At this point, the CVRD has no plans to hold a public information meeting in relation to a potential LNG project on the Bamberton lands. Typically, with official community plan amendments or rezoning applications, the public input opportunity is accommodated through a formal “public hearing” versus a public meeting. Public hearings are part of the statutory development application process. At this point, the CVRD has received no such applications on the Bamberton lands.

Public Open Houses/ Public Information Meetings It is common practice of local governments to require an applicant to host a public information meeting, usually for complex and large proposed projects. Although this category of meeting is not statutory requirement in relation to development applications, it can be a useful tool to distribute information and accommodate a two-way discussion of issues unlike “public hearings.” There are a few legal snares that can occur in a public information meeting particularly with respect to elected officials mindfulness of the “amenable to persuasion” rule that has its basis in case law. This ensures application processes maintain their legal integrity. It should be noted that proponents of a proposed project are free to hold public information meetings on their own accord with or without local government involvement. It is relatively common for proponents to host one or more such meeting for large or complex projects to gauge community support and resolve identified issues with the community in advance of a development application. Public Hearings Public hearings are required by the Local Government Act in cases where local governments are considering bylaws to adopt an official community plan or zoning bylaw amendment. The Act public hearings must be held after first reading of the proposed bylaw and before third reading. The purpose of a hearing is to permit individuals who believe their interest in property is affected by the proposed bylaw to make written or verbal representations to the elected officials in relation to matters contained in the bylaw. This type of formal meeting does not permit two-way discussions with the primary obligation of the elected officials being to simply “hear” the information presented to them. At a public hearing, elected officials are required under common law to be amenable to persuasion, though they may hold strong views on the matter. Once a public hearing has been concluded, elected officials are not permitted to receive any new information. That said, it is possible for additional public hearings should important new information be identified that is central to the decision-making process.

The subject Bamberton lands are fee simple lands, meaning they are owned outright. As such, the existing CVRD land use regulations and processes etc. continue to apply as they would on any fee simple lands within the CVRD. The CVRD will continue to conduct its business on that basis.

For an LNG facility to legally operate on the Bamberton site, it would require an amendment to the Official Community Plan, Zoning Bylaw amendment, and possibly a development permit application. Such applications would be adjudicated by the Board as with all such applications and will follow due process. Although the issue of LNG is significant for this community, the structure of the development application process does not change.

Malahat LNG Inc. has not submitted any development application to the CVRD. At the time they do, submission requirements will be established that are appropriate to the particulars of the proposed project. As an example, some of the information that can be required to support a submission include but are not limited to: • Detailed description of the proposed project or use; • Proposed site plan; • Environmental impact assessment; • Geotechnical analysis; • Traffic impact assessment; • Sediment and erosion control plan; • Sound attenuation plan, etc.

Such an application would follow basic steps associated with an official community plan (OCP) or zoning bylaw amendment. The average processing time is 6-12 months. Steps: 1. Pre-application meeting(s) 2. Application submitted 3. Staff review 4. Internal and external referrals 5. Staff report presentation to the Electoral Area Services Committee (EASC) 6. Board consideration of EASC recommendation and first & second reading of amendment bylaw 7. Public Hearing Set 8. Board consideration of third reading and adoption of the proposed amendment bylaw. For more information, feel free to review the

1. February 10, 2016 Board: #16-134 That the Board advise Malahat LNG that the Cowichan Valley Regional District is opposed to any LNG facility being located at Bamberton or anywhere else within the Regional District. 2. March 9, 2016 Board: #16-156 While the Board of the CVRD has expressed its opposition and lack of support for future Liquified Natural Gas (LNG) projects in the Cowichan Valley, the Board is aware of its responsibilities to give appropriate consideration to any land use application that might be made to the Regional District in accordance with the Local Government Act.

Elected officials are free to express their views on LNG or any other such issue and it is common practice for them to do so. The manner of free expression is shaped somewhat by the legal obligations associated with a pending or an actual development application that is to be considered by the elected body. In this case, although an elected official is free to express their view on any given subject, it is considered prudent to ensure any view expressed respects the legal obligation of the elected official to maintain an “open mind” or be amenable to persuasive arguments either in favour or in opposition to a proposed bylaw. This helps ensure an elected official is not perceived to have prejudged the merits of any application, whether or not it happens to be consistent with an official community plan or zoning bylaw or any other consideration. Applications for official community plan and rezoning amendments are common components of local government business. The requirements of procedural of fairness inherent in the rezoning process, as set out in case law, require elected officials to maintain an open mind. So, although they are entitled to hold and express opinions about issues of concern to the community, they must be prepared to listen to and weigh the arguments made both in favour of and in opposition to an application. The Courts have stated that elected officials must be prepared to change their views based on the information presented by an applicant, including information presented at a public hearing. It is important to note that a Board or Council functions as a quasi-judicial body, with all associated responsibilities for procedural integrity, in the consideration of development applications. Otherwise, if a court finds an elected official had a closed mind, and was not prepared to change their views, no matter what information was presented, the elected official risks being disqualified from voting on the matter.

CVRD staff met with representatives of Malahat LNG in December 2015. The purpose of the meeting was to orient the Malahat LNG Inc. representatives to the existing regulatory framework pertaining to the Bamberton site (i.e. the Official Community Plan and Zoning Bylaw), and to provide an overview of the application requirements and procedures should they choose to submit an application. A second pre-application meeting occurred in June 2016.

South Cowichan Official Community Plan Bylaw No. 3510 The area of the Bamberton Lands and marine foreshore where the former cement plant and associated facilities were located are designated in the South Cowichan Official Community Plan as “Industrial.” This designation allows for a variety of industrial uses and industrial zones. With respect to industrial uses that may involve hazardous goods, Policy 16.5 states: New industries considered hazardous due to the transport, handling, bulk storage, or use of liquefied natural gas, radioactive or other dangerous or toxic materials will not be permitted to locate within the Plan areas. The remainder of the Bamberton Lands outside of the industrially designates areas are designated Rural Resource. The Rural Residential designation is primarily intended for forestry and other natural resources uses. Liquefied natural gas facilities or similar type uses are not identified as an appropriate use. South Cowichan Zoning Bylaw No. 3520 The Bamberton lands on the east side of the Trans Canada Highway have a number of different zoning designations. These include Heavy Industrial 2 (I-2), Bamberton Light Industrial 1A Zone (I-1A), Rural Resource 1 (RUR-1) and Rural Resource (RUR-2). The water surface of the Saanich Inlet adjacent to the Bamberton Lands is zoned Heavy Industrial (I-2) and Marine Conservation 1 (W-1). None of the zones that apply to the Bamberton Lands or the water surface adjacent to the Bamberton Lands permit the storage and distribution of liquefied natural gas.

The Local Government Act (section 460) requires that local government consider every application for an Official Community Plan or Zoning Bylaw amendment. Accordingly, local government has no authority to simply refuse to accept a complete development application. Through legislation, every person is afforded the prospect of a fair and impartial application process.