Land Payments

Land Moneys Collected by IOGC on Behalf of First Nations

IOGC collects land moneys on behalf of First Nations and tranfers the moneys into regional trust fund accounts that are administered by Aboriginal Affairs and Northern Development Canada (AANDC). First Nations can apply to AANDC regional offices to access their moneys for community projects and other uses.

All moneys collected by IOGC on behalf of First Nations are payable to the Receiver General for Canada and must be submitted by cheque.

IOGC collects: bonuses, fees and rents due under subsurface agreements; compensation due under exploratory licenses; and initial considerations and rents due under surface agreements. Under the Indian Act, bonuses are classified as capital moneys, which are those moneys derived from the sale surrendered lands or the sale of non-renewable resources of First Nations. Rents, initial considerations and other compensation are classified as revenue moneys, which are defined as all Indian moneys other than capital moneys. Accessing of capital moneys is more stringent than for revenue moneys.

Land Moneys Payable Directly to First Nations

Pursuant to the Regulations, compensation for any damage caused by exploratory work under an exploratory license, such as crop damage or fence cuts, is paid directly to First Nations. Compensation for similar damage caused by work under surface agreements is also paid directly to First Nations.

Administration Fees Collected by IOGC

IOGC collects administration fees pursuant to Schedule II of the Indian Oil and Gas Regulations, 1995. Administration fees are payable to the Receiver General for Canada.

Administration fees of $250 are charged for each subsurface agreement granted and are included in an invoice for total first year compensation for the subsurface agreement.

For granting of surface agreements, including surface leases and rights of way, administration fees of $50 are charged. Administration fees of $25 are charged for granting of exploratory licenses. The administration fees for exploratory licenses and surface agreements are to be submitted to IOGC when companies apply for the exploratory licenses and surface agreements.

IOGC also collects $50 administration fees for contract assignments, and $25 administration fees for partial surrenders of contract areas. No fees are charged for complete surrenders.

Monthly Statement of Account

IOGC provides companies with a monthly Statement of Account for surface and subsurface agreements. Interest is charged on late payments and outstanding amounts under the authority of the Interest and Administrative Charges Regulations.

For more information, please contact IOGC's Finance group.