LNG benefit agreements signed with McLeod Lake Indian Band

The McLeod Lake Indian Band has signed two agreements with the provincial government that will provide direct benefits to the community through further development of British Columbia's

liquefied natural gas industry.

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The first agreement relates to TransCanada's proposed Coastal GasLink pipeline, a 670-kilometre liquefied natural gas pipeline from the Dawson Creek area to the proposed LNG Canada facility near Kitimat.

Under the agreement's terms the band will receive an initial payment of $338,000.

If the Coastal Gaslink pipeline proceeds to construction, McLeod Lake will receive an additional payment of about $1.69 million and a further $1.69 million once the pipeline goes into service. McLeod Lake will also receive a yet-to-be determined share of $10 million annually when service on this pipeline begins.

A second agreement relates to the Prince Rupert Gas Transmission Project, a proposed 900-kilometre liquefied natural gas pipeline to deliver natural gas from the Hudson's Hope area to the proposed Pacific NorthWest LNG facility near Prince Rupert.

Under that agreement, the band will receive an initial payment of $295,000.

If the PRGT project proceeds to construction, McLeod Lake will receive $1.475 million and a further $1.475 million once the pipeline goes into service and a share of $10 million annually

when service begins.

The agreements were signed after a referendum among band members, Chief Derek Orr said in a statement. There are 520 members in the band.

B.C. Aboriginal Relations and Reconciliation Minister John Rustad called the agreements "important milestones."

An agreement with the West Moberly First Nation near Chetwynd was also announeced.

It sees an initial payment of $201,000 followed by $1 million if the Coastal GasLink pipeline is built followed by a further $1 million once it's in service, plus a share of the $10 million.

The agreement were announced this week.

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