Indian Oil and Gas Canada 2023-2024 Annual Report

Operational excellence

• officially completed our Resource Information Management System 2 (RIMS2) multi-year project. This resulted in 2 new IOGC systems including the:
  • Royalty Case Management tool which tracks the royalty obligation non-compliance process
  • Royalty Management tool which supports streamlined and timely royalty calculations and reporting
• supported and funded an inaugural First Nation-initiated Audit^{Footnote 1} which applied new provisions from the Indian Oil and Gas Regulations. This is the first tangible example for First Nation assertion of jurisdiction
• advanced the Environment and Surface Contracts Regulatory Amendment in collaboration with the Indian Resource Council's (IRC) Joint Technical Committee
• issued 82 offset and pre-offset notices and 9 trigger notices. We received 82 offset responses and 7 new wells are now required to pay compensatory royalties
• issued 11 new subsurface and 12 new surface contracts
• completed 20 surrenders and clarified reclamation and remediation environmental protection requirements
• reconciled the Enhanced Oil Recovery royalty rate which increased royalty amounts for the respective First Nation

First Nation assertion of jurisdiction

• created a Senior Advisor Strategic Transition and Engagement position to support First Nation Assertion of Jurisdiction and capacity development
• completed internal business unit scans to build awareness and identify areas of improvement for the transfer of services to First Nations
• coordinated and aligned our work with service transfer departmental initiatives and task teams

Workplace wellness

• advanced the implementation of 6 items from the 2022 Organizational Review, and work is ongoing
• developed and approved a Statement of Action on Work-Life Balance

Executive Directorate

• Application Development including Resources Information Management System (RIMS2) Project
• Communications and Executive Services
• Elders-in-Residence
• First Nation Assertion of Jurisdiction and Capacity Development
• Policy

Lease and Royalty Administration Directorate

• Lease Administration
• Liability Reduction Program
• Negotiations, Research, and Subsurface contracts
• Royalty

Regulatory Compliance Directorate

• Audit, Compliance and Enforcement
• Environment
• Resource Analysis and Conservation

Planning and Corporate Services Directorate

• Administrative Services
• Financial Services
• Human Resources
• Information Technology

See Annex B for additional information on each Business Unit and our 2023-24 key performance indicators.

Functions

Responsible for leading multiple information technology enhancements including project planning, development, implementation, and maintenance.

2023-24 Key performance indicators and deliverables

• completed our Resource Information Management System 2 multi-year project.
• successfully awarded long-term support and maintenance contract for RIMS2
• completed 38 new incident requests (fixes), and 3 change requests completed for RIMS2
• completed 39 new incident requests (fixes) for RIMS1
• resolved 85 internal issues

Functions

Responsible for managing compliance activities across IOGC and using a risk-based approach to decision-making including:

• coordinating with other business units to gather and centralize risk and compliance information for a holistic approach to regulatory compliance within IOGC
• supporting and funding First Nation-initiated audits and examinations
• coordinating IOGC-initiated production compliance reviews, audits and inspections
• coordinating and managing response to insolvencies
• coordinating and managing designation of IOGC's orphan site inventory

2023-24 Key performance indicators and deliverables

• finalized a funding arrangement with Regional office so that a First Nation could conduct and control their Audit
• funded and supported completion of the first ever First Nation Initiated Audit
• collected rents and royalties from regulated entities, resulting from enforcement actions taken and/or litigation, for the benefit of First Nations
• coordinated completion of production compliance inspections for 126 sites
• coordinated completion of an Audit for verification of Royalties collected for the Enhanced Oil Recovery Project

Functions

Responsible for providing strategic and tactical communication support including:

• supporting and strengthened internal IOGC communication coordination
• leading and improving IOGC's external communication
• managing IOGC's communication information and platforms in accordance with all applicable policies, guidelines, and legislative requirements

2023-24 Key performance indicators and deliverables

• conducted regular reviews of IOGC's website and actioned updates as required
• coordinated incoming enquiries from First Nations, industry and other stakeholders
• promoted IOGC at various conferences and events

Functions

Responsible for overseeing federal and provincial environmental legislative requirements, and promoting environmental awareness and protection related to exploration, production and closure including:

• 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
• reviewing applications and developing environmental protection terms including federal and provincial legislation requirements
• reviewing environmental audits and performing field inspections 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 reclamation prior to the surrender of surface contracts

2023-24 Key performance indicators and deliverables

• completed 17 new application reviews and developed environmental protection terms
• reviewed 420 environmental audits
• conducted 42 field inspections including reclamation inspections
• had 27 meetings with First Nations and provincial regulators
• advanced a pipeline policy management approach with the Joint Technical Committee
• provided funding to support some Ontario First Nations for legacy well identification and management

Functions

Responsible for furthering First Nation initiatives in managing and controlling their oil and gas resources including:

• strengthening and enhancing relationships with First Nation clients, the Co-Management Board, and the Indian Resource Council
• providing guidance and support to IOGC and cross government policy teams for service transfer initiatives and future responsibilities
• providing support to First Nations on their path to self-determination
• collaborating with the department on service transfer initiatives

2023-24 Key performance indicators and deliverables

• held regular meetings with the department to identify and seek alignment with strategic priorities regarding service transfer
• coordinated an Internal Business Unit Scan to identify gaps and areas of improvement (on-going)
• supported a strategy change mid-year for assertion of jurisdiction and awaited further direction

Functions

Responsible for managing the lifecycle of oil and gas surface tenure, processing certain subsurface tenure transactions, and the verification and maintenance of corporate information including:

• 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)

2023-24 Key performance indicators and deliverables

• 12 new surface contract issuances completed
• 10 surface contract amendments completed
• 20 surface contracts surrendered
• implemented the Financial Ability Assessment at time of assignment of contacts

Functions

Responsible for negotiating and managing of subsurface contracts including:

2023-24 Key performance indicators and deliverables

• supported the negotiation and issuance of 11 new subsurface contracts
• completed all research requests within service standards timelines
• issued 11 new subsurface contracts
• completed 274 administrative activities associated with subsurface contracts

Functions

Responsible for regulatory and policy development including:

• leading the development of the proposed Phase II Regulatory Amendment which includes Environment, Surface contracts, and continuous improvement provisions to the Regulations
• researching, assisting, and advising on strategic and operational policies
• developing, consulting, and negotiating new provincial/federal agreements/MOU, and supporting their implementation
• assisting IOGC business units with the implementation of the Act and Regulations
• supporting the charting and implementation of future direction of IOGC from an operational and regulatory perspective

2023-24 Key performance indicators and deliverables

• provided quarterly progress updates on the proposed Phase II Regulatory Amendment and operational policies.
• worked in partnership with JTC in the development of the proposed Phase II Regulatory Amendment.
• worked with IOGC Department of Justice (DOJ) and DOJ Regulatory Drafter representatives in the preparation of a consultation draft of the proposed Phase II Regulatory Amendment.
• supported and led IOGC reporting requirements such as the 2021-2023 Report to Parliament and other requests.

Functions

Responsible for:

• conducting subsurface lease continuation reviews, which may identify instances of non-compliance such as subsurface trespass and non-productivity
• conducting drainage reviews and issuing Offset Notices
• conducting annual reserves review of oil and gas production to estimate future royalty forecasts for production life cycle
• conducting engineering and geological projects to support First Nations

2023-24 Key performance indicators and deliverables

• issued 82 offset notices
• sent annual royalty forecasts to ISC Trust Money Officers
• completed various studies and technical presentations requested by First Nations

Functions

Responsible for managing the administration of First Nation oil and gas royalties including:

• ensuring accuracy and completeness of royalty submissions and assessments
• managing Gas Cost Allowance (GCA) processing and deductions
• managing trucking deductions and Trucking Cost Audits
• engaging with First Nations and industry on royalty enquiries

2023-24 Key performance indicators and deliverables

• achieved over 92% Royalty Assessment efficiency in the Royalty Module tool in preparation for full integration with the payment system.
• reviewed and approved 100% of the 2022 GCA Actuals in the Petrinex platform
• successfully completed the trucking cost audit
• increased stakeholder inquiries efficiency rate by 13% year over year

IOGC also has the following internal services Business Units including Administrative Services, Financial Services, Human Resources, and Information Technology not included in this table. These Business Units provide ongoing supports and internal deliverables.