B.C., Kitselas First Nation strengthen LNG partnership (flickr.com)

Media Contacts

Edward Hill

Media Relations
Ministry of Aboriginal Relations
and Reconciliation
250 356-5831

Backgrounders

Kitselas First Nation agreements

The Kitselas LNG Benefits Agreement, Coastal Fund Agreement, and Reconciliation Agreement confirm Kitselas support for LNG development on the north coast that is environmentally and socially responsible, and respectful of Aboriginal rights. The agreements ensure the First Nation shares in the prosperity associated with that development. Benefits to the Kitselas First Nation include:

Kitselas LNG Benefits Agreement

The financial benefits under the Kitselas LNG Benefits Agreement total $13.35 million and 1,227 hectares of land.

Land: (upon signing)

  • Transfer of Airport Groundside parcel (25 hectares)

Financial: 

  • $350,000 initial PNW LNG/LNG Canada legacy fund payment
  • $250,000 community hall planning funding
  • $500,000 initial legacy and capacity funding for other LNG projects
  • $250,000 Kitimat LNG initial legacy and capacity funding,  linked only to the progress of the Kitimat LNG project)

Upon reaching a Final Investment Decision (FID):

  • $1 million  PNW LNG/LNG Canada legacy fund payment
  • $2 million  community hall funding (FID for PNW LNG or LNG Canada)

At start of construction for either PNW LNG or LNG Canada:

Land:

  • Thornhill Parcel  – 62 hectares
  • Dubose Lands – 1,140 hectares

Financial:

  • $1 million legacy fund payment
  • $6.5 million legacy and capacity funding for other LNG Projects (triggered by PNW LNG/LNG Canada)
  • $1.5 million Kitimat LNG legacy and capacity funding

Coastal Fund Agreement

  • $500,000 in base funding guaranteed for  three years (total of $1.5 million)

FID before March 31, 2019:

  • one-time payment of $250,000
  • $500,000 annually indexed to inflation as long as LNG is shipped in the area
  • 0.33 cents per tonne of plant design capacity at FID
  • replaced by 2 cents per tonne at the in-service date

Kitselas Reconciliation Agreement (Community Wellness Process)

B.C. and Kitselas First Nation have agreed to work collaboratively to address and mitigate potential socio-economic effects related to industrial development in the region; to protect and enhance the Kitselas community and culture; and to prepare Kitselas and Kitselas community members to participate in and benefit from economic development, including LNG.

Kitselas has received $75,000 to begin community wellness process planning. Any additional funding is subject to annual reporting by the Nation on how the process is going and what the funding is supporting. Final investment decisions are also a factor:

  • $150,000 will be payable after the FID of each LNG project with an annual production capacity of 10 million or more tonnes per annum of LNG, not including the PNW LNG Project, the LNG Canada Project or the Kitimat LNG Project.