June agreement promises to bear fruit in oil patch

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An agreement signed in June 1996 between the Department of Indian Affairs and Northern Development and the Indian Resource Council continues to fundamentally change the relationship in the oil and gas industry between First Nations governments and the Government of Canada. The nine-member interim board established under the co-management agreement participates in fulfilling the mandate of Indian Oil and Gas Canada (IOGC), an agency founded in 1987 to manage the oil and gas resources on reserve lands across Canada. It is based at the Tsuu T'ina First Nation, just west of Calgary.

The six-month-old board continues to operate under the existing Indian Oil and Gas Regulations (1995) and the Indian Oil and Gas Act. It has input into charting the strategic direction of IOGC, evaluates the agency's annual work plans and has input into certain financial decisions. In addition, the board participates in the selection of the IOGC's executive director, and fulfills other duties as required.

"[The agreement is] recognition of our right and capability to have a stronger voice in the management of our resources," said E. "Dutch" Lerat, interim chairman of the Indian Resource Council. "we worked very hard to reach this day. However, we recognize that we must now work even harder if we want to reach our ultimate goal, which is to replace the decision-making capacity of IOGC with a First Nations-run organization."

At the time that the board was created last summer, Indian Affairs Minister Ron Irwin agreed that it was a step in that direction.

"The creation of this board takes us one step closer to ensuring First Nations have additional tools to progress toward self-government," he said. "First Nations will have an active interest in the management decisions regarding the oil and gas resources situated on their Indian reserve lands."

It is intended that eventual control of IOGC will pass to the Indian Resource Council through a three-phase transition process. This will include co-management, then delegation of ministerial authority, followed by full First Nations management. The creation of the board is a part of step one.

During co-management, the decisions of the board are subject to the concurrence of the IOGC's executive director. Regulatory change to the Indian Oil and Gas Regulations (1995) is necessary to accommodate the delegation phase, while the Indian Oil and Gas Act will have to be legislatively changed for the final phase.

Approximately 50 First Nations in five provinces, including many in Alberta, have some level of oil and gas activities on their land, and it is administered under this program.