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LNG Status Update Merle Alexander First Nation LNG Summit Treaty 8 Territories, Fort St. John, BC. Critical Overview of the G2G, Environmental Assessment, IBA Negotiations and Collaborative Business Ventures. Outline. LNG Timelines – in Parallel G2G Stream – Government to Government
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LNG Status UpdateMerle AlexanderFirst Nation LNG SummitTreaty 8 Territories, Fort St. John, BC Critical Overview of the G2G, Environmental Assessment, IBA Negotiations and Collaborative Business Ventures
Outline • LNG Timelines – in Parallel • G2G Stream – Government to Government • EA Stream – Environmental Assessment • IBA Stream – Impact Benefits Agreements • CV Stream – Collaborative Ventures • Critical Timelines to Maximize First Nations’ leverage • Questions
LNG Timelines Feb. 2014 Feb. 2014 Feb. 2014 Feb. 2014 Feb. 2015 Feb. 2015 Feb. 2015 Feb. 2015 G2G EA IBA CV
Government-to-Government (“G2G”) Stream Feb. 2014 Feb. 2015 Contribution Funding Agreement Framework Agreement LNG Reconciliation Agreement • Minimal DTC fulfilled = First Nation leverage increasing • Added value for downstream, midstream and upstream First Nations’ coordination • Revenue Sharing of LNG Tax critical, but will take joint First Nations solidarity • Requirement that Contractors have material Aboriginal content in procurement & bidding critical G2G
Environmental Assessment (“EA”) Stream • Coastal Gas Link submitted application on January 29, 2014 • PRGT & Spectra anticipate filing March 31, 2014 • Means 3 natural gas pipeline will be assessed by Sept 1 & Nov 1 • While G2G negotiations are ongoing, nominal Crown consultation • Unless consultation occurs soon, EAs may be subj. to JR
Impact Benefit Agreement (“IBA”) Stream Feb. 2014 Feb. 2015 Traditional Knowledge Protocol Letter Agreement Memorandum of Understanding Project Agreement • Proponents want support through negotiated agreements • First Nation leverage at maximum before EA completes • First Nations along corridor at varied status of negotiated agreements with some without even Letter Agreements • EAs on accelerated pace leaving IBAs behind for many First Nations • Pressure mounting to complete negotiations • First Nations without TK Protocols have minimal input into traditional land use and traditional ecological knowledge studies • Need for information sharing among First Nations IBA
Collaborative Ventures (“CV”) Stream Feb. 2014 Feb. 2015 Letter of Intent Business Framework Agreement Limited Partnership Agreement & Management Agreement • First Nation-Contract collaborative ventures treated secondary in negotiations and often left out • Critical to run contractor negotiations in parallel • Few CVs in place in line with pre-qualified contractors • Need for a Pre-Qualified Contractors (PQC) to Ec. Dev. Corp. business match • Many CVs w/ non-PQC may have nominal value CV
Critical Timelines Feb. 2014 Feb. 2015 Critical Leverage Point G2G EA CFA FA LNG RA Pre-App App 30 day internal review 180 days IBA TKP LA MOU PA CV LOI BFA LP
Merle Alexander Tel: 604-891-2271 Cell: 604-340-4710 Email: merle.alexander@gowlings.com