Benefits Plan

The Canada Oil and Gas Operations Act (COGOA) provides for operators to develop benefits plans for their oil and gas exploration and development activities. In the Northwest Territories, Nunavut and northern offshore areas, the National Energy Board cannot authorize a work or activity or approve a development plan until the Minister of Indian Affairs and Northern Development (INAC) has approved the benefits plan or waived the requirement. Generally, a waiver is not given.

Note that this provision of COGOA does not extend to inter-provincial oil and gas pipelines regulated under the National Energy Board Act.

Proposed benefits plans are prepared by the operator in consultation with Aboriginal and other northern residents in the community or communities in the vicinity of the proposed activity or development. Benefits plans set out the operator's policies and activities to maximize opportunities for the employment and training of northerners. The plans also provide for northern businesses to receive a full and fair opportunity to supply goods and services on a competitive basis.

Benefits plan measures to provide other Canadians and other Canadian businesses with employment, training, and business opportunities may be required depending on the nature and characteristics of the proposed activity or development.

An annual report to INAC on benefits plan implementation is required. The Northern Benefits Requirements for New Exploration Programs, including annual report information, are included in the Standard Call Documents for rights issuance.

For additional information about the benefits plan requirement in the Northwest Territories and the Beaufort Sea, please contact:

Petroleum Development Division
INAC NWT Regional Office

867-669-2469

For additional information about the benefits plan requirement in Nunavut and the adjacent northern offshore, please contact:

Northern Oil and Gas Directorate
INAC Headquarters

819-997-0877

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