Some members of the Prophet River First Nation in northern B.C. took over their band office about a week ago. (CBC)

Police are monitoring a situation on the Prophet River reserve in northern B.C., where about 70 members of a First Nation have taken over their band office.

Fort Nelson RCMP Sgt. Tom Roy said Thursday that the protesters have been peaceful and police haven't been called to handle any conflicts since the occupation began about a week ago.

Some members of the Prophet River First Nation were angry after they found out their chief and two councillors received a large lump-sum payment out of a $130-million cash settlement, band member Deshanna Tsakoza said.

Tsakoza said band members voted earlier this month to divvy up the money and pay every one $800 a month for life.

But Chief Liza Wolf and councillors Loretta McAllister and Lorraine Chipesia — who all helped negotiate the out-of-court settlement with the federal government — gave themselves an additional one-time payment of $800,000 each, Tsakoza said.

'Everything from the chief and council's perspective was done appropriately.'— Jeff Rath, lawyer

The 230-member Prophet River First Nation, about 100 kilometres south of Fort Nelson and 375 hectares in size, sued the federal government in April 1997, accusing Ottawa of breaking obligations to the band concerning the division and development of their reserve land and associated mineral rights.

The Department of Indian and Northern Affairs and the band's negotiators reached an agreement this year, and band members ratified the deal over the summer. The $130 million was to be deposited in a trust to be managed by band leadership for the benefit of its members.

Emma Tsakoza and Sicily Aven said they are upset and hurt by what they consider the unfair action of the chief and the two councillors.

"I think this was just the final straw that broke the camel's back," Aven said.

Extra $800,000 represents negotiating efforts: chief's daughter

Neither Wolf, nor McAllister nor Chipesia was available for comment Thursday.

Wolf's daughter, Jackie Reno, said in a meeting this week that the trio worked on the settlement for 11 years virtually without pay, so the extra $800,000 was aimed at acknowledging their efforts.

Jeff Rath, a Calgary lawyer who represented the band during the lawsuit, said Thursday that the three women worked hard for the extra money.

"Everything from the chief and council's perspective was done appropriately," Rath told CBC News.

"They took the advice from their band auditor and, as the sovereign government of that community, they made that decision."

With files from Chris Brown