White Bear First Nations

The First Nations Oil and Gas and Moneys Management Act (FNOGMMA)

History of Oil and Gas Management on WBFN Indian Oil and Gas Canada (IOGC) was formed in

1987 and they are the current administrators and regulators of Oil and Gas exploration on First Nations lands. Prior to IOGC the department was Indian Minerals West

IOGC (Indian Affairs) was granted authority to administer and lease minerals on behalf of the White Bear First Nations (WBFN) through a Mineral Surrender which was signed by WBFN Chief and Council in Nov 1941

Exploration begins on WBFN in the mid 1950’s with the first oil well drilled in 1955

IOGC was formed following recommendations of an All Chief’s Assembly, the recommendations resulted in Canada creating a Special Operating Agency called Indian Oil and Gas Canada (IOGC)

IOGC administers Oil and Gas for all First Nations under the Indian Oil and Gas Act (came into force in 1974 and has just been amended Bill C-5) and Indian Oil and Gas Regulations 1995 (Regulations are currently undergoing amendments)

History of Oil and Gas Management on WBFN Cont.

The Constitution Act 1867 - Sec. 91 (24) Canada asserts its authority over “indians and lands reserved for indians”

1876 Indian Act comes into force and Indian Act governs the collection and expenditure of White Bear First Nation moneys (Indian Moneys)

Presently Indian Moneys is legislated through sections 61 to 72 of the Indian Act, but largely through Section 64 (1)

History of Indian Moneys Management on WBFN

Feb 1995 Memorandum of Understanding (MOU) is signed between Minister and WBFN Chief and Council

MOU is signed in response to the expressed interest of several First Nations who wish to gain more control and flexibility over their own oil & gas resources and how they are administered

5 Bands originally sign on as a part of the Pilot Project those being WBFN, Blood Tribe, Siksika FN, Horse Lake FN and the Dene Tha FN (WBFN is the first Band to sign the MOU) of the 5 Bands there are currently 3 still participating in the Pilot Project

History of The First Nations Oil & Gas Management Initiative (Pilot Project)

The Pilot Project was designed to be carried out in a three phase process

1. Co-Management Phase Oct 1, 1995 – Mar 31, 1998 Phase 1 – Capacity Building, Training, Co-management

2. Enhanced Co-Management Phase Apr 1, 1998 – Mar 31, 2005 Phase 2 – Nations played a larger role in co-managing and new legislation was created, this new law being the First Nations Oil and Gas and Moneys Management Act (FNOGMMA)

3. Full Management & Control – Implementing FNOGMMA

History of the Pilot Project Cont.

The Objectives of the Pilot Project included the following:

1. To create new legislation enabling the Pilot Bands to achieve full management & control over their oil and gas resources

2. To provide FN’s with the capacity, training and expertise to manage & administer the resources

3. To create employment and economic development opportunities involved in oil and gas exploration

4. To develop a communication process keeping members informed

5. To develop a model which other FN’s can follow to achieve full management & control over their own oil and gas resources

History of the Pilot Project Cont.

In 2001 a Framework Proposal begins on FNOGMMA which reflects the intentions of the parties involved and the mechanisms by which the transfer of oil & gas management could occur

The FNOGMMA Act (Bill C-54) is the resulting legislation and was given Royal Assent Nov 25, 2005, and came into force on April 1, 2006

FNOGMMA is a Two-Part legislation which gives FN’s the option of Managing their Oil & Gas Resources as well as moneys derived from those resources, and, or, their own moneys which are otherwise held By her Majesty, or both

The First Nations Oil and Gas and Moneys Management Act (FNOGMMA)

Each participating FN must now complete the remaining implementation requirements and conduct a consultation with their respective members

Once a consultation with membership has been completed a Referendum Vote will be held

To implement FNOGMMA a minimum of 25% of eligible WBFN voting members must vote Yes

Vote Date for the Referendum has been set for January 27, 2010

FNOGMMA Cont.

The question to be put to the voters will be, “Do you approve of?”

1. The White Bear First Nations Oil and Gas and Moneys Management Code and the transfer to White Bear First Nations of the management and regulation of oil and gas exploration and exploitation in the reserve lands of White Bear First Nations

2. The Payment to the White Bear First Nations in accordance with the White Bear First Nations Oil and Gas and Moneys Management Code, of all moneys held today, and all moneys to be collected or received in the future, by Her Majesty for the use and benefit of the White Bear First Nations

FNOGMMA Cont.

In accordance with the FNOGMMA Act there are requirements that WBFN must fulfill before the transfer of management can occur:

WBFN must submit a BCR to the Minister requesting the transfer of both oil and gas and moneys management

WBFN must then prepare an oil and gas and financial code in accordance with FNOGMMA

WBFN must also prepare a Trust Agreement which will lay out the process of how our Moneys will be managed

WBFN will then hold a vote among all of our eligible members and if the vote is positive (YES) then WBFN will then assume management of our own oil and gas and moneys

Implementing FNOGMMA on White Bear First Nations

White Bear First Nations is currently taking the steps to implement FNOGMMA and the timelines are as follows:

The BCR requesting the transfer was submitted Jun 19, 2006

WBFN has received volumes of documentation with respect to oil & gas contracts to date and manages those documents through the Petroleum Land Admin office

WBFN has prepared the Codes which meet the requirements in accordance with FNOGMMA

WBFN have been in negotiations with Canada concerning the Transfer and Payment Agreement’s

WBFN Implementation Status and Progress

WBFN has begun to conduct the consultation process with our members (5 Urban Area and 5 WBFN sessions)

WBFN is currently in negotiations with Sask concerning the Enforcement Agreement of WBFN Oil & Gas Laws

Canada has prepared Regulations regarding how Environmental Assessments must be conducted

Canada has prepared Regulations regarding the FNOGMMA Voting and Ratification process

Implementation Status and Progress Cont.

Current Oil & Gas Activity on WBFN Lands135 Total Wells Drilled 42 Wells Producing Oil$100K/mth in Royalties

82 Active SurfaceLeases29 Mineral Leases

400 bbls/day Production

$1.2 Million/year

WBFN will have the power to make oil & gas laws and also our own laws regarding Moneys Management

Environmental, Cultural and Traditional concerns are addressed by the people who actually have an interest in the land “ourselves”

WBFN will enter into and manage all future oil & gas contracts

WBFN will collect and manage our own moneys through the use of a Trust structure which can only be changed or altered by the members provided that 60% of the eligible voting membership is in favor of the change

What does Managing our own Resources mean for WBFN?

WBFN will incorporate oil and gas conservation laws that are equivalent or better than the current Provincial standards and WBFN may create additional laws where it is nessessary

WBFN can either enforce our own oil & gas laws or delegate this to another appropriate body

WBFN will assume the obligations for all existing oil & gas contracts

What does Managing our own Resources mean? Cont.

WBFN will assume responsibility for the management and decisions concerning oil & gas activity

WBFN will assume responsibility for the management and decisions regarding our own moneys

Canada will continue to be liable for all oil and gas activity and the moneys collected from oil and gas activity for the period before a First Nation has opted into the Act

Canada will continue to have fiduciary obligations concerning lands with anything involving activities outside of oil and gas management and regulation

Status of changing Liabilities and Responsibilities

Prescribes the procedure to be followed by the Council in the making, amendment and publication of WBFN Oil and Gas Laws

Provides for the accountability of the Council to WBFN members for the management and regulation of oil and gas exploration and exploitation

Establishes procedures for disclosing and addressing conflicts of interest of the members of Council and the employees of the First Nation in carrying

Specifies the mode of holding oil and gas moneys by their payment to a Trust of which the WBFN is settlor and sole beneficiary

White Bear First Nations Oil & Gas & Moneys Management Code

Provides for the manner of collecting oil and gas moneys and the manner of expending moneys received by the FN through the Trust Agreement

Provides for the accountability of the Council to WBFN members for the management of oil & gas moneys

Establishes procedures for disclosing and addressing conflicts of interest of the members of the Council and employees of the FN in the expenditure of those moneys

The Code can be amended by the Council of White Bear First Nation but the Trust Agreement which manages our Moneys can only be amended by the entire membership through a referendum vote.

White Bear First Nations Oil & Gas & Moneys Management Code Cont.

The primary focus of the Trust Agreement is to allow our Trust Capital an opportunity to have growth and also to have sustainability.

The Trust Agreement will preserve and grow our balance sheet for the long term use and benefit of the WBFN assuring a sustainable income for our current and future generations

The Trust Agreement will maximize returns on our investments that will far surpass the returns that Canada gives the Nation now

The White Bear First Nations Heritage Trust Agreement

The Trust will be managed by a reputable Trust Company (ie: Royal Trust, Peace Hills Trust)

The Trust Company may utilize Trustees from its own company although this does not prevent any member from being a Trustee as long as that member can be bonded or prove insurance that is equal to the amount of the Trust Capital

Elected Officials of the WBFN cannot serve as a Trustee

The White Bear First Nations Heritage Trust Agreement

Trustees will be accountable by being governed through the Trust Agreement

Annual Oil and Gas Moneys and other Capital Moneys will be deposited to the Trust Capital

The Trustee will follow the investment policy prescribed through the Trust Agreement and will hold regular meetings (as prescribed by WBFN) to ensure accountability to the WBFN members who are the beneficiaries

Annual income from investments and interest will be released to the First Nation annually

The White Bear First Nations Heritage Trust Agreement

A percentage of annual revenues being deposited into the Trust can flow through for the use and benefit of WBFN members, if WBFN members so wish

Any amendments made to the Trust Agreement will be made by the WBFN membership by way of Referendum

Referendum approving of the amendments will require a minimum of 60% of eligible voters voting in the affirmative to approve the amendments

The White Bear First Nations Heritage Trust Agreement

The WBFN Oil and Gas Laws will mirror the current existing regulations as prescribed in the Indian Oil and Gas Regulations 1995, which will also include incorporating by reference any necessary Provincial Regulations as needed

WBFN Oil and Gas Laws come into force under FNOGMMA and are not Indian Act by-laws

The WBFN intends to use the Saskatchewan Energy and Resources Department to act as our agent in the enforcement of our oil and gas laws through an agreement

The Province recognizes that the Jurisdiction regarding oil and gas conservation does and will continue to rest solely with the Nation

WBFN Oil and Gas Laws

The FNOGMMA Act will enable WBFN to assume full control and management of our oil and gas resources and moneys

Having control of our resources is a key step in building a stronger more self reliant community

WBFN will be able to maximize the benefits from revenues created through oil and gas

Decisions regarding oil and gas resources will be made for the community by the community

More timely and efficient decision making regarding future oil and gas developments on WBFN lands

The Benefits of FNOGMMA

Existing regulatory gaps will be addressed related to resource management, environmental protection, cultural concerns, and enforcement of oil and gas activity

Through FNOGMMA the Nation will be able to take advantage of the value added opportunities, stimulating our local economy and creating jobs for our members

The Benefits of FNOGMMA

FNOGMMA provides an option for change and most importantly a chance to move out of the Indian Act in so far as oil and gas and moneys are concerned

FNOGMMA’s benefits far surpass the current regime which we are currently governed by and it may be a very long time before another opportunity such as this arises again

Exercise your voting power and come out to vote on January 27, 2010, Polls will be set up at the White Bear First Nations and mail out ballots will be sent to all our off-reserve members

The Decision is yours