Canadian Natives sue for C$3 billion

Two Cree Nations in Alberta and Saskatchewan are heading up a C$3 billion class action lawsuit accusing the Canadian government of mismanaging oil and natural gas rights on reservation lands.

In their statement of claim, the Poundmaker Cree Nation and Onion Lake Cree Nation allege that Indian Oil and Gas Canada, a federal agency, has failed to promote and properly develop their natural resources.

They also claim the IOGC failed to protect the First Nations’ energy resources from being drained by wells outside the designated reserves when it should have sought leasing opportunities on those adjacent to prevent or mitigate the drainage of the resources.

“For many years, the federal government has controlled the exploitation of oil and gas rights on First Nations reserves,” Onion Lake Chief Wallace Fox said in a written statement. “The federal government has botched this important responsibility.”

The plaintiffs argue that lands on the territories of Poundmaker, Onion Lake and other First Nations participants in the class action suit “were ripe for exploitation,” despite efforts to ensure they were only exploited for the benefit of the nations.

They claimed that the federal government had failed to provide “sufficient funds, systems, procedures, staffing and oversight” to enable the First Nations to carry out their obligations and responsibilities.

Poundmaker Chief Duane Antoine said in a statement it was “disappointing that the federal government didn’t protect our non-renewable oil and gas resources from drainage by wells on the lands bordering our lands. We are poor people and the revenue from those resources could have done much good in our community.”

Harry Strosberg, a lawyer for the plaintiffs, said he hoped the new Canadian government, given its expressed wish to rebuild a relationship with First Nations, would sooner talk rather than engage in a court fight.

- GARY PARK