|
Thumbs down — for now BC premier says First Nation opposition to LNG plan is a bump in the road that will be smoothed out in subsequent negotiations Gary Park For Petroleum News
The Lax Kw’alaams First Nation in northwestern British Columbia has delivered its verdict on a cash offer of C$1.15 billion in return for support from the community of 3,700 for the Pacific NorthWest LNG project.
Three rounds of voting, including one by 1,000 tribe members who live in Vancouver, all ended in a thumbs down for the Petronas-led partnership.
But whether that is the final word from Lax Kw’alaams, or just a negotiating ploy is not clear.
For British Columbia Premier Christy Clark the government response is clear cut.
She said May 12 it is only a matter of time until a negotiated agreement is reached, pointing to revenue-sharing pacts that are already in place with 28 First Nations along pipeline rights of way to support LNG plans.
“It’s always a bit of a bumpy road to get to a negotiated agreement, but I think we’ll get there,” Clark said.
Some deals public, others under wraps The province has publicly announced eight pipeline deals with First Nations on four separate pipeline proposals in northwestern British Columbia.
The details of the other 20 agreements are being kept under wraps at the request of the First Nations because those communities are still negotiating with the companies, said Aboriginals Relations Minister John Rustad.
He added that the province has agreements in place on revenue-sharing with First Nations in northeastern British Columbia where the feedstock natural gas is being developed.
Rustad said negotiations are also under way with another seven First Nations and, if they succeed, the government will have the support it needs from First Nations to establish an LNG export industry.
While declining to comment on the Lax Kw’alaams position, he said the government’s objective is to “find out how we can address their concerns. LNG provides a once in a lifetime opportunity for all British Columbians and especially for First Nations.”
No comment from NorthWest Pacific NorthWest President Michael Culbert, other than thanking the Lax Kw’alaams leadership for allowing the company to present the benefits offer, said he would not comment on the voting.
While Canada’s highest courts have said First Nations do not have a veto on resource development or projects, support of the communities is considered critical in advancing LNG plans.
Energy lawyer David Austin echoes the government view that Lax Kw’alaams rejection of the cash offer does not necessarily scuttle Pacific NorthWest.
However, “from a legal perspective it would be very complicated to proceed with the LNG terminal without support” from the nation, he said.
Depending on the time needed to resolve legal issues resulting from a lack of aboriginal support, the LNG proponents might be encouraged to take their investments elsewhere, Austin suggested.
Concern about terminal site The Lax Kw’alaams council reiterated that the Pacific NorthWest liquefaction and tanker terminal on Lelu Island near Prince Rupert is located in the community’s “traditional territory” as well as posing a threat to a salmon habitat.
The voting count “sends an unequivocal message this is not a money issue. This is environmental and cultural,” the council said.
Mayor Garry Reece offered one shred of hope, saying Lax Kw’alaams are “open to business, to development and to LNG” and ready to join good-faith negotiations that do not involve the current proposed export terminal site.
Pacific NorthWest has proposed some infrastructure alternatives, including a suspension bridge that would bypass a sensitive underwater ecosystem, without indicating how flexible it is on the Lelu Island site.
| 