Fort McKay First Nation Oil Sands Royalty Regulations (proposed), pursuant to the First Nations Commercial and Industrial Development Act

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Title or working title of the regulatory initiative

Fort McKay First Nation Oil Sands Royalty Regulations (proposed), pursuant to the First Nations Commercial and Industrial Development Act

Enabling act(s)

First Nations Commercial and Industrial Development Act

Description

The proposed Fort McKay First Nation Oil Sands Royalty Regulations would leverage the First Nations Commercial and Industrial Development Act (FNCIDA) to address regulatory gaps for a major project taking place on reserve. Fort McKay First Nation, the Province of Alberta and Canada worked collaboratively to co-develop the Fort McKay First Nations Oil Sands Regulations, which were enacted in 2007 and incorporate by reference key provincial legislation that pertains to the monitoring and enforcement of oil sands operations in Alberta. These regulations were amended in 2023 to reflect current provincial standards for oil sands mines.

No existing system calculates royalties for an on-reserve oil sands development project. The proposed regulations would incorporate by reference the Province of Alberta's oil sands royalties regime so that it would apply on Fort McKay First Nation Reserve No. 174C, with royalties ultimately flowing to the First Nation. The proposed regulations would establish the royalty regime necessary for an oil sands mining development currently being pursued by the First Nation and their commercial partner, and other possible future oil sands development.

Regulatory cooperation efforts (domestic and international)

This initiative is not under a specific formal regulatory cooperation work plan.

Potential impacts on Canadians, including business

This proposal would support economic reconciliation with Indigenous peoples as well as the Province of Alberta's interest in regional economic development within the oil sands industry. It would also support a major economic development project on reserve lands, which would generate prosperity for Fort McKay First Nation.

Consultations

Regulations under FNCIDA are only made at the request of participating First Nations. The proposed regulations would be project-specific, developed in cooperation with Fort McKay First Nation and the Province of Alberta, and limited to the specific lands described in the proposed regulations. The proposed regulations are necessary to ensure a seamless regulatory environment between similar projects on and off reserve. They apply only to the proposed project site and affect only Fort McKay First Nation. Fort McKay First Nation conducted major community consultations in 2021 and in 2023 about development of their oil sands lands. 10 sessions occurred involving various demographics and community groups. During those sessions, the community supported moving forward with a new oil sands mining project on Fort McKay 174C. The proposed regulations support this project. Fort McKay First Nation Chief and Council have signed a Band Council Resolution requesting Canada make oil sands royalties regulations under FNCIDA.

Further information

Not applicable.

Departmental contact

Jessica Wong
Director
Statutory, Legislative and Policy Implementation Directorate
Lands and Economic Development Sector
Tel.: 416-999-5681
Email: jessica.wong2@sac-isc.gc.ca

The date the regulatory initiative was first included in the Forward Regulatory Plan

September 2025

Find out more

Consult Indigenous Services Canada's Laws and Regulations web page for:

Consult the Cabinet Directive on Regulation and supporting policies and guidance, and for information on government-wide regulatory initiatives implemented by departments and agencies across the Government of Canada:

To learn about upcoming or ongoing consultations on proposed federal regulations, visit:

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