First Nations (PTP) Group Limited Partnership

October 26, 2011 15:00 ET

First Nations (PTP) Group Limited Partnership Comments on Issuance of Export License to Kitimat LNG

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2011) - The First Nations Limited Partnership (FNLP), representing the pipeline component of the Kitimat LNG Project, is pleased to note that the National Energy Board (NEB) has granted the Kitimat LNG project a 20-year license to export natural gas from Canada to international markets.

"We view this as a positive development for the Kitimat LNG project as we move forward in our negotiations with the project proponents," commented Chief Ray Morris, Nee TahiBuhn Band and Director of FNLP.

FNLP is a limited partnership of 15 First Nations created to provide a single commercial voice on issues related to the Kitimat LNG project, of which the proposed Pacific Trail Pipelines (PTP) is an integral component. Amongst other potential benefits, FNLP holds an option to acquire a 30% equity interest in PTP.

"FNLP's collaboration with Kitimat LNG was critical to the rapid advancement of the terminal and pipeline components of this project through the regulatory process," observed Chief Morris.

FNLP is currently engaged in negotiations with Apache Canada, EOG Resources and Encana Corporation to reconcile agreements that were entered into with the previous proponents of the PTP project, as well as with the Province of British Columbia.

"While FNLP supports the continued development of the project, this support is not unconditional. We maintain that our discussions must be concluded in a manner that will reflect fully the value that FNLP has brought and continues to bring to the Kitimat LNG project," Chief Morris added.

As interest grows to develop more international markets for the export of Canadian natural gas, FNLP will be a key player in the development of additional transportation infrastructure to meet the growing and expanding LNG industry in British Columbia.

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 lie 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 Pacific Trail Pipelines (PTP) project.

Existing agreements relating to the pipeline component of the Kitimat LNG project were negotiated by FNLP with previous proponents of the project and have been assumed by the current proponents, Apache Canada, EOG Resources and Encana Corporation. The negotiations between these proponents and FNLP are designed to reconcile the change in ownership as well as the shift from a separate and independent pipeline proposal under Pacific Trails Pipeline, to an integrated operating model incorporating both the terminal and pipeline components into a single project structure.

There are also agreements in place between FNLP and the Province of British Columbia that require reconciliation with the current business structure and timelines adopted by project proponents.

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