Summary of contract

• Negotiation, representation, and other relevant context

  The purpose of the agreement is to confirm understandings of how British Columbia (BC) will meet its obligations to consult and accommodate McLeod Lake Indian Band (McLeod Lake) in relation to the Mt. Milligan Mine project (the project), and how to share resource revenue received by BC from the project with McLeod Lake (Art. 2.1). The Chief and Councillors of McLeod Lake enter into the agreement on behalf of all of its members(Art. 4.1.a), 4.1(c)). McLeod Lake warrants that it had the opportunity to obtain financial, legal, tax and other professionals advice with respect to the agreement (Art. 4.1(b)). McLeod Lake affirms that BC has fulfilled any obligations of consultation and accommodation in relation to the project before the date of the agreement (Art. 5.2.(a)). If BC complies with the consultation and accommodation process set out in the agreement in relation to any decision to be taken after the agreement has been signed and ratified, McLeod Lake agrees that provincial agencies will be deemed to have fulfilled any duty to consult and accommodate with respect to government action that may affect McLeod Lake’s rights.(Art. 5.2(b)). Within 2 years of the date that the contract was signed and ratified, either party may request that the adequacy of the consultation and accommodation process be reviewed, and with the agreement of both parties, it may be amended (Art. 5.1(e)). McLeod Lake Indian Band (McLeod Lake) agrees that the agreement resolves past or future claims with respect to the project including revenue sharing and economic benefits (Art. 5.2(d)). McLeod Lake agrees that the agreement resolves past or future claims on issues of capacity funding, studies, compensation or disbursements, including claims related to the consultation and accommodation process (Art. 5.2(c)).

• Governance, implementation, dispute resolution

  All payments that British Columbia (BC) is obliged to make pursuant the agreement will be deposited into a trust established by the McLeod Lake Indian Band (McLeod Lake) (Art. 3.2 (e)). Within 1 year of receiving the first annual payment, and every 2 years thereafter, McLeod Lake will provide a strategic plan to BC outlining goals and specific outcomes with respect to strengthening governance capacity and addressing relevant socio-economic objectives. Within 90 days of receiving an annual payment McLeod Lake will report on how monies from the previous year were spent, and how they contributed toward achieving the strategic plan (Art. 5.4). Either McLeod Lake or BC may give written notice of a dispute to the other party (Art. 10.4) The parties will attempt to resolve the dispute through unassisted negotiation (Art. 10.5) If the parties are unable to resolve the dispute, any party may deliver the other a written notice requiring commencement of mediation conducted by one mediator (Art. 10.8) If the parties are unable to resolve the dispute through mediation, the dispute will be resolved by arbitration (Art. 10.9) The parties will each bear the costs of their participation in the mediation and arbitration, and will share equally all common costs of mediation and arbitration (Art. 10.8(k), Art. 10.9(d))

• Fiscal obligations: content

  If the amount of tax the project proponent pays in tax exceeds any tax refunds in a given year, 15% of the the difference between tax payments and refunds will be paid into a trust established by McLeod Lake (Art. 3.1). All payments British Columbia (BC) is obliged to make under the agreement will be paid into a trust established by the McLeod Lake Indian Band (McLeod Lake) (Art. 3.2.). The amount paid into the trust on an annual basis is calculated based on the tax paid by the company to BC.

• Community development obligations: Local content

  The payments that British Columbia (BC) deposit in the trust established by the McLeod Lake Indian Band (McLeod Lake) can be used for socio-economic objectives including economic development objectives on behalf of the members of McLeod Lake, as McLeod Lake determines (art. 5.3.) The parties will not deem created any employment relationship by the agreement or by any action of the parties under the agreement (art. 12.5)

• Community development obligations: Infrastructure and social services

  The payments that British Columbia (BC) deposit in the trust established by the McLeod Lake Indian Band (McLeod Lake) can be used for housing, infrastructure, education and health on behalf of the members of McLeod Lake, as McLeod Lake determines (art. 5.3.)

• Community development obligations: Other

  The payments that British Columbia (BC) deposit in the trust established by the McLeod Lake Indian Band (McLeod Lake) can be used for governance capacity objectives on behalf of the members of McLeod Lake, as McLeod Lake determines (art. 5.3.) McLeod Lake will present periodically a strategic plan that outlines goals and outcomes with respect to strengthening governance capacity and addressing socio-economic objectives (5.4.)

• Environmental and social protection

  British Columbia (BC) will consult and accommodate the McLeod Lake Indian Band (McLeod Lake) with respect to any action related to the project that may impact McLeod Lakes’ rights for the purposes of identifying potential mitigation or accommodation measures but will not include any financial or economic component (5.1., a) In order to fulfill its consultation and accommodation obligations, BC will provide McLeod Lake with relevant information about the proposed activity that may adversely affect McLeod Lake (5.1., b) British Columbia will undertake a full and fair consideration of the views presented by McLeod Lake (5.1., b, iv.) British Columbia will notify McLeod Lake the decision taken and how the views presented by McLeod Lake were taken into account (5.1., b, vi) The agreement does not constitute any admission of an obligation to provide financial benefits as part of British Columbia’s obligation to consult and accommodate McLeod Lake in relation to the mining project (12.9.)

• Transparency or confidentiality

  McLeod Lake Indian Band (McLeod Lake) and the trust to be established by McLeod Lake will keep confidential information that British Columbia explicitly denotes as confidential including payment statements and information that relates to tax payment by the company(Art.3.4) The mediation and arbitration processes used in case of disputes are confidential (Art. 10.8(f), Art. 10.9(b))

• Other noteworthy clauses

  Nothing in this agreement prevents McLeod Lake from participating in government programs for which it may be eligible (Art. 12.1).