NorthernStar faults an Oregon Department of Energy study and adds that the state has inadequate knowledgeBackers of a proposal to build a terminal on the Columbia River to import liquefied natural gas went on the offensive Wednesday, asking federal energy regulators to reject Gov. Ted Kulongoski's call for a new environmental analysis of their project.
Executives of NorthernStar Natural Gas Inc. contend that the state lacks a basic understanding of both domestic and international markets for natural gas and that it is basing its request for a new environmental review on a faulty study put together by the Oregon Department of Energy.
NorthernStar's direct rebuttal of the state's conclusions mark a new dynamic in its bid to bring LNG to Oregon. To date, the company, aware that the state wields considerable power to block the bid, has tried to avoid a head-to-head public debate with state officials. The Federal Energy Regulatory Commission has overall licensing authority over LNG terminals.
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Two other companies have proposed building competing LNG terminals in Oregon, and another three companies are proposing massive new pipelines to pump more gas to Oregon from Wyoming.
Oregon's political leaders have asked FERC to demonstrate the region's need for additional gas supplies and analyze which of the proposals would best meet any need. FERC has so far refused, so the state Department of Energy produced its own analysis, which was forwarded to the federal agency in early May.
The state study indicated that although the state's demand for natural gas would increase, that need could be met more economically and with less pollution by shipping in gas from the Rockies.
The state has criticized the federal agency's preliminary environmental report on Bradwood Landing, issued last August, as a lightweight analysis that effectively rubber-stamps the project.
FERC is widely expected to refuse the governor's request to redo its report. Instead, it is expected to issue a final environmental impact statement in the next two weeks. That report is the precursor to its licensing decision, which commissioners would vote on 90 days later.
More:
http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/12120297186830.xml&coll=7----------------
Obama has repeatedly decried this situation in pubic speeches to Oregonians- and yet voted for Bush's insane energy bill that provided the authority to overrule state government siting concerns. Not sure what he would do to rectify the matter- or what sort of priority it would get should he win in November- but I expect this boondoggle with all its externalities, to go forward....