B.C. Government Backtracks On LNG Environmental Assessement Decision Following First Nations Outcry

Chief Steward Phillip of the Union of B.C. Indian Chiefs condemned the order with strong language, stating “In a stunningly stupid move, the province has effectively declared war on all B.C. First Nations and jeapordized all LNG discussions through the entire province of B.C.”

The current session of the B.C. Legislature has introduced a  series of amendments and new statutes with environmental implications, many of them are much needed, such as the proposed Water Sustainability Act – Bill 18 at 2nd reading, however several of these bills and amendments have received little or no public consultation (a full list can be found at West Coast Environmental Law Environmental Law Alert Blog) and there has been quite vocal opposition by environmental/conservation groups and First Nations.

 

The B.C. government has felt pressure to approve their LNG regime as global competition heats up. They have been rushing to try and establish a competitive and attractive fiscal and tax regime to attract investors. B.C.’s urgency to finalize the fiscal regime underlines the government’s determination to attract companies that are weighing various locations to build LNG projects, including the United States, Australia, West and East Africa. The streamlining of the environmental process was likely implemented to help make the province more attractive to these investors, however this backtracking makes it clear that the government must do a better job at consulting with First Nations and stakeholders and they cannot rush the process. The potential of growing opposition from First Nations could be a deterrent to potential investors. Industry looking to invest in LNG in B.C. needs to make sure that the government listens to First Nation’s concerns, as their buy-in is crucial to these projects moving forward.  Many First Nations understand the job prospects and economic benefits that these projects could bring, however many of them also have concerns about potential environmental effects and these concerns need to be listened to and addressed. On a national scale, this opposition could have a potential spill-over effect into other provinces and territories as well, such as the Yukon, which imposed a temporary moratorium on fracking last year, after their council of First Nations declared traditional territories to be “frack free.”