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Bulletin

Ontario Will Share Resource Revenue with Certain First Nations in the North

Fasken
Reading Time 5 minute read
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Indigenous Bulletin

The provincial government recently announced that it had reached resource revenue sharing agreements with thirty-two First Nations who are members of (a) Grand Council Treaty #3, (b) Wabun Tribal Council, or (c) Mushkegowuk Council.[1] 

Pursuant to each agreement, the participating First Nations collectively will receive 45 per cent of Ontario's annual revenues from forestry stumpage within designated forest management units, and 40 per cent of Ontario’s annual mining tax and royalties from certain mines in commercial production[2] at the time the agreement was signed. If a new mine becomes active, and is added to an agreement, the percentage will increase to 45 per cent. The individual First Nation allocations by mine are stipulated in the agreements.[3]

Resource revenue payments will begin prior to December 31, 2019, for the fiscal year of 2018-2019. Payments will continue for five fiscal years, unless extended by further agreement.[4]

First Nations must spend funds they receive on one or more of the following areas: economic development, community development, cultural development, education, and health. The agreements provide that the monies cannot be used for per capita distributions to First Nation members or any other person, distributed to any Indigenous group outside of Ontario, used to cover the cost of litigation, or invested to preserve or seek a return without advancing the five areas outlined above. Notwithstanding these restrictions, resource revenue sharing may “free up” other First Nation monies. These agreements are not intended to replace existing provincial funding to participating First Nations.

Industry players will want to know how, if at all, these newly-made agreements will impact their projects, and their relationships and commercial agreements with First Nations.

The resource revenue sharing agreements address proponents directly in two ways. First, they provide that such agreements are not intended “to discourage, inhibit, replace or qualify the negotiation of” agreements directly between forestry and mining proponents and participating First Nations.

For projects which are significantly advanced and only involve participating First Nations, a resource revenue agreement may facilitate a more expeditious governmental approval process. For exploration or advanced exploration projects, the resource revenue sharing agreements may complicate engagement issues and the negotiation of agreements with First Nations and other Aboriginal groups throughout the mining cycle.[5] For example, the prospect of future allocation of resource revenue may drive First Nation behaviour from an early stage. The resource revenue sharing agreements also may lead to increased financial demands on proponents by non-participating First Nations.

Secondly, the agreements provide as follows:

Where an “on the ground conflict” or direct action occurs by a Participating First Nation individual or community occurs which is interfering with ongoing mining or forestry activities, Ontario shall approach the Participating First Nation community or communities that are most directly associated with the conflict and invite them to discuss approaches to attempt to resolve the conflict. If such an invitation is extended, the community or communities shall give it due consideration and communicate to Ontario whether or not they agree to hold such discussions, and if so under what constraints, if any.

This term is not likely to provide much practical benefit to proponents. There is no firm commitment from the First Nations to assist, and there is no consequence for not providing assistance. Further, it is not clear whether “ongoing mining activities” will be broadly interpreted to encompass early exploration through commercial production. Proponent negotiated agreements should contain more robust provisions as it relates to blockades or related interference with access to lands or project-related activities.

The approach taken by Ontario is broader than in B.C., where resource revenue sharing for mines is done on a project by project basis, and on a Nation by Nation basis for forestry operations.

 

 

 


 

[1]       See attached list for participating First Nations. Many First Nations in Northern Ontario do not belong to these councils including, for example, the Ring of Fire First Nations.

[2]       It includes active mines which the parties agree are located in proximity to the participating First Nations as set out in an Appendix to the respective agreements.

[3]       There could be a First Nation(s) which is not a party to a resource revenue agreement and which is broadly speaking “in proximity” or which asserts Aboriginal or treaty rights in connection with a mine or forest management unit.

[4]       There are annual reporting requirements on participating First Nations and the applicable Council, and a mechanism to suspend/reduce funding for failures to report or address Ontario concerns arising from the reports.

[5]       Whether or not the First Nations are participants to a resource revenue agreement, and more so if a proponent is engaging with First Nation participants and non-participants.

 

The following First Nations, and Councils, are parties to the resource revenue sharing agreements with Ontario:

(a) Represented by Grand Council Treaty #3: 

  • Animakee Wa Zhing 37 First Nation
  • Anishinaabeg of Naongashiing
  • Couchiching First Nation
  • Eagle Lake First Nation
  • Lac Des Mille Lacs First Nation
  • Lac La Croix First Nation
  • Lac Seul First Nation
  • Mishkosiminiziibiing First Nation (ratification in progress)
  • Mitaanjigamiing First Nation
  • Naicatchewenin First Nation
  • Naotkamegwanning First Nation
  • Northwest Angle 33 First Nation
  • Obashkaandagaang First Nation
  • Ochiichagwe'Babigo'Ining Ojibway Nation
  • Ojibways of Onigaming First Nation
  • Rainy River First Nation
  • Seine River First Nation
  • Shoal Lake 40 First Nation
  • Wabauskang First Nation
  • Wabigoon Lake Ojibway Nation
  • Wauzhushk Onigum First Nation

Grand Council Treaty #3 Resource Revenue Sharing Agreement [pdf]

(b) Represented by Wabun Tribal Council: 

  • Brunswick House First Nation
  • Chapleau Ojibway First Nation
  • Flying Post First Nation
  • Matachewan First Nation
  • Mattagami First Nation
  • Wahgoshig First Nation

Wabun Tribal Council Resource Revenue Sharing Agreement [pdf]

(c) Represented by Mushkegowuk Council: 

  • Attawapiskat First Nation (ratification in progress)
  • Chapleau Cree First Nation
  • Fort Albany First Nation
  • Missanabie Cree First Nation
  • Taykwa Tagamou Nation

Mushkegowuk Council Resource Revenue Sharing Agreement [pdf]

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