Kulongoski to FERC: No permits until alternatives to LNG studied


Saturday, February 16, 2008 | 5 comment(s)

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PORTLAND (AP) — Gov. Ted Kulongoski told federal regulators they must study all alternatives to supplying natural gas to the region before moving forward with any proposals for a liquefied natural gas terminal in Oregon.

In a letter sent Thursday to the Federal Energy Regulatory Commission, Kulongoski said he has asked the state attorney general to examine Oregon’s legal authority to refuse state permits for the projects until FERC complies with his request.

Kulongoski also told FERC Chairman Joseph Kelliher that he had asked Oregon’s congressional delegation to push for legislation that would wrest back state control for licensing LNG facilities. State authority was pre-empted by the federal government as part of the Energy Policy Act of 2005.

Rep. Peter DeFazio, D-Ore., who opposed taking away state control in energy matters, is co-sponsor of HB 2042, that would repeal that section of the energy act.

“I think (Kulongoski’s letter) is a very thoughtful letter,” he said Friday. “I plan to write a letter to other members of the Oregon delegation to support this legislation.”

The governor’s posture, outlined Thursday in an interview with The Oregonian, marks a change in tone. He recently told a panel of editors that Oregon could benefit from the addition of liquefied natural gas to its energy portfolio, saying it would reduce the state’s dependence on other sources of energy, especially coal and hydropower. But he has called for a more detailed analysis of potential environmental impacts, including the effect on fish and wildlife habitat, and water quality.

LNG proposals have stirred controversy in Oregon, with some welcoming the jobs and taxes they would generate and other residents scorning the potential environmental impact and likely use of eminent domain to seize farmland, vineyards and forest for hundreds of miles of pipeline.

Energy companies have proposed building three LNG terminals in the state: one in Coos Bay and two on the Columbia River.

The terminal application in Coos Bay, proposed by Jordan Cove Energy Project, is currently being reviewed by FERC staff. A draft environmental impact statement is expected this winter. Meanwhile, a land use application was approved by Coos County’s Board of Commissioners in December. The application has been appealed to the Land Use Board of Appeals.

In his letter to the FERC, Kulongoski noted that the Oregon Department of Energy has determined there is only demand for, at most, one LNG terminal in Oregon.

“The proposals are requiring local governments ... to devote scarce resources from other pressing problems to evaluate projects that in all likelihood may never be built,” he said.

The terminal proposed at Bradwood Landing is the furthest along in the FERC process, having already had a draft EIS produced in August 2007. The third terminal, Oregon LNG, is scheduled to file its application with the FERC in April.

The terminals would accept imports of supercooled natural gas from abroad, reheat the liquid into a gas, and then ship it to West Coast markets through one of four proposed pipelines.

Two other companies have proposed building pipelines to ship domestic natural gas from the Wyoming Rockies to southern Oregon.

Kulongoski said in his letter that he wasn’t “unalterably opposed” to LNG being part of Oregon’s energy mix. But he said FERC’s “approach to the licensing of plants and pipelines has created a crisis of confidence with Oregonians.”

Opponents of the projects cheered Kulongoski’s moves.

— Staff Writer Alexander Rich contributed to this story.
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Dennis wrote on Feb 19, 2008 6:23 PM:

It doesn’t make any sense to allow the Oregon human population to grow at 1% per annum, and then declare an “energy shortage” when the available energy per capita goes into a decline. To put the cart back in front of the horse, we should figure out first what is our best mix of renewable, Earth-friendly energy sources and how much this amounts to, THEN and only then select some percentage amount to this to rely on for human uses (leaving substantial amounts available for other “uses”?) and then adjust fertility and inmigration/emigration so that we achieve a human population which is sustainable in the long run using such energy amounts and sources.

Oregon Optimal Population Society (OOPS!)

Bud wrote on Feb 18, 2008 7:02 PM:

As a landowner and resident very close to proposed pipeline route I have many problems with the project not limited to the short term economic impact, the probability of earthquakes and tsunamis, the environmental impact of construction and the threat of land grabs via eminent domain. This project has nothing to do with North Bend or Oregon and I say hats off to Gov. K for stepping up.

Michael wrote on Feb 18, 2008 2:24 PM:

Well Gary...

IF kids have to depend on California projects as this LNG storage unit (Jordan cove) slated to be located in a Tsunami zone (where schools, hospitals, firestations, policestations, libraries are legally banned from being built there by Oregon's own law), then they are in trouble! Let's use the outside of Oregon money for cconstructive long term jobs, instead of a few temporary created jobs building DESTRUCTIVE projects that serve someone else's energy needs...
P.S. Kinda strange that California has rejected every attempt to build one of these LNG storage units on it's coast...I wonder why???

Gary Mickelson wrote on Feb 17, 2008 7:56 AM:

Lets hope the LNG will be put here in Coos Bay. This area needs jobs so our children don't have to graduate and move from the area to find work. Lets get er done.

curt wrote on Feb 16, 2008 8:35 PM:

It is good to see that Gov. Kulongoski is paying attention to what thousands of Orgonians already know - these LNG proposals are major environmental, economic,and public safety BOONDOGGLES. Anyone in Salem last Feb 6 would have seen people from all over the state protesting the giveaway of our water, air, and land to these rapacious corporations. They understand that OREGON IS OUR HOME - we all live here and we must protect it.


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