Agreement with Haisla Nation sets course for new LNG terminal
Today, the B.C. government and the Haisla Nation announced a framework agreement that will spur the development of another natural gas export facility in the Northwest.
It's a significant step toward government's commitment to have three terminals and their connecting pipelines operating by 2020, creating more than 1,400 ongoing jobs and generating an estimated $600 billion in economic activity over 30 years.
The framework agreement provides the structure for a land purchase or lease that will allow the Haisla to partner with industry to develop a liquefied natural gas (LNG) facility and marine export terminal on the west side of the Douglas Channel in the areas around Haisla Reserve #6.
Providing the Haisla Nation with a partnership role in the development of a terminal is also a key component of British Columbia's commitment and efforts, outlined in the BC Jobs Plan, to work with First Nations to create jobs, increase First Nations participation in the economy and enhance effectiveness and efficiency on consultation processes for job creators.
The Haisla Nation is supportive of advancing the LNG industry in British Columbia. This agreement has the potential to fast-track a major LNG facility in the Kitimat area.
The agreement also signals a closer working relationship between the Haisla and B.C. in and around the Kitimat and Douglas Channel area. It commits both parties to start work on land-use planning for areas around the Douglas Channel, which has tremendous potential as a marine port. This certainty will allow other development projects in the area to proceed.
Ida Chong, Minister of Aboriginal Relations and Reconciliation is quoted as stating;"Our government is working with First Nations like the Haisla to create new jobs and opportunities throughout British Columbia. This agreement builds on our strong partnership with the Haisla Nation, and it is the key to unlocking the vast potential of a whole new natural gas export industry in British Columbia which will provide long-term stability for families and communities."
Ellis Ross, Chief Councillor of the Haisla Nation is quoted as stating; "This agreement allows the Haisla to look at the land on the west side of the Douglas Channel in a different light. This gives the Haisla and associated projects the certainty needed for the LNG proposals and other projects coming forward for our territory. If we are able to do this, the Haisla people will benefit, as will all British Columbians and Canadians."
Rich Coleman, Minister of Energy, Mines and Natural Gas is quoted as stating; "The Province of British Columbia continues to build on the foundation of the BC Jobs Plan to create jobs and support businesses. Today's framework agreement is another step toward our goal of developing a liquefied natural gas industry which will create economic opportunities for our entire province." Facts provided with this news release:
* Currently, two LNG facilities and marine export terminals have received export licences from the National Energy Board - Kitimat LNG and BC LNG Douglas Channel. Other proponents are in various stages of assessing additional LNG facilities, including the recently announced LNG Canada.
* In September 2011, British Columbia released its natural gas strategy outlining the steps government will take to grow a viable LNG industry. Part of this strategy includes continuing to strengthen collaboration with First Nations, local communities, industry partners and other levels of government to define more effective working relationships.
* In May 2012, British Columbia introduced Bill 43, the First Nations Commercial and Industrial Development Act (FNCIDA) Implementation Act, in part to facilitate the development of the Kitimat LNG terminal on the Haisla Reserve near Bish Cove.
* This legislation allows B.C. to enter into agreements with Canada and First Nations to administer provincial laws on reserve lands for specific projects. Learn More:
For more information on the B.C. Jobs Plan, visit: www.bcjobsplan.ca/
For more information on this agreement, visit: www.newrelationship.gov.bc.ca/agreements_and_leg/other.html
For more information on B.C.'s natural gas strategy, visit: www.empr.gov.bc.ca/OG/NGS/Pages/default.aspx
BACKGROUNDER INFORMATION ON THIS SUBJECTHaisla Framework Agreement
* The Haisla Framework Agreement allows for the lease or sale of up to approximately 700 hectares of Crown land near the Douglas Channel, and for the foreshore lease of submerged lands of up to 102 hectares for the berthing facility.
* It provides the Haisla with the options for up to a 60-year lease or the possibility of purchasing of the land outright.
* This is undeveloped and unserviced land within the boundaries of the District of Kitimat.
* The agreement also commits both parties to start work on land-use planning for areas around the Douglas Channel, which has tremendous potential as a marine port.
* Leasing or selling this land to the Haisla gives them an opportunity to work directly with a natural gas proponent to build a terminal. It also offers the Haisla greater decision making on land in their traditional territory.
* The Haisla will work independently to find a suitable partner for the development of the land.
* Details of the lease or sale are expected to be finalized this fall.
* For a map of the area, visit: www.newrelationship.gov.bc.ca/shared/downloads/haisla_framework_map_agreement.pdfThe BC Jobs Plan: Working with First Nations
* As part of the BC Jobs Plan, our government is working with First Nations to foster effective relationships that increase economic benefits, create jobs and encourage negotiation ahead of confrontation.
* This includes engaging with First Nations on natural resource projects, as well as advancing and concluding agreements with First Nations to provide certainty for investors and more opportunities for Aboriginal communities and families.
* To foster better relationships between business and First Nations, the Ministry of Aboriginal Relations and Reconciliation has released a guide called Building Relationships with First Nations; Respecting Rights and Doing Good Business. This plain-language guide provides practical advice on strategies to help businesses develop strong working relationships with First Nations. It is available at: www.gov.bc.ca/arr/consultation/index.html
* Further work is also underway with the BC Business Council through a series of multi-sector regional engagement sessions throughout British Columbia that will result in a report with recommendations to improve the consultation process and build relations between First Nations and industry.
* Government continues to make progress reducing uncertainty around consultation and increasing First Nations engagement on natural resource projects by implementing Strategic Engagement Agreements (SEAs).
* SEAs, such as the Kaska Dena Strategic Engagement Agreement, provide certainty for industry by including First Nations in resource-development strategies, reducing the time needed for consultation and for determining what projects are feasible. This means more certainty for industry, which helps create jobs for British Columbians.
* To create more opportunities for Aboriginal communities and all families in B.C., government continues to work on Economic Community Development Agreements (ECDAs), such as the agreement with the Nak'azdli to share mining revenue from the Mt. Milligan mine project. Treaties, Incremental Treaty Agreements (ITAs) and reconciliation protocols also create opportunities.
* Regardless of the type of agreements reached, working with First Nations generates jobs for families and provides opportunities for First Nations and non-First Nations alike. It brings certainty to the land base, facilitates investment, and builds economic independence for First Nations.
* This work ensures that communities throughout the province can meet the challenges ahead, realize their full economic potential and create an environment where businesses and families can thrive. LNG Development
* Historically, B.C. natural gas exports have been confined to North America. That has changed. Today, companies are cooling natural gas to -160° C, which turns it into a liquid form that can be loaded onto LNG (liquefied natural gas) vessels bound for overseas markets.
* Natural gas provides 24 per cent of the world's primary energy source. It is recognized as a clean-burning fuel, and by 2035, worldwide demand for natural gas is expected to increase by 44 per cent.
* In 2010, the world consumed 112 trillion cubic feet of natural gas, an increase of almost 30 per cent over the past 10 years.
* B.C. currently produces more than one trillion cubic feet per year.
* The rapidly increasing shale-gas supply in North America has resulted in prices around $2 US in September 2012 for 1,000 cubic feet of gas, versus the long-term forecast of $14-16 US in Asia.
* Global LNG demand was 219.4 million tonnes per annum (mmtpa) in 2010, and it is expected to climb to 357.1 mmtpa by 2020.
* British Columbia has tremendous potential within this global industry. The province has an abundant supply of natural gas to support long-term production for our domestic needs, as well as continued export markets.
* Like all new economic development, it takes many years to build an industry. But the good news in British Columbia is the work began in earnest several years ago and continues today.
* With LNG export potential, British Columbia will be able to support long-term job growth and create significant economic spin-offs for the service sector, First Nations and local communities in areas like environmental and engineering consulting, finance and legal services, pipeline construction and maintenance, and port services.
* The B.C. government is committed to consultations with First Nations and the communities that will benefit from these projects. This could take the form of revenue-sharing agreements, land-use agreements and any consultations necessary during the regulatory process to address environmental concerns.
* British Columbia is a regulatory leader in ensuring natural gas activities are conducted safely. For example, the introduction last year of the Environmental Protection and Management Regulation as part of the Oil and Gas Activities Act, which further strengthens provincial guidelines for protecting the environment, while the Drilling and Production Regulation ensures strict safety precautions are always taken.