Indian Oil and Gas Canada Special operating agency framework (1993)
Table of contents
- Preface
- 1. Special operating agency status
- 2. Mission and mandate
- 3. Policy and environment
- 4. Accountability and relationships
- 4.1 Minister/Deputy Minister responsibility
- 4.2 Chief Executive Officer
- 4.3 Delegations
- 4.4 Performance measures
- 4.5 Relationship with Indian and Northern Affairs
- 4.6 Relationship with First Nation clients
- 4.7 Relationship with Canadian Indian Energy Corporation
- 4.8 Relationship with industry corporations
- 4.9 Relationship with central agencies
- 4.10 Relationship with professional bodies
- 5. Planning and reporting
- 6. Financial and administrative regime
- 7. Human resource regime
- 8. Evaluation, audit, and review
- 9. Authorities
- Appendix A – Services
- Appendix B – Performance measures
- Appendix C – Existing authorities
- Appendix D – New authorities
Preface
Indian Oil and Gas Canada was established in November, 1987, as a business oriented organization responsible for working with First Nations in the effective management of their oil and gas resources. Operating in the dynamic and often volatile environment of the oil and gas industry, the organization is faced with the ongoing challenge of finding innovative ways of carrying out its responsibilities.
On February 28, 1991, the President of the Treasury Board announced that the Special Operating Agency Model would be applied to Indian Oil and Gas Canada. The establishment of Special Operating Agencies is an initiative to improve public sector management by providing increased management flexibility in return for agreed upon levels of performance and results.
The new Agency status will serve to augment Indian Oil and Gas Canada's existing separate employer and single operating budget authorities with an operating framework designed to optimize results and client satisfaction through more effective performance.
The management and staff of Indian Oil and Gas Canada are committed to providing highly professional and client focused services to the satisfaction of their clientele. They look forward to meeting the challenges inherent under Special Operating Agency status and will continue to work with First Nations to address their needs and concerns.
1. Special operating agency status
Effective April 1, 1993, Indian Oil and Gas Canada (IOGC) is established as a Special Operating Agency within the Indian and Northern Affairs Canada (INAC) Lands, Revenues and Trusts program. This Agency status is consistent with the announcement made by the President of the Treasury Board on February 26, 1991 and is in accordance with the Treasury Board's Federal Expenditure Reductions and Management Improvement Initiatives.
2. Mission and mandate
2.1 Mission
IOGC'S mission is to work together to honourably fulfill the Crown's obligations and to further First Nation initiatives to manage and control their oil and gas resources.
2.2 Mandate
The agency is mandated to:
- fulfill the Crown's fiduciary and statutory obligations related to the management of oil and gas resources on First Nation lands;
- further First Nation initiatives to manage and control their oil and gas resources; and
- provide effective, client-focused services to its clientele.
3. Policy and environment
3.1 Operating principles
The Agency's operating principles are to:
- operate in accordance with its Framework Document, Annual Business Plan and associated performance indicators;
- operate in full consultation with First Nations, endeavoring to further their aspirations for greater self-reliance;
- promote cooperative initiatives between private industry and First Nations in the pursuit and exploitation of oil and gas development opportunities on First Nation lands;
- deliver services that demonstrate a commitment to excellence in terms of quality and responsiveness to client needs and aspirations;
- manage operations with due regard to effectiveness, economy, efficiency/prudence and probity;
- acknowledge that employees are instrumental to Agency success and to create an environment which promotes superior performance, excellent service, innovation, employee empowerment and job satisfaction;
- maintain a qualified, competent and efficient workforce by following best employment practices and by providing such training programs and facilities necessary to meet organizational objectives;
- conduct all operations in accordance with the principles embodied in the government's policies regarding fairness, merit, employment equity and official languages;
- support the national objectives of the Government of Canada;
- adhere to appropriate professional standards, codes of ethics and conduct; and
- maintain and renew equipment, accommodation and other assets, basedn on operational needs/technological advancement and budgetary constraints.
3.2 Clients
The major clients of IOGC are First Nation Bands whose Indian Reserves include oil and gas rights administered pursuant to the Indian Oil and Gas Act (Act) and the Indian Oil and Gas Regulations. Services are also provided to industry corporations whose oil and gas activities on Indian lands are regulated by the Act and Regulations, and other sectors and programs within INAC which require oil and gas related technical advice.
3.3 Services
The information/advice and services provided by IOGC pertain to areas of Fiduciary responsibility, regulatory requirements, and policy objectives involving:
- inventory management;
- disposition/amendment management;
- contract management;
- compliance management;
- policy management;
- corporate management.
A more detailed description of these services is provided in Appendix A.
3.4 Geographic coverage
The Agency's scope is national in perspective, dealing with reserve lands with oil and gas rights which have been designated by First Nations for leasing purposes.
4. Accountability and relationships
4.1 Minister/Deputy Minister responsibility
The Agency is a branch within INAC under the direction of the Deputy Minister and ultimately, the Minister. The Deputy Minister approves the accountability framework while the Minister is accountable to Parliament for all activities of the Agency. The Agency will be bound by resource levels, objectives and performance targets as agreed with the Deputy Minister.
4.2 Chief Executive Officer
IOGC will be headed by a Chief Executive Officer (CEO) who will report on day-to-day issues to the Assistant Deputy Minister, Lands, Revenues and Trusts. The CEO will be accountable for the sound management of the Agency in accordance with the highest public and private sector standards. The CEO will provide long term strategic direction to the Agency and will be ultimately responsible for ensuring that the Agency meets its objectives and agreed targets as stated in the Business Plan.
4.3 Delegations
All delegations of authority to IOGC from the Governor-in-Council, the Minister or the Deputy Minister will be vested in the positions so designated. The CEO may limit or restrict the extent of such delegated authorities to facilitate the day to-day operations of the Agency.
4.4 Performance measures
Agency performance will focus on results and will be assessed on measures of program results and corporate indices related to effectiveness and efficiency established in accordance with Appendix B.
4.5 Relationship with Indian and Northern Affairs
IOGC will conduct its business in a manner that supports the general policy, practices and direction of INAC while being consistent with the mission and objectives of the Agency.
4.6 Relationship with First Nation clients
The Agency will be responsive to the needs of its First Nation clients. IOGC will operate in full consultation with First Nations in the provision of fiduciary and statutory services and in cooperation with First Nations to support their initiatives to manage and control their resources.
4.7 Relationship with Canadian Indian Energy Corporation
In addition to its relationships with individual First Nation Bands, IOGC has a Memorandum of Understanding with the Canadian Indian Energy Corporation (IEC) to meet on a quarterly basis. The IEC is owned and operated by over 100 First Nation Bands with energy interests to serve member First Nation Bands and Tribal Councils in realizing economic opportunities from energy development and to represent their collective interests. The objectives of the IEC include the development and implementation of employment and training programs; the establishment of a business consulting and advisory capacity; and the establishment of a formal relationship with IOGC to ensure First Nation interests are recognized and to pursue greater First Nation management and control of their resources.
Regular discussions between IOGC and the IEC will provide IOGC with a forum for collective consultation, dialogue and receipt of advice from authorized representatives of oil and gas First Nation Bands.
4.8 Relationship with industry corporations
IOGC will be responsive to industry concerns and will provide regulatory services and advice in a professional, timely and cost-effective manner.
4.9 Relationship with central agencies
IOGC will continue to be bound by relevant legislation, regulation, policy and standards except where specific exemptions or variances exist (as described in Appendices C and D), or where they may in future be granted to achieve business objectives.
4.10 Relationship with professional bodies
The Agency will support the accountability of its professional staff to the standards and codes of ethics of applicable professional bodies and will support staff participation in the activities of such organizations.
5. Planning and reporting
5.1 Framework
The CEO will submit, to the Deputy Minister/an Annual Business Plan, an Annual Report and periodic performance reports as agreed upon.
5.2 Annual business plan
The Annual business plan will provide a corporate situational analysis and will setout the Agency's business objectives and corporate strategies under an agreed upon resources framework. The Annual Business Plan will include performance measurement indicators and performance objectives. Information will be extracted, as required, for inclusion in the INAC Multi-Year Operational Plan and Main Estimates.
5.3 Annual report
The Annual Report will reflect the Agency's operating results for the previous fiscal year as well as Agency performance relative to agreed performance targets and operational objectives. The Annual Report will be a public document. Information will be extracted, as required/ for inclusion in the INAC Annual Management Report and Main Estimates.
5.4 Financial reports
The Agency will provide information required to fulfill INAC obligations under the Finance Administration Act including monthly variance reports. Part roman numeral 3 of the Main Estimates, the Public Accounts of Canada and other reports required by INAC.
6. Financial and administrative regime
6.1 Financial and administrative controls
IOGC will maintain sound management practices and financial and administrative controls in accordance with Central Agency directives and guidelines/as implemented by INAC. The Agency will continue to operate under provisions of INAC authorities, as amended from time to time.
6.2 Budgeting
Agency funding is through INAC's appropriations from Parliament. The Agency will operate with a total operating budget under provisions agreed to by INAC.
6.3 Delegated financial and administrative authorities
The Agency's financial and administrative delegations will be those set forth in INAC's Financial Signing Authorities Delegation document. These delegations may be amended from time to time, with Ministerial approval/ to reflect the operational requirements of the Agency/ the Deputy Minister and the Minister
6.4 Costs of meeting national objectives
Where INAC receives additional resources to achieve new national legislated or policy objectives, INAC will fund IOGC to cover these costs to the extent that IOGC is asked to contribute to the achievement of these objectives.
7. Human resource regime
7.1 Human resource levels
In accordance with single operating budget principles, the Agency has the authority to determine the most cost effective and efficient mix of resources to meet operational requirements.
7.2 Staffing
IOGC will retain its enhanced delegations from the Public Service Commission to recruit/staff, appoint, promote and deploy employees in accordance with the Public Service Employment Act, the Public Service Employment Regulations and ensuing orders. Should circumstances so warrant, further delegations may be requested from the Public Service Commission. All staffing actions will include requirements for appropriate security clearances in compliance with the Government of Canada's Security Policy.
7.3 Classification, compensation, terms and conditions of employment
The Agency will remain a separate employer under Part roman numeral 2, Schedule 1 of the Public Service Staff Relations Act, as approved by Order in Council P.C. 1986-2084. The Agency will also retain its classification system compensation policy, pay plan and terms and conditions of employment as approved by Order-in-Council P. C. 1987-3/701. Upon Order-in-Council approval, these authorities may be amended from time to time to meet the operational requirements of the Agency.
7.4 Human resource management framework
The Agency will implement a human resource management framework designed to ensure employment equity and that all staff have the management/professional, technical and administrative expertise required to achieve the Agency's mandate and objectives.
8. Evaluation, audit, and review
8.1 Evaluation
The Deputy Minister will be responsible for ensuring that the impact and effectiveness of services provided by the Agency are evaluated from time to time. In addition, the Agency will have an ongoing monitoring activity to determine how it is meeting its client's needs and regulatory obligations.
8.2 Audit
The Agency will be subject to audit by INAC's Departmental Audit Branch. In addition, the CEO may cause internal reviews to be conducted. As a component of INAC, the Agency will also be subject to audit by the Office of the Auditor General of Canada.
8.3 Review of framework document
Refinements and modifications of the Framework Document will be required over time. A complete review of the Framework Document will be undertaken three years after the application of SOA status. Where appropriate, Treasury Board will consider recommendations made as a result of such review/ or fine tuning requirements identified earlier in the transition period, to amend the Framework Document to facilitate achievement of the Agency's mandate and objectives.
9. Authorities
9.1 Existing authorities
A variety of special authorities were held by IOGC prior to acquiring Special Operating Agency status. These existing authorities, as described in Appendix C, will be retained.
9.2 New authorities
The new authorities granted to IOGC in conjunction with its designation as a Special Operating Agency are described in Appendix D.
9.3 Additional SOA authorities
INAC and the Agency will come forward with additional requests for authorities as required.
Appendix A – Services
IOGC provides technical advice and services to its First Nation and industry clientele with respect to:
- Inventory Management: involving the verification of title ownership to surface and subsurface rights and the maintenance of an inventory of hydrocarbon potential utilizing geological, geophysical and reservoir studies, mapping and evaluations/determinations of hydrocarbon reserves, etc.;
- Disposition/Amendment Management: involving the disposition and leasing of oil and gas rights, related surface rights and amendments thereto through: opportunity identification and promotion, assessment and recommendation of terms and conditions, environmental assessment and screening, the disposition (by negotiation, tender, etc. ) of subsurface or associated surface rights, and the negotiation of any amendments to existing agreements;
- Contract Management: involving the documentation and administration of all agreements and amendments, the processing of transfers, technical reviews and assessments resulting in the continuance or expiry of subsurface agreements and other contract administration functions; and
- Compliance Management: involving the monitoring of industry activities to ensure all requirements stemming from agreements, legislation, and guidelines are met, including the collection, verification and validation of Indian monies, the administration of royalty related deductions (ie. gas cost allowance)/ assessments respecting production assurance and equity, as well as audits dealing with royalties, production, operating facilities, etc.
In addition to the foregoing, IOGC internal and INAC directed services include:
- Policy Management: involving the development and implementation of policies and initiatives to facilitate the organization's mandate and objectives respecting oil and gas resource management and the furthering of First Nation initiatives to manage and control their resources; and
- Corporate Management: involving the management and administration of the organization and its resources including strategic planning, financial and human resource management, office administration and informatics, briefings, communication and technical support to other INAC programs, including litigation support, self-government, specific claims/ treaty land entitlement, and mineral designations.
Appendix B – Performance measures
In the spirit of the Special Operating Agency concept, Indian Oil and Gas Canada will be held accountable for results, pursuant to its Framework Agreement and Business Plan. Performance will be assessed on the achievement of stated objectives and by measures of program results and corporate indices within a framework of attributes appropriate to the nature of the Agency's activities.
Effectiveness measures will involve quantitative and qualitative information provided to assess Agency performance in terms of quality, level of service and client satisfaction. Efficiency measures will involve specific indicators with numerical targets that the Agency is accountable for meeting.
The nature of performance measures will vary from time to time to reflect changes in the strategic direction of the Agency and in the policies which will guide operations. The specific performance measures which will be utilized to assess the Agency's effectiveness and efficiency will be described in the Annual Business Plan/with respect to both program results and corporate indices.
From the program results perspective, indices will measure levels of oil and gas activities that occur on reserve lands as well as revenues which accrue to First Nation Bands as a result of said activities. To a great extent, these program results measures will reflect international market forces related to supply, demand, commodity prices as well asbindustry economics and individual corporate strategies. Although such program results are not within the control or influence of the Agency, they will provide useful information on program results within this broader context.
From the corporate indices perspective, measures will focus on several key areas:
- The degree to which the Agency fulfills Crown statutory and fiduciary obligations will be addressed through a number of indices which measure the Agency's effectiveness in such areas as: ensuring that the economic return for development of oil and gas assets will meet or exceed fair market value, or in regulating corporate compliance to statutory requirements and terms and conditions of agreements;
- Due to the developmental stage of initiatives respecting the furthering of First Nation management and control, measurement of performance will primarily relate to achievement of preset goals or indirectly via measures of the added value efforts of the Agency to further First Nation participation in the management of their resources; and
- Measures of effective, client-focused services will utilize level and/or quality of service indicators, along with specific client satisfaction measures which are yet to be developed.
Appendix C – Existing authorities
In response to recommendations by Treasury Board/ Order-in-Council P.C. 1986-2084 Established an Indian Oil and Gas Canada Branch within Indian and Northern Affairs Canada, as a separate employer under Part roman numeral 2, Schedule roman numeral 1, pursuant to Section 4 of the Public Service Staff Relations Act.
Subsequently, Order-in-Council No.'s P. C. 1986-2085 and 1987-3/701 conferred to the Deputy Minister, pursuant to subsection 7(3) [now subsection 12(2)] of the Financial Administration Act, the powers and functions of Treasury Board respecting personnel management of Indian Oil and Gas Canada in accordance with the classification system, compensation policy, pay plan and terms and conditions of employment recommended by Treasury Board.
In 1987, the Public Service Commission delegated to the Deputy Minister, who subdelegated to the CEO/authority under the Public Service Employment Act (PSEA) to appoint qualified persons to Indian Oil and Gas Canada. The authorities delegated constitute the standard authorities available for delegation along with several special provisions.
In 1990, a Memorandum of Understanding for Increased Ministerial Authority and Accountability between Indian and Northern Affairs Canada and Treasury Board established a pilot project for Indian Oil and Gas Canada over a three year period (to March 31, 1993),for the implementation of a single operating budget. Effective April 1, 1993, the single operating budget concept was fully implemented across government.
Appendix D – New authorities
1. To revoke Order-in-Council PC 1987-3/701 (2 April 1987); and pursuant to subsection 12(2) of the Financial Administration Act, to authorize the Deputy Minister of Indian Affairs and Northern Development to exercise and perform the powers and functions of the Treasury Board referred to in subsection 11(2)of that Act, in relation to personnel management of IOGC, on condition that the powers and functions be exercised and performed in a manner consistent with Treasury Board practices.