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First Nations Oil and Gas and Moneys Management Act (S.C. 2005, c. 48)

Act current to 2020-09-09 and last amended on 2019-08-28. Previous Versions

Requests for Transfer (continued)

Marginal note:Information from Minister — moneys

 Following receipt of a resolution under section 7, the Minister shall inform the first nation of the amount of the moneys held by Her Majesty for the first nation at the time of the receipt of the request and of the outstanding amount of any loans referred to in subsection 30(2).

Requirements for Transfer

Marginal note:Oil and gas code

  •  (1) Before a vote is conducted on a transfer requested under section 6, a first nation shall prepare an oil and gas code that

    • (a) prescribes the procedure to be followed by the council of the first nation in the making, amendment and publication of oil and gas laws;

    • (b) provides for the accountability of the council to first nation members for the management and regulation of oil and gas exploration and exploitation;

    • (c) establishes procedures for disclosing and addressing conflicts of interest of members of the council and employees of the first nation in the management and regulation of oil and gas exploration and exploitation;

    • (d) if the first nation shares a reserve with another first nation, provides for the coordination of the management and regulation of oil and gas exploration and exploitation by the two first nations; and

    • (e) provides for the amendment of the code by the first nation.

  • Marginal note:Financial code for oil and gas moneys

    (2) Before a vote is conducted on a transfer requested under section 6, a first nation shall prepare a financial code that

    • (a) specifies the mode of holding oil and gas moneys, either by their deposit in an account with a financial institution or their payment to a trust of which the first nation is settlor and sole beneficiary, and prescribing the conditions governing subsequent changes from one mode to the other;

    • (b) provides for the manner of collecting oil and gas moneys and the manner of expending moneys held in the account or received by the first nation from the trust;

    • (c) provides for the accountability of the council to first nation members for the management of oil and gas moneys;

    • (d) establishes procedures for disclosing and addressing conflicts of interest of members of the council and employees of the first nation in the expenditure of those moneys; and

    • (e) provides for the amendment of the code by the first nation.

Marginal note:Financial code for moneys received from Canada

 Before a vote is conducted on a payment requested under section 7, a first nation shall prepare a financial code

  • (a) specifying the mode of holding moneys paid by Her Majesty to the first nation under sections 30 and 31 by their deposit in an account with a financial institution or payment to a trust of which the first nation is settlor and sole beneficiary, and prescribing the conditions governing future changes from one mode to the other;

  • (b) respecting the manner of expending moneys held by the first nation in the account or received by it from the trust;

  • (c) respecting the accountability of the council of the first nation to first nation members for the expenditure of those moneys;

  • (d) establishing procedures for disclosing and addressing conflicts of interest of members of the council and employees of the first nation in the expenditure of those moneys; and

  • (e) providing for the amendment of the code by the first nation.

Marginal note:Law of trusts

  •  (1) Laws of general application in relation to trusts and trustees in force in the province in which the trust instrument is executed apply in respect of a trust established for the purposes of this Act except to the extent that those laws conflict with this Act.

  • Marginal note:Rules against perpetuities and accumulations

    (2) A trust established for the purposes of this Act is exempt from the application of any rule of common law that limits the period within which a beneficial interest must vest or the period during which income may be accumulated.

Marginal note:Councillors as trustees

  •  (1) A member of the council of a first nation may not be made a trustee ex officio of a trust established for the purposes of this Act.

  • Marginal note:Exception

    (2) Subsection (1) does not preclude a member of a council from serving as a trustee in the member’s personal capacity.

Marginal note:Security required of trustees

 Every trustee of a trust established for the purposes of this Act other than a trust company shall, before moneys are paid into a trust referred to in section 10 or 11, and at any other time when the council so requests, provide to the council of the first nation

  • (a) evidence of bonding, insurance or other form of security, in an amount equal to the amount held in the trust, for the recovery of any loss occasioned by theft or by breach of the conditions of the trust; and

  • (b) evidence that the trustee fulfils the requirements of provincial law, if any, as to the minimum financial worth of trustees generally.

Marginal note:Oil and gas transfer agreement

 After a first nation has prepared the codes referred to in section 10, the Minister and the first nation may conclude a transfer agreement setting out arrangements for the transfer to the first nation of the management and regulation of oil and gas.

Marginal note:Moneys payment agreement

 After a first nation has prepared the codes referred to in section 11, the Minister and the first nation may conclude a payment agreement setting out arrangements for the payment of moneys to the first nation.

Approval Procedure

Marginal note:Approval of transfer

 After a transfer agreement has been concluded under section 15, the first nation may conduct a vote among its eligible voters, in accordance with the regulations, on the ratification of the oil and gas code and the financial code referred to in section 10 and the approval of the transfer to the first nation of the management and regulation of oil and gas exploration and exploitation.

Marginal note:Approval of payment

 After a payment agreement has been concluded under section 16, the first nation may conduct a vote among its eligible voters, in accordance with the regulations, on the ratification of the financial code referred to in section 11 and the approval of the payment of moneys to the first nation in accordance with the code.

Marginal note:Combined vote on oil, gas and moneys

 If agreements have been concluded under both sections 15 and 16, a single vote may be conducted for the purposes of sections 17 and 18.

Marginal note:Eligibility to vote

  •  (1) Subject to subsection (2), a first nation member, whether resident on the reserve or not, is an eligible voter if the member’s name appears on the band list and the member has reached the age of eighteen years on the date of the vote.

  • Marginal note:Exception

    (2) In the case of a first nation that is not the subject of an order made under section 74 of the Indian Act, a first nation member, whether resident on the reserve or not, is an eligible voter if the member’s name appears on the band list and the member has, on the date of the vote, reached the eligible age for participation in the selection of the first nation’s council according to the custom of the first nation.

Marginal note:Approval by majority vote

  •  (1) Subject to subsections (2) and (3), a vote conducted under section 17 or 18 is affirmative when

    • (a) a majority of eligible voters participates in the vote and a majority of those who participate votes affirmatively; or

    • (b) the council has provided for the registration of eligible voters who signify their intention to participate in the vote, and a majority of those who are so registered votes affirmatively.

  • Marginal note:Minimum participation

    (2) A vote is not affirmative unless more than twenty-five per cent of all eligible voters vote affirmatively.

  • Marginal note:Increased percentage

    (3) The council of a first nation may, by resolution adopted before the vote, increase the proportion of votes required under paragraph (1)(a) or (b) or subsection (2).

Transfers to First Nations

Oil and Gas

Marginal note:Additions to Schedule 1

  •  (1) The Minister may, by order, add a first nation’s name to Schedule 1 following

    • (a) an affirmative vote by the first nation’s eligible voters on the ratification of the codes prepared under section 10 and the approval of the transfer of the management and regulation of oil and gas exploration and exploitation to that first nation; and

    • (b) the making of laws by the council under paragraphs 35(1)(a) to (d).

  • Marginal note:Change of name

    (2) On receipt of a resolution of a first nation’s council advising of a change in the name of the first nation, the Minister may, by order, amend Schedule 1 accordingly.

  • 2005, c. 48, s. 22
  • 2019, c. 29, s. 385
 
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