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

Indian Oil and Gas Canada (IOGC) Quarterly Newsletter Volume VIII, Issue 2

Reporting Period July 1, 2018 to September 30, 2018

1. Phase I Regulations – Project Update:

The public comment period on the pre-publication of the Phase I regulations (the Proposed Indian Oil and Gas Regulations) in the Canada Gazette, Part I and the First Nations Gazette, closed on August 17, 2018. This 90-day comment period allowed for public review and feedback of the proposed Indian Oil and Gas Regulations.

IOGC's policy team reviewed and analyzed all comments received during the pre-publication period. The team is now in the process of responding to those comments.   

Requests for accommodations that have been accepted will be reflected in the final version in Part II of the Canada Gazette. The proposed regulations are still available to view on the following websites: 

Canada Gazette, Part I

First Nations Gazette

IOGC will be hosting an Industry Engagement Information Session on November 7 & 8, 2018 for all Industry partners that operate on First Nations’ reserve lands and petroleum associations. There will be two half-day sessions available from 8:30 a.m. to 12:00 p.m. in the National Energy Board hearing room located at #210, 517 – 10 Avenue SW, Calgary. Each session is a stand-alone session and will consist of the same information with identical agendas.

The invitation letters for the Industry Engagement Information Session went out in September to all industry partners. This information is also posted on our website: www.iogc.gc.ca. Interested companies were asked to RSVP by October 15, 2018.

IOGC continues to host engagement and outreach 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

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.

To support the implementation of the 2009 Act and Phase I regulations and the Resource Information Management System 2 (RIMS2) Project, OCM helped business units complete their impact analyses over the last two quarters. OCM is currently supporting business units as they complete their internal training and communications plans.

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 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 major types identified in Alberta. At the same time the development team is reviewing the design of the interfaces for the exchange of data between Petrinex and IOGC as well as internal interfaces 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.

Design work on the Gas Cost Allowance Module within Petrinex was completed with development activity underway for Q4 FY2018-2019 possible ‘Go Live'.

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 Indigenous and Northern Affairs Canada Headquarters (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.

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

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