ARCHIVED - Update on the Modernization of the Act, Regulations, and Systems (MARS) - Volume IV, Issue 2
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IOGC Quarterly Newsletter
Reporting Period July 1, 2014 to September 30, 2014
Indian Oil and Gas Canada (IOGC) reports to Aboriginal Affairs and Northern Development Canada (AANDC) via the Assistant Deputy Minister (ADM), Lands and Economic Development Sector. In July 2014, Michael Wernick left the department after 8½ years as Deputy Minister to join the Privy Council Office where he was later appointed Deputy Clerk of the Privy Council and Associate Secretary to the Cabinet. Colleen Swords re-joined the department as Deputy Minister after serving in that role at Canadian Heritage. Prior to that, she had been Associate Deputy Minister at AANDC for three years.
The 1st Consultation Draft, Phase I Regulations was provided during the previous Quarter to all oil and gas First Nations and to the Joint Technical Committee (JTC) for review and feedback. Though individual First Nations did not provide feedback, the input received from the JTC was accommodated via a set of amended regulatory drafting instructions that will be used to create the 2nd Consultation Draft, Phase I Regulations, projected to be completed during the next Quarter. The 2nd Consultation Draft will also be used to consult First Nations, industry and the oil and gas producing provinces. As an additional verification to ensure the new regulations meet First Nations’ needs, IOGC has funded three major oil and gas producing First Nations to obtain independent legal and technical advice on the 2nd Consultation Draft. The results will be shared with all producing First Nations and those with oil or gas potential. All First Nations will be given an opportunity to be fully engaged on the new regulations prior to implementation.
In the past newsletters, we informed clients that the department adopted a phased approach for regulations development that would allow the bringing into force of the 2009 Act with minimal delay. This approach ensures that First Nations will benefit sooner from the improvements contained in the IOGA, 2009 which provides new authority for IOGC: 1) to audit companies working on First Nation lands; 2) to set longer periods for industry to maintain records for auditing purposes; 3) to deal more effectively with surface and sub-surface trespass; 4) to protect First Nation sites of cultural importance; 5) to order companies to take remedial action under certain circumstances; and, 6) to issue fines and penalties for offences under the Act or regulations.
The phased approach calls for updates to the Indian Oil and Gas Regulations, 1995 – to make them compatible with the IOGA, 2009 – plus new regulations in the areas of: 1) Drainage and Compensatory Royalty; 2) Sub-surface Tenure; 3) First Nations’ Audit (a component of Royalty Management); and, 4) reporting requirements to facilitate royalty verification. The remaining regulatory modules would become law once they are completed. In this manner, parts of the existing 1995 Regulations are gradually replaced. At the end of the process, IOGC will be administering and enforcing a complete set of new, modern regulations.
An important element of the work is First Nations consultation and engagement. Throughout the regulations development process, face-to-face meetings have taken place with individual First Nations, Tribal Councils, and Treaty areas, upon request. Please contact IOGC if you would like a one-on-one session or require any more information.
IOGC’s efforts to implement informatics enhancements continue. The required documents are undergoing departmental review prior to submission to the Treasury Board for approval. You may recall that, since October 2013, IOGC has been a member of PETRINEX (PETRoleum INformation EXcellence), the recognized authoritative source for hydrocarbon volume and pricing data. A key benefit of the expected informatics enhancements is PETRINEX’s data exchange with IOGC that should increase and reinforce both the timeliness and accuracy for royalty management.
IOGC was successful in contracting for professional services in the area of Organizational Change Management (OCM). The purpose of the OCM project is to develop and monitor the progress of an implementation plan that ensures IOGC will have in place the proper tool-sets for the administration of the amended Act and core regulations on the day they become law. A key planning assumption for this project is that the Act and regulations will become law in July 2015.
For further information, please contact IOGC at:
Indian Oil and Gas Canada
100 – 9911 boul. Chiila Blvd.
Tsuu T'ina AB T2W 6H6
Phone: (403) 292-5625
Fax: (403) 292-5618
Date last reviewed: 2014-10-30
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