st’át’imc – bc hydro agreement review and update: january 2012 1

St’át’imc – BC Hydro AgreementSt’át’imc – BC Hydro AgreementReview and Update: January 2012Review and Update: January 2012

1

2

EXECUTIVE SUMMARY

On May 10, 2011, St’at’imc, BC Hydro, and the Province of British Columbia signed a landmark agreement to address grievances related to the construction and operation of existing BC Hydro facilities. In addition to financial benefits, the agreement provides for:

Long-term environmental mitigation plans to help restore land, water, fish, wildlife and vegetation;

A heritage and culture plan to preserve, protect, and promote St’át’imc culture; A relations agreement to assist in developing a long-term sustainable relationship

between the St’át’imc and BC Hydro; and, An education and training component to build capacity within the Communities.

The agreement also provides BC Hydro and the Province of B.C. with operational certainty for BC Hydro’s existing facilities into the future.

All past, present and future impacts, grievances and claims of the St’át’imc in the Territory related to the planning, placement, construction and ongoing operation of existing BC Hydro Facilities.

Settlement StructureSettlement StructureA. Agreements with BCH and the

Province:1. Settlement Agreements (territory)

o St’át’imc Participating Communities SA(10)o Lil’wat Settlement Agreemento Each with 2 Agreements that are Schedules:

Certainty Provisions Agreement and Relations Agreement

2. Community Agreement (on-reserve) o Each Community has one Agreement with

Schedules that include: Transmission, Distribution & Road Permits, and Flowage Agreement, CP Agreements

3

Settlement Structure (cont’d)

B. Internal Agreements Amongst the Communities and the SCC:

1. Two Implementation Agreements - All 11 Communities and the SCC to address

implementation of Certainty Agreement and Relations Agreement

- 10 Participating Communities to address implementation of St’át’imc (PC) Agreement and Trust matters

2. St’át’imc (PC)Trust Agreement - Creates a trust that will receive, invest and distribute

all payments made under the St’át’imc (PC) Agreement to the 10 Participating Communities and the SCC.

4

Settlement AgreementsSettlement AgreementsWhich BC Hydro Which BC Hydro

Facilities?Facilities?All facilities in St’át’imc Territory used or held for use, in connection with the Electricity Business, by BC Hydro at the time of signing the Settlement Agreements including:o Generation - Transmissiono Distribution - Communicationo Recreation - Other Facilities

5

St’át’imc (PC) Settlement St’át’imc (PC) Settlement

Agreement:Agreement:

PartiesPartiesBC Hydro, the Province, and St’át’imc Chiefs Council and St’át’imc Participating Communities (PC) N’Quatqua - Samahquam Sekw’elw’as - Skatin T’it’q’et - Tsal’alh Ts’kw’aylaxw - Xaxli’p Xa’xtsa - Xwisten

6


Agreement: Agreement:

Financial ConsiderationFinancial Consideration

• One time upfront Nation Payment (which is subject to the Internal Sharing Formula amongst the 10 St’át’imc Participating Communities)

• Annual Nation Payments for Programs to be delivered by the SCC:

a. Environment & Natural Resourceb. Heritage & Culturec. Education & Trainingd. Administration Fund

7



Financial ConsiderationFinancial Consideration• Annual Nation Payments (which are

subject to the Internal Sharing Formula amongst the 10 St’át’imc Participating Communities and the S.A.)

• New Transmission Line Payments (upfront to 3 Communities who will be granting new ROW across Reserves; and lump sum payment to St’át’imc (PC) when NTL proceeds)

• NOTE: All of these payments under the St’át’imc (PC) Settlement are made to the St’át’imc (PC) Trust

8

St’át’imc (PC) Settlement

Flow-though to the 10

Communities• As part of the resolution of Territorial

impacts, BCH agreed upon an overall compensation amount and the Communities agreed upon the sharing of such compensation;

• The irrevokable sharing formula that was negotiated amongst the Communities at the SCC level provides for the following sharing of the compensation paid for the impacts of BC Hydro Facilities:

9

St’át’imc (PC) Settlement

Flow-though to the 10 Communities• Tsalalh 21%• Sekw’elw’as 13%• T’it’q’it 13%• Xwisten 13%• Xaxli’p 10%• Ts’kw’aylaxw 9%• Nquatqua 6%• Samahquam 5%• Skatin 5%• Xa’xtsa 5%

10

Trust 40%Allocation 60%S.A. 17% of 60%Flow-through 83% of 60%

St’át’imc PC Settlement St’át’imc PC Settlement

Agreement: Operational ChangesAgreement: Operational Changes• Generation Operating Regime for Bridge

Seton System will include the “St’át’imc Conditions” foro Seton Sockeye Smolt Protectiono Seton Lake Levelso Adult Fish Passageo Lower Bridge River Flows

• St’át’imc Conditions are part of the Bridge River Power Development Water Use Plan

• BC Hydro and St’át’imc will work together to implement the Water Use Plan and to develop a Watershed Strategic Plan.

11

St’át’imc (PC) Settlement Agreement: St’át’imc (PC) Settlement Agreement:

Southern Communities Grid Southern Communities Grid

ConnectionConnection

The southern communities of Samahquam, Skatin and Xa’xtsa are connected to BC Hydro’s transmission system through the construction of two substations and distribution lines to their reserve communities.

12



Relocation of 60L20 Transmission Relocation of 60L20 Transmission

LineLine

Parts of the 60L20 Transmission Line will be relocated away from archaeological and cultural sites affecting Xaxli’p and Xwisten.

13

Certainty Provisions Certainty Provisions AgreementAgreement

• The Parties to this Agreement are: the Province, BC Hydro, the SCC & all 11 St'át'imc Communities;

• Contains seamless releases from all of the Communities and their members for the past, present and future impacts caused by BC Hydro’s Facilities in all of the territory claimed by the St’át’imc;

• Provides certainty for all parties regarding BC Hydro’s continued operation and maintenance of the Facilities;

• Provides for releases, representations and warranties by all Communities and the SCC.

14

Relations AgreementRelations AgreementThe Parties to this Agreement are BC Hydro, the SCC & all 11 St’át’imc Communities Goal is to build a respectful, effective and evolving relationship through the following:o Relations Managerso General Information Sharingo Procedures for Emergencies & Unplanned or

Unforeseen Eventso Annual Operations Updateso Business Contracting through Direct Awards &

Other Opportunities 15

Relations Agreement Relations Agreement ContinuedContinued

o Employment, Education & Training Plano Implementation Steering Committeeo Protection of Cultural Heritage o Long Term Planningo Bridge Watershed Strategic Plano Environmental Management & Protectiono Processes for New Facilities, New Transmission Line, Removal or

Closure of Facilities and Surplus Lands

16

Community Community AgreementsAgreements

• Each Community has their own Community Agreement to resolve all on-reserve disputes, grievances and claims related to transmission and distribution works and road access on reserve(s).

• All of these Agreements provide full and final releases of all claims which the Community has against BC Hydro for their Existing Facilities on their reserves, including BC Hydro’s continued operations.

• While some Community Agreements are paid upfront, others have up to 25 year payment schedules.

17

Community Community AgreementsAgreements

• Scheduled to each Community Agreement are replacement permits foro Distribution and Road Access Permits (s.28)o Transmission Line Easement (s. 35)o Flowage Easement (Tsal’alh and T’it’q’et only)o CP Agreements related to Transmission line Easements (Tsal’alh,

Xaxlip and T’it’q’et only)

18

Ratification AgreementRatification Agreement• All of the settlement documents with BC

Hydro and the Province were subject to approval by St’át’imc Community Members through a ratification and voting process set out in this Agreement.

• Results of the vote -

19

Two Implementation AgreementsTwo Implementation Agreements• One St’át’imc Implementation Agreement

will be amongst all 11 Communities and will govern the implementation of the Relations Agreement and the Certainty Provisions. It will also provide mutual releases (Lil’wat release against Trust; 10 Communities release against Lil’wat upfront payment).

• A second St’át’imc (PC) Implementation Agreement amongst the 10 Communities will govern the implementation of the St’át’imc (PC) Settlement Agreement and provide direction on matters related to the Trust

20

St’át’imc (PC) 2011 Trust

• The Participating Communities created a Trust for the purposes of receiving, investing and administering all of the payments (Legacy Funds) made under the St’át’imc (PC) Settlement Agreement.

• The Trust will receive on behalf of the Participating Communities the upfront and annual nation payments, the annual program payments and the New Transmission Line Payments

• The Beneficiaries under the trust are the 10 Participating Communities and the SCC.

21


• The Participating Communities receive monies from the Trust in proportion to the sharing formula discussed earlier and must use these monies for purposes that benefit the Communities. No per capita payments are allowed.

• The SCC receives monies from the Trust based on submitted budgets which are approved by the SCC and are for either the Programs and any other purposes approved by the SCC that benefit the Communities. No per capita payments are allowed.

22


• Each Community has appointed a Trustee to govern the Trust who cannot be a chief or councillor.

• An Administrative Trustee has been appointed to assist and oversee the management and distribution of trust funds.

23


• The Trustees, after consultation with the SCC and the Administrative Trustee will choose Investment Manager(s) who will be responsible for investing these monies over the short and long term.

• As part of the St’át’imc (PC) Settlement Agreement the Participating Communities have agreed that as a minimum in 5 years there will be $15 Million left in the Trust which will stay there and be invested until the end of the Trust.

• A Trust must be in place until the Facilities are closed or 99 years.

24

Proposed Settlement Proposed Settlement ScheduleSchedule

Present Anticipated Settlement Schedule• December 17 2010 Sign the Ratification

Agreement and initial all the final draft Agreements, including the Trust and Implementation Agreements.

• November 2010 Submit Draft Water Use Plan and signed off March 2011

• April 11 2011Ratification • May 10 2011: All Parties sign the Agreements

25

Post agreement Post agreement transition to transition to ImplementationImplementation• SNH office closure • St’át’imc Government Services Incorporation

(SGS)January 5th 2012• Trust Indenture finalized November 2011• Administrative Trustee appointed • Trustees appointed for all communities• Implementation Manager hired October 31st,

2011• Relations Manager hired October 31st, 2011• Shared Work plans outlined by staff and

technicians- to be presented April 2012

26

SHARED PLANNING for

Implementation

27

SCC Governance Manual January – February - March SCC Vision December, 2011 Code of Conduct Structure – Roles and Responsibilities December, 2011 Accountability Framework

Decision Making Standards and Process Reporting Standards

28

Constitution Development Community Nation April, 2012 – working draft Capacity Development April - July Inter-Community Protocols April, 2012 Consent/Community Engagement Standards May 2012

29

Heritage Code/Law April, 2012 Linkages to Referral Process Financial Code April, 2012 Land Use and Occupancy Study Watershed Strategic Plan May, 2014 Principles Meeting May, 2012

30

SGS Policy December, 2011 Preliminary Budget January - March, 2012 Implementation Plan February, 2012 Work Plan January – March Work Plan and Budget adoption April, 2012 TOR’s new positions February 2012

31

Trust Legacy Fund Allocation Process December, 2011 Investment Policy and Engagement February, 2012 Reporting Requirements February, 2012 One Time Distribution February, 2012 Distribution Approvals for 2012 April, 2012

32

Regional Service Delivery March, 2012 Needs Identification: Healthy Communities Pillar

Education and Training April, 2012 Economic Development Contracts April, 2012 Steering Committee Networking February, 2012 Capital Improvements March, 2012 Communication

33

Community Contacts December 8, 2011 Committees Land Us e Advisory Committee February – March, 2012 Land Transfers and Tenures December - March Communication February - March Community Visits January – March

Steering Committee Orientation February 1, 2012 Education and Training Strategy April, 2012 Obligations List January 21, 2012

34

Implementation Team Joint Plan Evaluation Framework February 1, 2012 Education and Training Plan Development December - April Operational Plan Presentation December - March Opportunities Development WUP Projects December - March Direct Awards December - March Long Term Capital March 2012 Communications December - January BCH needs Joint opportunities Community Engagement January - April

ContinuedContinued• Communications Joint

Venture proposed for St’át’imc & Coppermoon 2011

• Website development • Branding completed for SGS• Meeting with St’át’imc Local

Government

35

Staff of SGS

• Director of Operations – Rod Louie

• Implementation Manager – Ernest Armann

• Relations Manager – Darryl Peters

• Administrative Assistant – Margaret Michell

• Human Resources – Gilda Davis

36

St’át’imc BCH Settlement

• Questions?• Confirmation for the community contact letter from C&C?

• Is the address list current with CM/SGS?

• What is the communication infrastructure?

• What is the community Protocol?

• Communication Protocol?

• Public Use Management Areas agreement current?

• General contracts/Direct awards?

• Stewardship Responsibility Areas identified?

• Relations Agreement– integration of responsibilities, Reciprocal Responsibilities

• Ed. & Training notice & help with coordination with community contact

• Schedules of the community agreement

• Procedures for Emergencies with BCH?

• 37

st’át’imc – bc hydro agreement review and update: january 2012 1

Documents

sttimc pc settlement

sttimc pc trust

sttimc pc settlementflow

sttimc territory

participating communities

flowage agreement

sttimc chiefs council

settlement structurea