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Kitimat LNG, Haisla First Nation negotiate agreement in principle

Major hurdle removed: parties reach deal on terms of economic benefits

VANCOUVER, Dec. 14, 2005 – Kitimat LNG and the Haisla First Nation today announced they have signed an Agreement in Principle for the company’s proposed LNG import and regasification terminal.

The Agreement in Principle removes a major hurdle to the project moving forward, says Rosemary Boulton, the company’s president.

“This is a momentous occasion. There are many LNG facilities proposed along the West Coast, and pending regulatory approval, we now have a real probability of being the first project to market,” says Boulton. “The agreement with the Haisla First Nation recognizes our mutual interests and provides the project with Aboriginal certainty, and a partner Kitimat LNG looks forward to working with in the future,” says Boulton.

As part of the EA process, over the coming weeks, Kitimat LNG will be submitting additional technical information about alternative sites and is requesting regulators to evaluate locating the plant and terminal at Beese Creek, with a preference to locate the project at Beese, subject to EA approval.

Kitimat LNG’s willingness to thoroughly evaluate the Beese site formed an important part of the negotiation process. The Haisla Nation prefer the Beese site, as the site has already been designated for industrial use by the Haisla community, while the Emsley site has not been identified for industrial uses.

“The Haisla acknowledge the openness Kitimat LNG has shown throughout the EA process to take Haisla interests into consideration. Our community has much to offer the project and will gain significantly from the opportunities it will afford our residents,” says Haisla Chief Steve Wilson.

The proposed Kitimat LNG terminal will bring substantial opportunity to both the Haisla and Kitimat communities, including employment, procurement and related economic benefits associated with a $500-million development project.

Kitimat LNG recently requested a temporary timeline suspension in the environmental assessment application process while the company completes additional work requested by regulators. The timeline is currently scheduled to resume on Jan. 21, 2006, with the B.C. Environmental Assessment Office submitting its report and recommendation on Jan. 31, 2006. Pending regulatory approval, construction is scheduled to begin by spring 2006.

For more information, or to arrange interviews, contact Patti Schom-Moffatt, Director of Communications and Consultation, Kitimat LNG at 250.279.0224 or 604.999.9058.

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