Update on the Modernization of the Act, Regulations and Systems (MARS)

IOGC Quarterly Newsletter Volume VIII, Issue 1

Reporting Period April 1, 2018 to June 30, 2018

1. Phase I Regulations – Project Update:

IOGC is pleased to announce that the Phase I regulations (the Proposed Indian Oil and Gas Regulations) have been pre-published in the Canada Gazette, Part and also on the First Nations Gazette for a period of 90 days (beginning May 18, 2018 until August 17, 2018). This 90-day period allows for public review and feedback for the proposed Indian Oil and Gas Regulations. The proposed regulations can be viewed on the following websites:

Canada Gazette, Part I

First Nations Gazette

IOGC staff are visiting communities that have requested consultation meetings on the proposed regulations. If you would like to meet with IOGC on the proposed regulations, please contact:

Pamela McNeil, Policy Manager
Telephone: (403) 292-5654
Email: pamela.mcneil@canada.ca

OR

Shirley Conrad, Acting Communications Manager
Telephone: (403) 292-5872
Email: shirley.conrad@canada.ca.

On May 22, 2018, and June 28, 2018, IOGC sent out letters to all stakeholders, including oil and gas-producing First Nations, regarding consultation and how to provide feedback on the proposed regulations.

2. Implementation of 2009 Act and Phase I regulations – Readiness Update:

IOGC’s focus over the coming months will be on internal processes, through its MARS Portfolio Steering Committee, to ensure the organization is ready to begin to implement, administer, and enforce the Indian Oil and Gas Act, 2009 and its Phase I regulations beginning on the day they both become law. Therefore, service standards will be lengthened to allow for focus on this important and exciting milestone. Now that there is greater clarity on a path forward for the approval and First Nations’ and public consultation on the proposed Phase I regulations, the MARS Portfolio Plan and Deliverables Timeline is being updated.

IOGC is in the process of developing a communications plan to support the MARS Strategic Framework.

3. Organizational Change Management (OCM) Update:

IOGC is using the Government of Canada's standard Prosci© Methodology and Tools to support all projects and sub-projects, including the MARS portfolio.

A successful bidder has been awarded via the procurement process to provide long-term OCM services and support to IOGC. The contractor will work closely with the OCM team to assist IOGC business units with internal 'implementation readiness’.

To support the implementation of the 2009 Act and Phase I regulations, OCM is helping business units complete their impact analyses. Also, an OCM team has been assembled for the RIMS2 Project and over the last quarter, has worked with business units to complete the majority of their impact analyses.

4. RIMS2 Project Update:

Please note that RIMS2 systems development is independent of the "Implementation of the 2009 Act and Phase I regulations." The new RIMS2 system functionality will come on-line at a later date after the 2009 Act and Phase 1 regulations have both become law.

The Sierra project team has completed the task of developing the royalty calculation mechanisms needed for active leases in Saskatchewan. Ten major types have been identified; all have completed acceptance testing. Work has now shifted to the forty- four major types identified in Alberta. At the same time the development team is reviewing the design of the interfaces between Petrinex and IOGC as well as within our systems (RIMS and RIMS2). Test data has been shared by Petrinex for our use in developing the interface, unpacking the data and providing it to the calculation engine. Work is progressing for a Q4 Go Live within the Saskatchewan royalty reporting scope.

The Petrinex Industry Readiness Team has begun preparations to communicate and train companies in Saskatchewan to submit the data as designed. Each company is required to provide a Change Leader to manage their conversion.

Finally, as noted earlier, two of the four projected major components of the MARS Strategic Communications Framework required to support the RIMS2 Project have been completed. The partially-completed framework is currently undergoing review and approvals processes by INAC-HQ Communications.

5. Phase II Regulations - Project Update:

Please note that the Phase II regulations are out of scope of the "Implementation of the 2009 Act and Phase I regulations." Phase II regulations will continue to be developed and brought into force, as they are readied, once the 2009 Act and Phase I regulations are published in Part II of the Canada Gazette. At which time the existing Indian Oil and Gas Regulations, 1995 will be entirely replaced by new, modern regulations.

IOGC received JTC-1’s feedback on the proposed regulatory drafting instructions for the Moneys regulations module on June 28, 2017. The feedback received additional consideration during the current reporting period and a response is being prepared.

Progress on developing Phase II regulations has been somewhat limited as IOGC subject matter experts are focused on completing implementation of Phase I regulations.

For further information on IOGC or the MARS Portfolio of projects, please contact IOGC at:

Indian Oil and Gas Canada
100 - 9911 Chiila Blvd.
Tsuu T'ina AB T2W 6H6
Phone: (403) 292-5625
Fax: (403) 292-5618
Email: aadnc.contactiogc.aandc@canada.ca
Indian Oil and Gas Canada

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