Poundmaker Chief Duane Antoine explains the payouts of oil producing land surrounding his reserve.
Two Saskatchewan First Nations have sued the federal government over what they say are oil and gas rights.
On Monday, Poundmaker Cree Nation and Onion Lake Cree Nation filed a class action lawsuit against the Government of Canada over what they allege is a mismanagement of oil and gas rights on reserve lands.
The two bands say they are doing this on behalf of the 72 other oil and gas producing First Nations across Canada.
In the lawsuit, Poundmaker and Onion Lake allege a breach of fiduciary duty and negligence on the part of the federal government. According to the Oil and Gas Act, neighbouring lands of any oil and gas producing land are owed a compensatory royalty from oil and gas revenues gained from the adjacent land.
The lawsuit alleges that many designated reserve lands have no producing wells and adjacent wells are draining the oil and gas from underneath reserve lands. They claim the government has a responsibility to make sure the reserves are compensated when this happens.
The two bands, along with their legal counsel, claim that they have received no compensation from any oil or gas wells neighbouring their reserves.
“For many years the federal government has controlled the exploitation of oil and gas rights on First Nation Reserves,” says Chief Wallace Fox of the Onion Lake Cree Nation. “The federal government has botched this important responsibility.”
“It’s disappointing that the federal government didn’t protect our oil and gas resources,” says Chief Duane Antoine from the Poundmaker Cree Nation. “The revenue from those resources could have done much good for our community.”
The two bands are represented by Strosberg LLP lawfirm.
“It’s a 60-year-old problem that is just coming to light now,” says Blaine Favel who is an advisor to the Strosberg firm. “We hope that we get to the negotiating table and the First Nations who lost oil are compensated from the government.”
Harvey Strosberg of the Strosberg firm says he hopes the new government will build upon their desire to re-build its relationship with First Nations and would negotiate this suit rather than fight it in court.
He says it will be difficult to say how long this process could take.
Assembly of First Nations National Chief Perry Bellegarde expressed his support for Onion Lake and Poundmaker in initiating the class action lawsuit.
“Based on our natural resource wealth, First Nations should be among the wealthiest in Canada,” Chief Bellegarde said in a media release. “I encourage the Crown to begin negotiations in good faith with all parties involved, to work towards a reconciliation that honours First Nation title and rights.”
The lawsuit estimates the damages suffered to be $3 billion.