McLeod Lake Indian Band signs LNG benefits agreements with provincial government

The McLeod Lake Indian Band has signed two agreements with the provincial government that will provide benefits through the development of British Columbia’s (B.C.) LNG industry. The McLeod Lake Indian Band is a Treaty 8 First Nation, and is located 140 km north of Prince George.

The Minister of Aboriginal Relations and Reconciliation, John Rustad, said: “Our agreements with McLeod Lake and other First Nations throughout Northern B.C. are important milestones in realising the tremendous advantages LNG is bringing to our province. Together, we are working build the world’s cleanest LNG industry and one that will provide significant benefits for all British Columbians.”

The first agreement relates to the proposed 670 km LNG from the Dawson Creek area to the west coast of B.C. The pipeline (TransCanada’s Coastal GasLink pipeline) will transport gas to the proposed LNG Canada facility, which is located near Kitimat.

An initial payment of CAN$338 000 will be paid to the McLeod Lake Indian Band and, if construction proceeds, a second payment of approximately CAN$1.69 million will be paid to the group. Following this, an additional CAN$1.69 million will be paid to the group once the pipeline goes into service. Finally, the McLeod Lake Indian Band will also receive a yet-to-determined share of CAN$10 million/yr once the pipeline service commences.

The second agreement relates the Prince Rupert Gas Transmission Project (PRGT). This is a proposed 900 km LNG pipeline to deliver gas to the proposed Pacific NorthWest LNG (PNW LNG) facility near Prince Rupert, from the Hudson’s Hope area.

An initial payment will be paid to the McLeod Lake Indian Band of CAN$295 000 and, if construction proceeds, a second payment of CAN$1.475 million will be made. Following this, an additional CAN$1.475 million will be paid once the pipeline goes into service, as well as a share of CAN$10 million/yr once service commences.

Chief Derek Orr, the McLeod Lake Indian Band, said: “Pipelines remain a very difficult issue among McLeod Lake’s people and we proceeded with this agreement only after conducting a referendum to allow our people to decide whether to proceed.”

Edited from press release by David Rowlands

Read the article online at: https://www.lngindustry.com/liquefaction/21042016/mcleod-lake-indian-band-signs-lng-benefits-agreements-with-provincial-government-2326/