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Case Studies

Collaborative Resolution of First Nations Land Claim

A First Nations community claimed that the federal government of Canada had mismanaged lands where the community had mineral rights and, as such, royalties were owed to the community. Independent experts from Sproule were engaged jointly by the First Nations community and the Crown to establish the monetary value associated with the mineral rights on the disputed lands in a trusted manner.

Project Highlights

  • $6 million settlement
  • Acted as an independent advisor to both the plaintiff and the defendant
  • Facilitated an efficient, cost-effective dispute resolution
  • Provided technical and economic expertise

Challenge

  • A First Nations community claimed that the federal government of Canada had mismanaged lands where the community had mineral rights and, as such, royalties were owed to the community
  • Sproule was engaged jointly by the First Nations community and the Crown to establish the monetary value associated with the mineral rights on the disputed lands

Solution

  • A geological evaluation was conducted to determine the future potential for the disputed lands
  • A production profile, consisting of both the history and the forecast, was developed
  • An economic cash flow model was created that included the historical royalties that the First Nations community should have received as well as a forecast of future royalties owed to the community
  • Sproule acted on behalf of both the Crown and the First Nation in settling the dispute

Value

  • The First Nation and the Crown accepted the results of Sproule’s evaluation, resulting in a settlement of the claim
  • Acting as a trusted, independent advisor, Sproule was able to help both the First Nations community and the Crown resolve a dispute in an efficient and cost-effective manner
Attila Szabo, P.Eng.
Senior Vice President, North America

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