LNG project raises questions

Re: Malaysia-led group gives conditional approval for B.C. LNG project, June 11

Important questions remain about the liquefied natural gas project proposed by Petronas-backed Pacific North West LNG, which still needs federal environmental approval and for which the proponent seeks approval by the Legislature.

No one has seen the final project agreement. This apparently will not be available until it is presented in a bill in the Legislature. This gives the public no time to access the terms of the deal. The royalty system has been released (and the rates seem low) but without the project agreement it is impossible to analyze the merits of this huge $36 billon project. Taxpayers have a right to see an independent analysis on such a large project. Where does it stand in relation to, say, a similar project in Australia, where LNG projects are already up and running?

In Newfoundland and Labrador, there is a public hearing for all major offshore oil and gas projects. A commissioner or panel is appointed and the proponent must present the development plan and environmental assessment. The proponent must address local benefits arising from the development. There is a 270-day period for this process, after which a decision by the offshore board has to be made on the project. Alberta also has a public process for its oil, gas and coal projects through the Alberta Energy Regulator, an agency separate from a government department.

Although there is mention of continued dialogue with the First Nation, it comes at a time when the First Nation has voted to reject the project. Apparently, the First Nation maintains the project is in the wrong location given sensitive fishery issues there. If one reads the latest Supreme Court of Canada judgments on Aboriginal rights and title, the First Nation holds a strong hand. One would have thought it advisable to refrain from any public announcements after such a rejection vote, then sit down for further talks. This would have created a better atmosphere of respect and trust and increase the chances for compromise. BRIAN PECKFORD Qualicum Beach