Squamish First Nation backs Woodfibre LNG plan
It wasn’t an easy decision for the Squamish First Nation to approve the $1.6 billion Woodfibre LNG proposal, according to a spokesman, but it came with potential benefits amounting to $1.1 billion in land and cash.
The Squamish First Nation council approved three economic benefit agreements last week — one each with Woodfibre, FortisBC and the province, but “contingent on the environmental conditions being met, according to a news release issued Thursday.
Qualified with the term “if the project is built,” it talks about 40-year deals that include cash payments totalling $225.65 million, 1,600 short-term and 330 long-term jobs, business opportunities and land transfers of 422 hectares.
“Communities are sometimes faced with difficult decisions and it is recognized that this was a difficult decision for many,” Squamish Coun. Khelsilem, whose English name is Dustin Rivers, said in the news release.
Khelsilem wasn’t available for an interview on Thursday, but in his statement said holding Woodfibre and Fortis accountable during the lifespan of the liquefied natural gas plant, including through to its decommissioning, is the First Nation’s next priority.
“As agreed by the proponents, we will be co-developing management plans for the project and will have our own monitors on the ground to report on any non-compliance with cultural, employment and training conditions,” Khelsilem said.
Negotiating the impact and benefit agreements were a condition of the Squamish Nation’s own environmental assessment of the Woodfibre LNG proposal, and a key issue for the company to resolve before starting construction.
“With this vote (by the Squamish Nation) and what the provincial government has done, there are really no domestic issues that should hold us up,” said Byng Giraud, Woodfibre’s vice-president of corporate affairs.
Giraud said the company still has to team up with Squamish Nation representatives to write nine management plans governing environmental protection, but Woodfibre expects to issue notice that it is proceeding with construction early in 2019.
“Notice and the start of construction are two different things,” Giraud said. “Notice means we’re authorizing money for long-lead items.”
Giraud expects significant work to start on the site, the old Woodfibre pulp and paper mill site southwest of Squamish on Howe Sound, next fall.
For the Squamish Nation, that would kick in:
Annual payments totalling $187.8 million over the life of its benefit agreement.
Payments of $18.75 million at three milestones — signing the agreement, start of construction and start of operations.
Targeted payments including money for a $3-million cultural fund and $16.1 million aimed at employment opportunities, training and education upgrades for Squamish Nation members.
An estimated 1,600 shortterm construction and 330 long-term operations jobs where, if Squamish members are not qualified, training funds will be made available.
Business opportunities to be awarded up to $872.4 million in contracts for qualified bidders able to win competitions.
The transfer of nine parcels of land, totalling 422 hectares, to the Squamish Nation for housing and economic development.
The District of Squamish’s acting mayor, Doug Race, acknowledged in a written statement that Woodfibre remains a controversial proposal, but he welcomes the economic benefits, including those accruing to the Squamish Nation.
“Through our continued work with Squamish Nation, we are always pleased to hear when they are achieving benefits from projects within their territory,” Race said in the statement.
Race added that his municipality “has yet to understand the local tax benefits that will be realized from (the Woodfibre) project,” and there are “both positive and negative community and socio-economic impacts that the District of Squamish must prepare for.”