Management Plan

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

IOGC 2015-16 Management Plan

Message from the CEO

I am pleased to present IOGC's Management Plan for 2015-16. 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.

For 2015-16, IOGC will continue with our (Modern Act, Regulations and Systems) project with increasing focus on implementation. MARS is made up of two components: regulations development; and, on the informatics side, a new Resource Information Management System 2 (RIMS2). The new RIMS2 will be focused on royalty management, while the existing RIMS1 will continue to receive enhancements since IOGC must rely on it for all other business areas. The new RIMS2 will also allow for data exchange with PETRINEX (PETRoleum INformation EXcellence), the provincial and industry partnership that established, and now maintains, the provincially and industry-recognized authoritative source for oil and gas volume and pricing data. IOGC membership and eventual RIMS2 data exchange with PETRINEX will improve the timeliness and certainty of royalty assessments.

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

  • Continuing consultations with First Nations, industry and provincial governments on proposed regulations;
  • Reviewing stakeholder feedback on proposed regulations that will inform the final revisions to the regulations;
  • Developing federal / provincial agreements for administration and monitoring services related to the new Act and regulations; and
  • Beginning RIMS2 construction, including: completing both the Departmental and the Treasury Board approval processes; procurement of contractors for systems construction; and establishing the foundation for PETRINEX data exchange.

Once again, 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 reviewing and providing feedback on draft regulations. Their work enabled us to consider First Nation concerns and resulted in improved regulations. I look forward to another year of continued collaboration with these important advocates.

We expect many changes this year. There will be changes resulting from the beginning of our implementation of the MARS project and there will be externally-driven changes as well. This year, whole-of-government approaches to common services will result in changes to: electronic mail; MS office suite applications; document management; human resources and pay systems. The scope of all these changes represents a significant challenge for IOGC and its staff.

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

Strater Crowfoot
CEO and Executive Director

Executive Summary

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

IOGC's Management Plan for 2015-16 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 its 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 First Nation reserve lands represents economic potential that can be activated or developed as a result of business opportunities. This results in 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 Economic 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 IOGC Management 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 that analyzes: key trends in the economy; the oil and gas industry; and the legal, regulatory and environmental arenas that may have an impact on the organization's activities in the year ahead. Insight is also gained through examination of new developments among First Nation clients and key stakeholder groups, including the Government of Canada and industry.

Oil prices are the dominating factor in 2015-16. The rapid fall in world oil prices since June of 2014 has resulted in uncertain market conditions, a cooling of the Canadian economy and a severe downturn in the Western Canadian oil and gas sector. The weak oil and gas market will likely result in decreased oil and gas revenues for First Nations in 2015-16.

Figure 1: IOGC Strategic Framework
Long text description for Figure 1

Indian Oil and Gas - Modern Regulator

Excellence in managing First Nation oil and gas resources

Excellence in Governance

First Nations Governance

Support:

  • 1.1 IOGC Board
  • 1.2 Indian Resource Council
  • 1.3 First Nations Oil and Gas Moneys Management Act

IOGC Governance

  • 2.1 Modern Act, Regulations and Systems
  • 2.2 Effective Corporate Controls and Systems
  • 2.3 Effective Corporate Planning and Reporting
  • 2.4 Risk Management
  • 2.5 Strong Leadership and Vision

Excellence in Oil and Gas Management

Operations & Compliance

Management of:

  • 3.1 Land Tenure
  • 3.2 Environmental Compliance
  • 3.3 Royalties
  • 3.4 Production Equity
  • 3.5 Moneys
  • 3.6 Compliance
  • 3.7 Policy

Modern Technology

  • 4.1 Enabling Tools and Technology
  • 4.2 Effective Information Management

Workplace of Choice

Engaged Staff

People who are:

  • 5.1 Professional
  • 5.2 Motivated and Inspired
  • 5.3 Diverse
  • 5.4 Learning and Improving

Culture

A culture that is / has:

  • 6.1 Respectful and Ethical
  • 6.2 Safe, Healthy and Fun
  • 6.3 Learning Organization
  • 6.4 Open Communication
  • 6.5 Work-Life Balance

Effective Relationships

Industry

  • 7.1 Clear and Consistent Service Delivery;
  • 7.2 Consistent Policy Application
  • 7.3 Industry Outreach

Government

  • 8.1 Federal Alignment and Accountability
  • 8.2 Federal – Provincial Collaboration

First Nations

  • 9.1 First Nations Outreach
  • 9.2 IOGC Board
  • 9.3 Indian Resource Council
  • 9.4 Information Sharing

Based on its strategic direction and an analysis of its planning environment, IOGC will focus on five key projects in 2015-16:

  • Modern Act, Regulations and Systems (MARS) – IOGC's top priority;
  • 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.

An overview of the plan, outlining IOGC's key initiatives and activities for 2015-16, is shown below.

Figure 2: IOGC Plans for 2015-16
Long text description for Figure 2

Figure 2: IOGC Plans for 2015-16

This image makes reference to IOGC's strategic direction (shown in Figure 1) and its planning environment:

  • The red section shows the top priority for IOGC: the MARS project (Modern Act, Regulations and Systems).
  • Below this section there are white categories: Organizational Change Management, Interest Statement Automation, Royalty Management and Streamlining Lease Administration. These are the key projects that that have been identified as a result of MARS.
  • The mid-section grey area is titled Functions. These four functional areas are made up of four plans that include: Human Resources, Communications, Information Technology and Procurement.
  • The bottom section identifies IOGC's operational divisions in the grey categories: Executive, Lease and Royalty Administration, Regulatory Compliance, Planning and Corporate Services.

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 2015-16 planned activities include:

MARS - Regulations Development Project (RDP)

  • Completion of the regulatory review and consultations with oil and gas First Nations on the Phase 1 regulations:
  • Completion of the gap analysis on the Phase 1 regulations;
  • Completion of external stakeholder consultations and engagement with industry and the provinces on the Phase 1 regulations;
  • Completion of support documents required for the federal regulations review and approval processes;
  • Development of a federal-provincial agreement (in conjunction with Headquarters (HQ));
  • Beginning a gap analysis of the Phase 2 regulations drafting instructions;
  • Revision of the Phase 2 regulations drafting instructions;
  • Consulting with First Nations, industry and the provinces on the Phase 2 regulations drafting instructions and accommodate concerns, as needed; and
  • Beginning regulatory drafting for the Phase 2 regulations.

MARS - Resource Information Management System 2 (RIMS2)

Activity in the upcoming year will focus on obtaining project approval from Treasury Board and starting work on the PETRINEX work package.

  • TB project approval and expenditure approval authorities. This will be enabled through the RIMS2
    Treasury Board (TB) submission including:
    • business analysis and project charter
    • high level requirements review and documentation
    • IM requirements
    • IT security details
    • financial and cost plan
  • System-related support and development including:
    • o RIMS1 data conversion / data clean-up and comparison for PETRINEX data exchange
    • o sole-source contract for PETRINEX data integration
    • o initiate PETRINEX work package development
    • o royalty module contract development to be started
    • o project management capacity to address the requirements of AANDC Project Management Office (PMO) and TB requirements.

The Organizational Change Management (OCM) project will continue to provide support, including customized change management tools and processes, to help effectively integrate change across the organization. The project will also help to build leadership and management competency as well as internal capability to facilitate the roll-out of changes so they cause minimal disruption.

Work continues on the Interest Statement Automation project, which, once completed, will automate the collection of interest on late payment of trust funds to address future needs.

During 2015-16, the Royalty Management project will focus on improvements to the management and operations of the overall royalty function in order to increase client satisfaction by enhancing service delivery, ensure royalty assessments are accurate, complete and timely, improve internal oversight, efficiencies and effectiveness, and identify, prioritize and resolve legacy issues.

The Streamlining Lease Administration project will continue work on reducing file backlogs and preventing their recurrence, reducing lease administration processing time and where appropriate, standardizing surface and subsurface lease administration procedures.

This is a demanding year for IOGC with significant activity anticipated in both MARS projects, and a number of new government-wide initiatives coming on stream. Given that these are priorities for the organization to implement, operations and other projects may be affected, when resources become stretched. Likewise, the potential impact of Budget 2015 implementation, the availability of regulatory drafters and the outcomes of the regulations consultation are unknown, and adjustments to planned activities, including MARS regulations development may be required.

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