Coos Bay port extends LNG contract

By Alexander Rich, Staff Writer
Friday, July 17, 2009 | 7 comment(s)

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COOS BAY — The liquefied natural gas terminal developer wants more time before finalizing its deal to buy 150 acres on Coos Bay’s North Spit and port officials are willing to go along.

The Oregon International Port of Coos Bay commission authorized staff Thursday to give Jordan Cove Energy Project another year on its option agreement. The contract is set to expire in December.

It is one of several agreements between the port, Jordan Cove, Weyerhaeuser Co., the state of Oregon and Umpqua Bank that were put together in 2006.

The state and Umpqua Bank provided the port $25 million to pre-purchase Weyerhaeuser’s property on the North Spit. If the option is exercised, the port would then sell about 160 acres of the land to the LNG developer to build its import terminal and get the $25 million back.

The request to extend the contract came from Jordan Cove, said Executive Director Jeff Bishop, though he didn’t know why the developer wanted more time.

The commission authorized staff to extend the contract without changing any particulars of the agreement by a 3-0 vote. Commissioners Jerry Hampel and Brady Scott were absent.

President David Kronsteiner said it’s in the port’s best interest to keep the contract alive.

“Without extending the contract, we wouldn’t be able to keep our contract with Weyerhaeuser alive and we’d have to give all that property back,” he said.

Jordan Cove still is waiting for federal siting approval and has a number of state permits yet to complete.

Jordan Cove is paying the port $160,000 a month as part of the deal. Those funds cover the port’s indebtedness on the land purchase with some excess that covers adminsitrative costs, said Martin Callery, director of communications and freight mobility.



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pril wrote on Jul 22, 2009 8:39 AM:

Enforcer, there have been "incidents" with LNG. Skikda in Algeria, 2004. Trinidad, 2004. Staten Island in the late 90s.

I'm not one of the antiLNG folks at all, but I don't think pretending there's nothing dangerous about an LNG offloading facility is all that great of an idea. The stuff blows up. There is no such thing as 100% safe. LPG is less volatile but we still felt it 15 miles away when the Sensenena exploded at Port of LA in 1976.

Common Sense wrote on Jul 20, 2009 10:03 AM:

Poor con man Bob Braddock, more delays, more lost $$$, more chance your California LNG SCAM won't happen...what a shame....

enforce wrote on Jul 17, 2009 1:57 PM:

I have got to agree all the good old boys will be screaming.Anything thats good for the area is rejected in the name of we want to be a resort area thats never going to happen.So let try doing something for the economy or is that to much to ask.L.N.G. would be a great asset to the bay area.Might even put some people to work unless they say it's Tribal land enough of the B.S. lets bring the area into the century 2000.Show where there has ever been a incident with L.N.G. there is a higher risk of and Meth explosion.

amadeus wrote on Jul 17, 2009 12:15 PM:

with that said, at least Stufflebean and the logging protesters will be left in the cyber dust....and we get to see inside the brains of the opinionated usual suspects on a different subject...
FYI, I am pretty neutral on the LNG subject, so long as $$$ go into the local community to benefit ALL of us, especially those in real need during this economic dust bowl.

amadeus wrote on Jul 17, 2009 12:10 PM:

BRAINS......BRAINS......BRAINS........

Just Me wrote on Jul 17, 2009 12:06 PM:

To Everyman: AND YOU ARE RIGHT IN THE MIDDLE OF IT, ENJOYING IT ALL! LOL!!

JUST ME OUT! ;)

everyman wrote on Jul 17, 2009 11:27 AM:

...and here come the screamers.

...with their bullet points and ALL CAPS SCREAMING, so get ready, reader.

Remember those old zombie movies?

Every time there is an article about the proposed LNG terminal, it's like they wake up, do the zombie-walk to thier computers, and begin typing...."Must stop LNG...must stop LNG...MUST STOP LNG!!!"

Just be ready...here they come.

Everyman out.


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