Two Indigenous communities in northwestern British Columbia are suing the Canadian government to overturn the approval granted for the Ksi Lisims floating natural-gas facility and marine export terminal close to Prince Rupert. The Lax Kw’alaams Band and the Metlakatla First Nation have each started separate legal reviews in the Federal Court this month, claiming that the minister of environment and climate change dismissed their concerns regarding the negative impacts of the extensive LNG project.
Last month, the Impact Assessment Agency of Canada disclosed that the minister had authorized the construction of the facility off the northwestern coast of British Columbia. Federal Energy Minister Tim Hodgson praised the decision shortly after British Columbia gave its approval, citing it as an illustration of the federal government’s “one project, one review” approach, where it relied on the province for its evaluation.
The Metlakatla First Nation argues in court filings that the decision was based on “speculative economic theories” to rationalize the adverse effects of the project, while disregarding increasing evidence suggesting its lack of economic viability. On the other hand, the Lax Kw’alaams Band states in court documents that the project is planned for their traditional territory, posing a risk to their Aboriginal rights and title indefinitely.
Both applications highlight that the Metlakatla First Nation and the Lax Kw’alaams Band have unresolved Aboriginal title claims for the Mylor Peninsula in the British Columbia Supreme Court, where the construction of a transmission line is required to power the natural gas facility. Neither the government nor the Ksi Lisims project team has responded to the claims in court yet.
The project, which aims to establish two floating facilities off Pearse Island in northwestern British Columbia, is significant, with the capacity to process two billion cubic feet of gas daily and export 12 million tonnes of LNG annually. In September, two additional legal challenges were filed in British Columbia, contesting that the pipeline needed to supply the project had not been “substantially initiated,” contrary to a decision made by the provincial government in June.
The unsuccessful challenge by Gitanyow hereditary chiefs in September sought to contest the Ksi Lisims project in court, claiming insufficient consultation. The project is a collaboration between the Nisga’a Nation, Rockies LNG Limited Partnership, and Western LNG. However, project documents indicate that the assets will be built, owned, and operated by wholly owned subsidiaries of Western LNG, headquartered in Houston, Texas.