Who's liable if the LNG fizzles?


Tuesday, August 12, 2008 | 16 comment(s)

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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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Vonnie wrote on Aug 19, 2008 12:48 PM:

I am sorry, On my post about the nuclear waste it was Commen Sense that made the remark on the nuclear waste. Sorry again.

Vonnie wrote on Aug 19, 2008 12:46 PM:

To Jane & anyone interested, There is nuclear waste and lots of it buried at Richland, Wa. Real close to the Columbia River. There is 53 MILLION Gallons of it some has been there since the '40s and it is leaking into the ground water. It is on a 586 sq. mile reservation. Just in case anyone wanted to know.

Jane wrote on Aug 19, 2008 8:52 AM:

Anything is possible, but they aren't citizens of the USA & there was no written guarantee that this would pass all the legal tests/requirements of both the Federal & State level, thus the obvious answer is NO WAY! Better question is, can Oregon citizens sue their state leaders & FERC (if by miracle this comes to Jordan Cove), if something happens & people get injured or killed due to this California LNG SCAM?

Thank you... wrote on Aug 19, 2008 8:33 AM:

Common Sense. Very well put, clear and concise.

Common Sense wrote on Aug 18, 2008 9:33 AM:

Silly posts by realist & more safe,

The problem with nuclear energy is the nuclear waste (Even today it's just buried in the ground somewhere) that the radiation lasts THOUSANDS of years!

This California LNG SCAM project at Jordon Cove offers around 800 temporary construction jobs (Putting in 230 miles of pipe from Jordan Cove to Northern California) & 40-50 full time jobs at the storage station at Jordon Cove. All of these jobs will be handed to outsiders according to Bob Braddock himself due to education & experience requirements! There will be NO local Oregon jobs to this project at Jordan Cove.
Also, according to Oregon's Dept of Energy, LNG is twice as expersive as natural gas used today by Oregon citizens & if LNG is used in Oregon, Oregon citizens gas bill will drastically go UP! Finally said, if Oregon needed gas in the future, the gas from the Rockies would be cheaper & pollute less then LNG & concluded LNG is NOT needed in Oregon!

If the USA continues to export this expensive LNG from outside of the country, it will turn into a 3rd world nation!!!

Local Mom wrote on Aug 17, 2008 1:18 PM:

To "More Safe"- There were ZERO injuries and damage to property outside of the main reactor as a result of the Three-Mile Island accident. The only real damage done was psychological due to the public's overreaction fueled by the media.

http://en.wikipedia.org/wiki/Three_Mile_Island_accident

david wrote on Aug 17, 2008 12:03 PM:

To More Safe: You intimate that lives were lost in the 3 mile island nuclear accident????

OBSERVER II wrote on Aug 16, 2008 5:28 PM:

TO FRED KIRBY""""""""Don't know if you are pro lng,but it appears your trying to scare people into accepting this unwanted business here.If they wasted money only to find out the majority of people don't want this LNG here,that's their own dam- fault.To be quite frank, I think the public should consider suing gas company for all the unwanted,unnessary commotion they have created

Common Sense wrote on Aug 14, 2008 10:46 AM:

Don't forget LNG is TWICE as expensive as natural gas used today by Oregon citizens (as we speak) according to Oregon's Dept of Energy & not needed also!

To answer your question (Who's liable):

Obviously FERC & any/all Oregon leaders allowing this accident to happen piece of garbage that Oregon doesn't need...SIMPLE

Holly wrote on Aug 14, 2008 7:13 AM:

Fred: This just in from the Canadian News Wire: TORONTO, Aug. 13 /CNW/ - This is to announce that today the law firms of
Stevenson LLP and Bogoroch & Associates have been instructed to commence a
class action on behalf of the representative plaintiffs, Giuseppina Santoro
and Gianfrano (John) Santoro for damages sustained by the residents,
homeowners and business persons as a result of the explosions which took place
on Sunday, August 10, 2008 at the premises of Sunrise Propane Energy Group
Inc. Included in the lawsuit as defendants will be Sunrise, City of Toronto,
The Province of Ontario and the Technical Standards and Safety Authority. A
Notice of Action will be filed on Wednesday, August 13, 2008.

MORE SAFE wrote on Aug 13, 2008 1:42 PM:

REALIST wrote on Aug 13, 2008 5:58 AM:
If there had been movements like the "anit-LNG" folks during the expansion of this nation, we would be a third world country in extreme poverty.

You may be too young to remember, Three Mile Island the most serious nuclear power plant accident in US history. It occurred in 1979 and had more folks like the "anti-LNG" people been involved - maybe a lot of lives and property would have been saved.

or the 72 coal miners that died in Kentucky and W. Virginia in mining accidents...or the East Ohio Gas plant explosion in 1944 that killed 131 people, 44 of which were never identified.

We would have had industry and lots of it...IT JUST WOULD HAVE BEEN A LOT MORE SAFE for workers and the people who lived nearby.

realist wrote on Aug 13, 2008 5:58 AM:

If there had been movements like the "anit-LNG" folks during the expansion of this nation, we would be a third world country in extreme poverty. Statements like "2 mile blast zone" are ridiculous and only serve to scare the public. Get real...

mymoney is safe wrote on Aug 12, 2008 3:40 PM:

Dear its legal or not. An interesting question. Yes, if you followed the fight against LNG development across this nation like some of us you would know that cities and states have been sued. Hide your wallet and duck for cover when in a 2 mile wide SAFE blast zone.

Thomas wrote on Aug 12, 2008 1:58 PM:

I doubt anyone has legal exposure, primarily because the approval process is designed to prevent the public or their elected officials from having a meaningful say in the LNG or gas pipeline matter at any point along the way.

How can we be blamed for stopping this sociopathic nonsense when we are in effect powerless to do so?

Holly wrote on Aug 12, 2008 11:43 AM:

Good point Fred. It seems we taxpayers are on the hook no matter what happens, and none of these "developers" will have to pay taxes for years (if ever) due to the enterprise zone and urban renewal district. Our officials whine about this being an economically depressed area and then spend our tax money like they just won the lottery.

its legal or its not wrote on Aug 12, 2008 11:33 AM:

Fred,

If the laws allow it, it will/might happen. If the law disallows it, it will not happen. Have the developers sued in all/any of the numerous other places (most of which have deeper pockets than ours) that LNG was refused siting on? No.

Your "legal exposure" theory is unique, if not interesting, but is preposterous.


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