Notice to Alberta First Nations and industry: Inapplicability of Alberta's Production Allocation Unit Agreements
June 2025
Indian Oil and Gas Canada (IOGC) is notifying Alberta First Nations and industry stakeholders that it will no longer participate in Production Allocation Unit Agreements (PAUAs) with Alberta's Department of Energy and Minerals for wells on designated Alberta First Nation lands.
IOGC will now work directly with subsurface contract holders to establish accurate and equitable production allocations on multi-jurisdictional wells on designated Alberta First Nation lands.
Background
This decision reflects IOGC's legal obligation under the Indian Oil and Gas Act, RSC 1985, c I-7 to protect the interests of First Nations in the management of their oil and gas resources.
Alberta's current PAUA framework:
- uses deemed spacing unit acreages rather than surveyed legal acreages to determine production allocations
- does not accommodate necessary amendments that recognize IOGC's jurisdiction or address the specific nature of First Nation mineral contracts
- has not been developed in consultation with affected First Nations or IOGC
- falls short of reflecting the principles of reconciliation, as it does not ensure the fair and equitable treatment of First Nation mineral rights
We remain open to working with Alberta's Department of Energy and Minerals on the development of a fair, more inclusive and cooperative framework going forward.
For additional information
Contact Dave Newman, Manager of Negotiations, Contracts and Research, at Dave.newman@sac-isc.gc.ca.