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(Lethbridge News Now)

Blood Tribe negotiating TOPGAS $17.6 million settlement with federal government

Jul 29, 2021 | 10:23 AM

STAND OFF, AB – The Blood Tribe is in negotiations on a TOPGAS $17.6 million settlement agreement with the Government of Canada.

In September 2018, the Blood Tribe submitted a claim to Canada regarding the “wrongful deduction of royalties” from the sale of natural gas extraction that was from lands on the reserve.

In a statement, the Blood Tribe said, “the federal government of Canada has a long history of managing and regulating the oil and gas resources of the Blood Tribe.”

“However, their role as a fiduciary responsibility over the past few years has been questionable.”

From 1977 to 1994, as part of TOPGAS – which comes from a clause in certain gas sales contracts in the 1970s that required some major pipeline companies to either ‘take’ the gas and sell it ‘or pay’ for the ‘gas’ even if it couldn’t be taken and sold – certain industry costs were wrongfully calculated as part of deductions to royalty payments owing to First Nations that had natural gas production.

An announcement regarding the settlement negotiations from Blood Tribe Chief Roy Fox – Makiinima can be seen below.

(Blood Tribe Communications on YouTube)

The Blood Tribe noted that prominent First Nations like the Stoney Nakoda were successful in their legal bids and negotiations on this and received direct repayments from the federal government.

As of December 2020, following months of negotiating facts, evidence and arguments presented, the Canadian government has offered a global settlement of $17.6 million to the Blood Tribe. The initial offer from Ottawa was $2.4 million, according to the Blood Tribe.

The statement reads that, “this was a result of a breach of the Crown’s trust, fiduciary, and statutory obligations under the Indian Act, Indian Oil and Gas Act, Indian Oil and Gas Regulations, and Treaty No. 7.”

“Both parties agreed to take the specific claims route in expediting the process of the settlement.”

This means there is no requirement for the Blood Tribe to hold a referendum in accepting the settlement offer. “The Blood Tribe Chief and Council will be the governing body to accept the offer and will affirm to the members that proper research and due diligence was carried out by the negotiating team.”

Kainai Resources Inc. (KRI) has been directed to provide the technical support and make available the necessary information to the members of the Blood Tribe.

The statement from the Blood Tribe concluded, “the leadership is committed to informing the Blood Tribe so that the membership both on and off-reserve are fully aware of the settlement agreement and what the monies from the settlement will be used for.”

The Blood Tribe said a thorough information campaign will start in August, along with a virtual community meeting.