LNG: "The Guv" Slams F.E.R.C. Pipeline Review

Kulongoski slams feds' gas pipeline review

Governor has a 'growing concern' about regulators' handling of the controversial liquid natural gas project

BY JOHN SCHRAG

The Forest Grove News-Times, Feb 14, 2008

Gov. Ted Kulongoski told federal regulators on Wednesday to stop their review of three liquid natural gas facilities proposed in Oregon.
In a letter to Joseph Kelliher, chairman of the Federal Energy Regulatory Commission, the governor blasted the agency's handling of the project, and insisted that it review all alternatives to the controversial energy supply and work to restore the state's right to enforce its own environmental standards.
"I have a growing concern that the Federal Energy Regulatory Commission's approach to the licensing of plants and pipelines has created a crisis of confidence with Oregonians," the governor wrote. "It is essential that FERC conduct a process for a regional review of alternative means of meeting future demands for natural gas that is fair to the citizens of Oregon and our neighboring states."
Three companies are working with federal regulators to build liquid natural gas terminals near Astoria and Coos Bay. The proposals would send the pipelines from two of the projects through western Washington County and northern Yamhill County.
The terminals have drawn loud crowds at rallies and sparked citizen groups in Forest Grove, Yamhill, Astoria and, most recently, Salem. The groups have raised concerns about private property rights, safety and the effect on the environment.
Until Thursday, Kulongoski was viewed as a cautious supporter of the project, having said he thought that the liquid natural gas could serve as a "bridge" to renewable energy sources. His letter signaled a sharp shift.
In the letter, the governor outlined his "concerns about lack of information on the need for LNG in the Pacific Northwest, concerns about localized impact on air and water quality, and no analyzis of greenhouse gases that may be released by specific sites in Oregon."
In addition to calling on Kelliher to review alternatives to the LNG facilities, Kulongoski said he had directed Oregon's Department of Energy to conduct its own evaluation.
Further, Kulongoski said he has asked Oregon Attorney General Hardy Myers to see whether the state has the legal authority to stop progress on the federally regulated projects until FERC completes the requested review.
Finally, the governor said he was asking members of the Oregon Congressional delegation to seek a repeal of the laws that gave the FERC the authority to "preempt" Oregon's facility siting process.