A/HRC/15/37/Add.5 have the right to determine and develop priorities and strategies for exercising their right to development” (art. 23). 2. Extractive industries, dams and industrial development affecting indigenous people 41. The North, Siberia, and the Far East — the regions where most indigenous people in Russia live — are also those where most of Russia’s industrial-grade natural resources are located. Extensive oil and gas exploration and extractive activity is currently under way in the Khanti-Mansiysky Autonomous Region, the Yamal Peninsula, Sakhalin Island, and East Siberia, among other areas. Very often oil development occurs on, and transportation pipelines are built through, the areas indigenous peoples use as reindeer pastures, or as fishing and hunting grounds. 42. The law ”On Territories” provides that where designated traditional nature use territories are established, oil and other industrial development may occur only after consultation and agreement with the indigenous communities living there. This requirement has given rise to many instances of agreements between oil companies and indigenous people, in areas where territories of traditional use are established. In at least some instances, if coupled with adequate governmental oversight, such agreements could constitute good practice in keeping with articles 28 and 32 of the Declaration, which provide that indigenous peoples have the right to consultation and informed consent regarding any development activity which affects their environment and the land they use, regardless of the legal status of that land. 43. The Khanti-Mansiysky Autonomous Region, where more than 60 oil companies operate, has adopted a regional law to regulate and standardize oil company activities in relation to indigenous peoples’ rights and practices in the region. Many heads of families there have entered into agreements with, and currently receive compensation from, oil companies which explore or extract on “territories of traditional nature use” or patrimonial land. The Khanti-Mansiysky regional administration has provided a model agreement and oversees these individual agreements; it acts as an arbiter when conflicts arise, and has established a legal department under its executive branch specifically for the purpose of representing indigenous people in court. 44. One criticism of the current practice that the Special Rapporteur heard from heads of families in this region is that they would like to have the opportunity to discuss and negotiate all terms of their agreements with oil companies, rather than being presented with a model and inflexible contract, preprinted and ready to sign. 45. Sakhalin Island was cited as another example of successful cooperation between oil companies and indigenous people. After a turbulent relationship with indigenous and environmental groups for several years in the early part of the decade, Sakhalin Energy, operator of the Sakhalin II project, signed a tripartite agreement with the regional administration and the regional council of representatives of the indigenous peoples on Sakhalin Island. Sakhalin Energy now participates in the Indigenous Minorities Development Plan, and since 2005 has invested US$ 300,000 in projects chosen and developed by indigenous people, related to assisting the health, education, research and preservation of indigenous peoples’ languages, and the support and preservation of traditional culture. There are reports, however, that despite the apparent success of the Sakhalin agreement, there remain many problems in the relationship, including the oil producer’s fulfilment of its obligations under the agreement. 46. The Special Rapporteur emphasizes that in light of the scope of indigenous peoples’ right to self-determination with regard to their economic development and the scope of their right to participate in decisions about industrial enterprises which affect them, a broader understanding of cooperation is warranted. Rather than limiting the interaction of oil 12 GE.10-14779