Band proves that environment trumps money

The Lax Kw’alaams band has turned down a liquefied natural gas development that would have netted them $1.15 billion in benefits.

And in so doing lost out on Crown land the province had been offering. The band had valued the land at $108 million. The province said the land was contingent on the band supporting Pacific NorthWest LNG’s proposal.

PNW had proposed to construct an LNG terminal facility on Lelu Island in the port of Prince Rupert. The pipeline that would
run to the terminal would be owned by Prince Rupert Gas Transmission, a subsidiary of TransCanada.

“Hopefully, the public will recognize that unanimous consensus in communities … against a project where those communities are offered in excess of a billion dollars, sends an unequivocal message this is not a money issue: this is environmental and cultural,” said Lax Kw’alaams band Mayor Garry Reece in a written statement issued the day following the last of three community meetings in which the benefit deal for Pacific NorthWest LNG was presented.

PNW representatives made presentations at the meetings, as did band council. Council did not take a position on the project but offered information on the benefits package and the environmental risks. The meetings took place in Lax Kw’alaams, Prince Rupert and Vancouver from May 4 to 12. Membership voted on the benefits package through a show of hands.

The benefit agreement included initial one-time payments of $28 million; annual payments starting at $13 million rising to $51 million in year 40, the lifespan of the project; targeted funding for such areas as fisheries compensation, capacity funding, scholarships, and training programs; and employment guarantees for membership qualified and trained. There were no details as to how the money would be distributed by the band or if there would be individual payments.

Reece said the Skeena River, the estuary in which Lelu Island and Flora Bank are situated, was significant as a fisheries
resource and that PNW had not addressed the band’s environmental concerns.

“Lax Kw'alaams is bound by the traditional law of all Tsimshian and up-river communities to protect the fisheries resource – including the salmon and all other species – for future generations. This is a first line of defense in respect to the Aboriginal food fishery, a fishery which has sustained coastal and upriver First Nations through the millennia,” he said.

Reece’s position was that Lax Kw’alaams band council had been engaged with PNW since 2011 and PNW had made no attempt to adapt its environmental efforts to those followed by Lax Kw'alaams scientific personnel.

But Michael Cuthbert, president of PNW, disputes that claim.

“Ongoing 3D modeling submitted to (Canadian Environmental Assessment Agency) just last week using … data from the Lax Kw’alaams Skeena Fisheries Commission has continued to conclude that our project will not cause significant adverse effects to fish and fish habitat around Lelu Island,” said Cuthbert in a written statement released May 13.

He pointed out that PNW had redesigned its marine infrastructure to eliminate the large dredge and trestle and to include a suspension bridge stretching from Lelu Island over Flora Bank into the deeper waters of Chatham Sound.

PNW’s BC environmental review was completed and approved in late 2014. The CEAA review is expected to be completed in September.

Reece says his band is not opposed to economic development but would not allow such development near Flora Bank.

“The decision by Lax Kw’alaams First Nation … means we need to get back to the table and continue working to address their environmental concerns and achieve a final agreement,” said John Rustad, minister of Aboriginal relations and reconciliation, in a written statement released May 13.

Rustad added he was pleased that the band had acknowledged that such projects had positive economic impacts for all British Columbians.

“Moving forward, Pacific NorthWest LNG will continue to have open discussion with all Tsimshian leaders and community
members,” said Cuthbert.

Reece said it would be “unfortunate” if the government or PNW proceeded with the project without Lax Kw’alaams approval.

Cuthbert said PNW and its partners would “continue to assess the viability of the project from a fiscal and regulatory perspective.”