Reserve Creation

The first section of this Article confirms the undertaking of the Entitlement Bands to use their best efforts to reach their Shortfall Acres Acquisition Date on or before the twelfth (12th) anniversary of the Framework Agreement.

Sections 11.02 and 11.03 of the Framework Agreement represent the culmination of an intensive effort to stream-line the complicated process of Entitlement Reserve creation and to outline the respective obligations of the parties. The process of Entitlement Reserve creation should be read in conjunction with Schedule 6 of the Framework Agreement, the "Terms and Conditions of Entitlement Reserve Creation."

Timelines For Reserve Creation

Sections 11.02 to 11.04 inclusive and Schedule 6 shall, unless otherwise agreed to in writing by the parties, be in effect for at least fifteen (15) years. Following the fourteenth (14th) anniversary of the execution of the Framework Agreement, the parties agree to enter into good faith negotiations to determine additional time periods and applicable amendments, if any. If the parties are unable to agree on or before the expiration of the fifteen (15) year period, the Entitlement Reserve creation procedures shall continue for a further period of three (3) years. Thereafter, Canada's then current policy on reserve creation shall be substituted for this procedure unless otherwise agreed in writing between the parties.

The parties have also agreed upon an earlier review of the process, which is to take place within three (3) years of the execution date of the Framework Agreement.

This is the date on which an Entitlement Band has acquired land:

(a) which meets the requirements of the Framework Agreement;

(b) has a surface area equivalent to its Shortfall Acres; and

(c) the same has been set apart as Entitlement Reserve.

Initial Steps

Upon delivery to Canada by the Entitlement Band of a (Band Council Resolution (the "BCR") and supporting documents identifying the "Entitlement Land" which the Entitlement Band wishes to acquire and have created as an Entitlement Reserve (collectively the "Submission"), Canada shall, within fourteen (14) days:

(i)register the BCR on a central registry system;

(ii) assign a Regional Project Manager to assist the Band;

(iii) forward a copy of the BCR and documents to the Saskatchewan Indian and Metis Affairs Secretariat ("SIMAS") [Note: this changes to thirty (30) days in the event a selection map is required by SIMAS]; and

(iv)request from SIMAS information respecting the existence and location of both registered and unregistered Public Utility Easements, Waterbodies, and any implications to Saskatchewan of the Submission.

SIMAS Role

SIMAS will deliver such information to Canada within forty-five (45) days in the event that the identified Lands, Minerals or Improvements are provincial Crown assets which Saskatchewan has already agreed to sell to the Entitlement Band, or within ninety (90) days in respect of any other property.

Regional Additions To Reserves Committee

The Entitlement Band representative and the Regional Project Manager shall prepare the Submission for the Regional Additions to Reserves Committee. The Submission may be approved by a further BCR at the request of the Entitlement Band representative or the Regional Project Manager. This shall include the results of the "Environmental Screening" required pursuant to the Framework Agreement.

The finalized Submission will be delivered to both the Regional Additions To Reserves Committee and the Department of Justice, Canada, through the Department's Saskatchewan Regional Director General.

The Regional Additions To Reserves Committee (in consultation where necessary with the Department of Justice) will review and report on the Submission within thirty (30) days of receipt of such Submission.

RDG Consideration

The Regional Additions To Reserves Committee will then either reject the Submission or, alternatively, forward its report and recommendation to the Regional Director General (the "RDG") for consideration (where its recommendation is an unconditional "Approval In Principle" or a conditional "Approval in Principle").

Upon receipt of the report and recommendations from the Regional Additions To Reserves Committee, the RDG shall review and report on the Submission within fifteen (15) days.

Explaining a Rejection

In the event that a Submission is rejected by the Regional Additions To Reserves Committee or the RDG, the affected Entitlement Band may request in writing a meeting with the appropriate officials to further clarify or explain the basis for such rejection.

In the event that a conditional or unconditional "Approval In Principle" by the RDG has been granted:

Approval In Principle

(i) the Entitlement Band is to conclude the acquisition of Entitlement Land within fifteen (15) months;

(ii) Canada shall notify SIMAS that a conditional or unconditional "Approval In Principle" has been granted and identify in writing the affected Lands, Minerals and/or Improvements;

(iii) Saskatchewan shall, within forty-five (45) days of receipt of the notice to SIMAS, ensure the Public Utility Companies direct to the attention of the Department of Justice registerable discharges of any registered Public Utility Easement together with duly executed Replacement Public Utility Easements. Canada shall hold these, in trust, for execution and registration and subsequent distribution of copies.

After the transfer of title of the Entitlement Land to Canada has occurred, Canada shall carry out any required outer boundary surveys or obtain any other alternative legal description satisfactory to Canada.

Reserve Creation By Order-In-Council

The Minister shall then recommend to the Governor-In-Council that such Entitlement Land be set apart as an Entitlement Reserve. The Department of Indian Affairs and Northern Development will prepare the necessary submission to the Governor-In-Council to give effect to such recommendation and shall notify Saskatchewan within thirty (30) days of the date that such Entitlement Land was set apart as an Entitlement Reserve.

The Framework Agreement also provides for a system to deal with the unlikely possibility that Entitlement Reserve status is denied by the Governor-In-Council. That system is set forth in section 11.05.

Outer Boundary Survey and Environmental Screening Costs

Canada has agreed to be responsible for; the payment of outer boundary survey costs required for the establishment of Entitlement Reserves, reasonable costs associated with any Environmental Screening (as defined), and the reasonable costs incurred by the Entitlement Bands for ratification of their Band Specific Agreements (which shall include such reasonable costsrelating to independent legal and other expert advice as agreed pursuant to their respective Band Specific Agreements).

Funding for Acquisition Costs

Canada has also agreed to pay each Entitlement Band, within sixty (60) daysof the date of execution of its Band Specific Agreement, the sum of $100,000.00 for the purpose of assisting the Entitlement Band with Acquisition Costs.

Canada further agrees to pay each Entitlement Band, within sixty (60) days of the Execution Date or the date of its adherence to the Framework Agreement, whichever is later, any sums remaining to be advanced to such Entitlement Band for "planning costs".

Interim Tax Payment

After the purchase of Entitlement Land by an Entitlement B and, but pending Entitlement Reserve status, the obligation to pay property taxes rests with the Entitlement Band. However, in the event that an Entitlement Reserve is not created within seventy-five (75) days of the latest of the following dates:

(i) the date that the Entitlement Land is eligible to be transferred to Canada for the creation as an Entitlement Reserve;

(ii) the date that the Entitlement Band has requested in writing that such Entitlement Land be transferred to and accepted by Canada;

and

(iii)the date of receipt by Canada of all registerable documents, in registerable form, necessary to effect the transfer of title to the Entitlement Land to Canada;

then Canada agrees to pay to the Entitlement Band's Trustees an amount equivalent to the taxes levied against the Entitlement Land which the Trustees have paid and which relate to any period following such seventy-five (75) day period.

Transfer of Residual Interests

This provision (section 11.09) is of great significance to the Entitlement Bands and to the process of Entitlement Reserve creation. Under provincial legislation, a number of interests in land (even land in respect of which individuals have "clear title") are reserved unto the provincial Crown. Section 11.09 recognizes that Saskatchewan will, upon creation of an Entitlement Reserve, transfer to Canada for the Entitlement Band all "residual" interests, whether express, implied or under any statute of the Province.

Under the Framework Agreement, the procedures for Entitlement Reserve creation apply for an Entitlement Band until the sooner of the expiration period set forth in the Framework Agreement or the date when the Entitlement Band has had its "Equity Quantum" (or in the case of four (4) Bands, their "Saskatchewan Formula Quantum") set apart as Entitlement Reserve. After that, additional land can be set apart in accordance with the federal Additions to Reserves Policy.

The Entitlement Bands have also agreed to give favourable consideration to establishing compatible zoning by-laws consistent with those in place in Urban or Northern Municipalities when property is acquired outside the municipality, but adjoining it.

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