Big carrot, but no bite from Lax Kw’alaams [editorial]

It was a big test. When we heard about the $1.15 billion offered by Petronas (Pacific NorthWest LNG) to Lax Kw’alaams First Nation to support an LNG terminal on its traditional land at Lelu Island in Prince Rupert it made us wonder. How does a small group turn that kind of money down?

This is where the principles that have been espoused are challenged at their core. Does the offer wobble the knees? Make the stomach flip? Can the money compromise the group’s stated values?

No. After three community votes, the people were unmoved. The offer rejected. “This is not a money issue: this is environmental and cultural,” read the nation’s statement after their last vote May 12.

The location of the proposed site, at the head of the important fish-bearing Skeena River, was the sticking point. Not the LNG industry itself. It was the place; Flora Bank, an underwater area adjacent to the island, is vital habitat to salmon and not to be exposed to threat or danger of development. Lax Kw’alaams was adamant. That area is closed. Full stop.

But the Lax Kw’alaams vote was not the book closed. There’s another chapter. Only a week after the Lax Kw’alaams people said they would not consent, British Columbia’s Premier Christy Clark has announced the province is providing guarantees through legislation to sweeten the deal for Petronas to proceed on its $36 billion investment in northern B.C.

On May 20, a project development agreement signed by Pacific NorthWest LNG and BC, will legislate “long-term cost
certainty regarding certain provincial taxation and environmental laws and regulations applicable to LNG facilities.” The government of B.C. intends to recall the legislature as soon as practicable to introduce legislation that enables the agreement.

The press release for the agreement states very clearly that Pacific NorthWest LNG hasn’t changed its planned location for the terminal.

“Pacific NorthWest LNG plans to build an LNG facility on Lelu Island, located in the District of Port Edward on land
administered by the Prince Rupert Port Authority. The first phase of the project would consist of two liquefaction trains, two LNG storage tanks, marine infrastructure with two berths for LNG carriers, a material offloading facility, as well as administration and auxiliary buildings. The facility would liquefy and export natural gas produced by Progress Energy Canada Ltd. in Northeast B.C. for transport to Lelu Island by the Prince Rupert Gas Transmission project,” the statement reads.

“The province continues to consult with Tsimshian Nations—Lax Kw'alaams, Metlakatla, Gitxaala, Kitsumkalum, Kitselas and Gitga'at First Nations—regarding the Pacific Northwest LNG project, reads the government press release on the proposed project agreement.

Now Lax Kw’alaams isn’t rejecting LNG wholesale. It says it’s open for business. But Lelu Island is a non-starter.

"Lax Kw'alaams is open to business, to development, and to LNG…It is not open to development proximate to Flora
Bank."

When Lax Kw’alaams rejected Petronas’ offer, its statement to the press was equally clear.

"Only Lax Kw'alaams have a valid claim to aboriginal title in the relevant area—their consent is required for this project to proceed. There are suggestions governments and the Proponent may try to proceed with the project without consent of the Lax Kw'alaams. That would be unfortunate," said
Mayor Garry Reece in a statement released by the band.

So where is this headed now? To court, one might expect. Lax Kw’alaams told CBC there was no way they would approve Lelu for development. They would not sacrifice a sustainable resource for economic gain.

But Rich Coleman, deputy premier and minister of Natural Gas Development in the province, is optimistic an agreement can be reached with the nation before it reaches court. He didn’t even want to discuss the possibility.  The province’s environmental experts are talking with Lax Kw’alaams’ legal people and the project will be successful, he said. The environmental hurdle will be cleared.

Coleman said he wants to wait for the environmental assessment conditions to go back to the Lax Kw’alaams for a
definitive answer on the terminal plan. So in the end, Lax Kw’alaams holds the key to the long-term success of the Premier’s LNG dreams. Will they continue to stand firm? We’re betting they will. They have remained true to their teachings
as stewards of their territory. They deserve our respect for putting their responsibilities to the generations yet born over dollars for today.