Judgments

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T-3904-78
Leo Bruno, Edward J. Arcand, James J. Arcand, Arsene Arcand, Stanley Arcand, Angus Paul, George LaFleche, for and on behalf of themselves personally, and for and on behalf of the Alexander Band Indian Council, and the Members of the Alexander Band No. 134, and the Alexander Band No. 134 (Plaintiffs)
v.
Her Majesty the Queen in Right of Canada as represented by The Minister of Indian Affairs and Northern Development (Defendant)
INDEXED AS: ALEXANDER BAND No. 134 V. CANADA (MINIS- TER OF INDIAN AFFAIRS AND NORTHERN DEVELOPMENT) (T.D.)
Trial Division, Strayer J.—Edmonton, September 25; Ottawa, November 26, 1990.
Native peoples — Lands — Plaintiffs surrendering oil and gas rights on reserve lands to Crown for lease on their behalf — Losing $1 million due to unreasonable delays in adopting Indian Oil and Gas Regulations in 1977 — Crown's general fiduciary obligation towards each Indian band in respect of reserve land discussed — Failure to adopt Regulations sooner breach of duty — Although normally no obligation to legis late, possible exception where necessary to adequately perform fiduciary obligation — No liability for failure to legislate Regulations sooner given general application and wide range of activities covered — Narrow wording of special case pre cluding Court from granting relief.
Crown — Plaintiffs losing $1 million due to unreasonable delay in adopting Indian Oil and Gas Regulations — Fiduci ary duty owed to each Indian band in respect of reserve land discussed — Failure to adopt regulations sooner breach of fiduciary duty — Normally no legal obligation to legislate, but possible exception in sui generis relationship — No liabili ty for failure to adopt Regulations sooner given general application and wide range of activities covered — Exercise of general legislative power surpassing fiduciary obligation owed to particular plaintiffs.
Energy — Indian Oil and Gas Regulations adopted in 1977 of general application and covering wide range of activities relating to mineral rights on reserve lands — Plaintiffs losing $1 million during period of rapidly increasing international oil
prices due to unreasonable delay in adopting Regulations — Fiduciary duty owed by Crown to Indians re: reserve lands discussed — Effect of duty on obligation to legislate . — No liability for failure to legislate sooner as Regulations of general application and wide scope.
This was a special case for determination under Rule 475. In 1947 the Alexander Band surrendered to the Crown all of the petroleum and natural gas rights on its reserve to lease on its behalf, provided that it would be paid royalties. Many leases were entered into under this arrangement between 1947 and 1977. Due to the actions of the Organization of Petroleum Exporting Countries in 1973 there was a rapid increase in the international price of oil, thereby increasing the value of oil and gas extracted in Canada. The Alberta Government promptly enacted regulations which raised royalties for most owners of mineral rights, although the plaintiffs were excepted. Although the federal Regulations were amended in 1974 to increase the royalty rates paid for oil and gas produced from Indian reserves, the plaintiffs still were not paid as much as other Indian bands in Alberta which had the benefit of Alberta regulations. In 1974 the new federal Indian Oil and Gas Act authorized the Governor in Council to make regulations pre scribing the royalties on oil and gas obtained from Indian lands. No such regulations were made until the Indian Oil and Gas Regulations were adopted in 1977. In the interval there had been extensive consultation with Indian bands in western Canada and Ontario. The plaintiffs lost approximately one million dollars as a result of the delay. The plaintiffs argued that the defendant had a duty to enact, in a timely manner, Regulations raising the royalties received by them to levels equivalent to those received by other Alberta bands. The defendant argued that the exercise of the Governor in Council's discretion to make regulations is unfettered and beyond judicial review. The issues were: whether the defendant had a duty to adopt the 1977 Indian Oil and Gas Regulations sooner; wheth er it had breached any such duty; whether any such breach had caused plaintiffs any damages; and the quantum of any such damages.
Held, the action should be dismissed.
The plaintiffs suffered a loss which prima facie could have been avoided by timely adoption of new regulations by the defendant.
The Crown owes a general fiduciary obligation to each Indian band in respect of its reserve land: Guerin et al. v. The Queen et al. The fact that since the Royal Proclamation of 1763 Indian title can only be surrendered to the Crown, and only the Crown can alienate it thereafter, means that the Crown is interposed between the Indians and prospective pur chasers or lessees to guard against the exploitation of the
Indians. The grant of the discretion to the Crown in the Indian Act, subsection 18(1) to determine what use of the reserve lands may be "for the use and benefit of the band" imposes on the Government a fiduciary obligation, which is the law's means for controlling the exercise of such discretion. A court can hold the Government to the fiduciary's strict standard of conduct, which is that of utmost loyalty to his principal. The Government of Canada did not obtain as good a return from the lease of Indian reserve lands as could reasonably and lawfully be achieved, thus breaching its fiduciary duty. What was thought proper and lawful to do in 1977 could have been done in 1973 or 1974 and that delay was unreasonable.
The Crown's obligation to the Indians with respect to their interest in the land is not a public law duty, but rather in the nature of a private law duty. Although there is normally no legal obligation to legislate, there may be an exception where the relationship between the Crown and the Indians is sui generis. The Crown kept the exclusive right to acquire and dispose of Indian title because it had the unique power and responsibility to act as a protector of the interests of indigenous peoples. Therefore the Crown should exercise these governmen tal powers which only it has, to perform adequately the specific fiduciary obligation it owes to a particular band whose Indian title has been surrendered to the Crown.
Notwithstanding the foregoing, the Government was not liable for failure to legislate because the special case related only to the Indian Oil and Gas Regulations adopted in 1977. The defendant did not have any judicially enforceable duty to adopt those Regulations sooner, given their general application and the wide range of activities in relation to mineral rights covered. Such an exercise of a general legislative power goes far beyond any fiduciary obligation owed to these particular plain tiffs. The enactment of regulations was primarily the perform ance of a political duty which is not enforceable in the courts. The special case failed to put to the Court the question whether it was a matter of fiduciary obligation that a simple provision have been adopted, in a timely manner, increasing plaintiffs' revenue from their particular mineral rights.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Federal Court Rules, C.R.C., c. 663, R. 475.
Indian Act, R.S.C. 1970, c. I-6, s. 18(1) (now R.S.C.,
1985, c. I-5, s. 18(1)).
Indian Oil and Gas Act, S.C. 1974-75-76, c. 15.
Indian Oil and Gas Regulations, SOR/66-300 (as am. by
SOR/74-206).
Indian Oil and Gas Regulations, C.R.C., c. 963, s. 21(7).
CASES JUDICIALLY CONSIDERED
DISTINGUISHED:
Guerin et al. v. The Queen et al., [1984] 2 S.C.R. 335; (1984), 13 D.L.R. (4th) 321; [1984] 6 W.W.R. 481; 59 B.C.L.R. 301; [1985] 1 C.N.L.R. 120; 20 E.T.R. 6; 55 N.R. 161; 36 R.P.R. 1.
REFERRED TO:
Kwong's Estate and Kwong v. Province of Alberta, Thompson's Estate, Stephaniuk and Lazarak (1978), 14 A.R. 120; 96 D.L.R. (3d) 214; [1979] 2 W.W.R. 1; 8 C.C.L.T. 1 (C.A.) affd sub nom Kwong et al. v. The Queen in Right of Alberta, [1979] 2 S.C.R. 1010; (1979), 18 A.R. 358; 105 D.L.R. (3d) 576; [1979] 6 W.W.R. 573; 12 C.C.L.T. 297; 29 N.R. 295; Kruger v. The Queen, [1986] 1 F.C. 3; (1985), 17 D.L.R. (4th) 591; [1985] 3 C.N.L.R. 15; 32 L.C.R. 65; 58 N.R. 241 (C.A.).
AUTHORS CITED
Gautreau, J. R. Maurice "Demystifying the Fiduciary Mystique" (1989), 68 Can. Bar Rev. 1.
COUNSEL:
Robert F. Roddick, Q.C. and Douglas E.
Sanders for plaintiffs.
D. Bruce Logan for defendant.
SOLICITORS:
Roddick & Peck, Edmonton, for plaintiffs.
Deputy Attorney General of Canada for defendant.
The following are the reasons for judgment rendered in English by
STRAYER J.:
Relief requested
Pursuant to a joint application by the parties an order was made on April 26, 1990 by Lefebvre S.P. for the determination of a special case pursu ant to Rule 475 [Federal Court Rules, C.R.C., c. 663]. The questions stated for the opinion of the Court are as follows:
(a) whether the Defendant was under any duty to the Plain tiffs to enact the Indian Oil & Gas Regulations at some date earlier than April 22, 1977;
(b) whether the Defendant breached any such duty;
(c) whether any such breach caused any damages to be suffered by the Plaintiffs;
(d) the quantum of such damages, if any.
The Court is requested, upon determination of these questions, to give judgment in the action accordingly and to make an appropriate disposi tion of costs.
Facts
The plaintiffs represent themselves and the Indian Band of which they are members, namely the Alexander Band No. 134 which has a reserve in Alberta.
On June 24, 1947 the Band executed a surren der to the Crown of all of the petroleum and
natural gas rights pertaining to its reserve:
... in trust to lease the same to such person or persons, and upon such terms as the Government of the Dominion of Canada may deem most conducive to our welfare and that of our people.
And upon the further condition that all moneys received from the leasing of the petroleum and natural gas mining rights thereon shall be placed to our credit and the interest thereon paid to us in the usual way.
From July 31, 1947 to April 21, 1977 the defendant Crown entered into many petroleum and natural gas leases in respect of this reserve and royalties from those leases were credited to the Alexander Band. By an agreement effective March 1, 1960 the interests of the lessees under these leases were unitized by an agreement and thereaf ter the field was operated by Norcen Energy Resources Limited or its predecessors.
Although not spelled out in the agreed state ment of facts my attention was drawn to certain national and international events commencing in the fall of 1973 which drastically affected the international price of crude oil, and led to exten sive governmental intervention in the pricing of oil and gas produced in Canada. There was no dispute between counsel as to the general nature of these developments which were notorious and of which I can take judicial notice. Associated with a crisis in the Middle East in the autumn of 1973 the Organ ization of Petroleum Exporting Countries by joint action caused a rapid increase in the international price of crude oil. As this had the effect of causing
a sudden and arbitrary increase in the value of oil and gas extracted in Canada, the federal and certain provincial governments were generally quick to act to ensure that the new windfall profits (generated by a sudden multiplication of market prices without any accompanying increase in the cost of production) should be shared with Canadi- an public treasuries and Canadian owners of min eral rights (provincial governments being among the major owners). It was stated by counsel for the plaintiffs, and not disputed, that the province of Alberta enacted measures which had the effect of raising the royalties received by the owners of most mineral rights in Alberta. Two fields in the prov ince were excepted from these measures and the mineral rights of the plaintiffs were included in one of those fields.
On March 28, 1974, the Governor in Council amended the federal Indian Oil and Gas Regula tions [SOR/66-300 (as am. by SOR/74-206)] made under the Indian Act' to empower the Min ister to increase the royalty rates to be paid for oil and natural gas produced from lands situated on Indian reserves across Canada. As will be seen, this general increase did not have the effect of producing as much revenue for the plaintiffs as was being realized by other Indian bands in Alber- ta. Those bands had the benefit of the Alberta regulations because, as I understand it, production from their reserves was unitized within fields made subject to the provincial regulations.
On December 20, 1974 assent was given to a new federal law, the Indian Oil and Gas Act. 2 It was apparently adopted in part to overcome some perceived uncertainties as to the validity of the previous Oil and Gas Regulations made under the Indian Act. Among other regulation-making powers specifically given to the Governor in Coun cil by this Act, he was authorized to make regula tions prescribing the royalties on oil and gas obtained from Indian lands. However, no such regulations were made under this Act until the adoption of the Indian Oil and Gas Regulations
' Then R.S.C. 1970, c. I-6. 2 S.C. 1974-75-76, c. 15.
brought into force on April 22, 1977. 3 Subsection 21(7) of those Regulations empowered the Manag er of Indian Minerals of the Department of Indian and Northern Affairs to notify a lessee of Indian minerals of the
21....
(7) ... dollar value of the oil or gas that would be realized if it were sold in a business-like manner, at the time and place of production in an arm's length transaction ....
and upon such notice the lessee would be thereaf ter obliged to calculate his royalty payments (nor- mally fixed as a percentage of the value of the oil or gas produced) on the basis of the deemed value thus specified by the Manager. On May 2, 1977 the Manager sent such a notice to Norcen in respect of the gas produced from the Alexander reserve, the effect being to increase very substan tially the unit value of that gas upon which royal ties would have to be paid. On May 5, 1977 Norcen ceased gas production from this field, such cessation being, according to the agreed statement of facts:
... pending negotiations with its customers for payment at a "fair market value".
It is also agreed that in the period between the adoption of the Indian Oil and Gas Act in Decem- ber, 1974, and the adoption of the Regulations thereunder in April, 1977 there was extensive con sultation with Indian bands with oil and gas pro duction or potential production in Alberta, Sas- katchewan, Manitoba, British Columbia, and Ontario. National meetings were held for this purpose. Representatives of the plaintiffs attended one of these national meetings, in October, 1975 but did not participate in a subsequent meeting also held for this purpose. It is agreed, however, that between December, 1975 and March, 1977 the plaintiffs contacted representatives of the defendant on several occasions and expressed their concern about their loss of revenue due to the failure to pass new regulations. Consistently with this, a group of members of their Band picketed
C.R.C., c. 963.
the surface-lease site of Norcen on March 28, 1977, and prevented agents and employees of that company from gaining access to or operating the Alexander gas production and compression facili ties. This demonstration was interrupted by an ex parte injunction and shortly thereafter the new federal regulations were adopted under the Indian Oil and Gas Act.
The plaintiffs asserted in their statement of claim in effect that the defendant was under a duty to take timely action to raise the revenues realized from the extraction of gas from the Alex- ander reserve to a level equivalent to the royalty revenues realized by other Indian bands in Alberta during the period from 1973 to April, 1977. The only evidence I have as to the extent of the alleged loss is set out in paragraph 17 of the agreed statement of facts which is as follows:
It has been estimated by the Defendant that the Plaintiffs would have received approximately $1.056 Million more in royalties from 1973 through 1977 had the wellhead prices been similar to the fair market values prevailing during that period. Attached hereto and marked Exhibit "N" is a copy of a letter dated June 22nd, 1977, with attachment.
The letter referred to, trial Exhibit 1-N (part of the agreed statement of facts) reads in part as follows:
In reply to your recent request, a recalculation of the gas royalties from 1973 through 1977 until shut-in, has been made arid indicates that the Band would have received approximately $1,056,000.00 more at prices received by other Bands in Alberta.
It is next to impossible to be very precise in this calculation because the prices used for other gas production vary by Company, however the above value, which is based on another field supplying an Alberta utility, is felt to be a reasonable estimate.
It was agreed at trial by counsel that the correct figure representing the additional amount "that the plaintiffs would have received" is $994,415.82, this reflecting errors in addition in the letter from the Manager of Indian Minerals dated June 22, 1977 (Exhibit 1-N).
This action was commenced on August 25, 1978. No explanation was offered as to why there has been a delay of over twelve years in com mencement of the trial.
Conclusions
As the parties have elected to proceed on the basis of an agreed statement of facts and an agreed formulation of the questions to be answered, I am obliged to draw the necessary inferences from a very limited evidentiary base and can answer only the precise questions put to the Court.
With that caveat in mind, I would conclude at the outset that the plaintiffs did not receive, during the period 1973-1977 covered by Exhibit 1-N, royalty revenues from gas produced from their reserve in an amount which they could and should have received. I have no basis for taking at other than its face value the statement by E. A. Moore, Manager, Indian Minerals, in his letter of June 22, 1977, Exhibit 1-N, that "the Band would have received ... [a larger amount, as now corrected] at prices received by other Bands in Alberta". Mr. Moore takes pains to say in his letter that he has made his calculation based on revenues from com parable fields. While at trial counsel for the defendant speculated on what might have hap pened to prevent these extra revenues from being realized, I must go on the basis of the agreed evidence which can only be reasonably interpreted as meaning that the plaintiffs would have received more money had they had the benefit of a regula tory scheme comparable to that imposed by the province of Alberta which had the effect of raising the royalties received by all other Indian bands in Alberta with petroleum producing reserves. In short, a loss was suffered by the plaintiffs, a loss which prima facie could have been avoided by timely action by the defendant in the form of new regulations.
Having reached that conclusion, I must then consider whether the defendant had any duty to
adopt the Oil and Gas Regulations adopted in April, 1977 and if so, whether it met that duty by producing effective regulations only some three and one-half years after more adequate royalties were being received by other Alberta bands pursu ant to provincial regulations. This is the form in which the issues are put to me by the special case.
It now appears clear, since the decision of the Supreme Court of Canada in Guerin et al. v. The Queen et a1. 4 that there is a general fiduciary obligation owed by the Crown in right of Canada towards each Indian band in respect of the reserve land of each band. Indian title predates and is independent of the Indian Act' but is recognized by, inter alia, subsection 18(1) of the Act which provides as follows:
18. (1) Subject to this Act, reserves are held by Her Majesty for the use and benefit of the respective bands for which they were set apart, and subject to this Act and to the terms of any treaty or surrender, the Governor in Council may determine whether any purpose for which lands in a reserve are used or are to be used is for the use and benefit of the band.
In the view of Dickson J. [as he then was], writing on behalf of four judges of the Supreme Court, the fact that, ever since the Royal Proclamation of 1763 it has been recognized that Indian title can only be surrendered to the Crown, and only the Crown can alienate it thereafter, means that the Crown is interposed between the Indians and pros pective purchasers or lessees "so as to prevent the Indians from being exploited". 6 While subsection 18(1) appears to confer on the Government the
[1984] 2 S.C.R. 335.
5 Now R.S.C., 1985, c. 1-5; the relevant provision in the present case, subsection 18(1) was part of R.S.C. 1970, c. 1-6 and remains unchanged today.
6 Guerin case, supra, note 4, at p. 383. Only eight judges participated in this judgment. While Wilson J. writing on behalf of three judges held that the Crown was in the role of
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discretionary power to determine what use of the reserve lands may be "for the use and benefit of the band", it was held in Guerin that this did not have the effect of excluding the jurisdiction of the courts to review the Crown's exercise of its discre tion. Instead, the grant of this discretion, by put ting the Indians "at the mercy of the [Govern- ment's] discretion" imposes on the Government a fiduciary obligation which is the law's means for controlling the exercise of such discretion. A court through its equity jurisdiction can supervise such a relationship by holding the Government "to the fiduciary's strict standard of conduct".' The duty of a fiduciary "is that of utmost loyalty to his principal".S
The facts of the Guerin case are, of course, distinguishable from the present case in at least two respects. First, in Guerin members of the band had conveyed to the Government their views as to what the minimum acceptable terms for a lease of their surrendered land would be, and the Govern ment ignored those views. Secondly, the Govern ment was acting in essentially the same role as a private party in negotiating a lease of the land to a golf club. In the present case, there are no express or implied terms in the surrender of the plaintiffs' mineral rights as to the terms upon which they might be leased for exploitation. Further, as I understand it (and I specifically questioned coun sel for the plaintiffs in this respect) the plaintiffs are not asserting that the Government here could
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trustee, she viewed this as a specialized form of fiduciary obligation owed by the Crown. The Federal Court of Appeal has regarded the judgment of Dickson J. on behalf of four judges as being definitive, in Kruger v. The Queen, [1986] 1 F.C. 3 (C.A.). While the Royal Proclamation, 1763, did not apply in most respects to lands such as these formerly within the domain of the Hudson's Bay Company, it is not disputed in the present case that the same fiduciary obligation devolved on the Government of Canada in respect of Indian lands in Alberta.
' Ibid, at p. 384; see also the judgment of Wilson J., at pp. 349-351.
8 Ibid, at p. 389.
have simply acted like a private party and renego tiated the mineral leases in the period 1973-1977 in order to obtain a suitable increase in the royalty being paid for extracted gas. Those leases pro vided, apparently, for a fixed royalty and a fixed deemed wellhead price which, according to normal rules of contract, would have remained stable and thus below the actual market price of gas during this period. In other words I must consider, in determining if the Guerin principles apply here, whether the Crown had a duty to use governmen tal powers to achieve unilaterally a revision of the mineral leases covering the plaintiffs' reserve in order to yield to them returns comparable to those being obtained by other Indian bands in Alberta and, even if so, did that duty include the earlier adoption of the precise regulations finally adopted in 1977?
With respect to the first point, having regard to the historical relationship between the Crown and Indians, I believe the fiduciary's duty of "utmost loyalty to his principal" would in general oblige the Crown to seek to achieve as good a return from the property of the beneficiary of the fiduciary obligation as could reasonably and lawfully be achieved. 9 On the face of matters here, the Gov ernment of Canada did not do this. It is undisput ed, and Exhibit 1-N (the letter from the Manager of Indian Minerals in the Department of Indian and Northern Affairs) confirms, that the Band represented by the plaintiffs would have received approximately one million dollars more at prices received by other bands in Alberta. It is further accepted that other bands in Alberta received the higher prices because of timely legislative action of the Government of Alberta, action of a type which the Government of Canada took in a very moder-
9 See J. R. Maurice Gautreau, "Demystifying the Fiduciary Mystique" (1989), 68 Can. Bar. Rev. 1, at pp. 18-20 where it is said that the scope of the fiduciary duty is in part defined by what the fiduciary has undertaken to do. In its historical role of protector, doing what the band is not itself empowered to do, the Crown can surely be seen to have assumed a responsibility to get the best price it can reasonably and lawfully achieve.
ate way in 1974 but did not again take until the adoption of the Indian Oil and Gas Regulations in 1977. Subject to the next point to be discussed below, one could conclude that what it was thought proper and lawful to do in 1977 could have been done in 1973 or 1974 and that the delay, resulting in a loss of some million dollars to this Band, was unreasonable.
The second issue to be addressed, however, is that of whether the Government can in any con text be liable for a failure to legislate. The defend ant relies mainly on the general principle that the failure to pass regulations cannot be the subject of an action and it is not open to a court to say that there should have been regulations and award damages for failure to adopt them. 10 The basis for this principle is, I take it, that legislatures and those having delegated legislative powers have the discretion to adopt or not adopt laws and that it is not for the courts to second-guess them. This excellent principle, while no doubt generally sound, may sometimes have to give way in light of the decision in the Guerin case. For the essence of that decision is that the Government of Canada, once it accepts a surrender of Indian title in respect of a particular reserve, undertakes a fiduci ary obligation towards the Indian band in question to exercise its discretion with "utmost loyalty" to the band and its interests. Thus it was found in Guerin that the seemingly unfettered discretion given to the Governor in Council by subsection 18(1) of the Indian Act to decide how surrendered reserve lands might best be used for the benefit of the band was limited by the overriding fiduciary obligation of utmost loyalty. In the present case the defendant is arguing that the exercise of the discretion given to the Governor in Council to make regulations under either the Indian Act or the Indian Oil and Gas Act is completely unfet-
10 Kwong's Estate and Kwong v. Province of Alberta, Thompson's Estate, Stephaniuk and Lazarak (1978), 14 A.R. 120 (C.A.), confirmed by [1979] 2 S.C.R. 1010.
tered and beyond review by a court. But as Dick- son J. said in the Guerin case:
It should be noted that fiduciary duties generally arise only with regard to obligations originating in a private law context. Public law duties, the performance of which requires the exer cise of discretion, do not typically give rise to a fiduciary relationship. As the "political trust" cases indicate, the Crown is not normally viewed as a fiduciary in the exercise of its legislative or administrative function. The mere fact, however, that it is the Crown which is obligated to act on the Indians' behalf does not of itself remove the Crown's obligation from the scope of the fiduciary principle. As was pointed out earlier, the Indians' interest in land is an independent legal interest. It is not a creation of either the legislative or executive branches of government. The Crown's obligation to the Indians with respect to that interest is therefore not a public law duty. While it is not a private law duty in the strict sense either, it is nonetheless in the nature of a private law duty. Therefore, in this sui generis relationship, it is not improper to regard the Crown as a fiduciary."
It will be noted that Dickson J. regarded the government's obligation to the Indians in such circumstances not to be a mere "political trust" nor a "public law duty". Instead, it is "in the nature of a private law duty". Accepting, then, that normally neither Parliament nor those exer cising delegated legislative powers have a legal obligation to legislate, here in this sui generis relationship, as the Supreme Court called it, the Governor in Council at least may be in a different position. One can deduce from the protective stance taken by the Crown ever since the Royal Proclamation, 1763 that the Crown kept to itself the exclusive right to acquire and dispose of Indian title because it had the unique power and responsi bility to act as an appropriate protector of the interests of the people who inhabited this land before the arrival of Europeans. It is wholly con sistent with this view that the Crown should exer cise these governmental powers which only it has, where this may reasonably and lawfully be done to perform adequately the specific fiduciary obliga tion it owes to a given band whose Indian title has been surrendered to the Crown.
" Supra, note 4, at p. 385.
I am, however, constrained by the terms of the special case to determine only one question as to
the defendant's duty, namely:
... whether the Defendant was under any duty to the Plaintiffs to enact the Indian Oil and Gas Regulations at some date earlier than April 22, 1977.
Having regard to the principles to which I have referred earlier, I am unable to say that the defendant had any judicially enforceable duty to adopt at an earlier date the particular regulations obviously being referred to in this question in the special case, namely the regulations adopted on April 22, 1977. An examination of these regula tions reveals that they apply generally to all Indian lands in Canada in respect of mineral rights, and include provisions which cover a whole range of activities in relation to the management, disposi tion, and exploitation of mineral rights including exploration and production. As such they involve the exercise of a general legislative power granted to the Governor in Council which goes far beyond any possible fiduciary obligation owed by the defendant to these particular plaintiffs in the par ticular facts of this case. The enactment of the regulations must be seen as primarily the perform ance of a political duty which is not enforceable in the courts. Because of the general nature of these regulations, it must also be recognized that wide consultation among all Indian bands with mineral production was not only desirable but required by section 7 of the enabling legislation. Thus it would not be appropriate for a court to assess the timeli ness of their adoption.
In the circumstances, it is not open to me to determine whether the early adoption of a simple provision to increase the revenue of the plaintiffs from their particular mineral rights, so as to equate these returns to those of other Alberta bands, was a matter of fiduciary obligation. That question was not put to me by the special case.
Having so concluded, it is not necessary to consider the questions of quantum or of the pre judgment interest claimed by the plaintiffs.
The action is therefore dismissed with costs to the defendant.
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