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Nechako Watershed stakeholders want portion of water rental fees

Cheslatta Carrier Nation believes funds generated by Nechako River should go back into watershed
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Rio Tinto has pays a large amount of water rental fees each year for the diversion of water from the Nechako River. (File photo/Lakes District 亚洲天堂)

Rio Tinto, formerly Alcan, has paid water rental fees to the province for water diverted from the Nechako Reservoir to Kemano ever since diversions began back in 1954. The amounts and rates have varied over time. Rio Tinto pays a lower rental rate for power used at the Kitimat Smelter and a higher rental rate for water used to generate power for sale to third parties, including B.C. Hydro.

However, all the money generated from the rentals is put into a general reserve for the provincial government, which some local community leaders don鈥檛 agree with.

鈥淲ith regards to the water rentals and where the money gets sent too, we would like to see at least some of it because it鈥檚 a natural resource in this area, and we would like to see some of that money stay in our community for projects rather then having it get widely distributed outside the community,鈥 Cheslatta Carrier Nation (CCN) Chief Corrina Leween told Lakes District 亚洲天堂.

According to provincial records, from 2008 to 2018 Rio Tinto paid a total of $175,691,802 to the provincial government in rental fees, ranging from over $10 million to over $20 million yearly. B.C. Ministry of Forests, Lands, Natural Resource Operations and Rural Development Public Affairs Officer Nigel McInnis told Lakes District 亚洲天堂 that that money contributes to general revenue, which is then allocated according to the provincial budgetary process.

鈥淒ecisions regarding the allocation of funds are made through a planning process which may include activities within the Nechako Watershed,鈥 said McInnis.

Mike Robertson, a CCN senior policy advisor and board representative for the the Nechako-Kitimat Development Fund (NKDF), says that the NKDF is searching for alternative revenue streams, and an influx of water rental money would go a long way funding projects to improve the community within the Nechako Watershed.

The NKDF was established in as part of a 1997 between Rio Tinto and the provincial government, in which each contributed $7.5 million with the intention of supporting sustainable economic activity in northern communities affected by the Kitimat-Kemano project and by the creation of the Nechako Reservoir.

Now, due to inflation the fund has lost value, and Robertson says the NKDF has less than $300,000 annually that go to projects supporting the community. 鈥淲e fear that we鈥檙e becoming irrelevant. Often times we get project proposals and have insufficient funds to support them,鈥 said Robertson.

鈥淲e鈥檙e not asking for it all, but all this river has done for decades is give and give. The fact that well over half of the original water flow was diverted and none of that money is going back to the community surrounding that river is simply not right,鈥 he continued.

McInnis did mention to Lakes District 亚洲天堂 that the Nechako Environmental Enhancement Fund (NEEF) is an example of a where a fund has been established to ensure money is directed form the provincial government to the Nechako Watershed.

NEEF is a fund that was established as part of the 1997 Agreement between the province of B.C. and Rio Tinto. As part of the agreement, Rio Tinto will contribute up to $50 million to the NEEF, on a matching dollar basis. After various amendments to the agreement, the funds are now available on an annual basis until 2050 or longer, with $200,000 per year allocated to Cheslatta Watershed Restoration and Stewardship and $850,000 per year is allocated to Nechako Watershed Restoration and Stewardship

Robertson pointed out however, that the NEEF matching funds are only for environmental reclamation projects as opposed to community building projects. Furthermore, any funding from NEEF for projects must be approved by a board that does not include a stakeholder for the Nechako Watershed.

鈥淲hat we鈥檙e looking for is more help with the many infrastructure gaps in our region,鈥 said Leween. 鈥淐ommunity building, recreation, things that include environmental. My opinion is that more of those rental funds should flow towards the area. We鈥檙e struggling to get projects like the 亚洲天堂 Lake Motor Inn homeless shelter complete. The ability to fund projects like that are things we鈥檙e lacking in our communities, and I鈥檓 speaking for the region as a whole, not just for Cheslatta,鈥 she continued.

Leween couldn鈥檛 quantify what percentage or amount of the water rental fees is being asked for, but said that it should be equitable. 鈥淲e want meet with the provincial government so that they understand our frustrations. We want to speak in an honest and respectful manor and start the process so the other side knows exactly what our ask is. Hopefully, we can go from there and help each other move forward,鈥 she said.

READ MORE: Rio Tinto Kemano T2 project near 亚洲天堂 Lake in final stages

READ MORE: New governance over Nechako River part of MOU between regional district, First Nations


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Eddie Huband
Multimedia Reporter
eddie.huband@ldnews.net
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