Published:Tuesday, August 12, 2008 10:17 AM PDT
Serving the South Coast of Oregon

Who's liable if the LNG fizzles?
Tuesday, August 12, 2008 10:17 AM PDT

I have always been a supporter of importing liquefied natural gas into parts of the U.S., where additional sources of natural gas may be critically required.

I don’t care if the citizens of North Bend want a humongous LNG factory sitting across the pond from their homes and businesses. I can shop and dine in Coos Bay. I don’t need a job so I don’t care that the LNG developer has stated that many permanent jobs, perhaps 15 of 45, would “be given to experienced workers from outside of Coos County” and most of the 800 temporary jobs will be filled by outsiders.

I do care that massive LNG tanker vessels will pass within 1/2-mile of two Coos Bay schools placing all in a hazard zone. I do care about all of the local public safety and U.S. Coast Guard personnel who will be needlessly placed in harm’s way.

For more than three years, I have had a grave concern about the people’s financial exposure if there is or is not a North Spit LNG import terminal. For almost four years, elected and appointed representatives have sat with the North Spit LNG developer and discussed the proposed LNG import terminal. In these meetings the developer has frequently been encouraged to proceed to an early siting on the North Spit. Some representatives of the people have been very vocal in their support. Others have given tacit approval. I am aware of only two elected representatives of the people who have in any way said no — both Coos Bay councilmen. I doubt that any of these representatives of the people asked for our comment or concern before speaking for us on this subject.

Here’s the potential problem as I see it. The Canadian LNG developer and their Jordan Cove Energy operation are in business to make money for their shareholders. The developer has relied on four years of promises and statements of those who represent the people. They have spent tens of millions of dollars in recent years relying on those promises and statements and their belief that they have the majority of the citizens support of the LNG project. I believe that the LNG developer has been misled about the people’s support of an LNG project. There is an excellent possibility that the opposition will prevail, especially if one party soon controls both houses of Congress and the office of president.

My question for the lawyers who read this paper is, what is the possible exposure of the people of Coos County if the LNG terminal is defeated after we led the developer to believe that they had our support? If the developer had proceeded without any assurances from our elected representatives, the risk would certainly be the developers alone to bear. Can the developer sue us for monetary damages equal to the tens of millions of dollars or more that they have spent plus punitive damages? If there are Oregon laws of reliance covering subjects like this, who is at risk of being sued?

Fred Kirby

Coos Bay


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