The Squamish First Nation council voted Wednesday to approve an environmental assessment agreement for the controversial $1.6-billion Woodfibre LNG project that has divided its own band members.

Squamish Chief Ian Campbell said in an interview that the agreement is an important step in the development's ultimate approval. Similar agreements remain to be signed with FortisBC and the B.C. government. Economic impact benefit agreements also remain to be negotiated.

The legally binding environmental agreement includes remedies to ensure Woodfibre complies with its commitments. The band will also have significant decision-making powers, specifically for the choice of cooling technology and approval of management plans.

In June the Squamish Nation set out 25 conditions for the proposal and in July Woodfibre publicly announced it agreed to meet all 13 conditions that apply to its part of the proposal.

"It's definitely not a green light," Campbell said. "It's simply ensuring that the First Nation's environmental conditions will be fulfilled. There's still a lot of work ahead to implement the conditions. It's just one stage. But all parties are working diligently to maintain the momentum."

Twelve of 15 current members of Squamish council voted on the agreement: eight in favour, two opposed, and two abstained, including Campbell, as a procedural matter because they are signatories to the agreement.

Communications officer David Karn released a written statement on behalf of the Ministry of Environment saying that the ministers of environment and natural gas development have yet to make a decision on the project.

The Environmental Assessment Office referred the Woodfibre LNG application for an environmental assessment certificate to government on August 19. The EAO assessment report and supporting documents will be made public after the decision.

Although some band members protested against the LNG project, the elected council decided not to put the matter to a vote of the 4,000 members.

Campbell said that Woodfibre LNG is an off-reserve project involving aboriginal rights and title and therefor involves different criteria.

Woodfibre LNG says the project comprises construction and operation of a gas processing and liquefaction facility to produce approximately 2.1 million metric tonnes annually of LNG.

Indonesian billionaire Sukanto Tanoto, criticized for environmental practices in his own country, is behind the project. His holding company Raja Garuda Mas International (also known as Royal Golden Eagle) owns Pacific Oil and Gas Ltd., of which Woodfibre LNG is a subsidiary.

In June, the Squamish nation outlined five major conditions before the project can proceed in an effort to protect the environment and safety of its members.

- More information on the environmental impact of the project's seawater cooling discharge system on marine life in Howe Sound, including from discharges of warm, chlorinated water and the potential for small fish to be harmed by the intake system. The band also wanted information on potential alternative technologies.

- Avoiding industrial impacts in the Squamish estuary within the 673-hectare Skwelwil'em wildlife management area, including a commitment to a drilled underground pipeline that starts and exits outside of the management area or circumvents the area entirely.