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Kulongoski's office expecting 'more of the same' as FERC decision on LNG nears

Tuesday, July 15, 2008 9:11 AM PDT

By Tony Lystra

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If anyone has the slightest idea what the Federal Energy Regulatory Commission will decide Thursday when it discusses a liquefied natural gas terminal proposed for the Columbia River, they’re not saying. But a spokeswoman for Oregon Gov. Kulongoski said Monday that the agency certainly isn’t expected to listen carefully to the state’s concerns about the project.

“We expect more of the same,” said Jillian Schoene, the governor’s deputy communications director.

The federal agency, known as FERC, may decide Thursday whether to allow NorthernStar Natural Gas to build its LNG import terminal in Bradwood, Ore., across the river from Puget Island.

Kulongoski has insisted that the agency is ignoring key questions about how the terminal will affect the environment and surrounding communities. He’s also asked FERC to take into account whether an LNG terminal is the best way to meet Oregon’s energy needs.

“They’re just not willing to incorporate that comprehensive look at Oregon’s energy needs and how best to meet them,” Schoene said.

The governor has threatened to challenge FERC in court if the agency continues to deny his requests.

“The next step will be defined by this week’s events,” Schoene said.

FERC issued its final environmental impact statement for the project last month, declaring that the project will have “limited” impact on the region.

In a letter to FERC Friday, Kulongoski called the FEIS “fatally flawed” and called on the agency to withdraw the document and issue a more thorough environmental review.

The 560-page document brushes over important details about how the terminal will affect the environment and surrounding communities, Kulongoski said.

Questions also remain, the governor said, about safety and emergency planning. And there are differing opinions about whether an LNG terminal will be the most economical and environmentally safe source for the Northwest’s gas supplies.

Kulongoski urged FERC to hold off on any decision until Oregon has considered whether the project meets the standards of the Coastal Zone Management Act, Clean Air Act and Federal Water Pollution Control Act.

The governor and other skeptics have long argued that FERC is too lax in its approach to the project and is ignoring the concerns of the people who will be most affected by the terminal.

Kulongoski noted in his letter last week that FERC denied his request in May to issue a supplemental environmental report answering the state’s concerns.

Columbia Riverkeeper, an environmental group fighting the terminal, scoffed at the FEIS last month, saying FERC’s seemingly indifferent attitude was a dream come true for any attorney seeking to challenge the document in court.

Joe Desmond, a spokesman for NorthernStar, stressed Monday that he doesn’t know what FERC will do Thursday, saying the agency may simply discuss procedural matters.

Still, NorthernStar CEO Si Garrett sent a letter to Kulongoski on Friday stressing that, even if FERC approves the project this week, his company still will have to get approvals from the state under Coastal Zone, air and water quality standards.

“We remain committed to work in good faith with Oregon’s resource agencies to meet the state’s standards to secure those permits,” Garrett said.

Recent related articles:

Kulongoski asks feds to halt decision on LNG  (July 14)

LNG decision near? FERC to meet next week  (July 11)

Baird asks feds to delay Bradwood decision  (June 21)

Clatsop County LNG referendum makes ballot  (June 21)

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gimpy wrote on Jul 15, 2008 6:36 AM:

" Gee, "Si", do ya think the Governor knows that you need the CZMA, Clean Water and Clean Air permits? I think his point is you need them BEFORE you get the FERC permit. Your friends in high places seem to want this thing ramrodded through regardless of state and local opposition. Well, we aren't going away and we support the Oregon governor and the agencies, both state and federal who have said, "Whoa! this application and environmental study are not complete. We still need a lot of information from NorthernStar." "

grams wrote on Jul 15, 2008 9:16 AM:

" Hi there Gimpy (:->. And Si, what does "work in good faith" mean to someone who can't tell the truth about the location of the drill site into Washington? Working in good faith has never been one of NorthernStar's long suits. FERC's concerns about location versus geography, geology, and need is also lacking in the basic good faith ethic. As a conservative, I see nothing conservative about this "Conservative based Federal Agency!" Power? that's a different story. And I repeat, WHERE THE HELL IS OUR GOVERNOR?" Oh that's right, she doesn't know SW Washington exists so how could she comprehend that what affects the Columbia River will affect Washington State's economy? Just remember "It ain't over till the fat lady sings" And remember too that it has taken tremendous effort, time , and money for we who are the bi-state grass roots coalition to impead this process to this date. Some of us understand the issue of "Good Faith" in regard to our responsibilities as Citizens of this great country. "

philter wrote on Jul 15, 2008 9:29 AM:

" ^ For the record, I believe FERC pulled the project from this month's agenda today and will NOT be voting on it this month.

Also, I have been doing a little research and FERC normally issues a conditional order which still requires the company to obtain numerous permits, including the Coastal Zone, water permits, etc. so this is standard practice for the FERC and so the Governor is wrong that you dont need them before the FERC permit. Also, because the FERC permit has so many conditions in it, its really a preliminary permit and is no way a final permit for construction. The company still needs to jump through many hoops which can be blocked by numerous agencies. Northern Star's environmental analysis has holes in it, but in order to appease the political heads and get it through the federal permitting process, the FERC order puts a LOT of conditions on Northern Star requiring them to complete a lot of items before they can be approved to construct.

I am against this project but I dont think the Governor asking FERC to change their permitting process, which they have been doing for decades, is the most effective way to defeat this project. "

grams wrote on Jul 15, 2008 10:03 AM:

" "Philter" Thanks for the information, but tell me this. When FERC does issue a conditional permit, what do we who are facing eminent domain do? That permit, as I understand it, allows NorthernStar to proceed with the eminent domain proccess before the certificate is registered, IF the certificate is registered. So what kind of effeciency is that? I know of no-one on the pipeline route who is going to allow anyone on their property until this is certified. And had the governor not taken a stand , and all the other legislators, County Officials, citizens groups, and interested parties, Bradwood would be in the construction proccess right now. "

Thoughtful wrote on Jul 15, 2008 11:08 AM:

" Just an FYI from the FERC website:
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
NOTICE OF CHANGE IN MEETING AGENDA
(July 15, 2008)
Notice is hereby given that the following item has been struck from the
Commission Meeting scheduled for July 17, 2008:
ITEM NO. COMPANIES AND DOCKET NOS.
C-1 Bradwood Landing LLC, NorthernStar Energy LLC; Docket
Nos. CP06-365-000, CP06-366-00, CP06-376-000. CP06-
377-000
Kimberly D. Bose
Secretary "

philter25 wrote on Jul 15, 2008 12:48 PM:

" Grams: Im not entirely sure on the rules and procedures with eminent domain, but at one of the meetings I was told that companies rarely actually go to court for eminent domain, I was told that issues are almost always worked out between the company and landowners. One of the FERC guys was pretty helpful at one of the meetings and there is an 800 number on the FERC site you can call with general procedure questions and get them answered. Also, as I understand it, getting through FERC is a multi-tiered effort. The original certificate from FERC is just step one. It can take time (maybe even years) to meet all the conditions in the order and some of the conditions are dependent on state agencies and other local personnel, so I dont think even if Bradwood is approved, construction will not begin any time soon as their FEIS had a lot of conditions it needed to have approved before it could construct. FERC rarely ever flat out denies a project, why? Because it probably politically looks bad so instead it puts conditions in the FEIS which must be met before it can construct and some of the conditions can be extremely difficult and costly to meet. "

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