LNG Community Engagement Sessions #3Report

October 21st, 2014

Agenda

OctoberCommunity Engagement Sessions

October 14th -16th, 27th-28th

1) Welcome and introductions2) A New Look For Huu-ay-aht: Honouring Our Journey

***Dinner break***3) Reviewing questions:

a) Questions we have heard from citizens.b) Timeline and answers

4) Introducing the goals of the LNG project5) LNG 101 – review of LNG value chain6) Sarita Bay and the proposed project:

a) Environmentalb) Traditional use

7) Small group discussions8) Questions and answers period

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Summary

The third round of Community Engagement Sessions (CES) regarding the Opportunity Development Agreement (ODA), signed by the HFN and Steelhead LNG in July, took place between October 14th and 16th in Anacla, Bamfield, Port Alberni and Vancouver. The first CESs at Nanaimo and Victoria were held on October 27th and 28th.

The first CES was held in Port Alberni with approximately 45 participants. There was also a “Lunch and Learn” session for the Port Alberni’s team. On Wednesday and Thursday similar sessions took place in Anacla (39 between both sessions) and Vancouver (25), respectively. Anacla hosted two CESs. The first being exclusively for Huu-ay-aht First Nations citizens and staff, and the second including residents of Bamfield. On Monday, October 27, there were X people in attendance at an engagement session in Nanaimo and Y people in attendance in Victoria the following day.

Trudy Warner (Annie Merritt in Anacla) kicked off the sessions by introducing the “Rebranding: A New Look for Huu-ay-aht” project. Citizens completed a survey in order to choose key words that will guide the rebranding team to find the new HFN’s corporate identity. She is also going to collect information through more one-on-one and group meetings. This topic generated a debate about pronunciation, hyphenation and iconographic matters.

After that, the audience watched the “whiteboard” video. This features an overview of LNG, characteristics, uses, benefits, the extraction (fracking), refrigeration, shipment and potential markets. In Vancouver, Nanaimo, and Port Alberni the “mad scientist” video was also played in order to demonstrate the cleanness of LNG. These videos are all available on the Huu-ay-aht website, under “News and Events”.

Then, Councilor Tom Happynook reviewed the project timeline and the different stages of the project. “It is important to understand that a vote in November is

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a vote to support the continued investigation of the project, which would allow the project to move to the next phase, which will include much of the environmental testing and studies,” he said.

Steelhead LNG president Victor Ojeda declared that a positive vote in November still could not guarantee that the proposed Project would move beyond the second phase, which would involve four years of environmental and technical studies funded by the LNG company ($20 million worth). Ojeda stressed that Steelhead valued their partnership with Huu-ay-aht First Nations and, therefore, their interest in offering a humanistic approach.

Happynook added that, apart from the provincial and federal regulations, Huu-ay-aht create their own regulations that take in to account specific Huu-ay-aht concerns. He made clear that a “no” vote means Steelhead would not move forward or continue to explore the proposed Project.

He shared with the crowd the common goals of Huu-ay-aht First Nations and Steelhead LNG, that are compiled in the LNG booklet mailed out to citizens and different topics such as: sustaining family and culture for generations to come, and fostering a safe, healthy and sustainable community for all citizens highlighting Huu-ay-aht’s role as a leader among First Nations and a potential internationalization.

The value chain was explained in detail by Ojeda who said that there’s no rocket science in LNG. Canada has a massive surplus and the main markets to export are China, Korea and Japan. He is looking forward to find AAA buyers with credibility as nobody should put all their eggs in one basket.

Blaine Mersereau, Steelhead’s Vice-President overseeing commercial operations, shared examples of a number of LNG facilities in operation. He commented on the use of water: “We keep on using it for future fracks. We don’t take it to other locations. We don’t carry it. We keep it right on site.” He suggested that in order to build a facility that fits Sarita Bay’s landscape,

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horizontal tanks could be an option. The process is simple. The cooling system used goes to a radiator like the one for the cars. Sea water is taken from deep down to cool the refrigerants and goes back into the ocean. Nothing more than the refrigerants is added. The site also has a great footprint, according to Mersereau, because it is large enough to allow for a significant green space surrounding the facility. This is important in order to offer a buffer between the rest of the site and the plant, but also for security reasons.

While reviewing a recent map of the area, Councillor Jack Cook pointed out that the proposed location for the facility is approximately 1.5 kilometres from the mouth of Sarita River. Markers such as Darlene Nookemus’ property, the clam beds and the HFN cemetery were shown in the map.

Huu-ay-aht Elder and LNG community liaison Marie Newfield spoke on the history of the site due to the tour that Steelhead and HFN did in October 15th. She said when she was a child growing up in Sarita it was completely different from whatit is now. Logging on the site undermined the crab population which had been abundant around Santa Maria Island: “There is hardly anything we can boast about there – just memories,” she said. “We’ve got to bring life back to it.”

Angela Wesley wrapped up the session by reminding citizens of the importance of being present at the People’s Assembly on November 29 and 30, reminding those in attendance: “We haven’t committed to anything yet!”

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Anacla and Bamfield

Anacla session at a glance

Two meetings held, one in Anacla for Huu-ay-aht citizens/staff alone and one in Bamfield for Huu-ay-aht citizens and Bamfield residents

Afternoon session held at the Anacla Government Office Evening session was held at the House of Huu-ay-aht Afternoon session was attended by approximately 14 citizens and several

HFN employees Evening session was attended by over 25 people (citizens and residents) Lead presenters: Chief Councillor Jeff Cook, Councillor Tom Happynook,

Steelhead LNG President Victor Ojeda, Steelhead LNG VP Commercial Blaine Mersereau and Annie Merritt filling in for the Rebranding Project Manager Trudy Warner

Our citizens in Anacla and Bamfield residents wanted to know:

1) Why was Sarita chosen for the location of the LNG facility?2) Would Steelhead LNG be thinking of drilling offshore and piping it to

Sarita?

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3) China will seek other sources of natural gas that doesn’t require sea shipment. Why not keep our natural gas in Canada for future years?

4) How will it affect water, beaches and wildlife?5) What happens if the vote is no – is there a backup plan? Shouldn’t we be

looking at renewable energy sources?6) When it comes to jobs, will Anacla and Bamfield residents be given

priority?7) What is your commitment to training?8) The mindset is to seek to maximize it.9) Will there be an increase in government services, such as fire and police? 10) Will this cause an increase in taxes in Bamfield?11) How much decision-making power will the Bamfield community

have?12) During the assessment will you look at the impact on the Bamfield

economy, specifically tourism?13) Will Huu-ay-aht First Nations citizens get to vote after Phase 2?

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Port Alberni

Port Alberni Session at a Glance:

One evening session held at the Best Western Barclay Hotel Over 45 Huu-ay-aht citizens in attendance Lead presenters: Chief Councillor Jeff Cook, Councillor Tom Happynook,

Steelhead LNG President Victor Ojeda, Steelhead LNG VP Commercial Blaine Mersereau and Rebranding Project Manager Trudy Warner

Our citizens in Port Alberni wanted to know

1) How are people going to get that training? 2) Would the training take place in 2018?3) I wonder about the chamber’s discussion. Are the businesses locally

excited about it?4) Is this information or consultation?5) What about noise pollution and LNG carrier traffic?6) How often do they come?7) How much land it is going to be used? 8) What if LNG does not go? What are we going to do with the land then?9) Aren't there sacred sites?10) What kind of partnership are we talking about? 1%, 50%-50%,

40%-60%...?8

11) What happen with people who cannot attend (the People's Assembly to vote)? Is the next administration carrying on with the results of the vote?

12) If the vote is strong either way, that’s clear. What if it is close?

Vancouver

Our citizens in Vancouver wanted to know

1) Are we producing LNG?

2) Where does the LNG come from (location)?

3) It does need to come through the water (underwater pipeline?) What's the cheapest and fastest route?

4) Have the engineers checked the erosion levels in the soil yet?

5) What do we need to compromise environmentally speaking? The river, fisheries...?

6) Have we talked with other first nations about the pipeline crossing their territories? What are the options if they do not grant permission to do so?

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7) Does anybody know if there is anything left of the cemetery? Is it going to disappear?

8) What about the Provincial government? Who signs the contract with the country representing the potential market, the government or the company?

9) Even if there is no going to be fracking involved in the Sarita project, what do you do with the water used during the process?

10) If the vote goes ahead, how long it would take to sort out the issue with the pipeline (build it/twin it)?

Nanaimo and Victoria

Nanaimo and Victoria Sessions at a Glance:

One evening session held at the Coast Bastion Inn (Nanaimo) and another at the Victoria Native Friendship Centre.

Over 35 Huu-ay-aht citizens in attendance (Nanaimo: 20, Victoria: 15) Lead presenters: Chief Councillor Jeff Cook, Councillor Tom Happynook

(Victoria), Steelhead LNG CEO Nigel Kuzemko and Rebranding Project Manager Trudy Warner

Our citizens in Nanaimo and Victoria wanted to know10

1) Are these ships going to cause noise pollution resulting in whales changing their migratory patterns?

2) The infrastructure for this, on top of this you need a dock for the ships. I am under the impression that it has a limited lifespan. Decommissioning?

3) Are we going to be able to use the infrastructure for something more than LNG?

4) Who is going to own this infrastructure?

5) Who are the directors of Steelhead?

6) What does the partnership mean?

7) How many carriers are coming to Sarita Bay?

8) Is this kind a revival of previous cases? (related to whales)

9) Who are your researchers?

10) Is it going to affect other people’s territories?

11) In which phase we start consulting with people?

12) Are there any other LNG project under the joint venture figure?

13) If this goes ahead, where would people live?

14) Who owns the carriers and the containers? How we guarantee that they meet our standards?

15) Is it LNG like oil in case of spills?

16) Should the vote be against and the opportunity moves to other people, Are they going to be as responsible as we (HFN) are?

17) If we go ahead, Are we going to be able to ship our ships with something else in order to earn more money and not to send them back empty?

18) Which other chemicals are involved in the process?

SWOT analysis of the sessions

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Strengths Weaknesses More interaction between

Steelhead LNG team and the citizens.

Increased turnout in Vancouver compared to the second round.

Marissa Nobauer, Tom Happynook and Victor Ojeda engaged the audience by offering more tangible goals, cases of success and incentives, i.e. 20 million investment.

Breaking the bread helped Steelhead LNG staff to build rapport.

The issue raised by a citizen regarding the cemetery located around the site for the proposed facility helped both potential partners to focus on the relevance of offering the citizens a more accurate idea of the land’s use.

15 LNG FAQ handout was very useful.

Time management. This made every session different/tailored. However, the option of breaking into smaller groups has not been tried.

In PA and Vancouver there were some technical issues in relation to the Wi-Fi, videos and Power Point presentations. It could be useful to download the videos in the laptops and automatize the slides.

Citizens complain via Facebook about the content of the CESs since they find it repetitive and that influences turnout negatively.

Opportunities Threats

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HDC team requires a lunch and learn session.

All the lessons learned during the first two rounds can be applied to the People’s Assembly.

Some citizens still do not have access to computers, a Facebook account or internet access and complain about not getting timely information.

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