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

Act current to 2020-07-28 and last amended on 2019-08-28. Previous Versions

Transfers to First Nations (continued)

Oil and Gas (continued)

Marginal note:Transfer of contracts

  •  (1) On a first nation’s transfer date, the rights and obligations of Her Majesty under existing contracts in respect of the first nation’s managed area — as well as under any agreements related to those contracts — are assigned to the first nation.

  • Marginal note:Notice

    (2) The Minister shall provide written notice to contract holders of the assignment of their contracts and any agreements referred to in subsection (1).

  • Marginal note:Existing designations

    (3) For greater certainty, after a first nation’s transfer date, any designations made under the Indian Act in respect of oil and gas in the first nation’s managed area cease to have effect, and the rights and obligations of Her Majesty under those designations are superseded by the rights and obligations of the first nation under this Act.

  • Marginal note:Restriction

    (4) If a designation under the Indian Act relates both to oil and gas and to other rights and interests unrelated to oil and gas, subsection (3) applies in respect of the designation only insofar as it relates to oil and gas.

Marginal note:Rights and interests under contracts

  •  (1) Oil and gas laws that come into force on a first nation’s transfer date may not impair the rights or interests of a contract holder under a contract assigned by section 23.

  • Marginal note:Power of first nation to amend

    (2) Subsection (1) does not apply in respect of the making of laws by a first nation after its transfer date.

Marginal note:Managed area

  •  (1) The managed area of a first nation consists of the lands set apart, as of the transfer date, as the reserve or reserves of the first nation, and includes any lands subsequently added to those lands, unless the first nation and the Minister agree otherwise at the time they are added.

  • Marginal note:Excluded lands

    (2) Any reserve lands whose boundaries have been surveyed under Part II of the Canada Lands Surveys Act may be excluded from a managed area if the transfer agreement so provides.

  • Marginal note:Restoration of excluded lands

    (3) The Minister and the first nation may agree, at any time after a first nation’s transfer date, to include in the first nation’s managed area any of the lands excluded from it by the transfer agreement, in which case an amendment shall be made accordingly to the legal description of the managed area in the appli-cable register referred to in subsection 26(1).

Marginal note:Registration of lands

  •  (1) A legal description of a first nation’s managed area shall be entered, as of the first nation’s transfer date, in the Reserve Land Register maintained under section 21 of the Indian Act or, in the case of a first nation to which the First Nations Land Management Act applies, the First Nations Land Register maintained under section 25 of that Act. If lands are subsequently added to the managed area, the applicable register shall be amended accordingly.

  • Marginal note:Registration of existing contracts

    (2) All contracts in respect of a first nation’s managed area that are registered in the Surrendered and Designated Lands Register maintained under subsection 55(1) of the Indian Act shall be entered, as of the transfer date, in the register established by the regulations or, if none has been established, in the applicable register referred to in subsection (1).

Marginal note:Liability for transfer

  •  (1) Her Majesty is not liable for

  • Marginal note:Liability for future management

    (2) Her Majesty is not liable in respect of the exercise of powers by a first nation in relation to oil and gas exploration or exploitation under this Act.

  • Marginal note:Liability arising from title

    (3) Her Majesty is not liable, as the holder of title to reserve lands or to oil and gas found in those lands, in respect of any damage occasioned by oil and gas exploration or exploitation under this Act.

Marginal note:Past liability

 Subject to section 27, this Act does not affect the liability of Her Majesty or a first nation for any act or omission occurring before the first nation’s transfer date.

Moneys

Marginal note:Additions to Schedule 2

  •  (1) The Minister may, by order, add a first nation’s name to Schedule 2 following an affirmative vote of the first nation’s eligible voters on the ratification of the code prepared under section 11 and the approval of the payment of moneys to the first nation in accordance with the code.

  • Marginal note:Change of name

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

Marginal note:Initial payment of moneys

  •  (1) Following the addition of a first nation’s name to Schedule 2, the moneys held by Her Majesty for its use and benefit shall be paid to the first nation out of the Consolidated Revenue Fund in accordance with the payment agreement.

  • Marginal note:Loan guarantees

    (2) The Minister may withhold, from moneys otherwise payable under subsection (1), the outstanding amount of any loans entered into by the first nation or members of the first nation and guaranteed by Her Majesty on the security of moneys held for the use and benefit of the first nation by Her Majesty under the Indian Act.

Marginal note:Subsequent payments

 Following a payment of moneys under section 30, all moneys subsequently collected or received by Her Majesty for the use and benefit of the first nation shall be paid out of the Consolidated Revenue Fund to the first nation in accordance with the payment agreement.

Marginal note:Liability for payment

  •  (1) Her Majesty is not liable for the decision by a first nation or its council to request a payment under section 7 or for any actions taken by the first nation or its council pursuant to the request.

  • Marginal note:Liability for future management

    (2) Following the payment of moneys out of the Consolidated Revenue Fund into an account or a trust under section 30 or 31, Her Majesty is not liable for the payment or the management of those moneys.

Marginal note:Past liability

 This Act does not affect the liability of Her Majesty or a first nation for any act or omission in respect of moneys occurring before a payment referred to in subsection 32(2).

Powers Relating to Oil and Gas

Marginal note:Ownership and management

  •  (1) Subject to any other provision of this Act, a first nation named in Schedule 1 has the powers, rights and privileges of an owner in relation to oil and gas in the first nation’s managed area, including

    • (a) the power, in accordance with its oil and gas laws, to manage oil and gas exploration and exploitation in the managed area and to issue contracts in respect of the managed area; and

    • (b) the power, in accordance with its financial code, to collect oil and gas moneys from contract holders and to manage and expend those moneys.

  • Marginal note:Exercise of powers

    (2) The powers of a first nation under subsection (1) shall be exercised by the council of the first nation or by any person, body or government to which the powers are delegated by the first nation’s oil and gas laws.

  • Marginal note:Registration of contracts

    (3) A first nation shall send particulars relating to each contract issued by the first nation to the Minister for registration in the register established by the regulations or, if none has been established, in the applicable register referred to in subsection 26(1).

  • Marginal note:Issuance of contracts

    (4) No contract may be issued for any activity in a managed area before oil and gas laws for the regulation of that activity are in force in the managed area.

Marginal note:Laws re exploration and exploitation

  •  (1) Subject to sections 36 to 41 and 45, the council of a first nation named in Schedule 1 has the power, in accordance with its oil and gas code, to make laws respecting oil and gas exploration and exploitation in the first nation’s managed area, to the extent that those laws are not in relation to matters coming within the exclusive jurisdiction of a provincial legislature and may, in particular, make laws

    • (a) respecting the issuance and the terms and conditions of contracts, including

      • (i) any fees, rates, rents and royalties, including royalties in kind, to be reserved to the first nation by contract holders,

      • (ii) the interest payable on amounts owing to the first nation under a contract, and

      • (iii) administrative monetary penalties that may be assessed for failure to comply with the terms of a contract;

    • (b) respecting environmental assessments of projects in the managed area, and specifying circumstances in which an order may be made prohibiting the proponent of a project from undertaking work before the completion of an environmental assessment;

    • (c) respecting the protection of the environment from the effects of oil and gas exploration and exploitation in the managed area;

    • (d) respecting the conservation of oil and gas in the managed area;

    • (e) establishing offences punishable on summary conviction and imposing fines, impris-onment, restitution and community service for the contravention of oil and gas laws and orders referred to in paragraph (b);

    • (f) respecting the inspection, search, seizure and detention of property within or outside the managed area for the purpose of ensuring compliance with oil and gas laws and for the enforcement of those laws; and

    • (g) respecting the auditing of records of contract holders within or outside the managed area for the purposes of contract administration.

  • Marginal note:Coming into force

    (2) A first nation may exercise its power to make oil and gas laws at any time after the date of an affirmative vote under section 21, but no oil and gas law has effect before the first nation’s transfer date except to the extent necessary to make it effective on that date.

 
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