Indian oil and gas report: New Indian economic order proposed

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Indian governments are one step away from gaining full control over oil and gas development on their lands after meeting with the minister of Indian Affairs, following an all Chiefs meeting on March 6 at the Edmonton Inn.

An Indian oil and gas task force set up last year to look into the existing level of service provided by the federal government to Indian bands with current and potential resources presented it's report to Indian Affairs Minister Bill McKnight at the Chiefs assembly.

The report calls for sweeping changes to the present handling of oil and gas resources and revenue generated to Indian bands, and requested that the government adopt temporary measures toward a permanent transfer of control from the federal government to the Indian band governments.

The task force report indicated revisions to the Indian oil and gas regulations to ensure full participation by bands in the management and development of their resources.

The chiefs' meeting also deliberated on replacing Indian Minerals West with a new body called the Indian Resource council that would work with Indian Oil and Gas Canada.

The establishment of an Indian Resource Council was favored over the setting up an Indian oil and gas corporation, which was voted down as being too bureaucratic in the long run.

"Management must be put back into Indian hands," said Joe Dion, chairman of the task force, in his report to the minister.

"I think the consensus of the report states that we can and must transfer management to the Indian people," said McKnight in his reply to Dion, as Indian leaders attentively listen to the exchange.

Calling it a significant step for Indian economic development, McKnight promised to adopt some of the recommendations of the report and to ensure the federal government's obligation to assist Indian aspiration toward economic self-sufficiency.

"I agree that these measures are of a short term nature, however we need to have something in place that would run on a company basis under federal direction," said McKnight.

The task force proposals would give more power to chiefs in oil and gas resource development, and allow for the opting out by bands if they so wish, said Dion.

Other aspects of this report call for federal tax incentives to industry involved in resource development on Indian lands and for training programs so Indian people can tap into job opportunities in the oil field.

"Government will work with chiefs to establish such a council (Indian Resource Council), if that is their wish," said McKnight. He also promised to include Indian chiefs in a review of the Indian Affairs lands and trust department. He said the Indian Act must be changed to transfer the federal trust responsibility over to band governments, which would provide control and management of funds to Indians.

"We can proceed toward the ultimate goal of Indian control" of resource management, said McKnight, nothing that in 1985 there was 3.3 million cubic feet of gas found on Indian lands generating $295 million in revenue.

Exploration has been completed on 2 million hectares and the remaining 600,000 hectares may include more minerals, said McKnight.