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.
Chuck Strahl Conservative
This bill has received Royal Assent and is now law.
This is from the published bill.
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.
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.
The House proceeded to the consideration of Bill C-5, An Act to amend the Indian Oil and Gas Act, as reported with amendment from the committee.
The Speaker Peter Milliken
There is one motion in amendment standing on the notice paper for the report stage of Bill C-5.
Motion No. 1 will not be selected by the Chair, because it requires a royal recommendation.
There being no motions at report stage the House will now proceed without debate to the putting of the question on the motion to concur in the bill at report stage.
Gerry Ritz Conservative Battlefords—Lloydminster, SK
moved that the bill, as amended, be concurred in.
(Motion agreed to)
Some hon. members
Agreed.
Gerry Ritz Conservative Battlefords—Lloydminster, SK
moved that the bill be read a third time and passed.
Speaker's RulingIndian Oil and Gas ActGovernment Orders
Vancouver Island North B.C.
Conservative
John Duncan ConservativeParliamentary Secretary to the Minister of Indian Affairs and Northern Development
Mr. Speaker, it is indeed very gratifying to see Bill C-5 advanced to third reading. After nearly a decade of discussions and consultations, we are finally bringing this legislation into the 21st century. In the process, we will be helping to bring much needed prosperity to oil and gas producing first nations.
This long overdue bill is an important step forward in levelling the playing field for resource-rich first nations that face obstacles to achieving their full economic potential. I remind my hon. colleagues that the Indian Oil and Gas Act has remained unchanged for the past 34 years. To say that Bill C-5 is long overdue, is an understatement. That is why I am so proud to be taking part in corrective action with this legislation to set first nations on a better course for the future.
As I pointed out, the last time I spoke on Bill C-5, this is a concrete example of the Conservative government's commitment to ensure that aboriginal Canadians fully share in economic opportunities. It is an important building block that will enable first nations with oil and gas reserves to build stronger, more reliant communities that can better manage their own affairs. The oil and gas sector represents a source of promising economic development opportunities for first nations. The Government of Canada, through its special operating agency Indian Oil and Gas Canada, currently manages over 1,000 oil and gas producing wells and about 150 new wells are drilled on reserves each year.
In 2005-06 over $270 million in oil and gas revenues were collected by the Government of Canada on behalf of first nations. More than $1 billion in revenues from on reserve oil and gas activity has been collected by Indian Oil and Gas Canada on behalf of about 60 first nations over the past five years. That revenue is then passed on, in its entirety, to those first nations communities. This much needed source revenue is being used by these first nations for training, new housing, water and sewer projects, initiatives that are building stronger communities and a brighter future for their children.
Notwithstanding the current economic downturn, industry remains committed to developing partnerships with first nations. The oil and gas sector is continuing to invest hundreds of millions of dollars in exploration and exploitation activities on first nations reserve lands, more than $300 million worth over the last five years alone. While there is great promise, the potential for first nations economic opportunities in the oil and gas sector is dependent upon industry investment.
Private sector interests lament that up until now federal laws governing development activity on reserves have not kept up with industry needs. They also complain that the regulations are unclear in many cases, which can cause delays, additional costs and lost investment opportunities. Industry stakeholders clearly prefer to invest in lands where the regulatory regimes are certain and where communities offer opportunities, not challenges. That is precisely what this bill would provide.
Let me review the many progressive features in Bill C-5 that would ensure first nations lands are every bit as attractive to investors as off reserve lands.
First, the act increases clarity. The amendments clarify both ministerial and judicial oversight powers in high-risk areas such as levying of fines and searches and seizures. Another way that Bill C-5 would clarify would be by harmonizing federal legislation with provincial regimes. This is important because provincial oil and gas laws related to conservation and environmental protection are amended from time to time. If the federal regime does not stay abreast of these changes, it puts first nations seeking investment at a clear disadvantage.
The incorporation by reference of these amendments would ensure the federal regime would keep pace. More to the point, it would eliminate disparities between on and off-reserve lands. Again, this would provide greater certainty for potential investors and facilitate economic development. All of this would be done while, in all circumstances, fully maintaining the federal government's fiduciary responsibilities to first nations.
The second major advantage of Bill C-5 is that it would improve Canada's ability to regulate oil and gas activities on reserve land. Bill C-5 would give the minister, through Indian Oil and Gas Canada, greater authority to audit operators and collect royalties owed to first nations. Once developed, new regulations will establish a clear set of rules to prevent companies from using certain transactions with subsidiaries or related parties to unduly reduce royalties payable to first nations.
Furthermore, the minister would have a 10-year limitation period to commence legal actions to collect unpaid royalties and other amounts owing. This is especially important. There would be no limitation period in cases of fraud or misrepresentation. Without this provision, provincial standards would apply and in some cases the limitation period would be as low as two years. This added protection would ensure that first nations were paid what they were rightfully due.
The final major area of improvement made possible by Bill C-5 concerns environmental protection and ensuring that first nation sites of cultural, spiritual or historical significance will be protected from potentially adverse effects of oil and gas activities. Because the federal regime would be harmonized with provincial environmental protection laws, new enforcement actions to protect the environment from oil and gas activities would be identical to the ones currently available to the province off reserve.
The minister would also be provided new powers to suspend operations if first nation sites of cultural, spiritual or historical significance were discovered or threatened by the oil and gas activities. Oil and gas activities would only be permitted to resume when the minister would be confident that the risk of harm would no longer exist. In addition, the regulations could require first nation concurrence before these operations are resumed.
Another important change in this legislation responds directly to the priorities of first nations. The concern was raised repeatedly that the on-reserve regime did not keep pace with the off-reserve regime. To address this need, the amendments would expand the authority of the governor in council to make regulations and to facilitate regular improvements to them. In fact, the approach taken by Bill C-5 would guarantee continuous changes and improvements to ensure that the federal oil and gas regime would remain current.
Under the act, regulations would be monitored, examined and, when required, amended on a never-ending basis. This means that first nations would never again have to wait for 30 or 35 years before amendments to modernize the act could be implemented.
This is another aspect following on the act in which first nations will play a crucial role. We will continue to work together with oil and gas first nations and their advocate, the Indian Resource Council, during the development of the regulations, just as we did during the development of this act.
I remind the House that before developing the bill, extensive consultations were carried out with first nations with oil and gas interests. Since 2003, Indian Oil and Gas Canada has held one-on-one sessions with over 85% of the oil and gas-producing first nations.
My hon. colleagues can rest assured that passage of this legislation is not the end, but merely a continuation of an ongoing consultation process with first nations. That is not rhetoric. That is a promise.
During the minister's appearance before committee, he mentioned a letter of comfort which he sent to the Indian Resource Council last year. I should explain that the Indian Resource Council is a national aboriginal organization that advocates on behalf of some 130 first nations with oil and gas production or the potential for production.
In writing, the minister outlined Canada's commitment to modernize the on-reserve oil and gas regime. He also committed to continue our partnership with the Indian Resource Council during the development of the regulations. Of concern to many, the minister reassured oil and gas first nations that there was nothing in Bill C-5 that affected first nations' jurisdiction over their resources. Nor did the act extend the jurisdiction of the provinces to those lands or resources.
The minister reiterated that it was the Government of Canada and not provincial authorities that would be responsible for managing first nation lands and resources. The letter of comfort also addressed first nation concerns related to value-added opportunities. For example, the minister pledged to establish first nation energy business centres of excellence in Alberta and in Saskatchewan.
Furthermore, the minister committed to identifying opportunities for greater first nations input and involvement in the decision-making processes at Indian Oil and Gas Canada on issues that directly affected them. As well, he signalled his willingness to explore options for greater first nations control over the management of their oil and gas resources. Of great interest to us as legislators, the minister promised to establish a continuous change or improvement process.
These assurances reinforce our government's determination to ensure first nations share equally in our country's prosperity. Members of government believe profoundly that first nations citizens must participate fully in all that Canada has to offer and be given the tools to achieve greater economic self-reliance and an ever-increasing quality of life. Bill C-5 would help to advance these goals by providing modern legislation, competitive regulations and sound practices that would create the conditions for economic success and social progress.
These goals are shared by all members of the House. The key to unleashing this potential lies in passing this modernized legislative framework into law. By endorsing Bill C-5, we will be confirming, once again, that collaboration and partnership between the federal government, the private sector and aboriginal people can lead to a better future. Indeed, it will help build a better country for us all.
I call on all parties to lend their support and ensure the speedy passage of this necessary and overdue legislation.
The House resumed consideration of the motion that Bill C-5, An Act to amend the Indian Oil and Gas Act, be read the third time and passed.
Linda Duncan NDP Edmonton Strathcona, AB
Madam Speaker, I commend the government for bringing forward this act. It is long overdue. I come from a jurisdiction where oil and gas is a huge part of the income for the province. One of the big vacuums has been the proper regulation of oil and gas activity on first nation lands. I commend the government for finally coming forward with a more modernized system.
I raised this question in the briefing the government provided, which I appreciated. When will the regulations come forward? In addition to the consultation with the first nations, which is appropriate and constitutionally required, will the government also consult with additional concerned people, including people living adjacent to the first nation communities who could potentially be impacted by either air emissions or contamination of water from the oil and gas activity? Will they also be consulted in the development of the regulations?
John Duncan Conservative Vancouver Island North, BC
Madam Speaker, I know that the regulatory process is going to involve a lot of consultation between the government and the Indian Resource Council. Producing first nations are very much a part of this exercise and I would assume that they are good neighbours.
I would assume that the fact that we are incorporating so much provincial legislation by reference would mean that the standard that would be applied would be very similar to what is currently applied, and that the level of consultation and advice is what is acceptable in the neighbourhood.
Bruce Stanton Conservative Simcoe North, ON
Madam Speaker, I thank the parliamentary secretary for his comments here this afternoon.
One of the topics that he touched on, and that I would ask that he expand on a bit, is the whole notion that the modernization of the act, in respect to this bill, would in fact ensure that the fiduciary relationship that is enjoyed between the Government of Canada and first nations is upheld; and second, that this bill would not in any way inhibit or change the important treaty and aboriginal rights that exist currently. I wonder if he could comment further on those two points.
John Duncan Conservative Vancouver Island North, BC
Madam Speaker, I appreciate the question from the chair of the aboriginal affairs committee, which has been seized with getting this bill through the House.
Indian Oil and Gas Canada is responsible for managing and administering exploration and development on first nations lands. They are carried out under the direction and with the approval of first nations band councils. They are mandated to fulfill the Crown's fiduciary and statutory obligations.
Regarding the issue of Canada's fiduciary obligations, the federal government has committed that the fiduciary relationship will not diminish and will continue unchanged. In fact, the proposed changes actually strengthen Canada's ability to express its fiduciary obligations because of the clarity in the bill in terms of specific legislative and regulatory capacity, so that will allow us to fulfill our role much more efficiently.
The aboriginal and treaty rights of first nations are clearly unaffected by the provisions of the bill. They remain the same.
Paul Szabo Liberal Mississauga South, ON
Madam Speaker, the bill provides that the minister may make regulations, and there are some 25 or 26 different areas under which regulations are referred to, so I am sure that they are going to be there.
There are some provisos whereby if there are any inconsistencies between federal and provincial regulations, the federal regulations will prevail as they relate to any other acts which are incorporated by reference in the regulations.
I wanted to ask the member if he could give the House an estimate of the time it is going to take before such regulations are going to be able to be put together because it appears from the breadth of what is happening right across the country, and with different regulations for different provinces, that this may be a very onerous task and may raise some interesting questions.
I would also ask whether or not there has been any thought given to having any of these regulations presented for comment to the appropriate standing committee?
John Duncan Conservative Vancouver Island North, BC
Madam Speaker, at this point the committee has not been seized by that question. That could be a question that the committee might want to deal with.
The area in which Bill C-5 provides incorporation by reference of provincial legislation is actually quite limited, but it is that limited ability which allows us to incorporate many very thick provincial pieces of legislation, very meaty stuff. Those areas are determining the quantity or quality of oil or gas recovered, combining oil or gas rates for joint exploitation, abandonment of wells, establishment of administrative fees for services provided, environmental protection from the effects of oil and gas exploration, oil and gas conservation, and equitable production.
Even though it looks like it is a huge task, I think most of this has already been pre-contemplated. There has been a technical committee working on this through Indian Oil and Gas Canada. I do not think this should be a long time coming.
Todd Russell Liberal Labrador, NL
Madam Speaker, it is a pleasure to be here today to debate Bill C-5 at third reading.
The Liberal Party has supported this particular bill and made efforts to improve it where it saw a need for improvement. Not all of them have been accepted either by the committee or the House, with the ruling by the Speaker that a particular motion relating to the fiduciary duty of the minister and the government was not accepted.
Bill C-5 has been a long time coming, as many in the House have already said. The bill was officially introduced in 1974 and has remained substantially unchanged and unamended since that particular time. Efforts have been made in the past. There have been many discussions and consultations, and certainly many hours, days and weeks of work have taken place to get us where we are today.
In fact, this is the third time the bill has been introduced in as many sessions of Parliament and only now have we reached the third reading stage. Of course, there was a prorogation of the House, which everybody is aware of, last fall.
We all have to ask ourselves a question when it comes to pieces of legislation. Has there been adequate consultation? That is not a question that I can answer. It is only a question that can be answered by the first nations people, who are directly affected. In many regards, they have satisfied the committee that in fact extensive consultations have taken place.
There are, obviously, some organizations and first nations communities which have expressed some difficulty at committee around the specifics of this particular bill. In particular, the Stoney Nakoda First Nations out of Alberta has expressed a number of concerns with the bill around the fiduciary duty of the federal government, as to whether it would be changed or altered. It has also expressed certain concerns about the lack of control and jurisdiction of first nations over their own lands and the management of them.
That being said, it is important we understand that those concerns were noted prior to the development of the bill. Some have questioned whether these types of issues should have been raised in committee because the Stoney Nakoda, for instance, was already part of the consultations that took place with the Indian Resource Council of Canada, but that is the way our legislative process works. First nations have the ability to take advantage of whatever stage of the legislation to make their views known and I acknowledge that.
The bill came to the House as a result of the consultations between the Indian Resource Council of Canada, which represents 130 oil and gas producing first nations or those who have the potential to produce oil and gas, and the Government of Canada, primarily through Indian Oil and Gas Canada.
There is a need, of course, for this particular bill. It fills a regulatory gap and modernizes the Indian Oil and Gas Act. The Parliamentary Secretary to the Minister of Indian Affairs and Northern Development has already outlined some of those substantive changes.
I would like to review in broad terms some of the aspects of the clauses of this bill that deal with royalties and regulation making. There is an increase in the powers of the minister, but there is also a specific duty on the minister to consult with first nations in carrying out his powers and responsibilities. There are improvements to the inspection, audit and examination powers of the minister and Indian Oil and Gas Canada representing the minister. There are changes regarding search and seizure, delegation authorities, offences and punishment, as well as administrative monetary penalties.
One of the major discussions that took place in committee concerned the incorporation of provincial regulations. Basically, they would become federal regulations for the purposes of managing first nations lands that have oil and gas or the potential of oil and gas.
Some have argued that the government has to ensure that the rights and interests of first nations are not infringed upon by the incorporation of those provincial laws. People want to ensure that by incorporating these particular laws the fiduciary obligation is not diminished. Also raised was the issue that because this particular bill allows the government to incorporate provincial regulations and because it is a regulation-making bill, how do we really know what is going on. There was an amendment made to this bill at committee that would require the government to report to Parliament. Proposed section 28.1 reads:
At least every two years after the coming into force of the present section, the Minister shall prepare a report on the administration of this Act during the two preceding years and shall table a copy of the report in each House of Parliament within the first fifteen days that it is sitting after the completion of the report, which shall include a summary addressing the following matters:
(a) the progress of the consultations mentioned in paragraph 6(1.1)(a) and a list of concerns raised during such consultations;
(b) any proposed regulation to be made under subsection 6(1.1); and
(c) any regulations made under this Act and describe any variations in the regulations from province to province.
It is quite an in-depth report on responsibility that was not originally in Bill C-5 that is there now as it has been reprinted.
It is important from our perspective that this bill pass in Parliament. It would provide some balance, some consistency between what will happen off reserve and what will happen on reserve as first nations develop their own lands where there is oil and gas or the potential for oil and gas. Some will argue that there will not be consistency right across the country because it will vary province to province.
My party is in favour of this piece of legislation. We have done our best to see it through its various legislative stages in a timely fashion.
Our party has supported in the past, it supports today and it will support in the future the right of first nations, aboriginal peoples generally, to develop their own lands and their own resources. We will support the inherent right of first nations to make decisions for themselves and for their people.
While this bill does not go all the way, it certainly goes part of the way to fulfilling those goals and aspirations.