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PNW  Marine  Terminal  Relocation  and  Project  Update  –  March  2017    Community  information  sessions  took  place  recently  in  Lax  Kw’alaams  (Jan  28),  Prince  Rupert  (Jan  29)  and  Vancouver  (Jan  30)  on  the  potential  relocation  of  the  PNW  Marine  Terminal  currently  proposed  adjacent  to  Flora  Bank  over  to  Ridley  Island.  Members  were  updated  on  the  following:    

1. Prospect  of  relocation  of  the  PNW  marine  terminal  2. Environmental  monitoring  agreement  3. Achievement  of  the  benefits  package    4. Next  steps  and  timelines    

 Financial  details  related  to  the  benefits  are  not  included  here  as  this  information  is  privileged  and  for  community  members  only,  not  the  general  public.  If  you  would  like  to  learn  more,  please  contact  the  band  office.      1.  Prospect  of  the  relocation  of  the  marine  terminal  Last  July,  the  Mayor  and  Council  committed  to  continue  to  promote  the  potential  relocation  of  the  PNW  Marine  Terminal  further  away  from  Flora  Bank  because  of  the  communities’  environmental  concerns.  After  the  Canpotex  proposal  on  Ridley  was  dropped,  the  potential  to  move  the  PNW  Marine  Terminal  and  LNG  Storage  Tanks  to  Ridley  Island  became  much  more  realistic.  At  the  same  time  the  estimated  cost  to  construct  the  suspension  bridge  also  started  to  become  clear;  these  costs  are  likely  to  be  very  high.  There  is  now  potential  to  move  the  marine  terminal,  reduce  the  environmental  risk  and  increase  the  economic  viability  of  the  project.  Image  1:  proposed  location  of  marine  terminal,  suspension  bridge/trestle  from  Lelu  Island  to  the  loading  dock  

 

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   A  move  to  Ridley  Island  requires  that  a  number  of  barriers  be  overcome,  notably  the  contractual  obligations  that  the  Port  has  to  other  proponents  whose  interests  on  Ridley  Island  pre-­‐date  PNW.  Together  with  Metlakatla,  Mayor  and  Council  has  taken  a  lead  role  in  convening  and  facilitating  a  PNW  Terminal  Relocation  Steering  Committee  including  the  Port  of  Prince  Rupert  and  the  Province  of  BC  with  direct  engagement  with  the  Canadian  and  BC  Environmental  Assessment  agencies,  PNW  and  other  proponents  on  Ridley  Island.  Image  2:  Ridley  Island  Lots    

   The  first  priority  is  to  remove  the  legal  barriers  to  relocating  the  terminal  (by  March  31,  2017)  so  that  PNW  can  make  a  decision  to  invest  in  the  necessary  geotechnical  investigations.  These  investigations  would  include  sample  drilling  in  the  vicinity  of  the  Lelu  occupation  camp  for  the  construction  of  a  single-­‐span  pipe  bridge  from  Lelu  Island  to  Ridley.    Image  3:  Bridge  with  no  infrastructure  in  the  water  –  for  illustration  purposes  only    

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 Given  the  potential  move  away  from  Flora  Bank,  which  has  been  the  primary  concern  for  many  people,  the  occupiers/protesters  are  expected  to  support  the  work  being  undertaken  to  relocate  the  terminal.  Image  4:  Drill  Rig  -­‐  for  illustration  purposes  only  

 Once  the  technical  investigations  are  complete,  PNW  can  develop  and  submit  a  revised  project  description  and  environmental  assessment  to  CEAA  and  the  BC  Environmental  Assessment  Office  for  consideration.  

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 The  process  for  amending  the  environmental  assessment  approvals  is  being  worked  out  collaboratively  with  Coast  Tsimshian.  Lax  Kw’alaams  will  be  directly  involved  in  this  process  from  start  to  finish.  The  new  Environmental  Monitoring  Agreement  with  the  Federal  Government  and  the  Provincial  Government  provides  an  important  platform  for  this  collaborative  review  process.      2.  Environmental  Monitoring  Agreement    Lax  Kw'alaams  has  a  unique  opportunity  to  independently  monitor  all  the  environmental  conditions  related  to  the  construction  and  operation  of  the  PNW  LNG  project  through  an  unprecedented  Environmental  Monitoring  Agreement.    The  Mayor  insisted  that  strong  environmental  conditions  needed  to  be  in  place  to  protect  the  environment  around  Lelu  Island  and  Flora  Bank.    If  the  project  is  going  to  be  built,  Lax  Kw'alaams  needs  to  meaningfully  participate  in  the  environmental  monitoring.  As  a  result,  Lax  Kw'alaams  negotiators  concluded  a  new  type  of  environmental  agreement  that  contains  sufficient  mechanisms  to  satisfy  the  communities'  over-­‐all  objectives.      Lax  Kw’alaams,  Metlakatla,  Canada  and  the  Province  have  now  signed  the  agreement.  The  agreement  ensures  that  Lax  Kw'alaams  has  a  central  and  ongoing  role  in  the  environmental  and  compliance  monitoring  of  the  conditions  imposed  on  the  project  by  all  regulatory  authorities.      Some  examples  of  the  environmental  conditions  to  be  imposed  on  the  proposed  project  include  standards  and  safeguards  for  archeology,  traditional  uses,  air  quality,  freshwater  and  marine  fish  and  fish  habitat,  marine  mammals  (such  as  whales),  species  at  risk,  wetlands,  migratory  birds,  pile  driving,  blasting  and  construction  noise.    Monitoring  Structure    The  agreement  requires  the  establishment  of  an  Environmental  Management  Committee  made  up  of  the  Mayor  of  Lax  Kw'alaams,  the  Chief  of  Metlakatla,  and  senior  representatives  from  both  Canada  and  the  Province.  This  government-­‐to-­‐government  Committee  ensures  that  the  all  of  the  environmental  compliance  monitoring  management  plans  and  follow-­‐up  program  requirements  are  undertaken  in  a  coordinated  and  collaborative  manner.    The  Management  Committee  will  be  supported  by  a  Technical  Committee.  It  will  be  made  up  of  knowledgeable  staff  from  Lax  K.w'alaams,  Metlakatla  and  key  federal  and  provincial  environmental  agencies  (e.g.  Department  of  Fisheries  and  Oceans,  Environment  Assessment  departments,  Environment  Canada,  and  the  Oil  and  Gas  Commission).  The  Technical  Committee  is  responsible  for  receiving  and  reviewing  all  of  the  monitoring  reports  and  to  take  the  necessary  actions  as  required.  These  

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could  be  anything  from  providing  notice  of  non-­‐compliance  to  the  Project  Proponent  up  to  initiating  a  work  stoppage

   As  illustrated  in  the  diagram  above,  three  different  groups  of  monitors  will  undertake  the  environmental  monitoring.    The  Coast  Tsimshian  Monitor  is  selected  and  established  by  Lax  Kw’alaams  and  Metlakatla.  It  designs  and  carries  out  environmental  monitoring  programs  to  meet  the  needs  of  the  two  communities.    The  Independent  Environmental  Monitor  is  selected  by  mutual  agreement  of  all  of  the  Parties  along  with  PNW  LNG.  The  Independent  Environmental  Monitor  will  conduct  compliance  monitoring  throughout  the  construction  and  operational  phases  of  the  Project.    The  Regulatory  Authorities  refer  to  provincial  and  federal  regulatory  agencies  which  will  conduct  monitoring  based  upon  each  of  their  specific  agency  requirements.      All  three  groups  of  monitors  will  provide  their  monitoring  reports  to  the  Technical  Committee.  The  Technical  committee  will  review  them  and  determine  if  any  action  is  warranted,  including  recommending  action  by  PNW  and  

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Regulatory  Authorities.  Issues  can  also  be  raised  to  the  Management  Committee  for  senior  level  attention  if  necessary.      Implementing  the  Monitoring  Agreement    This  Agreement  is  the  first  of  its  kind  -­‐  not  just  for  Lax  Kw'alaams,  but  also  for  British  Columbia  and  Canada.   Lax  Kw'alaams  will  now  be  in  a  position  to  do  the  following:    

• Set  up  a  Coast  Tsimshian  environmental  monitoring  program,  in  collaboration  with  Metlakatla;  

• Collaborate  with  federal  and  provincial  agencies,  before    any    construction    starts,  on  the  environmental  conditions  to  be  imposed  on  the  project,  and  on  Environmental  Management  Plans  setting    construction    standards    on    key  issues  (such  as  fish  and  fish  habitat,  wetlands,  pile  driving  and  noise  levels);  

• Participate  in  the  selection  of  PNW  LNG's  selection  of  their  Independent  Environmental  Monitor;  

• Participate  in,  and  evaluate  all  environmental  monitoring  activities  during  the  construction  period  and  during  facility  operations;  

• Work  directly  with  federal  and  provincial  compliance  officers  in  the  field;  • Ensure  legal  conditions  are  met  and  if  monitors  find  any  situations  where  

conditions  are  not  being  met,  that  enforcement  actions  are  taken.    Going  beyond  this  proposed  project,  this  Agreement  will  build  a  foundation  for  how  Lax  Kw'alaams  can  work  together  with  the  highest  levels  of  both  the  federal  and  provincial  governments  on  environmental  requirements  for  other  development  projects  that  may  be  proposed.  The  Agreement  sets  a  new  path  for  Lax  Kw'alaams  environmental  stewardship  in  Lax  Kw’alaams  territory.    3.  Achievement  of  the  Benefits  Package    Lax  Kw’alaams  is  proud  to  announce  that  not  only  have  the  benefits  agreements  been  signed  as  of  January  20,  2017,  they  are  the  largest  of  their  kind  in  the  history  of  British  Columbia.      Benefits  of  the  LNG  project  to  Lax  Kw’alaams  will  be  derived  from  three  sources:  

1. PNW  LNG    -­‐  the  project  proponent;  2. PRGT  –  the  Prince  Rupert  Gas  Transmission  (gas  pipeline  for  PNW  LNG);  and  3. the  Province.    

 The  largest  benefit  is  derived  from  the  project  proponent,  PNW  LNG.  Lax  Kw’alaams  has  already  received  the  initial  signing  payment  and  pre-­‐signing  benefits.  As  various  stages  of  project  completion  are  achieved,  Lax  Kw’alaams  will  continue  to  receive  a  series  of  benefits.  These  stages  are  the  following:          

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1. Signing  –  Complete    2. Final  Investment  Decision  and  

Construction  Period    3. Production  Period  -­‐  trains  1  &  2  4. Production  Period  -­‐  trains  3  &  4    

 2017  –  early     Signing  2017  –  mid/end   Investigation  of  marine  terminal  relocation    2018  –  2019   Project  review  and  Final  Investment  Decision  (FID)/Commencement    

of  Construction  2019  –  2023     Construction  Period  2023  (est)       In-­‐Service  Date  2023-­‐2063               Production  Period    As  part  of  the  PNW  package  and  benefits  to  individuals,  every  qualified  Lax  Kw’alaams  member  who  wants  a  job  will  get  a  job  during  the  construction  phase.  Lax  Kw’alaams  also  negotiated  skills  training  for  the  first  10  years  and  scholarships  for  youth  for  the  40-­‐year  duration  of  the  project  to  gain  the  skills  and  training  to  qualify  for  jobs  at  the  facility.  In  addition  to  employment,  there  will  be  contracting  opportunities;  every  task  typically  contracted  out  will  be  offered  preferentially  to  a  Coast  Tsimshian  business.  Contracting  opportunities  include:  Development,  construction  and  decommissioning  of  the  construction  camp;  marine  services;  catering,  security,  housekeeping  and  other  services  and  construction  opportunities.      Communities  will  also  derive  benefits  from  PRGT  throughout  the  phases  of  the  project,  from  FID  and  during  the  40-­‐year  production  period.      Lastly,  the  Province  of  B.C.  will  provide  benefits  over  the  course  of  project  that  include  financial  payments,  including  resources  for  the  development  of  housing  units  for  Elders  (18  units  in  total),  cellular  service  to  the  village,  and  road  or  transportation  infrastructure  which  could  include  road  access  to  Prince  Rupert  and/or  improvements  to  the  Tuck  Inland  Ferry.    Provincial  financial  benefits  also  include  pipeline  payments  associated  with  construction  and  operation  of  PRGT,  and  coastal  fund  payments  during  the  construction  and  LNG  operation  periods.      In  addition,  benefits  from  the  Province  include  transfer  of  ownership  of  the  Ridley  Island  Quarry  Parcel  as  well  as  land  transfers  of  559  acres  of  additional  lands  adjacent  to  the  village.  4000  acres  of  land  in  and  around  Prince  Rupert  will  also  be  provided  to  Lax  Kw’alaams.  Perhaps  most  exciting  is  the  transfer  to  Lax  Kw’alaams  of  16  acres  in  Prince  Rupert  which  could  eventually  become  reserve  lands  that  could  be  used  for  housing  and  business  and  therefore  receive  all  of  the  benefits  of  being  on  reserve.    

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 Lax  Kw’alaams  was  successful  in  negotiating  a  larger  benefits  package  as  Mayor  and  Council  worked  to  get  the  best  deal  for  its  membership.  Total  benefits  to  Lax  Kw’alaams  and  individuals  take  the  form  of  ongoing  payments,  jobs  and  contracting  opportunities  from  now  until  the  projected  end  of  the  useful  life  of  the  project  in  2063.