Woodfibre LNG contests taxes in court
July 24, 2025
Tracey Saxby
Woodfibre LNG has filed a petition with the B.C. Supreme Court asking for an order to set aside or quash the District of Squamish’s 2025 Major Industry tax rate on the basis that it is illegal, unreasonable, and/or was enacted in bad faith.
This is more proof that the economic case to produce and export British Columbia’s liquefied natural gas is weak, if a municipal tax threatens to render a US$5.1 billion dollar project unsustainable. We’re talking about a community benefit of approximately $1.5 million a year during construction, most of which is intended to pay for increased policing costs incurred because of Woodfibre LNG and the FortisBC pipeline projects.
Frontline communities like Squamish cannot be written off or expected to prop up the shaky economic viability of foreign-owned LNG export projects. Premier Eby needs to have the cost to communities and people in B.C. in mind when saying that any investment is welcome to diversify B.C.’s resources export markets.
It’s people in B.C. who subsidize these fossil fuel projects through health and climate costs, and taxpayer dollars.
Major industries should pay their fair share. If other LNG projects planned in the province have similarly tight profit margins, it’s going to keep falling on the people in British Columbia and Canada to make up that difference, and that is unfair.
Where are the "economic benefits" that Woodfibre LNG promised?
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History of the tax negotiations
Woodfibre LNG and the District of Squamish have been unable to reach a tax agreement for over a decade.
Back in 2014, Woodfibre LNG offered to pay a measly $2 million in taxes which would be capped at $3 million with inflation. This was laughable, even then, as the former pulp mill used to pay $2 million in taxes per year until 2006 when it closed.
Then in 2015, BC Assessment Authority was invited to present to council to help kickstart tax negotations with Woodfibre LNG, and estimated that Woodfibre LNG would pay $5 to $7 million in taxes.
Negotiations stalled.
In 2022, we exposed how Woodfibre LNG covertly funded Squamish Forward, a local group led by Evan Drygas and Gord Addison, which started a petition to stop the District from borrowing money it needed to upgrade critical infrastructure to supply Squamish with clean drinking water, and to manage our wastewater. This stunt ultimately cost the District of Squamish taxpayers half a million dollars.
Woodfibre LNG actively undermined trust in local government to influence voters in the leadup to the election, in the hopes that a pro-LNG council would give them a sweetheart deal on taxes. LEARN MORE
Fast forward to 2025, and the value of the land has increased, and the value of the project has tripled from US$1.6 billion in 2015 to US$5.1 billion dollars. Woodfibre LNG should be paying a lot more in taxes.
Earlier this year, the District of Squamish updated the tax rate for Woodfibre LNG, which would bring in $1.5 million a year during construction, and increase once the project is operational. How much will depend on the assessed value of the property if the project ever gets up and running.
Woodfibre LNG filed its petition to contest the updated tax rate on June 6, 2025.
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Discussions pending
On June 26, 2025, Woodfibre LNG and the District of Squamish mutually agreed to adjourn the case, pending discussions.
But why should Woodfibre LNG get a deal on taxes? I'd sure like a deal on my taxes, wouldn't you?
Woodfibre LNG is clearly a bad corporate citizen that doesn't want to pay its fair share.
Tracey Saxby
Executive Director
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