An Act to amend the Indian Oil and Gas Act

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

This bill was previously introduced in the 40th Parliament, 1st Session.

Sponsor

Chuck Strahl  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Indian Oil and Gas Act to clarify and expand the existing regulation-making powers and to add new ones, particularly with respect to licences, permits and leases for the exploration and exploitation of oil and gas on reserve lands and the determination and payment of oil and gas royalties. It also puts in place sanctions for contraventions of the Act as well as provisions for its enforcement.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:25 p.m.
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Conservative

Diane Finley Conservative Haldimand—Norfolk, ON

moved that Bill C-5, An Act to amend the Indian Oil and Gas Act, be read the second time and referred to a committee.

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:25 p.m.
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Vancouver Island North B.C.

Conservative

John Duncan ConservativeParliamentary Secretary to the Minister of Indian Affairs and Northern Development

Mr. Speaker, I am proud to have the pleasure of introducing Bill C-5, An Act to amend the Indian Oil and Gas Act.

In the recent Speech from the Throne, the government committed to take steps to ensure that aboriginal Canadians fully share in economic development opportunities and this legislation is a concrete example of that commitment.

The oil and gas sector provides a real source of promising economic development opportunities for first nations. Few other countries in the world can lay claim to the secure, abundant and diverse energy resources we enjoy in Canada. This energy wealth has fueled tremendous economic growth in many regions of the country.

The world's need for Canada's oil and gas holds significant promise for development for many years to come.

Since the government was formed, we have made clear our determination to ensure first nations share equally in our country's prosperity and that they are able to build stronger and self-reliant communities that can manage their own affairs.

Bill C-5 would help to advance these goals by enhancing Canada's capacity to assist first nations in managing their own affairs. The management and administration of oil and gas resources is governed on reserve lands by the Indian Oil and Gas Act and it is administered by Indian Oil and Gas Canada, a special operating agency within Indian and Northern Affairs Canada.

The mandate of Indian Oil and Gas Canada is to assist in fulfilling the Crown's fiduciary and statutory obligations related to the management of oil and gas resources on reserve lands and to ensure first nations initiatives for greater control over the management of their resources. In practical terms, this means that the agency issues and administers agreements on first nations lands, monitors oil and gas production and collects royalties for the benefit of first nations.

I will now speak to why the existing act needs to be amended.

The legislation under which Indian Oil and Gas Canada operates has not kept up with the times. The act first came into force back in 1974 when the industry was in the midst of a global energy crisis. Since then, most provinces have overhauled their laws and updated their regulations numerous times. For example, Alberta's legislation, the Alberta mines and minerals act, which governs resource development, has been amended more than 15 times since the 1970s. In contrast, the Indian Oil and Gas Act has remained unchanged for the past 34 years. We need to change that.

Furthermore, oil and gas exploration and exploitation on reserve lands and the revenue that these activities generate are significant. Over $1 billion in revenues from on reserve oil and gas activity have been collected on behalf of about 60 first nations over the past five years alone. This revenue is credited to those communities in its entirety. The industry is continuing to invest millions of dollars in exploration and exploitation activities on first nations reserve lands, more than $300 million in the past five years for drilling alone.

I realize that these amendments are very technical in nature but they are important. The broad changes brought forth can be grouped under three themes: first, amendments that would bring clarity to the oil and gas regulatory process; second, amendments that would ensure and strengthen accountability of Indian Oil and Gas Canada; and finally, amendments that would enhance the protection of first nations environmental, cultural and natural resources.

In terms of bringing clarity, once adopted, the amendments would ensure that the role and powers of the minister and reference to the courts are clear and provide for broader regulation-making authority. They will, equally important, allow federal regulations governing oil and gas projects to be harmonized with provincial oil and gas regulatory regimes. Co-operation with provincial authorities is key.

I want to make it clear that Bill C-5 would not increase the jurisdiction of provinces. It would allow for federal regulations to be made that are consistent with provincial laws, which is important to create clarity and certainty for both first nations and industry.

Enforcement powers would be clarified, as well as modernized. The current act limits fines to $5,000. This would be increased to $100,000 per day and sometimes more could be imposed by the courts.

In areas of high risk, such as the seizure of records and equipment, this would all be governed by relevant Criminal Code provisions and overseen by provincial courts. These amendments would ensure that the government, through Indian Oil and Gas Canada, can provide certainty and consistency for first nations, for industry and for provincial stakeholders.

The amendments that strengthen accountability to act on behalf of first nations by Indian Oil and Gas Canada are examples such as clear audit powers for Indian Oil and Gas Canada and accurate reporting and paying of royalties due to first nations when companies operate on reserve lands.

As another example, rules would be put in place to address complex relationships, not only between unrelated corporations but also between an existing corporation and its subsidiaries.

Bill C-5 would authorize new regulations to prevent companies from using non-arm's length transactions to unjustifiably reduce the royalty which would otherwise be payable to first nations. A company would not be able to sell oil or gas at a reduced price to a company it already owns in order to pay less royalty.

Furthermore, the limitation period to commence legal proceedings would be extended to 10 years and there is no limitation period in cases of fraud or misrepresentation.

The final set of amendments deal with enhancing protection for first nations' environment, cultural and natural resources. These amendments would balance the development of oil and gas resources with environmental protection. This is of interest to all Canadians. The current act has limited remedies in the case of non-compliance. Under the amendments, provincial environmental laws can be incorporated by reference into the federal regulations that apply to first nations reserve lands.

It is very important, of course, that anyone doing work on a reserve respect first nations' cultural and spiritual values and their special relationship to the land. Bill C-5 would authorize the minister to suspend operations of a company if areas involving these special values are at risk.

There are some further concerns from first nations. They wish to have a remedy when companies trespass on their property. With this legislation, there would be specific offences so that Indian Oil and Gas Canada would have more options to deal with these breaches.

A key policy objective for the government is ensuring our legislative framework supports first nations. The current Indian Oil and Gas Act falls short in this area. Many first nations are concerned that they will not be fully benefiting from the increase of exploration and development taking place around them. The Indian oil and gas industry is equally frustrated.

The reason behind these changes is to provide consistency and certainty to the oil and gas regime. That is one side of the equation. For the affected first nations, the revenue generated by this activity translates into increased economic development, new jobs and improved living standards.

The money being raised is used by first nations for training, housing, water and sewer projects, building stronger communities and a brighter future for their children. This modern suite of tools will better enable first nations to seize opportunities.

The amendments, as I mentioned, are very technical in nature. The first nations have been asking for these changes, and Canada started the process to modernize the act in 1999.

The Indian Resource Council is a national aboriginal organization advocating on behalf of 130 first nations with oil and gas production or the potential for production. We had extensive consultations with first nations and with oil and gas interests. First nations have validated the principles embodied in the legislation and have made suggestions for improvements.

Most noteworthy was the need to amend and modernize the legislation, and this need was endorsed by the Indian Resource Council at annual meetings in 2006 and 2007. Thanks to this close working relationship, oil- and gas-producing first nations have had the opportunity to influence the development of the amendments and will be called upon again to participate in the development of the regulations that will flow.

This support is reassuring, but the council went even further in order to make sure all communities with oil and gas interests had the opportunity to become fully aware. It held a symposium earlier this year in Alberta. Over 100 members representing more than 60 first nations attended. Their involvement and support were encouraging, and we are on the right track. We will continue to work in partnership, and this will lead to greater first nation control and management of petroleum resources on their lands.

The key to unleashing this potential lies in modernizing the legislative framework. Strong regulatory regimes are essential for both economic and social development. That is why we are bringing the Indian Oil and Gas Act up to 21st century standards.

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:40 p.m.
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Conservative

Bruce Stanton Conservative Simcoe North, ON

Mr. Speaker, it is great to hear the parliamentary secretary here today speaking on these important amendments to an act that I am sure will be important for aboriginal peoples and in particular northern communities.

I would like to put a question to the parliamentary secretary, if I may. One of the things I understand is that the amendments will modernize the regime for the management of oil and gas activities, but in the course of that, the government has not done anything to affect its fiduciary responsibilities with first nations or to affect aboriginal or treaty rights.

Could the member expand on that subject for the House?

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:40 p.m.
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Conservative

John Duncan Conservative Vancouver Island North, BC

Mr. Speaker, the question came from the chair of the Standing Committee on Aboriginal Affairs and Northern Development, and he is doing an excellent job.

The fiduciary obligation of the federal government is obviously paramount in any legislative changes that we undertake in Parliament. I mentioned in my speech the fact that this act has been subject to major consideration since 1999. Indian Oil and Gas Canada made presentations to every one of the Indian Resource Council's annual meetings. It advocates for the first nations involved in oil and gas productions.

Formal consultations started in March 2002. We had a stakeholder involvement package sent out at that time to 120 first nations, to 200 energy companies with active leases, to the four oil and gas provinces involved, to the Canadian Association of Petroleum Producers and to the Canadian Association of Importers and Exporters. We had Indian Oil and Gas Canada holding one-on-one sessions with 85% of all the oil- and gas-producing first nations, and it also met with tribal councils.

The first nations position generally has been very supportive of this legislation. The modernization and harmonization themes have been very well accepted, with most comments supporting the strengthening of Indian Oil and Gas Canada.

This legislation is broadly supported by all stakeholders, and I believe it has broad support from all parties in the House of Commons. I look forward to swift passage at second reading and moving it to committee.

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:40 p.m.
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Liberal

Todd Russell Liberal Labrador, NL

Mr. Speaker, I am pleased to speak today at second reading of Bill C-5, An Act to amend the Indian Oil and Gas Act. The Indian Oil and Gas Act was first introduced in 1974 and really has not had any major amendments. There were only some minor amendments in 1995.

This is the third time in as many sessions of Parliament that these more substantive and modernizing amendments have been brought forward. Unfortunately, between early elections and early prorogations, there has never been enough time in the parliamentary calendar for consideration of the substance of this bill. In fact, merely by getting to second reading, this version of the bill has outlasted its predecessors.

For the benefit of all who have a stake in this bill, there will hopefully be no more parliamentary hiccups keeping it from continuing through the proper legislative process here and in the other place.

Since the bill in its previous form was introduced in the last session, I have had the opportunity to read it and to study the background information explaining why these changes are needed at the present time.

In the past number of years, we have seen a massive increase in the natural resources sector in Canada, particularly in oil and gas exploration. My own riding, while not known for its onshore oil and gas, has significant offshore potential. We are also one of Canada's main mining regions, and in fact the Voisey's Bay nickel project in Labrador is an example of how resource industries and aboriginal peoples can work together.

The people of my riding are also well acquainted with the oil and gas industry in other parts of Canada, especially in Alberta and other western provinces, where many of the people I know have gone to work on petroleum industry projects. The recent economic downturn is affecting these industries, just as it is touching all industries and sectors of the economy.

We on this side of the aisle are very concerned about the economic direction of the country and the need for stimulus in the short term to get people working and get industry moving. However, in the long term we also have to look at making Canada a good place to do business and taking the steps to ensure that our resource and other industries will resume their growth and provide jobs for the future.

We also have to take steps to ensure that first nations people are brought in as true partners and participants in the development of natural resource industries.

During the latest boom, many mining and petroleum projects were crying out for employees, due to an acute labour shortage. Despite the current economic situation, the long-term trend is that Canada will require more skilled workers in all sectors of the economy, including the natural resources arena.

At the same time, there is a large and growing population of aboriginal Canadians, and far too many aboriginal communities are at an economic disadvantage. There is an incredible opportunity here to develop the industries with aboriginal people as owners, participants, partners and workers over the coming years and decades.

Modernizing the Indian Oil and Gas Act is one step that may help achieve these goals in respect of oil and gas exploration and development on first nation reserve lands. This bill contains a number of technical changes to the way oil and gas resources on reserves are administered and managed. I will describe the broad strokes of these changes.

The bill addresses the regulatory gap between on and off reserve oil and gas activities. Second, the bill would expand the powers of councils of first nations to delegate any of their powers under the act to any other person, effectively allowing first nations councils to hire experts to act on their behalf.

The law would also require a minister to exercise his or her power under the act only if the council of an affected first nation has given its permission. The bill includes a non-derogation clause, which states that nothing in this act shall be deemed to abrogate the rights of Indian people or preclude them from negotiating for oil and gas benefits in those areas in which land claims have not been settled.

A new section added to the bill governs the payment of royalties from oil and gas recovered on first nation lands, which are paid to the Crown in trust for the first nation in question. There are also greater audit capabilities.

There is a new section providing further powers to make regulation for the purposes of the act. One interesting provision, from my point of view, is the power to require petroleum operators to employ members of the first nation in question in the exploration or development of oil and gas from first nations lands.

Again, my own riding saw similar issues during the exploration, construction and development of the Voisey's Bay project.

I look forward to hearing more about how similar adjacency or hiring rules will apply under this bill to the oil and gas industry.

I will also be interested to learn from the experiences of first nations in other parts of Canada, who may have valuable lessons for people and communities in my riding.

My party's position is that we support the bill in its broad strokes and agree that a package of amendments must be brought forward for consideration. I have already had productive meetings with some of the stakeholders, like the Indian Resource Council and look forward to hearing other points of view, both one on one and in committee. It is in committee that I trust we can get down to some of the details.

The industry is generally positive towards the package of amendments contained in the bill, indicating that it will bring greater clarity, strengthen accountability and enhanced protection of first nations, environmental, cultural and island gas resource. If there are differing viewpoints, I look forward to hearing them once the bill has been referred to committee.

With the new spirit of openness and co-operation that is said to pervade in Parliament these days, I trust that all parties will be interested in hearing from a number of witnesses representing those with an interest, one way or another, in this legislation.

I also trust that the government will be willing, where appropriate and necessary, to be open to amendments if the committee's work leads us in that direction.

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:50 p.m.
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Conservative

Bruce Stanton Conservative Simcoe North, ON

Mr. Speaker, I agree with the hon. member's remarks in regard to the co-operativeness that we see to move this package of amendments forward.

Could he perhaps reflect on the notions that he has heard in regard to these amendments, particularly from first nations communities, and does he believes they will embrace the kind of changes suggested and proposed in the bill?

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:50 p.m.
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Liberal

Todd Russell Liberal Labrador, NL

Mr. Speaker, I thank my colleague, the member for Simcoe North, for his co-operation. We have seen that in committee thus far and we look forward to more of that in the future.

The stakeholders I have had personal contact with, particularly the Indian Resource Council, which represents 130 first nations that have oil and gas interests on reserve, are amenable to this legislation. They have been involved in at least in the drafting of the recommendations of the legislation.

They feel it will put them on a level playing field with off-reserve oil and gas exploration. It will also help solve some of the regulatory gaps that may now exist. It will help them gain greater benefit from their resources through other capacities.

On environmental protection, there are certain fines or penalties that can be brought in under the legislation.

Generally, the stakeholders I have talked to are in agreement with this. They want to see it move forward in an expeditious manner.

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:50 p.m.
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NDP

Joe Comartin NDP Windsor—Tecumseh, ON

Mr. Speaker, one of the concerns we have is whether the consultation process leading up to this should have been dealt with a good number of years ago. Some of the litigation that has gone on has finally forced the government, both the current one and the prior one, to begin to engage in serious consultation as required by the Supreme Court in some of those decisions.

Does my colleague feel that the consultation process on the bill is adequate and, more important, is satisfactory to the first nations across the country?

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:50 p.m.
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Liberal

Todd Russell Liberal Labrador, NL

Mr. Speaker, in terms of the duty to consult, the entire House knows that the government has a legal duty to consult with first nations. A consultative framework has been adopted by the Department of Indian Affairs and Northern Development. Some would argue whether that framework is adequate or whether it fully addresses the issue of consultation with first nations.

I cannot say whether first nations that are impacted by the bill have been adequately consulted. They will have to speak for themselves on whether they feel adequate consultation has taken place. However, the stakeholders I have met with feel the legislation is long overdue, that it has come about as a result of many talks, much information sharing between the various stakeholders, and they would like to see it expedited.

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:50 p.m.
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Vancouver Island North B.C.

Conservative

John Duncan ConservativeParliamentary Secretary to the Minister of Indian Affairs and Northern Development

Mr. Speaker, I would like to add a comment to the response from the member for Labrador.

The NDP representative on committee has said that the consultation on the bill would serve as a potential model for other consultative mechanisms. I think it is quite clear that we have seen a very good example here, and continuing support. I expect this is the kind of testimony we will receive at committee.

The member for Labrador may wish to make a comment as well to further that.

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:55 p.m.
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Liberal

Todd Russell Liberal Labrador, NL

Mr. Speaker, there is no doubt, as I said earlier, that the issue of consultation is one that arises many times, but it has not arisen as an issue today or in the past with regard this bill.

Indian Oil and Gas ActGovernment Orders

February 13th, 2009 / 12:55 p.m.
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Bloc

Mario Laframboise Bloc Argenteuil—Papineau—Mirabel, QC

Mr. Speaker, I am pleased to speak to Bill C-5 on behalf of the Bloc Québécois. This bill amends the Indian Oil and Gas Act.

Allow me to summarize. The summary of this 24-page bill is worth reading.

This enactment amends the Indian Oil and Gas Act to clarify and expand the existing regulation-making powers and to add new ones, particularly with respect to licences, permits and leases for the exploration and exploitation of oil and gas on reserve lands and the determination and payment of oil and gas royalties. It also puts in place sanctions for contraventions of the Act as well as provisions for its enforcement.

The Bloc Québécois has always respected the rights of aboriginal nations. That sense of respect will inform the Bloc Québécois' participation in committee through our critic, the excellent member for Abitibi—Témiscamingue, who will defend the interests of both first nations representatives and the Quebec nation.

Naturally, the Bloc Québécois supports the principles underlying this bill. Despite its imperfections, the bill will provide the necessary tools to harmonize existing laws and regulations governing reserves with the laws and regulations of the provinces in which they are located. When this bill goes to committee, our party, the Bloc Québécois, will ask for more details about, among other things, the terms and conditions relating to authority to issue replacement leases for lands added to reserve and, subsequently, oil and gas exploration and exploitation permits issued by the federal government.

The Government of Canada must not use Bill C-5 to abdicate its fiduciary responsibilities toward aboriginals. We must clearly identify the oil, gas and lands that may be affected, as well as the federal government's fiduciary obligations toward aboriginal peoples.

The government is responsible for rectifying inequalities between aboriginals and non-aboriginals. We do not feel that this bill does that. This is part of a bigger picture; it addresses and resolves part of the problem, but it would be false to suggest that this bill can resolve or rectify inequalities between aboriginals and non-aboriginals.

I will reread the summary:

This enactment amends the Indian Oil and Gas Act to clarify and expand the existing regulation-making powers and to add new ones, particularly with respect to licences, permits and leases for the exploration and exploitation of oil and gas...It also puts in place sanctions for contraventions of the Act as well as provisions for its enforcement.

We can see here that Canada made a choice long ago to turn over oil and gas exploration and exploitation to the private sector.

Many countries in the world develop their own oil and gas resources. That is a choice. Canada, like the United States, simply decided to put this in the hands of private enterprise. When a country does that, it must pass legislation and provide for sanctions in the event that legislation is violated. Clearly, this is what part of this bill is intended to do.

I would remind hon. members that the development of a new fiscal relationship between the first nations and the Government of Canada has been the focus of discussions and analyses for more than 20 years. It has been talked about for over 20 years. As early as 1983, the Penner report, a report by the House of Commons Special Committee on Indian Self-Government, recommended that the fiscal relationship between the federal government and the first nations be redefined.

In 1996, the final report of the Royal Commission on Aboriginal Peoples—also known as the Erasmus-Dussault commission—also recommended a full review of the fiscal relationship between the federal government and the first nations. The proposed initiative focused on redefining this relationship within a broader context based on first nations self-government. The Tlicho self-government act that we passed in this House is an example of this.

The First Nations Oil and Gas and Moneys Management Act, which came into effect on April 1, 2006, was one of the first steps in this new fiscal relationship between the first nations and the federal government.

This optional law contains two new provisions: the first makes it possible for first nations to manage and regulate oil and gas activities on reserves; the second, to manage funds held in trust for them by Canada. A first nation can choose either option. In other words, they need not own oil or gas to become responsible for managing these monies.

This legislation will change the way oil and gas are developed and it will allow first nations which are self-reliant to develop these resources on their own land. Previously, first nations have had to comply with the Indian Oil and Gas Act and its regulations, which has not allowed them to manage these resources directly.

The First Nations Oil and Gas and Moneys Management Act allows first nations, that choose to do so, to be excluded from the application of the Indian Oil and Gas Act and its regulations.

That act, the Indian Oil and Gas Act, is the legislation governing exploration and exploitation of oil and gas resources on reserve land. This legislation does not allow first nations to manage the oil and gas resources on their land directly nor does it allow them to develop an appropriate regulatory framework.

Since 2006, the First Nations Oil and Gas and Moneys Management Act has allowed first nations, if they so choose, to create regulations concerning oil and gas exploration and conservation, on the spending of moneys derived from the exploitation of these resources, and on the protection of the environment.

As for regulations to protect the environment, those established by first nations will have to at least meet the standards of Quebec or the province in which the aboriginal community is located. This is important to us, the Bloc Québécois. Protecting the interests of Quebeckers is just as important as protecting the interests of first nations and aboriginal peoples. Obviously, the law that applies to first nations must be the same as the law that applies to Quebec.

In terms of managing their finances, those first nations choosing to come under this new legislative framework will be subject to different regulations regarding money. This money is currently defined in the Indian Act as all moneys collected, received or held by Her Majesty for the use and benefit of Indians or bands.

For these first nations, the provisions of the Indian Act will no longer apply. They will therefore be able to manage the amounts collected directly, rather than letting them be managed by the federal government. As a result, they will be able to make their own choices for investment in their communities instead of letting the Department of Indian Affairs and Northern Development dictate priorities to them. Auditor General Sheila Fraser pointed out in her 2004 report that this department is not doing a good job of administering the billions of dollars intended for the aboriginal communities. The best way for aboriginal communities to do this is to negotiate with the federal government as equals.

If a first nation does not feel it would be advantageous to come under the new legislative regime, the current standards will continue to apply to it, so it will continue to benefit from the provisions of the Indian Act, including those that apply to the administration of Indian moneys.

Bill C-5, which is identical to Bill C-63 and Bill C-5, which died on the order paper June 17 and December 3, 2008, respectively, amends the Indian Oil and Gas Act.

It is important for those watching us to understand why bills die on the order paper. As we all know, this is because an election is called or the House is prorogued. In that sense, since the Conservatives have been in power, they have had the pleasure either of calling an election, even though it went against their own legislation regarding fixed election dates, or deciding to simply prorogue the House in order to stay in power. The adverse effect of that, of course, is that all the bills needed for the well-being and progress of the people, such as aboriginal communities in this case, are lost simply because the Conservatives decided either to call an election or prorogue the House.

At present, under the 2006 legislation, first nations that have oil and gas resources but are not managing them must leave the management of their resources to Indian Oil and Gas Canada, a government agency that falls under the Department of Indian Affairs and Northern Development.

Indian Oil and Gas Canada, or IOGC, has a mandate to manage and administer the exploration for and production of oil and natural gas resources on first nation reserve lands. This organization encourages production and ensures proper collection of royalties on behalf of first nations.

But the Indian Oil and Gas Act has not been amended since it was passed in 1974. Of course, in 1995 a regulation was passed concerning Indian oil and gas, but that is not satisfactory given how the market has evolved since 1974. As the industry has become more and more complex, provinces have constantly modernized their oil and gas legislation. And that is why the federal government is now deciding to modernize its legislation—to bring it more into line with reality and various pieces of provincial legislation.

This bill would apply to reserves that have not chosen to exercise rights under the First Nations Oil and Gas and Moneys Management Act. This bill would apply to first nations that are subject to the Indian Oil and Gas Act. That represents approximately 200 First Nations that produce or could be producing oil and gas.

Currently, more than 80% of these activities take place in Alberta. In 2005 and 2006, more than $270 million in oil and gas revenue was collected by the federal agency that manages Indian oil and gas resources, IOGC. This organization has signed active production agreements on behalf of 60 first nations.

This bill would give the same weight to the industry's activities both on and off reserve—based on provincial legislation—in order to decrease the number of obstacles to first nations economic development, in order to ensure environmental protection on the reserves and in order to allow the government to better fulfill its obligations to first nations in terms of managing these industries by respecting regulations and collecting royalties and other applicable types of revenue.

Under the Indian Act, oil and gas revenues are collected by the federal government and are then to be completely redistributed to native peoples. This money is referred to as “Indian moneys” in the Act and the federal government has fiduciary responsibility for it.

This bill does not transfer to first nations the federal government's power to manage and administer oil and gas exploitation and production activities on reserve lands.

Its purpose is to update the Indian Oil and Gas Act and harmonize the federal legislation with the legislation in the provinces where first nations communities are located. Incorporating the provincial acts and regulations will neither remove any jurisdiction from the provinces nor confer any jurisdiction on them. For example, reserves' environmental regimes will continue to be harmonized with provincial requirements.

The bill replaces almost all of the provisions of the existing six-section Indian Oil and Gas Act and includes a number of matters that are currently provided for in the Indian Oil and Gas Regulations, 1995.

Bill C-5 expands the Governor in Council's existing regulation-making powers and adds new ones, particularly with respect to licences, permits and leases for the exploration and exploitation of oil and gas on reserve lands.

The bill also makes changes in respect of the limitation period for actions to collect amounts owing and the determination of royalty payments. It puts in place sanctions for contraventions of the act as well as provisions for its enforcement comprising fines and penalties, a remedy for trespass, environmental protection clauses and authority to issue replacement leases for lands added to reserves.

It would be interesting to have more information about lands added to reserves and to know what measures are being put forward in negotiations with the provinces. The Bloc Québécois plans to ask some pointed questions about this in committee. We could ask what is meant by expanding the Governor in Council's regulation-making powers and how the provinces will be consulted before regulations are introduced.

For example, even though the bill states that these lands have been absolutely surrendered under the Indian Act or the First Nations Land Management Act, it would be interesting to get some clarification about the negotiation process with the provinces and obtaining a permit on these added lands.

The bill also requires the minister to undertake ongoing consultations with the first nations involved with respect to negotiations with industry. The new section 6(1.1) states that:

The Governor in Council may, by regulation,

(a) require that a power of the Minister under this Act in relation to first nation lands be exercised only if prior approval of the council of the first nation is obtained, if the council is first consulted or if prior notice is given to the council, as the case may be;

(b) require that any such power of the Minister be exercised only if prior consent is given by any first nation member who is in lawful possession of the first nation lands; and

(c) require that notice be given to the council of the first nation after the Minister exercises any such power.

Through Indian Oil and Gas Canada, and in cooperation with the Indian Resource Council, the government consulted most oil-producing first nations and 130 band councils in 2002 and 2003.

The Indian Resource Council was founded in 1987 to represent first nations' collective oil and gas interests with both government and industry. Current membership exceeds 130 first nations from British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick and the Northwest Territories. Six non-producing first nations in Quebec are also members: the Odanak Abenakis; the Natashquan Innus; the Kanesatake Mohawks; the Gesgapegiag Micmacs; the Kahnawake Mohawks; and the Wôlinak Abenakis.

Our aboriginal affairs critic met with Indian Resource Council delegates. Some council members are dissatisfied with certain aspects of the bill, but on the whole, the council is happy with the bill and the consultations that took place.

The Bloc Québécois will therefore support the bill in principle.

While far from perfect, this bill will provide the tools needed in order to standardize the legislation on reserves with that of the provinces where they are located. The Bloc Québécois will demand clarifications during the committee's study of this bill, for example, regarding the terms and conditions relating to authority to issue replacement leases for lands added to reserve, as well as oil and gas exploration and exploitation permits issued by the federal government.

The Bloc Québécois will ensure the Government of Canada does not use Bill C-5 as a means to slough off its financial obligations with respect to first nations. The Government of Canada has a fiduciary obligation to aboriginal peoples and it cannot shirk it.

Although passing this bill will engender improvements, the federal government must do a lot more for aboriginals. The housing conditions, education and health of aboriginals are inferior to those of the rest of population. On the reserves, most families—65%—live in substandard housing. The Bloc Québécois deplores the fact that the lack of affordable housing of adequate size and quality for aboriginals has consequences beyond simple housing standards. Various medical and social problems are linked to poor housing conditions and quality of life. The Government of Canada must make the effort needed to correct the situation without simply handing over the problems to the first nations.

Once again, although not perfect, this bill may help create an environment that we hope will be conducive to first nations obtaining resource royalties and reinvesting them in their own communities.

The Bloc Québécois is concerned about aboriginal claims for self-government. Autonomy cannot be attained unless a nation controls its economic levers.

I am the member for Argenteuil—Papineau—Mirabel and my riding is adjacent to the Kanesatake Mohawk nation. It is important to try to understand others. Last year, I had a rewarding experience with young artists. The Centre de l'image et de l'estampe de Mirabel decided to sponsor aboriginal artists who are now touring Canada. For the past two years, this centre has taken under its wing young Mohawk artists from Kanesatake, our neighbours, and it has been an enriching experience with the results now touring Canada. It is an honour for a population that is often forgotten by governments and left to its own devices. When we try to help these nations to help themselves good things can happen. I hope that this bill will attain its objective.

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February 13th, 2009 / 1:15 p.m.
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Vancouver Island North B.C.

Conservative

John Duncan ConservativeParliamentary Secretary to the Minister of Indian Affairs and Northern Development

Mr. Speaker, I listened closely to the speech by the member for Argenteuil—Papineau—Mirabel and was most grateful to hear his comments.

There was some discussion in your speech about the environment. I know that the bill deals with the environmental measures in a significant way. One of the ways is to introduce authorities related to carbon capture and sequestration, so that first nations can continue to move in a way that would reduce their environmental footprint. It would also increase the ability of the Government of Canada to incorporate provincial laws by reference. It would strengthen and clarify all of that. I wonder if the member has taken note of that. Are you supportive of those two measures?

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February 13th, 2009 / 1:15 p.m.
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Conservative

The Deputy Speaker Conservative Andrew Scheer

I would remind the hon. parliamentary secretary to address comments through the Chair and not directly to other members.

The hon. member for Argenteuil—Papineau—Mirabel.

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February 13th, 2009 / 1:15 p.m.
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Bloc

Mario Laframboise Bloc Argenteuil—Papineau—Mirabel, QC

Mr. Speaker, that is true for one simple reason. The Bloc Québécois' goal is to ensure that all exploitation on Quebec and aboriginal lands complies with the same environmental standards as Government of Quebec projects do. That is important.

What happens in Alberta is not the same as what happens in Quebec. The environmental standards that the Government of Canada wants to enforce are not the same as Quebec's standards. If Quebec were a country, its environmental standards could meet the Kyoto targets. Our businesses, our paper mills and our aluminum smelters would be able to sell credits on international carbon exchanges, which is not the case for others.

That is why, when we are defending Quebeckers' interests, particularly in the context of a bill that talks about the environment, we think it is important that all exploitation activity on aboriginal lands satisfy the same criteria and requirements as activities in the rest of Quebec. This is a good thing for aboriginals in Quebec, who will see that the environment and the economy now go hand in hand.

There is now a green economy, and a lot of jobs are being created. Constrained by its ties to Canada, Quebec has been unable to ride the green economy wave.