Legislation Considered: First Nations Oil and Gas and Moneys Management Act, S.C. 2005, c.48
PDF Version: Preliminary thoughts on the First Nations Oil and Gas and Moneys Management Act
The First Nations Oil and Gas and Moneys Management Act, S.C. 2005, c.48 (“FNOGMMA“) came into force on April 1, 2006. However, to date no First Nations have elected to “opt into” the Act.
The Act has been promoted as a method whereby a First Nation can take control of its on-reserve oil and gas resources and thus enhance the economic rent from these resources. It is elective in that a First Nation must choose to bring itself under the FNOGMMA legislative regime before the statutory regime applies. The existing Indian Oil and Gas Act, R.S.C. 1985, c. I-7 will continue to apply to those First Nations that do not “opt into” the FNOGMMA. Left unstated is why Canada under the existing Indian Oil and Gas Act cannot similarly take advantage of “value-added” opportunities and similarly enhance the economic rent accruing to the beneficiary First Nation. (A new Indian Oil and Gas Act was passed on May 14, 2009, but will not be in force until the amendments to the Indian Oil and Gas Regulations, 1995 are complete.)