Woodfibre LNG, the company building a liquefied natural gas plant in Squamish, is contesting the District’s tax levy as illegal or unreasonable.
In a B.C. Supreme Court petition filed against the District of Squamish, June 6, the company, Woodfibre LNG General Partner Inc., as a general partner on behalf of the Woodfibre LNG Limited Partnership, is seeking one of two orders from the court.
The company is asking for an order setting aside or quashing the 2025 tax rate bylaw on the basis that it is illegal, unreasonable, and/or was enacted in bad faith.
Or, it asks the court for an order setting aside or quashing the major industry property tax rate in the bylaw on the basis that it is illegal, unreasonable, and/or was enacted in bad faith.
“By intentionally setting a pejorative and punitive 2025 major industry rate intended to single out and target Woodfibre LNG, the District has continued its attempts to coerce Woodfibre LNG to behave as the District wishes, whether by changing its land use or entering into a tax exemption agreement,” the petition claimed.
The petition said the project will include a natural gas liquefaction facility and a liquefied natural gas transfer facility for the export of the product to global markets via marine vessels.
“It is currently expected to operate for at least 40 years and to produce up to 2.1 million tonnes of LNG per year,” the petition said. “Construction of the project is anticipated to cost over US$ 5.1 billion dollars.”
During operations, the petition said the project is expected to create over 100 Squamish-based jobs and significantly contribute to local tax revenue.
The petition alleges that the District, “including the current mayor and council, have on numerous occasions voiced opposition to the project and taken steps that have delayed and hindered construction of the project, at considerable expense to Woodfibre LNG.”
The suit contends the tax rate makes its current situation unsustainable.
The company further asserted the District has hindered its efforts for a floatel to house workers and delayed permits.
The company contends those alleged hindrances happened despite “the parties entering into capacity funding agreements whereby Woodfibre LNG has committed to paying the District over $4.725 million as capacity payments, in addition to its share of District property taxes, to offset the cost of additional administrative services associated with issuing the permits and approvals for the project.”
District communications manager Rachel Boguski said the District does not comment on matters under litigation.
