JULY 2008: AROUND THE STATE
Feds release LNG impact report
ASTORIA In a move
that exemplifies the growing rift both within and without
Oregon state government over liquefied natural gas terminals,
the Federal Energy Regulatory Commission in June gave an
environmental endorsement to a proposed project on the Columbia
River. Days later, Oregon utility regulators said that
importing LNG would be good for the region, despite an earlier
DEQ report that came to the opposite conclusion.
Project backer Houston-based NorthernStar Natural Gas applauded
the thumbs up as confirmation of what it calls a “salmon
friendly” terminal. Gov. Ted Kulongoski, however, slammed
FERC, saying in a statement that the agency was
“irresponsibly considering this project only from the
supply-side of the marketplace.”
The proposed $700 million terminal, which would sit 20 miles
upriver from Astoria, would rewarm supercooled natural gas
brought in by ship and then transport the gas via pipeline to
markets in Oregon and California.
NorthernStar has spent the past five years developing a
biological assessment and mitigation plan, which includes $56
million worth of salmon habitat restoration.
FERC’s analysis is not final approval for the project but
it is an important procedural step, and it’s highly
likely that environmental groups will challenge it. Or the
challenge could come from the state, should it find problems
after reviewing FERC’s findings.
NorthernStar also finds itself being attacked by citizen groups
that are concerned about the environmental and land-use impact
of the terminal and pipeline, and by Oregon’s Department
of Energy, which says the state can better address its energy
needs by importing gas from others states.
Spokesman Charles Deister says NorthernStar has tried to
address every issue in its own studies. “All I can do is
point to our extensively detailed record,” he
says.
ABRAHAM HYATT
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