The federal statute that provides First Nations with the option of managing and regulating oil and gas exploration and exploitation on their reserve lands and of receiving moneys otherwise held for them by Canada.
The purpose of this Information Letter is to provide an overview of the oil royalty calculation process for companies (lessees) who have entered into subsurface contracts, normally lease agreements, with Indian Oil and Gas Canada (IOGC) and for companies who are paying oil royalties to IOGC (royalty payers) on behalf of these lessees. More detailed information on specific aspects of the calculation process can be found in other Information Letters referred to in this document.
