Pacific Trail Pipelines Limited Partnership sign $200 million commercial agreement with 15 First Nations regarding the pipeline component of the Kitimat LNG Project

News Details

<<  Back

Pacific Trail Pipelines Limited Partnership sign $200 million commercial agreement with 15 First Nations regarding the pipeline component of the Kitimat LNG Project

February 25, 2013 at 12:00 AM EST

VANCOUVER, BRITISH COLUMBIA – Pacific Trail Pipelines Limited Partnership ("PTP LP"), the First Nations (PTP) Group Limited Partnership ("FNLP"), and the Province of British Columbia ("Province") today announced a revised benefits agreement for the proposed 463-kilometre Pacific Trail Pipeline Project ("PTP Project") that will ensure First Nations receive immediate and long-term benefits from the PTP Project.

"These agreements secure significant financial and economic benefits for First Nations who play a vital role in one of British Columbia's leading LNG projects," stated Chief Raymond Morris, a member of the FNLP Executive Committee. "It not only establishes that industry and First Nations can cooperate in the successful development of major projects, it also points to how it can be done."

The agreement between PTP LP and FNLP provides up to $200 million in financial benefits over the life of the PTP Project to the FNLP First Nations whose traditional territories are located along the proposed PTP pipeline route. In addition, the agreement will also provide substantial business and training opportunities for these First Nations.

"This benefits agreement represents another milestone for the PTP and Kitimat LNG projects," said Janine McArdle, Senior Vice-President Apache Corporation and President of Pacific Trail Pipelines Management Inc. "The support of First Nations for our projects continues to be tremendous and we look forward to building on these integral relationships as we move forward."

The following 15 First Nations are limited partners in FNLP: the Haisla Nation, Kitselas First Nation, Lax Kw'alaams Band, Lheidli T'enneh First Nation, McLeod Lake Indian Band, Metlakatla First Nation, Nadleh Whut'en First Nation, Nak'azdli Band, Nee Tahi Buhn Indian Band, Saik'uz First Nation, Skin Tyee First Nation, Stellat'en First Nation, Ts'il Kaz Koh First Nation, West Moberly First Nations and Wet'suwet'en First Nation.

"Chevron Canada wishes to commend all parties for achieving the revised benefits agreement. We look forward to developing long-term relationships built on mutual respect and trust with First Nations, local communities and federal and provincial governments," said Jeff Lehrmann, president, Chevron Canada Limited.

The PTP Project is a proposed 463-kilometre pipeline that will carry natural gas from Summit Lake, 55 kilometres north of Prince George, to the proposed Kitimat LNG™ facility on B.C.'s north coast. "BC has an once-in-a-lifetime opportunity by exporting natural gas to Asia and we want to make sure First Nations are part of this industry's future," said Premier Clark. "This announcement creates a valuable model for industry proponents who seek to work in partnership with First Nations while ensuring their communities benefit from the growth of our natural gas sector."

PTP LP is made up of the same two partners that comprise the Kitimat LNG project – Apache Canada Ltd. and Chevron Canada Limited.

Havlik Metcs Limited and Farris, Vaughan, Wills & Murphy LLP and Wolrige Mahon LLP are advisors to FNLP.

– 30 –

For further information, please contact:

First Nations (PTP) Group Limited Partnership
Robert Metcs, Chief Negotiator
Havlik Metcs Limited

Pacific Trail Pipelines Limited Partnership
Paul Wyke, Apache Canada Ltd.
(403) 303-5925

About First Nations (PTP) Group Limited Partnership (FNLP)
The First Nations (PTP) Group Limited Partnership (FNLP) is a limited partnership of 15 First Nations whose traditional territories are located along the transportation corridor between Summit Lake and Kitimat, British Columbia.

FNLP was formed to secure significant, reliable and long-term economic benefits for its limited partners from the proposed PTP Project.

About Pacific Trail Pipelines Limited Partnership
The proposed Pacific Trail Pipeline project is a 463-kilometre pipeline that will carry natural gas from Summit Lake, 55 kilometres north of Prince George, to the proposed Kitimat LNG ™ Facility on B.C.'s north coast. The project is being developed by the Pacific Trail Pipelines Limited Partnership (PTPLP), which acquired the project in February 2011 from Pacific Northern Gas.

PTPLP is made up of the same two partners that comprise the Kitimat LNG project – Apache Canada and Chevron Canada Limited.

By opening up British Columbia's abundant natural gas resources to new export markets in the Asia-Pacific region, this important energy infrastructure will create new jobs, training opportunities and economic benefits across this economic corridor.

Pacific Trail Pipelines is playing an integral role in the economic renewal of British Columbia's northwest. As preliminary engineering and design work moves forward, the project is already creating new jobs and training opportunities throughout the region.

Pacific Trail Pipelines will involve First Nations, local communities and other interested parties through an open and interactive public consultation process.

The consultation and communications program includes First Nations, landowners, local governments, relevant federal and provincial authorities, as well as commercial interests. Communication and consultation activities are ongoing and will continue throughout the project lifecycle.

About Kitimat LNG
The Kitimat LNG project represents a remarkable opportunity for our partner producers to serve the ever-growing Asia-Pacific market and to open up international markets to a vast Canadian resource supply. Apache Canada and Chevron Canada Limited, plan to build the Kitimat LNG facility on IR#6 Bish Cove, approximately 650 kilometres (400 miles) north of Vancouver. The facility is planned to be built on First Nations land under a unique partnership with the Haisla Nation.

The facility has a planned two-train system with a planned capacity of approximately 10 million metric tonnes of LNG per. Pacific Trails Pipelines Limited Partnership (PTPLP) is planning to build a 463-kilometre (287-mile) pipeline from Summit Lake, B.C. to Kitimat. Pacific Northern Gas Ltd. (PNG) will operate and maintain the planned pipeline under an agreement with Apache Canada and Chevron Canada. The Kitimat LNG project was granted a 20-year export licence by the National Energy Board on October 13, 2011.

Along with generating significant economic development opportunities in northwest B.C., the Kitimat LNG project has the potential to catapult Canada into the position of an exporter of liquefied natural gas. Kitimat LNG is currently carrying out a Front End Engineering and Design (FEED) study which will provide certainty around project design, construction timelines and costs and labour force requirements. An early works program has been underway at the Kitimat LNG site since 2011. These early work activities include clearing and tiering the site, creating land and water access to the site and upgrading the local Forest Service Road (FSR).

About Apache Corporation
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, operational updates, investor information and copies of all press releases on its website,

About Chevron Canada Limited
Chevron Canada Limited is an indirect subsidiary of Chevron Corporation. Since 1938, Chevron Canada has been involved in exploring for, developing, producing and marketing crude oil, natural gas and natural gas liquids in Canada. Chevron Canada is headquartered in Calgary, Alberta. The company focuses its exploration and production activities in Atlantic Canada, Northern Canada, the Athabasca oil sands and unconventional resource plays in Western Canada. More information about Chevron Canada is available at

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. These include statements about schedules, costs and government approvals of development of the Kitimat LNG project and Pacific Trail Pipelines, LNG marketing activities and future production and exploration prospects in Western Canada. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See "Risk Factors" in Apache's 2011 Form 10-K filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.