Definitions

1   In this Schedule:

"liquefied natural gas" means natural gas from which natural gas liquids have been predominantly removed and that is liquefied;

"LNG facility" means the LNG facility specified in section 4;

"LNG plant" means the LNG plant specified in section 5;

"natural gas liquids" means butane, ethane, propane or pentanes plus and any other condensates, or any combination of them, whether in gaseous or liquid form;

"project" means the project specified in section 2.

Project

2   For the purposes of Part 5.1, the following activities constitute a project:

(a) constructing the LNG facility;

(b) equipping the LNG facility for initial operation;

(c) constructing anchorages, berthing areas and water access routes for the LNG facility, including, without limitation, placing navigational aids;

(d) constructing the Terminal A Extension project specified in section 6 of this Schedule;

(e) carrying out environmental measures described in section 7 of this Schedule.

Cut-off date for project

3   For the purposes of Part 5.1, the cut-off date for the project is the earliest of the following dates:

(a) the date that is 7 years after the date this section comes into force;

(b) the date on which the first 2 liquefaction trains of the LNG facility have been operated for the purpose of producing liquefied natural gas;

(c) the date on which the first 2 liquefaction trains of the LNG facility are, in the opinion of the director, capable of producing liquefied natural gas.

LNG facility

4   (1) Subject to subsection (2), for the purposes of this Schedule, the LNG facility is the facility that is to

(a) be constructed by LNG Canada Development Inc., and

(b) consist of all of the following:

(i) the LNG plant to be located in the District of Kitimat;

(ii) improvements to land that is

(A) subjacent to or contiguous with the LNG plant, and

(B) to be used for the operations of the LNG plant.

(2) The LNG facility does not include any of the following:

(a) a pig trap;

(b) a natural gas pipeline upstream of a pig trap;

(c) tangible personal property, or improvements to real property, used primarily in relation to a natural gas pipeline described in paragraph (b);

(d) a pipeline used to transport liquefied natural gas, natural gas liquids or natural gas from the LNG plant or the LNG facility, except a pipeline used for a purpose described in section 5 (c) (ii) or (iv);

(e) a vehicle or vessel that is used to transport liquefied natural gas or natural gas liquids from the LNG plant or the LNG facility.

LNG plant

5   For the purposes of this Schedule, the LNG plant consists of all of the following:

(a) tangible personal property and improvements to real property that are part of a series of systems used or intended to be used for liquefying natural gas, including, without limitation, tangible personal property and improvements to real property that are used or intended to be used for one or more of the following purposes:

(i) delivering natural gas to the series of systems;

(ii) receiving or measuring natural gas delivered to the series of systems;

(iii) removing natural gas liquids from natural gas and separating those liquids;

(iv) storing natural gas liquids;

(b) tangible personal property and improvements to real property that are part of the series of systems referred to in paragraph (a) and used or intended to be used for storing liquefied natural gas;

(c) tangible personal property and improvements to real property that are part of a series of systems used or intended to be used for one or more of the following purposes if the series of systems immediately follows the series of systems referred to in paragraph (a):

(i) measuring liquefied natural gas or natural gas liquids that are to be loaded for shipment or transmitted for regasification;

(ii) loading liquefied natural gas or natural gas liquids for shipment;

(iii) supporting the loading of liquefied natural gas or natural gas liquids for shipment;

(iv) transmitting liquefied natural gas for regasification;

(d) tangible personal property and improvements to real property that are used or intended to be used to generate electrical power if the electrical power is to be used primarily for the series of systems referred to in paragraph (a);

(e) tangible personal property and improvements to real property that are necessary for complying with health, safety and environmental standards required by law in relation to the use or intended use of the tangible personal property and improvements to real property that are described in paragraphs (a) to (d).

Terminal A Extension project

6   For the purposes of this Schedule, the Terminal A Extension project is the project specified in certificate T15—01 issued under the Environmental Assessment Act.

Environmental measures

7   For the purposes of this Schedule, actions are environmental measures if a person is required by law to carry out the actions to mitigate or otherwise offset impacts on fish, wildlife, fish or wildlife habitat or the environment of the activities that the person carries out for the project.

Software — qualifying infrastructure

8   For the purposes of Part 5.1, the LNG plant is qualifying infrastructure for the project.

Electricity — qualifying worksites

9   For the purposes of Part 5.1, the following are qualifying worksites for the project:

(a) the LNG facility;

(b) a site that is used substantially for the project.