First Nation rejects $1.15B LNG deal, says it's 'not a money issue'

PORT SIMPSON, B.C. -- A First Nation in northwestern British Columbia has soundly rejected a $1.15-billion deal that would have paved the way for a liquefied-natural-gas terminal to be built in its traditional territory, saying their stance is about more than just money.

Lax Kw'alaams band members voted against the Pacific NorthWest LNG project during three separate community meetings, the last of which was held Tuesday evening in Vancouver, said the band council in a statement issued on Wednesday.

"Hopefully the public will recognize that unanimous consensus ... sends an unequivocal message," said Lax Kw'alaams Mayor Garry Reece in the statement. "This is not a money issue: this is environmental and cultural."

A Yes vote for Petronas-owned Pacific NorthWest LNG would have secured consent for the construction of a terminal facility on Lelu Island, south of Prince Rupert at the head of the Skeena River.

The project is the proposed terminus of an LNG pipeline that would stretch from the northeastern corner of the province. The pipeline is being proposed by Prince Rupert Gas Transmission, a subsidiary of oil-and-gas giant TransCanada (TSX:TRP).

Members of the Lax Kw'alaams have raised concerns over the project's potential impact on neighbouring Flora Bank, a marine ecosystem immediately adjacent Lelu Island over which a pipeline-toting suspension bridge is proposed. The First Nation says the area's fertile eel grass beds are important habitat for maturing fish and other marine animals.

Still, the band maintains it is open to business and development -- including from Pacific NorthWest LNG -- just not near Flora Bank.

The island is Crown land and the Prince Rupert Port Authority has jurisdiction over the proposed terminal site.

In its statement, the Lax Kw'alaams said the suggestion that government and the project proponent may proceed with the project without aboriginal consent would be "unfortunate."

"Only Lax Kw'alaams have a valid claim to aboriginal title in the relevant area," said Reece. "Their consent is required for this project to proceed."

But if the First Nation band proves it has aboriginal title Supreme Court of Canada precedent still gives the province the right to override that claim.

B.C. Premier Christy Clark said Tuesday that she believes it is just a matter of time before a negotiated agreement is reached with the 3,700-member First Nation.

The B.C. government said it has reached pipeline-benefits agreements with 28 First Nations across the province. Of the 59 First Nations along TransCanada's proposed LNG pipeline only five have publicly announced signing agreements with the government.

Surrey-based Lax Kw'alaams member Cheryl Rose Spence attended Tuesday's vote in Vancouver to vote against the proposal. She said that of the more than 100 people present at the members-only gathering, only two stood up to support accepting the multibillion-dollar offer.

"There's a fight coming," said Spence on Wednesday. "But we're not going to stop; we're going to keep on fighting this."