Vol. 148, No. 8 — April 9, 2014

Registration

SOR/2014-64 March 20, 2014

FIRST NATIONS OIL AND GAS AND MONEYS MANAGEMENT ACT

Order Amending Schedule 2 to the First Nations Oil and Gas and Moneys Management Act

Whereas, pursuant to section 7 of the First Nations Oil and Gas and Moneys Management Act (see footnote a), the Kawacatoose First Nation council submitted Band Council Resolution No. 2010-2011-151 dated February 23, 2011 to the Minister of Indian Affairs and Northern Development, requesting payment to the Kawacatoose First Nation of moneys held, and moneys to be collected or received in future, by Her Majesty for the use and benefit of the Kawacatoose First Nation;

Whereas, pursuant to section 11 of that Act, the Kawacatoose First Nation council prepared a financial code dated May 13, 2013;

Whereas, pursuant to section 16 of that Act, the Minister of Indian Affairs and Northern Development and the Kawacatoose First Nation concluded a payment agreement dated November 20, 2013 that sets out the arrangements for the payment of moneys;

Whereas, pursuant to section 18 of that Act, the Kawacatoose First Nation conducted a vote on June 28, 2013 in accordance with the First Nations Oil and Gas and Moneys Management Voting Regulations (see footnote b) to ratify the financial code and approve the payment of moneys;

Whereas, on June 28, 2013, the electoral officer prepared a statement of results that confirmed that a majority of eligible voters participated in the vote and that a majority of those who participated voted in favour of the financial code and payment of moneys to the Kawacatoose First Nation;

Therefore, the Minister of Indian Affairs and Northern Development, pursuant to subsection 29(1) of the First Nations Oil and Gas and Moneys Management Act (see footnote c), makes the annexed Order Amending Schedule 2 to the First Nations Oil and Gas and Moneys Management Act.

Gatineau, Quebec, March 17, 2014

BERNARD VALCOURT
Minister of Indian Affairs and Northern Development

ORDER AMENDING SCHEDULE 2 TO THE FIRST NATIONS OIL AND GAS AND MONEYS MANAGEMENT ACT

AMENDMENT

1. Schedule 2 to the First Nations Oil and Gas and Moneys Management Act (see footnote 1) is amended by adding the following:

1. Kawacatoose First Nation

COMING INTO FORCE

2. This Order comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

First Nations wishing to assume control of their capital and revenue trust moneys held by Canada under the First Nations Oil and Gas and Moneys Management Act (the Act) must first require addition to Schedule 2 of the Act. Accordingly, subsection 29(1) of the Act states that the Minister of Indian Affairs and Northern Development may, by order, add a First Nations’ name to Schedule 2 of the Act following an affirmative ratification of the First Nation’s financial code and approval of payment of moneys by the First Nation’s community membership.

The Kawacatoose First Nation (Saskatchewan) has successfully ratified its financial code and payment of moneys pursuant to the First Nations Oil and Gas and Moneys Management Act and subsequent voting regulations and is ready to be added to Schedule 2 of the Act.

Background

The First Nations Oil and Gas and Moneys Management Act is an optional legislation which came into force on April 1, 2006. The Act enables First Nations to (1) manage and regulate on-reserve oil and gas activities; and (2) assume control of their capital and revenue trust moneys held by Canada. First Nations can choose to opt into one or both of these provisions. They do not have to be oil- or gas-producing to use the moneys portion of this legislation. Any First Nation that has trust moneys held in the Consolidated Revenue Fund of Canada can consider the moneys provisions of the Act as an option.

Objective

One of the objectives of the First Nations Oil and Gas and Moneys Management Act is to transfer full responsibility over the management and control of a First Nation’s capital and revenue moneys from Canada to an opting First Nation. The legislation requires a First Nation to

(1) Express its intent to opt into the First Nations Oil and Gas and Moneys Management Act by Band Council Resolution;

(2) Develop a financial code that sets out how the First Nation’s moneys will be managed once paid to them;

(3) Conclude a payment agreement with the Minister of Indian Affairs and Northern Development on the method for the payment of moneys;

(4) Inform the First Nation’s membership through community meetings; and

(5) Have the First Nation community members approve the financial code and payment of moneys through a ratification vote.

The First Nations Oil and Gas and Moneys Management Act provides flexibility in the management of moneys and the ability required by First Nations to respond rapidly to their community needs in terms of immediate access to funds to augment program funding and essential services, fund emergency situations that impact a First Nation community unexpectedly, or capitalize on investment opportunities immediately.

Description

The First Nations Oil and Gas and Moneys Management Act places direct and immediate decision-making authority over the management of moneys, regardless of it being capital or revenue, in the hands of First Nations. Unlike the Indian Act, through the First Nations Oil and Gas and Moneys Management Act, opting-in First Nations can choose, subject to community approval, to expend and manage their capital and revenue moneys, including making investments, without the involvement of the Minister of Indian Affairs and Northern Development. First Nations that decide to opt out of the moneys management provisions of the Indian Act and into the First Nations Oil and Gas Moneys Management Act can still participate in, and benefit from, any federal government program. The Act does not have an opt-out or a reversion provision under the Indian Act moneys management provisions.

The addition of a First Nation to the moneys management provisions of the First Nations Oil and Gas Management Act is made by order of the Minister of Indian Affairs and Northern Development upon development, by the First Nation, of a financial code under section 11 of the Act and following an affirmative vote of the First Nation’s eligible voters on the ratification of the financial code and the approval of the payment of moneys in accordance with the First Nation’s financial code. The First Nation’s council is accountable directly to its band membership for the management of its moneys, and future moneys, once received from Canada. The First Nation’s financial code, ratified by the First Nation’s council, governs the way the moneys are to be held, managed and expended.

Upon ministerial approval of the Order and once moneys are received from Canada, the transition from the moneys management provisions of the Indian Act to the First Nations Oil and Gas and Moneys Management Act is complete. Canada maintains its status as custodian over federal reserve land and will still collect future moneys derived from revenue-generating activities on reserve land on behalf of a First Nation which is placed into the Consolidated Revenue Fund until it is transferred out pursuant to the First Nations payment agreement.

“One-for-One” Rule

The “One-for-One” Rule does not apply to this Order, as it does not result in any administrative costs, nor does it remove administrative burden on businesses.

Small business lens

The small business lens does not apply to this Order, as it does not impose any compliance or administrative costs on small businesses.

Consultation

The First Nation’s financial code and payment of moneys underwent a community ratification process, wherein a majority of the votes cast by the First Nation’s electors were in favor of opting in the moneys management provisions of the First Nations Oil and Gas and Moneys Management Act. The Order Amending Schedule 2 of the First Nations Oil and Gas and Moneys Management Act is the final step in the implementation process for the Kawacatoose First Nation and its community members.

Aboriginal Affairs and Northern Development Canada’s only role in the development of the financial code of the Kawacatoose First Nation was to ensure that the code met the provisions of section 11 of the First Nations Oil and Gas and Moneys Management Act, which in turn assists Canada in fulfilling its commitment to strengthen Aboriginal governance.

Rationale

On February 23, 2011, the Kawacatoose First Nation submitted to the Minister of Indian Affairs and Northern Development a written resolution of the council requesting the payment of moneys held by Her Majesty for the use and benefit of the First Nation.

On June 28, 2013, the council of the Kawacatoose First Nation held a ratification vote by secret ballot to determine whether community membership was in favor of the financial code and payment of moneys. The total number of eligible electors was 1 988. In total, 1 239 ballots were cast, 1 005 voted in favor of the financial code and payment of moneys, 201 voted against the financial code and payment of moneys, and 33 ballots were spoiled. The Kawacatoose First Nation is deemed to have held a successful ratification in favor of the financial code and payment of moneys. The payment agreement, which specifies the method for the payment of the First Nation’s moneys, was signed by the Kawacatoose First Nation on November 20, 2013, and concluded on March 17, 2014, with the signature of the Minister of Indian Affairs and Northern Development.

Upon the coming into force of the Order Amending Schedule 2 of the First Nations Oil and Gas and Moneys Management Act by adding the name of the Kawacatoose First Nation to Schedule 2 of the Act, moneys currently held in trust by Canada will be paid to the Kawacatoose First Nation in accordance with the payment agreement, as well as future Indian moneys collected or received by Canada. By opting out of the moneys management regime of the Indian Act and becoming fully operational under the moneys management provisions of the First Nations Oil and Gas and Moneys Management Act, the Kawacatoose First Nation becomes fully accountable for all its current and future moneys.

Implementation, enforcement and service standards

There are no compliance and enforcement requirements associated with this Order adding the Kawacatoose First Nation to Schedule 2 of the First Nations Oil and Gas and Moneys Management Act. Any compliance and enforcement strategies in relation to the First Nation’s laws once operational under its financial code are the responsibility of the Kawacatoose First Nation.

Contact

Roy Gray
Director
Indian Moneys, Estates and Treaty Annuities Directorate
Resolution and Individual Affairs Sector
Aboriginal Affairs and Northern Development Canada
10 Wellington Street, Room 18J
Gatineau, Quebec
K1A 0H4
Telephone: 819-953-5450
Fax: 819-994-0142
Email : Roy.Gray@aadnc-aandc.gc.ca