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December 2014

Vol. 19, No. 49 Week of December 07, 2014

First Nations eager to take LNG role

BC Nisga’a Nation, Haisla First Nation, want economic benefits; Nisga’a allowing pipeline; Haisla want to acquire floating terminals

Gary Park

For Petroleum News

Two aboriginal communities in northwestern British Columbia are positioning themselves to take advantage of any economic benefits from LNG development in their region.

The Nisga’a Nation, in a rare example of Native cooperation on resource projects, has signed a C$6 million pact with the British Columbia government to allow a pipeline to cross a provincial park that the community co-manages with the province.

Separately, the Haisla First Nation has demonstrated its desire to participate in LNG exports by seeking to acquire up to five floating LNG terminals at the same site Enbridge hopes to use for its Northern Gateway crude bitumen terminal.

Nisga’a President Mitchell Stevens told reporters his community is now seeking a partner to build its own LNG facility, having selected four possible locations within its own lands near Prince Rupert.

He said the Nisga’a people are “not interested in a pipe that comes from the northeast and brings resources to the coast. What we are interested in is a pipe that gives us an opportunity to provide for an economic base for our citizens.”

Stevens, while acknowledging there is some resistance within the community to LNG development, said the hereditary chiefs gave their blessing to the proposal at a special session of the community’s legislature.

Almost 60 miles of the 560-mile pipeline from the natural gas fields of northeastern British Columbia would cross Nisga’a lands, paralleling an existing highway and transmission line that would reduce the level of intrusion.

The Nisga’a had previously signed a deal with TransCanada on the Prince Rupert Gas Transmission line, which received an environmental assessment certificate from the British Columbia government on Nov. 26 to build a line that would deliver gas to the C$11 billion terminal planned for the Pacific NorthWest project, operated by Malaysia’s Petronas.

First benefit-sharing deal

The Nisga’a agreement should be the first of several benefit-sharing deals with First Nations that will include skills training and environmental projects, said British Columbia’s Aboriginal Affairs Minister John Rustad, who hopes that four aboriginal communities opposed to the Pacific NorthWest terminal location will be persuaded to take a role in the project.

The province has adopted legislation that allows the Nisga’a to levy and collect property taxes from non-Nisga’a residents and companies and their installations including LNG pipelines that operate on treaty lands.

Stevens said his people are embracing the prospect of “becoming an active player in the LNG industry (which is the) kind of opportunity for which our elders struggled to achieve for over a century. Our elders have told us now is the time to be bold and move forward.”

Rustad said the Nisga’a agreement is a “significant step for both us and the Nisga’a Nation and also for First Nations across the north in terms of the LNG opportunity.”

Haisla involved for some years

The Haisla have been involved for some years in laying the groundwork for participation in the LNG industry, which chief councillor Ellis Ross said is a better option than allowing the export of heavy crude down the sensitive Douglas Channel from Kitimat.

He said the Haisla have rights and title attached to the site as well as political and corporate interests in the land that the community has tried to wrest away from Enbridge.

“Enbridge doesn’t have tenure on the land,” said Dave LaVallie, manager of Haisla business opportunities as well as chief executive officer of Haisla-owned Cedar LNG Export Development. “They don’t have exclusive rights to use and occupy that land.”

Enbridge said it has an appropriate “map reserve designation” from the British Columbia government to develop the site, but would be open to discussions with Ellis regarding Haisla-supported LNG projects, having already agreed to its land interest from 1,150 acres to 964 acres to create room for LNG operations.






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