Business units
Our Business Units provide a range of services to assist First Nations and industry, with detailed descriptions below:
On this page
Audit, Compliance and Enforcement
The Audit, Compliance, and Enforcement Business Unit manages compliance activities across IOGC and uses a risk-based approach to decision-making. Risk and compliance information is gathered by our operational Business Units and centralized within the Audit, Compliance and Enforcement Business Unit for a holistic approach to regulatory compliance within IOGC. Contract holders are subject to the Indian Oil and Gas Act, RSC 1985, c I-7 and the Indian Oil and Gas Regulations, SOR/2019-196 (IOGR) including obligations to pay rentals, royalties, other moneys, and to protect the environment of First Nation lands.
Audit, Compliance and Enforcement Framework
The objective of the Audit, Compliance, and Enforcement Framework (Framework) is to ensure IOGC uses all available tools to promote regulatory compliance.
The Framework is based on principles of:
- transparency
- procedural fairness
- effective communication
- timely, consistent, coordinated, integrated, and appropriate responses
The Framework includes:
- clear and enforceable regulatory requirements
- education and outreach
- compliance verification activities
- appropriate review and enforcement actions
The Framework details processes and procedures for:
- prevention/avoidance of non-compliance instances
- determination if a situation of potential noncompliance exists
- adopting a measured approach to respond appropriately to address any instances of non-compliance
Risk-based approach
IOGC refers to risk as a measure of the impact of uncertainty in its ability to meet its fiduciary and statutory obligations to First Nations. The primary risks related to IOGC's fiduciary and statutory obligations are:
- royalties not collected for production on First Nations lands resulting in loss of royalty revenue for First Nations
- lease rentals not collected on a timely basis resulting in a loss of rental income for First Nations
- environmental impacts of projects on First Nations lands are not carefully considered, resulting in environmental liabilities and damage to the land
IOGC's Audit, Compliance, and Enforcement Business Unit reviews risk and compliance information from all IOGC Business Units and manages potential and actual non-compliance issues. When this information suggests continued, prolonged, or multiple instances of non-compliance, or a significant single non-compliance, timely action is taken. The Indian Oil and Gas Regulations, SOR/2019-196 (IOGR) provide for timely escalation of the enforcement process once the Compliance and Enforcement process is initiated, including stipulation of timeframes for action, and consequences of non-compliance. All available avenues are used to promote compliance or to respond appropriately to address instances of non-compliance.
Communications and Executive Services
IOGC's Communication and Executive Services business unit provides internal and external communication support to IOGC leadership and directorates in accordance with the Government of Canada Policy on Communications and Federal Identity. This includes:
- managing digital communication platforms
- coordinating translation support for all IOGC directorates, including quality assurance and urgent translation support
- creating communication products such as feature articles and fact sheets
- responding to media queries
- media monitoring
- working with communication partners and stakeholders
Environment
The Environment Business Unit is responsible for the management of environmental matters relating to surface agreements and surface access. Specific duties include:
- ensuring all proposed oil and gas surface facilities and activities, including seismic, and construction of surface leases, access roads and pipeline rights of way, undergo an environmental review as required by the Impact Assessment Act
- imposing environmental protection terms to ensure oil and gas companies comply with federal and provincial legislation
- reviewing environmental audits and performing field inspections where necessary at surface facilities to monitor industry compliance with the environmental terms of surface contracts
- providing information and assistance to First Nations, industry representatives and other stakeholders
- reviewing remediation plans in coordination with First Nations to ensure timely and appropriate remediation activities
- conducting reclamation inspections with First Nations and industry and ensuring the adequacy of reclamations prior to the surrender of surface contracts
Lease Administration
The Lease Administration Business Unit is responsible for managing the lifecycle of oil and gas surface tenure (surface leases, rights of way, exploration licences and other surface rights), processing certain subsurface tenure transactions, and the verification and maintenance of corporate information. Specific duties include:
- drafting and ensuring the execution of all surface tenure in accordance with negotiated terms and conditions and with federal government regulations
- administering all surface and subsurface tenure throughout their lives, including financial commitments, rent reviews, assignments and surrenders
- monitoring of First Nation suspense accounts as it relates to surface tenure
- coordinating remedial enforcement action for non-compliance issues on surface tenure
- training and working together with First Nations and industry regarding surface and subsurface tenure
- registering contracts and other instruments into the Indian Lands Registry System (ILRS)
Negotiations, Contracts, and Research
The Negotiations, Contracts and Research Business Unit comprises three sub-units.
Negotiations
Negotiations is involved in the negotiation and management of subsurface dispositions. Specific duties include:
- identifying, developing and promoting disposition options with First Nations to promote and increase exploration and development of First Nations oil and gas resources
- assessing proposals by interested companies against IOGC's disposition policy
- assisting First Nations in reaching agreements with companies by providing negotiation and facilitation expertise to support the negotiation process
- providing information concerning subsurface leasing trends, sales prices and related policies to all interest stakeholders
- providing advice to Treaty Land Entitlement (TLE) First Nations, and working together with various federal and provincial government departments and industry to facilitate the implementation of the TLE process
Research
Specific duties of Research include:
- responding to queries regarding the legal title of First Nation lands as it pertains to oil and gas
- verification of the chain of title for First Nation lands both present and extinct, mineral and surface, status within the boundaries of the Reserve and its adjacent lands
- quantifying areas of potential business interest, reporting on chain of title evidence and confirming the options for the disposition of designated and federal lands
- verification of First Nation interests in support of land claim activity and litigation
Subsurface Contracts
The Subsurface Contracts Business Unit is responsible for managing the lifecycle of subsurface contracts and the issuance of all replacement contracts in support of the Treaty Land Entitlement process (TLE). Specific duties include:
- drafting and issuing subsurface contracts (subsurface leases, permits, disposal and injection leases) and amendments in accordance with negotiated terms and conditions and with federal government regulations
- verifying provincial and freehold mineral and surface dispositions and drafting and issuing all replacement contracts (subsurface leases, surface leases and right of ways) in support of the TLE process
- administration of subsurface contracts, monitoring regulatory and contractual compliance, monitoring and releasing moneys from First Nation Trust Suspense Accounts and coordinating remedial enforcement action for non-compliance issues on subsurface contracts
- providing advice and information to First Nations and Industry
Resource Analysis and Conservation
Specific duties of Resource Analysis and Conservation Business Unit include:
- managing the compliance function for trespass and potential drainage situations on all designated First Nation lands, including enforcement with oil and gas companies and provision of information to First Nations
- analyzing historical oil and gas production, prices and revenues and preparing and communicating annual revenue forecasts for First Nations used for budgeting purposes by First Nations and regional offices of Indigenous Services Canada
- managing and conducting all ongoing and routine engineering and geological work for First Nations, including review of notices and applications and updating of the hydrocarbon resource inventory for First Nation lands with a significant outreach aspect to First Nations
Royalty
The Royalty Business Unit is responsible for managing the administration of First Nation oil and gas royalties. Specific duties include:
- ensuring accuracy and completeness of royalty submissions and assessments
- managing Gas Cost Allowance processing and deductions
- managing trucking deductions and Trucking Cost Audits
- engaging with First Nations and industry on royalty enquiries