Bloods sign oil and gas initiative

Page 15

The Blood tribe and the federal government signed a Memorandum of Understanding July 7, giving the tribe greater participation in the future of their natural resources, through the First Nations Oil and Gas Management Initiative.

The document was also signed by the Canadian Indian Energy Corporation, an organization which represents the interest of almost 100 First Nations in Ontario and Western Canada.

The initiative will work toward direct negotiation between First Nations and private industry, for the benefit of both. It's a fist step toward the management and control of our resources, said Chief Roy

Fox.

"It will help ensure a healthy and prosperous future for our children."

The proposal for the initiative started last year as a pilot project. In February 1995 the White Bear Nation in Saskatchewan became the first tribe to sign the agreement. They have since been joined by the Horse Lake Nation in central Alberta, as well as the Blood.

Though the initiative is aimed at eventually turning over full control of oil and gas resources to the First Nations, Chief Fox made it very clear he viewed the agreement as a preparatory step.

Speaking to Minister Ron Irwin and invited guests at council chambers in Standoff, Fox said he expected the government to continue to live up to its financial commitment to the Blood people. "This is not a transfer of power," Fox said. "We do not at this time have the expertise to take over handling of our resources on our own."

Fox said he wants a formal training program in resource management for his people, to start this fall. Minster Irwin agreed that was the first step, but added he would like to see government employees working for the tribe at some point in the future.

"I don't know if there'll be greater profits, but this agreement should bring a lot more pride and opportunities for the Blood people," Irwin added.

All terms and conditions under the initiative will be mutually agreed upon by the Blood tribe and the federal government. Once a decision is reached, authority will be turned over to the tribe. Expert technical advice and information will be supplied by Indian Oil and Gas Canada, a branch of the Department of Indian Affairs.

Indian Oil and Gas Canada is responsible to the department for the identification and evaluation of oil and gas potential on Indian lands, and for ensuring equitable production, prices and administration. It is mandated to further First Nations' resource initiatives and to fulfill the government's financial and legal obligations to Indian peoples regarding those resources.

Exploration and development of resources on reserves falls under the Indian Oil and Gas Act. To date, all activity has been dependent on very general agreements between band councils and the government, with the government having final authority.

Almost all development of the resources has been done by non-Native companies.

In 1993/94, Indian Oil and Gas Canada collected almost $60 million in resource revenue on behalf of participating First Nations.