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Front row left to right: Jeff Lehrmann, president, Chevron Canada Limited, Janine McArdle, Senior Vice-President Apache Corporation and President of Pacific Trail Pipelines Management Inc., B.C. Premier Christy Clark and Chief Raymond Morris, a member of the FNLP Executive Committee, sign a $200-million benefits agreement Feb. 25 in Vancouver with 15 First Nations on the Pacific Trail Pipeline component of the Kitimat LNG project.
Money to flow from LNG pipeline deal By Cameron Orr
THE NORTHERN CONNECTOR
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KITIMAT - A revised benefits agreement released Feb. 25 will mean up to $200 million for First Nations groups whose traditional territories are along the proposed Pacific Trails Pipeline (PTP) route. An announcement between PTP, the province, and the First Nations Group Limited Partnership (a partnership of affected First Nations regarding this project) was made. “This agreement secures significant financial and economic benefits for First Nations who play a vital role in one of British Columbia’s leading LNG projects,” Chief Raymond Morris, a member of the FNLP executive committee, said.
In addition to the $200 million in financial benefits, the agreement will provide business and training opportunities for the First Nations as well. Fifteen First Nations are included – the Haisla, Kitselas, Lax Kw’alaams Band, the Wet’suwet’en, Lheidli T’enneh First Nation, McLeod Lake Indian Band, Metlakatla First Nation, Nadleh Whut’en First Nation, Nak’azdli Band, Nee Tahi Buhn Indian Band, Saik’uz First Nation, Skin Tyee, Stellat’en, Ts’il Kaz Koh and West Moberly. The PTP proposal is for a 463 km pipeline which will carry natural gas from Summit Lake (55 km north of Prince George) to the proposed Kitimat LNG facility in Kitimat. “The support of First Nations
for our projects continues to be tremendous and we look forward to building on these integral relationships,” said Apache senior vice president Janine McArdle. Chief negotiator for the First Nations partnerhip Robert Metcs, said the limited partnership (FNLP), which formed in 2008, will disperse the money based on the distance of the pipeline in traditional territories. “[FNLP] was a commercial entity...formed with more or less a single mandate to negotiate a potential commercial agreement and the First Nations take that agreement and weigh that against the impact that they determine individually, to determine whether they want to accept it,” he explained of the process. “Clearly the 15 decided that
they did.” He said the training and business opportunities are also something that will get worked out largely on an individual basis. The PTP proposal would be the natural gas delivery method for bringing supply to the propose Kitimat LNG facility, a joint venture of Chevron Canada and Apache Canada. The two-train system is planned to have a capacity of 10 million metric tonnes of LNG per year. Premier Christy Clark also committed $32 million to the FNLP, in order for them to buy in to a non-equity investment for the pipeline. That commitment came from an amendment to an existing economic partnership agreement for the PTP pipeline.
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