Sipayik councillors vote to let Quoddy Bay agreement lapse

The "exclusivity agreement" between Sipayik Tribal Governor Melvin Francis, the tribal council and Quoddy Bay LLC to develop a feasibility study for a liquefied natural gas (LNG) terminal and storage tanks on 40 to 60 acres of coastline owned by Sipayik is scheduled to lapse on May 14. At a meeting on April 14, the tribal council voted to let the agreement lapse. According to councillor Hilda Lewis, Governor Francis and councillors Dale Mitchell and Thomas Lewey were absent, but there were sufficient councillors present to form a quorum. In addition to Lewis, councillors at the meeting were Brian Altvater, Darren Paul and Philip Farrell, with Lt. Governor Mark Altvater presiding.

    The meeting had been called at the request of several members of the tribe. They wanted information as to what is happening next with the LNG proposal and an assurance that all meetings will be open to the public. "We will not tolerate any more secret meetings," Lewis comments. The councillors also agreed that there will be no contracts signed concerning LNG unless there is a public forum.

    According to tribal attorney Craig Francis, the decision on the part of the tribe to let the agreement lapse does not mean the project is being dropped. He was not present at the meeting.

    Vera Francis, who attended the tribal council meeting, said the discussion at the meeting made it very clear that the intent of the motion is that the LNG project be rejected.

    Although Sipayik tribal members voted last August in favor of proceeding with the LNG proposal, the project hit a setback when Perry voters on March 28 rejected the proposal by a vote of 279 to 214. The land to be used for the project was annexed by the tribe from the Town of Perry with a provision that any commercial use of the property had to have the approval of Perry voters.

    Emily Francis, spokesman for Savvy Inc., the public relations firm retained by the tribe and Quoddy Bay LLC, says, "Nothing is happening right now." She says Savvy continues to work for Quoddy Bay. According to Francis, Quoddy Bay is taking time to reflect on the matter and look at their options. "No definite decisions have been made," she comments.

Terms of agreement released
    Copies of the exclusivity agreement were released last week, providing many tribal members their first opportunity to view the agreement and all its conditions. The agreement provides for exclusivity between Sipayik and Quoddy Bay with regard to developing the project site. The agreement signed on May 14, 2004, by Tribal Governor Melvin Francis is for a period of 12 months.

    According to the document, Quoddy Bay agreed to pay to the Sipayik tribal government $20,000 for a period of 60 days to do a feasibility study, and $15,000 per month for the remaining 10 months of the project, or until a definite agreement was signed or Quoddy Bay had notified the tribal government that the project had been terminated.

    Quoddy Bay also offered the tribe a maximum of $8 million a year to site a facility on tribal land and agreed to pay the tribe $665,667 per month if a facility commensurate to the Conoco/Phillips proposal for Harpswell were built. In any event, Quoddy Bay would pay the tribe a minimum ground lease payment of $300,000 a month, once the project was fully operational. Alternatively, an ownership interest by the tribe in the project could be negotiated, in lieu of a ground lease payment.

    In the exclusivity agreement, the tribe agreed to "use its best efforts in order to provide a suitable location for the project and assist Quoddy Bay in procuring the necessary approvals and permits for the project."