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May 2015

Vol. 20, No. 20 Week of May 17, 2015

Thumbs down to LNG offer; First Nations has salmon concerns

Chances of a breakthrough in relationships between LNG proponents and British Columbia First Nations have been snuffed out almost as fast as they surfaced.

A small aboriginal community in the province’s northwest unanimously spurned an offer of C$1.15 billion in cash and 5,400 acres of land in return for endorsing the Petronas-led Pacific NorthWest LNG project.

Other members of the Lax Kw’alaams nation living in Prince Rupert and Vancouver have yet to hold their votes ahead of a May 12 membership meeting in Vancouver.

It took only a few days from the initial cash-and-land offer for 180 members off Lax Kw’alaams living in the Port Simpson area to deliver a unanimous standing vote to challenge plans for a proposed natural gas pipeline and liquefaction terminal on Lelu Island just south of Prince Rupert.

Siting concerns

The residents raised particular concerns about siting the facilities at the mouth of the Skeena River, which is one of British Columbia’s critical salmon rivers, concerned about the impact of dredging on traditional fishing grounds.

“It is the worst place they could have chosen on the whole north coast,” said Luanne Roth of the T. Buck Suzuki Foundation.

Lax Kw’alaams tribe member Malcolm Sampson asked why the proponents would have chosen the Skeen River “of all places” to build an LNG plant.

He said the cash offer of benefits over 40 years was not even discussed during the packed meeting.

“Too much was at stake to wipe out a whole river,” Sampson said, describing the atmosphere at the meeting as “very tense.”

The proposal included an initial payment of C$27.8 million, followed by annual installments starting at C$13 million and rising to C$50.5 million in the final year, plus 5,400 acres of land valued at C$108 million in the Prince Rupert harbor area, and the promise of jobs for qualified aboriginals.

Pacific NorthWest President Michael Culbert thanked the Max Kw’alaams council for the chance to make a presentation at the meeting.

He said that “out of respect to the ongoing process overseen” by the council it would be “premature and improper to comment further.”

Port Simpson resident Donnie Wesley, a life-long fisher, said the community vote sent a decisive message to the British Columbia and Canadian governments that his First Nation takes a serious view of environmental matters.

He said the vote was a “proud moment for our people. We stood our ground.”

Lax Kw’alaams Mayor Gary Reece said the council would not comment on the outcome of the first of three scheduled votes by 3,700 members of the community until those living outside Port Simpson cast their ballots.

No aboriginal veto

Whatever the final outcome of the Lax Kw’alaams voting, rejection of the Pacific NorthWest offer does not mean the end of the project.

Robin Junger, a lawyer specializing in aboriginal and environmental law, told Business in Vancouver that governments have a duty to consult First Nations, and, if necessary, mitigate impacts on aboriginal rights, but that does not amount to an aboriginal veto.

Nor are companies obliged to strike revenue sharing agreements like that offered by Petronas, even though such deals can go a long way toward cooperation and participation by aboriginals.

First Nations can request a judicial review if a project is approved without their consent, but they would have to demonstrate how the government failed in its duty to consult and accommodate, Junger said.

He said courts rarely issue an injunction suspending a work permit while reviews are heard.

- Gary Park






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