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Providing coverage of Alaska and northern Canada's oil and gas industry
April 2014

Vol. 19, No. 16 Week of April 20, 2014

BC to share LNG returns with Prince Rupert area First Nations

The British Columbia government has added another plank to its LNG platform by signing two revenue-sharing pacts with First Nations in the Prince Rupert area.

The agreements with the Lax Kw’alaams and Metlakalta communities demonstrate the government’s resolve to work “together with First Nations and proposals for LNG success,” said Premier Christy Clark.

The deals involve sharing a portion of provincial government revenues from agreements related to the sale of Grassy Point lands identified as potential sites for export facilities by the Aurora LNG project operated by Nexen/China National Offshore Oil Corp. and Australia’s Woodside Petroleum.

Aboriginal Relations Minister John Rustad said the commitment by the two First Nations “will underpin the economic security of their communities ... and create greater certainty for the First Nations, industry and government.”

Willingness to cooperate

By signing the agreements, the two First Nations are deemed to have signaled their willingness to cooperate with LNG development at Grassy Point.

Natural Gas Development Minister Rich Coleman said British Columbia is working quickly to ensure they can occupy an LNG leadership role.

“Partnership with First Nations, government and industry will play a key role to ensure B.C. is in a strong position to compete in this new global marketplace,” he said.

Metlakalta Chief Harold Leighton said his people want to “make sure our voice is heard when it comes to development within our traditional territory,” adding the agreements “are a good demonstration of what can be achieved when we approach development in the spirit of partnership and collaboration.”

Lax Kw’alaams Mayor Garry Reece said that working with the government and the LNG proponents “is positive progress in our drive to ensure LNG has real, tangle benefits on the ground.”

He said the aboriginal community has “come to a time when the status quo is no longer acceptable. This is an opportunity to build an economy and improve our social situation.”

The government said the agreements raise to 24 the tally of economic benefit deals it has reached with First Nations since it launched a jobs plan in 2011 and complete six of the 10 new non-treaty agreements it has targeted to reaching over a two-year period.

—Gary Park






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