First Nation rejects $1B deal

B.C. band turns down Petronas offer

VANCOUVER — A Canadian aboriginal group has rejected an offer of about $ 1 billion in return for supporting a liquefied natural gas export terminal led by Malaysian national oil company Petronas, community leaders said on Wednesday.

Me m b e r s o f the Lax Kw’alaams First Nation band, which has traditional territories around the proposed site of the Pacific NorthWest LNG export terminal in northern British Columbia, rejected the 40-year benefit deal in a series of three votes held over the past week.

The rejection does not mean the project cannot go ahead, but it could pose a challenge for Petronas, which is looking to smooth relations with aboriginal groups as it moves toward a final investment decision on the $11-billion project. Flora Bank,” said Reece.

The company, which has already made design changes to address local concerns, said its studies show the fish and fish habitat “will not be significantly affected” by the con- struction and operation of the LNG plant.

A f e d e ra l e nv i ronmental review is underway and, if approved, an investment decision is expected to follow.

The Lax Kw’al aams are among several aborigina l groups in talks with Petronas and its partners on the project, part of a broader $ 35- billion investment in Canadian gas.

While benefit deals are not required for a project to go ahead and First Nations don’t have veto rights under Canadian law, aboriginals communities can challenge a regulator decision if they believe the “duty to consult and accommodate” was not met.

The offer, as outlined by the Lax Kw’alaams council, includes roughly $1 billion in cash from Petronas over a 40-year period, along with a land package deal from the provincial government worth about $108 million.