Woodfibre LNG Benefits Agreement

I. Context & Background

The Woodfibre LNG project is located on the site of Swayot, an ancient Squamish village on the west side of Howe Sound. The Squamish people were removed from this village in 1906 when the site became an industrial brownfield; hosting logging operations, a pulp and paper mill, and marine infrastructure for over a century.

By the time Royal Golden Eagle (the Tanoto family out of Malaysia) approached the Squamish Nation in 2013, Howe Sound was experiencing a remarkable environmental resurgence. After decades of industrial degradation from two pulp mills at Port Mellon and Woodfibre, plus leaching from Britannia Mine, the herring biomass had returned after decades of absence. Resident orcas, porpoises, gray whales, humpback whales, minke whales, and sea lions were reappearing. Salmon were rearing once again in waters vital to the revitalization of the Sound.

The Nation’s central concern: would a new LNG facility be compatible with this ecological revitalization—or would it reverse decades of recovery?

This question carried additional weight given the Nation’s experience with the National Energy Board on Trans Mountain. There, legitimate concerns about increased shipping of 400+ Aframax tankers annually through Burrard Inlet, oil spill response for diluted bitumen in saltwater, and extirpation of resident orcas in the Salish Sea had fallen on deaf ears. The NEB took notes but never conducted further analysis to address Squamish Nation’s concerns. That forced the Nation to oppose the project entirely.

The Squamish Nation was determined not to repeat that experience.

II. Strategic Approach

The Nation set out to achieve something unprecedented: to move beyond consultation and actualize consent under the United Nations Declaration on the Rights of Indigenous Peoples—specifically, free, prior, and informed consent on a major industrial project.

This required not going cap in hand to another level of government. Instead, Squamish Nation exercised its own authority and jurisdiction to create a transparent process with a clear start and finish; a conclusion based on solid analysis and deep engagement with community members over several years.

Rather than responding to provincial or federal processes, the Nation developed its own environmental assessment and issued 25 legally binding conditions to the proponent, the Province of BC, and Fortis. These conditions would have to be met before any consent would be granted.

The process took about eighteen months of relationship-building with the proponent before formal negotiations began. This was deliberate—the Nation wanted to understand the project deeply, test the proponent’s willingness to adapt, and ensure any eventual agreement would reflect genuine partnership.

III. Negotiation & Structuring

The negotiation centered on substantive design changes to address community concerns—not simply financial compensation for impacts.

Deep listening with members surfaced specific concerns. The original project design called for seawater cooling that would draw in millions of gallons daily, heat and chlorinate it, and discharge it back into Howe Sound. The Nation invited the proponent to examine feasibility of air cooling instead—making it a better project that wouldn’t impact the Sound’s revitalization.

Key structural changes achieved:

• Air Cooling: Eliminated seawater cooling entirely. The project was redesigned to protect marine recovery.
• Creek Daylighting: Salmon-bearing creeks in the project area that had been buried were re-daylighted and are now conducive for salmon return—which they have been.
• Electrification: Rather than burning natural gas for cooling, the facility was designed for electric power, supporting net-zero operations.
• Pipeline Rerouting: The penstock was moved from the sensitive Squamish River estuary (protected under the Squaw Conservancy after years of work) to directional drilling underneath the estuary—eliminating surface impacts entirely.
• Compressor Relocation: Compressor stations were moved away from inhabited reserves to more rural parts of the territory. Even though the probability of incident was low, consequences were high—members’ concerns were addressed.
• Worker Housing (Flotel): All construction workers are housed in a floating hotel at the project site—preventing impacts on Squamish’s scarce rental market and addressing MMIWG (Missing and Murdered Indigenous Women and Girls) safety concerns.

Once conditions were met, the Impact Benefit Agreement was structured with short-, mid-, and long-term relationship components. The IBA was designed as a floor, not a ceiling—the Nation didn’t have a crystal ball for exactly how to mobilize community members. So they built in equity options, long-term revenues, long-term land ownership and leasing, and long-term procurement and contracting pathways that could expand as capacity grew.

IV. Outcomes & Metrics

• First Indigenous Regulator in Canada: The Squamish Nation positioned itself as a regulatory authority with legally binding, enforceable conditions—a first for any Indigenous nation in the country.
• $200M+ in Procurement: With the project 60% complete, over $200 million in construction and procurement value has flowed to the Nation.
• 40+ Squamish-Owned Businesses Engaged: Mobilized a broad base of community entrepreneurs across construction, services, and operations.
• 40-Year Revenue Participation: Long-term revenue streams secured through the operational phase.
• Equity Options: De-risked pathways for the Nation to step in as equity partners as the project matures.
• Land Acquisition: Fee-simple lands transferred to the Nation.
• Environmental Restoration: Thousands of creosote pilings removed—pilings that had prohibited salmon rearing and herring spawn for generations.
• Workforce Development: Power engineering courses launched for members to become facility operators during the 40-year operational phase.

V. Cultural & Community Impact

The agreement embedded cultural and social protections that reflect Squamish values.

Safety was made mandatory—not only for physical hazards but also for gender safety, equity, and cultural safety. A Gender Safety and Equity Committee was established, chaired by matriarch Gwen Harry, to ensure MMIWG protections and cultural safety were integrated throughout construction and operations. Community members are actively part of creating safety and providing inputs throughout.

The marine use planning framework developed for this project now positions the Nation as an integrated regulator. By aligning with other regulators, the Nation has legal recourse for enforcement of its conditions. Structuring the Nation as a regulator was paramount to actualizing this role.

The consent process was critical because it moved beyond consultation, where keeping consultation records typically leads to court and debates over whether accommodation was achieved. The Nation wanted to move toward “yes” through a transparent process based on solid analysis, not personal opinion.

As the Nation matures and grows, the agreement provides opportunities to participate in real ways that were negotiated—greater control through mechanisms that expand over time.

VI. Lessons & Legacy

The Woodfibre LNG agreement demonstrates that consent is not a barrier to development—it is a pathway to better projects. By creating a Nation-led process grounded in solid analysis rather than individual opinion, the Squamish Nation achieved outcomes impossible through conventional consultation.

The project illustrates how positioning a Nation as a regulator, with clear conditions, enforcement mechanisms, and legal standing transforms the negotiating dynamic. It moves Indigenous peoples from recipients of accommodation to architects of partnership.

This work built capacity through marine use planning to mobilize science, enforcement, and cultural and spiritual values within Howe Sound. It furthers the Nation’s leadership and governance to look at major projects and participate in substantive ways.

The social benefits are vast. Members mobilized around MMIWG committees, safety protocols, and community engagement. It represents greater control as the Nation matures.