Reserve set to grow

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If all goes according to plan, Onion Lake First Nation will soon substantially increase its reserve size and, with the expansion, gain access to potentially tens of millions of dollars in annual revenue.

The First Nation is in the process of purchasing 108,000 acres of land, which will almost triple Onion Lake's reserve land base once the new lands are converted to reserve status.

The land is being purchased under the Treaty Land Entitlement Agreement, signed between a number of Saskatchewan First Nations and the provincial and federal governments as a means to make up for discrepancies between the amount of reserve land the First Nations should have received, and what they actually received.

According to Joe Carter, the band's director of Lands, Trust and Development since 1996, the economic opportunities this area holds are substantial. All told the band needed to spend $7 million to purchase these acres, but forestry and oil and gas revenues will easily bring Onion Lake high returns on its investment

To improve cash flow, Onion Lake has taken some bold steps, including by-passing Indian Oil and Gas Canada (IOGC) the arm of Indian and Northern Affairs that manages oil and gas activities on First Nations lands, and dealing with the oil companies themselves through the newly created Onion Lake Energy.

The purchase of the new lands hasn't been finalized yet, as the First Nation is still working to address all pre-existing third party interests, which for the most part involves negotiating replacement oil and gas leases with companies already operating on the land.

While the official transfer of the land to the First Nation, and the subsequent granting of reserve status, have yet to take place, Onion Lake First Nation hasn't wasted any time in taking advantage of the resources found on, and under, its soon to be expanded land base.

Onion Lake Energy has entered into a partnership with PanGlobal Ventures Limited, which will give the First Nation a bigger return on its investment than they would receive by going through the IOGC.

The partnership agreement with PanGlobal will also mean community members will benefit from increased employment opportunities.

"Any and all work that we have the capacity or capability to do with respect to the industry here, we have first right of refusal on all of that. So it's great for our people here, both employees and also prospective subcontractors, to get a lot of the spin off," Carter said.