Two revenue-sharing agreements were signed with the Lax Kw’alaams and Metlakatla First Nations in British Columbia April 9 related to the development of LNG projects at Grassy Point.
The agreements will share a portion of provincial government revenues from Sole Proponent Agreements (SPA) related to the Grassy Point lands, and proponents Aurora LNG and Woodside Petroleum Ltd. The Grassy Point lands have been identified as the potential site for new LNG export facilities and the SPAs give the proponents the exclusive right to move forward with activities to inform planning for LNG development.
The B.C. government earlier this year signed an agreement with Australia’s Woodside for a southern parcel of Grassy Point near Prince Rupert. Last November, the province inked a land deal with Nexen Energy ULC – a division of China National Offshore Oil Corporation (CNOOC) Ltd. – for the Aurora LNG plant to be located at Grassy Point. The province said at the time it was continuing to negotiate with three other proponents for a potential site adjacent to this location, which culminated in the Woodside deal.
By signing these revenue-sharing agreements, the two First Nations “signal their support for co-operating in respect of prospective LNG development at Grassy Point. They also address Crown consultation and accommodation, and measures to manage challenges of Crown decisions related to activities identified in the agreements,” the province said.
“Business and First Nations need to co-operate; First Nations need to benefit,” said B.C. Premier Christy Clark during a press conference. “We have to bear in mind that B.C. is not the only place where natural gas in its liquefied form is being pursued.
“So, this kind of an opportunity, this kind of co-operation, the stability that this agreement represents … between First Nations, between government and industry is going to play a crucial role in creating the confidence that investors need to make sure that their final investments come to fruition.”
The provincial government has negotiated these revenue-sharing agreements with these two First Nations because their communities are located near the Grassy Point lands.
The Woodside SPA is for the southern parcel of Grassy Point, which covers 693.6 hectares of land, plus foreshore land equalling 243.9 hectares. The Aurora LNG SPA is for the northern part of Grassy Point, which covers 614.9 hectares of land, plus foreshore land equalling 158.7 hectares.
In other deals, the government has a framework agreement with Haisla First Nation that allows the First Nations to acquire a key parcel of Crown land for development and use for an LNG facility and marine export terminal in the Douglas Channel.
B.C. has also completed an economic partnership agreement with 15 First Nations whose traditional territories are located along the Pacific Trail Pipeline route.
There is ongoing engagement and negotiation with the Treaty 8 First Nations on natural gas exploration, development and production, with four Economic Benefit Agreements completed to date and others being worked on.
