcome, ‘Community Development' program activity, ‘Administration of Reserve Land' program sub-activity, and ‘Federal Management of Oil and Gas Interests in Reserve Land' program sub-sub-activity.

The plan also supports Aboriginal Affairs and Northern Development Canada's (AANDC) Internal Services strategic outcome for an effective and responsibly-managed and operated department, through effective governance and management support, resource and asset management services. In addition, the plan addresses the management expectations set out in the Management Accountability Framework (MAF), developed by the Treasury Board of Canada.

To provide context, IOGC's annual management planning cycle begins with an environmental scan, which analyses key trends in the economy; the oil and gas industry; and the legal, regulatory and environmental arenas that may impact on the organization's activities in the year ahead. Insight is also gained through examination of new developments in First Nation clients and key stakeholder groups including the Government of Canada and industry.

Key trends in 2014-15 include: slow but recovering economic growth; a predicted slow-down in activity in the Western Canadian oil and gas sector; low to moderate growth in oil and gas prices; continuing effects of pipeline capacity constraints; and increasing environmental concerns and the rise of grassroots movements, particularly in the area of hydraulic fracturing. Tight labour markets and upcoming retirements continue to be a concern.

Figure 1: IOGC Strategic Framework
Strategic Framework

IOGC Plans for 2014-15

Based on its strategic direction and an analysis of its planning environment, IOGC will focus on five key projects in 2014-15:

  • Modern Act, Regulations and Systems (MARS) – IOGC's top priority in 2014-15;
  • Organizational Change Management (OCM);
  • Interest Statement Automation;
  • Royalty Management; and
  • Streamlining Lease Administration.

IOGC has also established operational priorities and deliverables for each of its four divisions: Executive; Lease and Royalty Administration; Regulatory Compliance; and Planning and Corporate Services, as well as four key functional areas: Human Resources; Communications; Information Technology; and Procurement.

The top priority for the year ahead will continue to be the MARS project. The first phase of the Modern Act Regulations and Systems (MARS) project was completed when the Indian Oil and Gas Act, 2009 received Royal Assent. Subsequent phases of the project include the development of new, modernized regulations and of a new Resource Information Management System 2 (RIMS2).

In May 2013, IOGC proposed a new phased approach to the regulatory amendment process and the Indian Resource Council requested a letter of clarification and commitment from the Minister. The Minister, in writing, sought the Indian Resource Council's support for the new phased approach and provided a number of commitments. A subsequent Indian Resource Council Board resolution set eight conditions for Indian Resource Council support for the new phased approach. At the time of writing of this plan, work was underway to try to address the conditions set by the IRC. The planned activities or approach respecting the regulations may be revised, depending on the end result. In 2014-15, key planned activities will include:

MARS - Regulations Development
  • Completion of new Regulations with changes focused on:
    • Drainage and Compensatory Royalty
    • Sub-surface Tenure
    • First Nations' Audit
    • Industry Reporting Provisions (to facilitate Petrinex data exchange)
    • Revisions to the remaining sections of the 1995 Regulations to make them compatible with Indian Oil and Gas Act, 2009;
  • Completion of support documents required by Canada Gazette Publishing for approval of the proposed Indian Oil and Gas Regulations, including a Regulatory Impact Analysis Statement (RIAS), triage update, communication materials and responses to public input and comments;
  • Completion of consultations with oil and gas First Nations, engagement with industry and provinces on the new Regulations;
  • Pre-publication of the proposed Indian Oil and Gas Regulations in Canada Gazette, Part I;
  • Response to public input and comment on the proposed Indian Oil and Gas Regulations as published in the Canada Gazette, Part I;
  • Submission for publication of Indian Oil and Gas Regulations in Canada Gazette, Part II; and
  • Commence drafting of regulations for the second tranche of regulatory changes.
MARS - Resource Information Management System 2 (RIMS2)
  • RIMS2 Informatics Treasury Board (TB) submission; and
  • System-related support and development, including:
    • RIMS1 data conversion / data clean-up for Petrinex data exchange
    • Business Process Mapping (BPM) impacts of Petrinex data exchange
    • Capture of royalty formulas through review of over 650 existing leases and creation of a database
    • Sole-source contract for Petrinex data integration
    • RIMS2 contract
    • Project Management capacity to address the requirements of AANDC Project Management Office (PMO) and TB requirements.
Conclusion

This is a pivotal change year for IOGC with the completion of the new Regulations anticipated in the last quarter and a number of new government-wide and departmental initiatives coming on stream. Given that these are priorities for the organization to implement, operations and other projects may be impacted if available resources become stretched. Likewise, it is not clear at the time of writing to what extent IOGC will be impacted by continued budget restraint, Budget 2014 implementation, availability of drafters or Indian Resource Council conditional support for the new phased approach. Resulting changes to business approaches or resources may necessitate adjustment to planned activities, including MARS regulations development.

Date last reviewed: 2014-09-25