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INDIAN OIL AND GAS CANADA 2004/2005 ANNUAL REPORT Published under the authority of the Minister of Indian Affairs and Northern Development Ottawa, 2005 www.ainc-inac.gc.ca 1-800-567-9604 TTY only 1-866-553-0554 QS-9003-010-EE-A1 Catalogue: R1-5/2005E ISBN: 0-662-42347-X © Minister of Public Works and Government Services Canada Cette publication peut aussi tre obtenue en français sous le titre : Pétrole et gas des Indiens du Canada Rapport annuel 2004-2005 TABLE OF CONTENTS OVERVIEW OF IOGC 4 IOGC Co-Management 12 Streamlining the 22 Production Board Royalty Process 1 Message from CEO 26 Planning and 2 Corporate Evolution 7 Indian Resource 13 Automation of Interest Corporate Services Council with Accounts Receivable 28 Wells Drilled 2 Statutory Authorities System KEY INITIATIVES Summary 3 Mandate 9 First Nations Oil OPERATIONS 32 Financial 3 Mission and Gas Initiative 16 Executive Operations 3 IOGC Organization Chart 12 Royalty with Certainty 18 Land IOGC 2004/2005 MESSAGE FROM THE CEO On behalf of everyone at Indian Oil and Gas Canada (IOGC), I am pleased to present the IOGC Annual Report 2004-2005.The report not only documents our evolving activities and highlights our accomplishments, but also illustrates some of the progress First Nations are making in the oil and gas industry. Having started as IOGC’s new Chief Executive Officer established over the past decade. During this time, the Blood, and Executive Director in January 2005, I hope to bring Siksika and White Bear First Nations have worked closely new energy and a fresh view into the position and into the with Indian Oil and Gas Canada to develop the capacity to organization while climbing the steep learning curve that assume control and management of their oil and gas resources. comes with a new position. I am acquainting myself with New legislation is needed if the transfer of oil and gas the landscape while I prepare to guide the organization management to First Nations is to be successful: FNOGMMA into the future. was tabled in the House of Commons on June 1, 2005. IOGC had embarked upon several inter-related key initiatives Passage of this legislation will enable the Blood, Siksika prior to my arrival; although these are taking longer than and White Bear First Nations to assume control and anticipated, good progress has been made.A major management of their oil and gas resources, subject to achievement of the Royalty Streamlining Project was the community confirmation through a referendum.Then development of a method to accept electronic submission IOGC will be poised to accept qualified First Nations that of royalty data from oil and gas companies.The Royalty wish to opt into the same legislation, in a similar but with Certainty Project has chosen standard price markers shorter process while they develop the capacity to manage for use in oil and gas dispositions and will give First their oil and gas resources. Nations more certainty about the value of royalties earned The future promises to be challenging, exciting and full of from their lands.The Automation of Interest with Accounts firsts. I speak for the entire organization when I say that we Receivable System Project is expected to see completion of are looking forward to the coming year. its first phase during fiscal year 2005-2006.And Indian Oil and Gas Canada continues to work with the Indian Resource Council in completing a proposal for legislative and regulatory change. The other key initiative that required a great deal of hard work and commitment this year is the proposed G.C. Smith First Nations Oil and Gas and Moneys Management Act Chief Executive Officer (FNOGMMA), the foundation of which has been and Executive Director 1 IOGC 2004/2005 CORPORATE EVOLUTION The Government of Canada has a broad mandate relating to Indian and Inuit Affairs and Northern Affairs which is derived largely from existing legislation and legal obligations arising from section 91(24) of the Constitution Act, 1867. The Department of Indian Affairs and Northern Development is entrusted with fulfilling various legal obligations of the federal government to Aboriginal peoples as outlined in Treaties, the Indian Act and other legislation. Included in this obligation is the management of natural resources on Indian lands, including oil and gas. Oil and gas development on First Nation reserve lands has been regulated since 1916 under the Indian Act. In 1974, due to the sharp increase in oil and gas activities on First Nation lands, the Indian Oil and Gas Act was passed, followed in 1977 by the Indian Oil and Gas Regulations. In 1987, Indian Oil and Gas Canada was established, replacing Indian Minerals West, as a dedicated branch within the Department of Indian Affairs and Northern Development to manage oil and gas development and to further First Nation initiatives to manage and control their resources. In 1993 Indian Oil and Gas Canada was affirmed as a Special Operating Agency to maximize its flexibility and responsiveness to both industry and First Nation needs. STATUTORY AUTHORITIES IOGC operates in accordance with provisions of the: Indian Oil and Gas Act Indian Oil and Gas Regulations, 1995 IOGC also enforces associated federal legislation including provisions of the: Indian Act Canadian Environmental Assessment Act Other relevant legislation 2 IOGC 2004/2005 MANDATE The mandate of IOGC is to fulfill the Crown’s fiduciary and statutory obligations related to the management of oil and gas resources on First Nations lands and to further First Nation initiatives to manage and control their oil and gas resources. MISSION Our mission is to work together with First Nations to manage their oil and gas resources. IOGC ORGANIZATION CHART Executive Director & CEO G. C. Smith Manager, Communications & Exec. Services Executive Assistant K. Uhryn T. Hussein Manager, Pilot Initiative Director, Operational Policy R. Lenstra J. Dempsey General Manager, Land General Manager, Production Director, Planning & Corporate Services W. Blain B. Currie B. Cherniawsky Manager, Negotiations & Subsurface Land Manager, North Group Manager, Finance B. Cunes G. Pike L. Webster Manager, Surface Land & Research Manager, South Group Manager, Contracts & Administration A. Berti D. Jaques B. Potter Manager, Environment Royalty Manager Manager, Human Resources D. Meeking Vacant J. Courchene Manager, EDP R. Daum Senior Litigation Advisor 3 N. Leung 3 IOGC 2004/2005 IOGC CO-MANAGEMENT BOARD There are nine members on the Board, six of which are selected by the Indian Resource Council and three by the Crown.At the end of the fiscal year, the IOGC Co-Management Board included the individuals on the following two pages. Indian Oil and Gas Canada (IOGC) operates under the direction of a Chief Executive Officer/Executive Director who participates as a member of the Board of Directors.The Board was established in 1996 by the signing of a Memorandum of Understanding (MOU) between the Minister of Indian Affairs and the Indian Resource Council (IRC) to co-manage IOGC operations.The Board focuses on areas of collective interest such as IOGC issues, policies, plans, priorities and resources.The Board also plays an important role in developing a vision to describe how the system for oil and gas management will function when First Nations assume control. 4 IOGC 2004/2005 Chief Ernest Wesley Mr. Warren Johnson Mr. S. Robert Blair Chief Linda Chipesia Stoney First Nation Assistant Deputy Minister, Lands Chairman Emeritus, Treaty 8 Tribal Association (Co-Chairman) and Trust Services, Department NOVA Corporation of Indian Affairs and Northern Development (Co-Chairman) Chief Ernest Wesley obtained Mr. Warren Johnson holds Mr. S. Robert Blair graduated Born in Fort St. John, British his elementary education with a Commerce degree with from engineering at Queen’s Columbia, Chief Linda Morley Day School at Stoney graduate work in Economics. University in 1951 and Chipesia completed both an First Nation and his high school In the 1970s and 1980s he proceeded to work throughout undergraduate degree and a education in Cochrane, Alberta held senior roles in regional, North America in construction law degree at the University and in Arizona. He went on to industrial and trade policy and gas operations. In 1969 of Calgary and practiced law graduate with a B.A. in political and program development. he became CEO of NOVA with an Alberta law firm. She science from the University of Since joining the department Corporation, a position he held was nominated and elected Calgary. For the last 23 years, in the early 1990s he has been for more than two decades. as the first female Chief of the esley has been dedi- irst Nation Chief W Assistant Deputy Minister, Currently he is Executive Blueberry River F ted to improving the lives of and President of Photon reaty No. 8) in 2003. She ca Economic Development; Chair (T assumed her position on the the Stoney First Nation citizens. Regional Director General, Controls Inc. IOGC Co-Management Board He has been an active volunteer Northwest Territories; and Mr. Blair’s numerous irst on behalf of the Treaty 8 representing the Stoney F a lead on different special achievements include: being First Nations in North Eastern Nation at all levels. He was corporate projects such as awarded top medals of the British Columbia. She also first elected as a councillor to head of the Devolution and Professional Engineers of served as a board member for the Stoney First Nation in 1982 Additions to Reserve Task Ontario and Alberta and the the Indian Resource Council and became Chief in 1992. Forces. He is also the Assistant Engineering Institute of (IRC). Chief Chipesia has A father of four and a grand- Deputy Minister lead for the Canada; being made Honourary significant experience dealing father of eight, Chief Wesley Aboriginal and Northern Squadron Commander in the with complex oil and gas is a strong advocate for youth Theme Table of the Smart Royal Canadian Navy and issues affecting First Nations.
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