Information Letter – Process Change Affecting Surface Contracts and Survey Plan Requirements for Oil and Gas Activities on Indian Lands

Press Release

Introduction

Indian Oil and Gas Canada (IOGC), as part of the “Streamlining Lease Administration” project, will be implementing the following as of October 1, 2016:

• new requirements for survey plans related to oil and gas activities on Indian lands
• a change to the surface disposition process as it relates to surveys and submission of the Band Council Resolution

To assist affected stakeholders, this Information Letter includes a detailed overview of the changes (Appendix 1), as well as a summary of the survey plan requirements (Appendix 2), and suggested IOGC survey checklists for Application Survey Plans (Appendix 3).  In addition, IOGC will conduct a joint webinar with Natural Resources Canada, Surveyor General Branch on July 27, 2016, details for which will be posted to our website www.iogc.gc.ca., and a new checklist is being incorporated into MyCLSS for IOGC CLSR Survey Plans.

Applicants and surveyors are encouraged to begin utilizing these requirements immediately.  Any applications that do not adhere to these requirements as of October 1, 2016 will not be accepted.

Background

The property rights infrastructure on Indian lands is jointly managed by two federal departments:

• Indigenous and Northern Affairs Canada (INAC) is responsible for maintaining interests under the Indian Act, and the Indian Oil and Gas Act when those interests pertain to oil and gas.
• The Canada Lands Surveys Act mandates Natural Resources Canada (NRCAN) through the Surveyor General Branch (SGB) to manage the Land Survey System on Indian lands.

IOGC is a Special Operating Agency under Lands and Economic Development of INAC, and is responsible for the management, administration and timely disposition of oil and gas rights on designated Indian lands located across Canada.

In carrying out these responsibilities, IOGC grants rights under mineral contracts (permits and leases) as well as surface contracts (leases, rights-of-way and exploratory licences; individually or collectively referred to as “surface contracts”) to explore, drill, produce and transport oil and gas on designated Indian lands. Contracts are issued under a regulatory framework including the Indian Act, Indian Oil and Gas Act and Indian Oil and Gas Regulations, 1995 (Regulations). The day-to-day administration of these agreements rests with the Lease Administration unit.

Pursuant to Section 40 of the Regulations, every survey plan required under the Regulations shall be recorded in the Canada Lands Surveys Record.

Currently, IOGC grants surface contracts prior to the corresponding survey plan being recorded in the CLSR.  The Lessee/Grantee (“Contract Holder”) is then responsible for ensuring the survey plan is subsequently recorded.  Unfortunately, this practice has resulted in the following:

• numerous unrecorded plans
• First Nations, INAC regional offices and Canada Lands Surveyors being unable to readily identify IOGC surface contracts when associated with unrecorded plans
• the need to amend existing surface contracts if the recorded plan differs from the one used to acquire the surface rights (e.g. as-built plan)
• a misunderstanding of the purpose of the CLSR recorded plan (i.e. growing number of applicants under the impression that only as-builts are recorded)

To remedy this situation, IOGC will no longer grant surface contracts until the corresponding survey plan has been recorded in the CLSR.  This change is expected to result in the following:

Elimination of:

• outstanding CLSR survey plans on a go-forward basis
• discrepancies between the IOGC surface contract and the CLSR survey plan

Significant reduction in:

• time spent monitoring by IOGC, SGB, surveyors and industry
• processing times for surrender applications for newer agreements

Real-time access to IOGC surface disposition information:

• assists First Nations members, INAC regional staff, surveyors and land professionals
• reduce risk of overlapping land tenure arrangements
• CLSR will be available for viewing in various sources (e.g. eRIP, CLSS Map Browser, NRCan-SGB  website)

Enquiries

Enquiries regarding this information letter should be made to:

Supervisor, Lease Administration
Indian Oil and Gas Canada
Suite 100, 9911 Chiila Boulevard
Tsuu T’ina, AB  T2W 6H6
Tel.: 403-292-6022
Fax: 403-292-5618
mariedke.gibson@canada.ca

Read More: http://www.pgic-iogc.gc.ca/eng/1472575186371/1472575275357

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