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Indians get landmark ruling over royalties Canadian government ordered to return C$360 million in royalties to Alberta First Nation; impact could be widespread Gary Park Petroleum News Calgary Correspondent
The Canadian government has been ordered to return C$360 million in oil and gas royalties to an Alberta Indian band in a ruling that could have widespread implications for First Nations across the country.
In a legal dispute that has stretched over 15 years, including the past four years before the Federal Court of Canada, Justice Max Teitelbaum said Dec, 17 that he wants the government to make the payment to a third party trustee without any delay.
He issued the order before final arguments were scheduled to wrap up and months before a final judgment is expected.
“I want to get the money out of the hands of the Crown (the government) and into the hands of the (Samson Cree) First Nation as soon as possible,” Teitelbaum said in court.
The Samson Cree, a community of 5,000 about 65 miles southeast of Edmonton, occupy land where the Bonnie Glen gas field has accounted for up to 75 percent of all gas produced on Indian reservations across Canada.
All oil and gas flowing from Indian land and the collection of royalties is managed by the federal government. Samson Cree based argument on self-government But the Samson Cree has argued that since it has a right to self-government it should also have been controlling the resources and revenues.
It has alleged that $1.385 billion in royalties has been misappropriated from the band and accused the government of not properly tracking gas produced, failing to charge adequate royalties, not investing the money wisely and taxing the revenues even though First Nations are exempt from paying taxes.
The government has argued that the Samson Cree ceded mineral rights in 1946 “forever in trust” and insisted it has acted in good faith in managing those resources and ensured a “reasonable return” to the band.
In a case that has compiled more than 50,000 pages of transcript, the Samson Cree said a treaty between the band and the government in 1876 did not give up control of natural resources.
Samson Cree attorney James O’Reilly said the final verdict in the case will determine the impact of treaties on present-day legislation, including how royalty revenues are handled and the future of oil and gas development on First Nations land across Canada.
He said on Dec. 17 that he believes Teitelbaum’s order is the first time a First Nation has been able to wrestle control of its monies away from the Canadian government. Chrétien testified for Samson Cree The case included testimony from former Prime Minister Jean Chrétien, the first time a former or current prime minister has appeared in a trial.
Chrétien said that during his time as Indian Affairs minister he pushed to change policies that left a “white superintendent” governing Indian land.
On Nov. 24 the Samson Cree demanded an apology from Prime Minister Paul Martin because of comments made in closing written arguments by federal lawyers.
Chief Victor Buffalo wrote to Martin that the briefs “contain disparaging and demeaning descriptions of the testimony of our respected elders and other witnesses who testified on behalf of our nation.”
Reacting to Teitelbaum’s order, Marilyn Buffalo, policy advisor to the Samson Cree, said: “History is being corrected. This is the Samson’s money and we’re finally getting it back.”
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