An offer of $108 million worth of land from the B.C. government may be off the table, if Lax Kw’alaams First Nation members vote against a $1.1 billion offer from Petronas to support its $11 billion Pacific Northwest LNG in Prince Rupert and $5 billion pipeline project, according to the Lax Kw’alaams’ mayor.
Members of the Lax Kw’alaams First Nation will be voting at a series of community meetings on the offer. The final two meetings take place in Vancouver May 11 and 12 at Chateau Granville.
Judging by comments posted on the Lax Kw’alaams Facebook page in response to backgrounders on the offer, some Lax Kw’alaams people feel there aren’t enough details about the offer.
Under the proposal, the Lax Kw’alaams First Nation would receive $20 million up front, $2 million during construction of the $11 billion LNG plant, $5.6 million upon completion and annual payments starting at $13 million per year and rising to $50.5 million by year 40.
The offer also includes 2,200 hectares of land in Prince Rupert Harbour (valued at $108 million) from the B.C. government, and potentially 1,000 more hectares, which are still up for negotiation.
But is that land offer from the province off the table if Lax Kw’alaams members
vote against the offer? Is it Crown land, and if so, are there overlapping claims?
In response to those questions, the Ministry of Aboriginal Affairs and Reconciliation said it could not discuss the terms of the deal until there is a final decision made on the offer:
“The Lax Kw’alaams leadership is presenting the draft agreement, reached by negotiation between the province and the First Nation, to their membership to determine support within the community for negotiating a final agreement. The province respects the democratic process that the Lax Kw’alaams is now engaging in with their community members. The draft agreement is non-binding, and the province is unable to speak to details in it until a final agreement is negotiated.”
Lax Kw’alaams Mayor Garry Reece (the Lax Kw’alaams do not use the title of “chief”) said the land offer from the province only stands “if our people agree to Petronas going through.” He also confirmed that the land is “provincial” Crown land.
It’s not clear from backgrounders whether individual Lax Kw’alaams members will receive a share of the $1 billion Petronas is offering, or whether it will be used collectively.
Reece said whether or not dividends will be paid to individual members will be decided after the vote. In other agreements that the Lax Kw’alaams have negotiated, members have received dividends, he said.
“That’s what council will be looking at,” he said. “That’s entirely up to council.”
At the first meeting May 5 in Lax Kw’alaams village, 160 members turned out to vote, Reece said.
“That’s a really good turnout. They’re asking good questions and they’re concerned with the environment there.”
One of the main environmental concerns with the LNG plant is disturbance of fish habitat around Lelu Island – concerns that Petronas has agreed to address by building a suspension bridge that would avoid damaging marine habitat.
In addition to the land and cash being offered, Petronas is also offering job guarantees to all qualified Tsimshian people.
Reece said the Lax Kw’alaams council is not taking a stance on the offer, for or against – merely presenting the offer.
“There’s huge opportunities there, there’s no doubt about it. But we’ve always made it clear, if it’s going to harm our sea resources or environment there, our people won’t support it,” Reece said.
Of a total population of 3,733, more than 3,000 Lax Kw’alaam people live off reserve.
The Lax Kw’alaams offer is the second major agreement with First Nations involving the Petronas project to be made public.
The other is an agreement with the Nisga’a First Nation – which has approved the construction of two pipelines through their territory, including the one that would feed the Petronas LNG plant.
Under that deal, the Nisga’a will receive $6 million from the B.C. government as the pipeline is built. It will also receive a share of the $10 million that will be paid annually to all First Nations along pipeline route as part of a revenue sharing agreement. The Nisga’a treaty also gives the Nisga’a the ability to levy taxes.
