B.C. solidifies benefits for Metlakatla First Nation

Press Release

February 15, 2017

Office of the Premier
Ministry of Natural Gas Development
Ministry of Aboriginal Relations and Reconciliation

VICTORIA – The Province of British Columbia and the Metlakatla First Nation have reached new agreements to ensure benefits accrue as a result of the construction and operation of a liquefied natural gas (LNG) export industry in the Prince Rupert area.

“With the support of First Nations, we have a once-in-a-lifetime opportunity to build a liquefied natural gas export industry that will create thousands of direct and in-direct jobs, adhere to the highest environmental standards and be a model of what can be achieved when we work together as partners,” said Premier Christy Clark.

The agreements provide benefits based on specific steps in the development of a coastal LNG industry and reflects Metlakatla support for an industry that is environmentally and socially responsible, and respectful of Aboriginal rights.

“Much progress has been made through these agreements to ensure financial benefits and economic development opportunities are realized to the benefit of the members and the region. Supported by these agreements, we look forward to continued collaboration with the Province and industry to ensure high safety and environmental measures are in place for LNG development on the North Coast and that the protection of the air, land and waters of our traditional territory is ensured,” said Harold Leighton, Chief Councillor, Metlakatla First Nation.

The agreements provide initial funding to the Metlakatla First Nation for community and economic development projects, as well as social initiatives, linked to the construction and operation of Pacific NorthWest LNG (PNW LNG).

“We look forward to working closely with the Metlakatla First Nation in developing a LNG industry on B.C.’s north coast, and moving us closer to the goal of establishing a clean natural gas export industry,” said Rich Coleman, Deputy Premier and Minister of Natural Gas Development.

In addition to benefits identified under the LNG Benefits Agreement and Coastal Fund Benefits Agreement with the Province, PNW LNG has executed an impact benefits agreement with the Metlakatla First Nation which will serve as the foundation for long-term, mutually beneficial partnerships. The PNW LNG agreements with the Metlakatla include:

• Access to employment;
• Training and capacity funding;
• Financing for cultural support;
• Participation in ongoing environmental monitoring;
• First Nations business opportunities in the construction and operational phases of the project; and,
• Annual payments based on production of the LNG facility.

“Pacific NorthWest is committed to the responsible development of a world-class LNG facility that will provide valuable opportunities for First Nations and communities across British Columbia,” said Wan Badrul Hisham, chief project officer, Pacific NorthWest LNG. “Today’s announcement with the Metlakatla First Nation formalizes a relationship that we hope will continue to grow over the coming decades of partnership.”

The Province’s agreement includes additional benefits in recognition of Metlakatla’s support for LNG projects in the Prince Rupert area, should industry proponents reach final investment decisions.

“These agreements will provide important economic and social benefits for the Metlakatla First Nation. It will also help to guide LNG development, increase certainty for proponents and support greater prosperity for all British Columbians,” said John Rustad, Minister of Aboriginal Relations and Reconciliation.

“PRGT would like to offer its congratulations to Metlakatla, Pacific NorthWest LNG and the Province of British Columbia on the conclusion of their agreement,” said Tony Palmer, president of Prince Rupert Gas Transmission. “PRGT formalized its relationship with Metlakatla through a project agreement September 2015 and we look forward to continuing that relationship as these projects progress.”

The economic prospects of building the LNG industry are significant and would create thousands of jobs for British Columbians. The provincial government is committed to natural gas development within the framework of provincial and federal environmental regulations. The protection of water, air, land, fish, wildlife and human health are priorities.

Last month, British Columbia, the Metlakatla First Nation, the Lax Kw’alaams Band and the Government of Canada signed an Environmental Monitoring Committee Agreement, which outlines how all parties will collaborate to facilitate environmental oversight over the lifetime of PNW LNG.

The PNW LNG project, located in the district of Port Edward, is pending a final investment decision by PETRONAS and their venture partners: Sinopec, JAPEX, Indian Oil Corporation and PetroleumBRUNEI. Collectively, this partnership is conducting a full evaluation of the PNW LNG project before any final investment decision is announced.

Learn More:

Metlakatla First Nation: www.metlakatla.ca/

Metlakatla First Nation LNG Benefits Amending Agreement: http://ow.ly/Y1ga3092IVA

Environmental Monitoring Committee (EMC) Agreement: http://ow.ly/gjnT3090KKo

Benefits agreements with other First Nations: ow.ly/FHpL0

More about LNG in British Columbia: www.LNGinBC.ca

Two backgrounders follow.

BACKGROUNDER 1

Metlakatla LNG Benefits Agreements

The purpose of the Metlakatla LNG Benefits Agreement is to share in the benefits associated with the development of an environmentally and socially responsible LNG industry on the north coast of British Columbia that is respectful of Aboriginal rights.

As described in the agreement, Metlakatla is prepared to engage with the Province concerning the development of an LNG industry. This includes collaboration on the environmental impacts of proposed LNG projects on the north coast, provided that Metlakatla’s interests are met, including issues related to Aboriginal rights and the cumulative impacts of LNG projects. Benefits to Metlakatla through the agreement include:

• Funding totalling $46 million:
  • $5 million on signing of the agreement.
  • $20 million on commencement of construction of the PNW LNG project.
  • $3.5 million for shellfish aquaculture, subject to completing a contribution agreement.
  • Up to $17.5 million for the development of a seniors care facility.
• Land:
  • Ownership of 164 hectares of Crown land on South Kaien Island is being transferred to the Metlakatla First Nation.
  • Approximately 780 hectares of other land primarily located on Digby Island with a smaller area in Port Edward.
  • 60 ha Wampler Way parcel, to be transferred jointly to the Lax Kw’alaams Band and Metlakatla First Nation.

Coastal Fund

• a one-time benefit of $250,000.
• ongoing annual benefit of $500,000.
• Production benefits of $0.02 per tonne once LNG is being shipped from an LNG facility.

Community Benefits

The Metlakatla will use funding for:

• community-development projects and social initiatives.
• investment in renewable energy projects and community energy planning.
• marine emergency response initiatives, including participating in new response programs.
• developing greenhouse gas off-set projects and environmental off-set or remediation projects.
• education and skills training, in particular for Metlakatla members to participate in business or employment opportunities created by LNG projects.
• economic development, including investment that supports LNG development activities and transportation infrastructure.

In 2016, Metlakatla First Nation also entered into a natural gas pipeline benefits agreement for the Prince Rupert Gas Transmission project, which would supply natural gas from northeastern B.C. to the PNW LNG facility.

More details, as well as a list of pipeline benefits agreements with First Nations, can be found at: http://ow.ly/nUAi308ll2K

BACKGROUNDER 2

LNG industry a game-changing prospect for B.C.

Global trade of LNG has increased exponentially in recent years and is poised to continue as energy demands escalate and the global market improves. Countries that are expected to lead global economic growth, such as China and India, are interested in securing new supplies of the world’s cleanest-burning fossil fuel. Other countries, such as Japan and South Korea, which have been the world’s largest importers of LNG, are looking for opportunities to diversify their energy supply options.

British Columbia’s vision for LNG exports began in September 2011 with the release of Canada Starts Here: The BC Jobs Plan – a plan to strengthen local economies by getting B.C.’s products to new markets.

As part of the BC Jobs Plan, the provincial government set a goal of diversifying the province’s natural-gas sector and developing a means to export to other markets. To achieve this goal, an LNG strategy was developed that set in motion a plan to build the industry. The strategy captured the attention of large companies and global investors, which have since come forward with numerous LNG proposals, now at various stages of development.

There are approximately 20 LNG proposals looking to export British Columbia’s clean natural gas to markets in Asia at this time.

Collectively, the LNG industry holds the potential for tens of thousands of jobs and new economic opportunities for British Columbia.

A full list of projects can be found online: http://lnginbc.gov.bc.ca/tile/bc-lng-projects/

Pacific NorthWest LNG

Pacific NorthWest LNG is comprised of PETRONAS, Sinopec, JAPEX, Indian Oil Corporation and PetroleumBRUNEI.

The facility is proposed within the District of Port Edward, near Prince Rupert.

Pending a confirmed final investment decision, the facility would result in up to $36 billion in new capital spending, 4,500 new construction jobs and close to 350 permanent positions.

The facility received an Environmental Certificate from the Government of British Columbia in 2014. Canada granted approval in September 2016.

Prince Rupert Gas Transmission Natural-Gas Pipeline

The Prince Rupert Gas Transmission is a 900-kilometre natural-gas pipeline project that would deliver natural gas from a point near the District of Hudson’s Hope to the Pacific NorthWest LNG facility. Prince Rupert Gas Transmission is a subsidiary of TransCanada PipeLines Limited.

The pipeline will create 3,370 construction jobs and require 23 permanent positions once operations begin.

All major pipeline permits have been approved by the BC Oil and Gas Commission. British Columbia issued the pipeline an Environmental Assessment Certificate in November 2014.

To date, 17 of the 19 First Nations along the Prince Rupert Gas Transmission pipeline route have pipeline benefits agreements in place with the Province. The agreements with 14 First Nations along the pipeline route are public and the other agreements will be made public as they take effect. The public agreements are with the following First Nations:

• Doig River First Nation
• Gitxaala First Nation
• Gitxsan First Nation
• Gitanyow First Nation
• Halfway River First Nation
• Kitselas First Nation
• Lake Babine First Nation
• Lax Kw’alaams Band
• Metlakatla First Nation
• McLeod Lake Indian Band
• Nisga’a First Nations
• Takla Lake First Nation
• Tl’azt’en First Nation
• Yekooche First Nation

Natural-gas pipeline benefits agreements with First Nations are part of the B.C. government’s comprehensive plan to partner with First Nations on LNG opportunities, which includes increasing First Nations’ access to skills-training and environmental-stewardship projects.

B.C.’s pipeline benefits agreements with First Nations: http://ow.ly/nUAi308ll2K

Media Contact:Stephen Smart
Press Secretary
Office of the Premier
778 389-6202

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