LNG Arrangement With Port Of Astoria Under Criminal Investigation

As reported by: Peter Huhtala - Columbia River Business Alliance
August 19, 2009

Port Agrees To Short-Term Lease Extension

A criminal investigation is underway that is related to the November 2004 Port of Astoria lease for LNG development on the Skipanon Peninsula. Clatsop County District Attorney Josh Marquis told port commissioners and the public that the investigation was referred to the state by his office in 2006. The Oregon Department of Justice, through the office of the Attorney General, is leading the investigation.

Mr. Marquis speculated that an outcome might emerge within one month. The determination could result in criminal charges, in which case the evidentiary basis of the indictment would not be publically available. Documentation could be disclosed if a determination is made that there was no wrongdoing, there was wrongdoing but not sufficient for prosecution, or that the statute of limitations has run out on the offense.

The port commission met to discuss signing a 30-year extension of their Skipanon Peninsula lease with the Department of State Lands (DSL), the underlying basis of their sub-lease to Oregon LNG. Commissioners Floyd Holcomb and Bill Hunsinger sharply criticized the unfavorable terms of the leases, and the vast majority of public testimony suggested non-renewal of the lease. The 2004 arrangement was for a five-year lease with two 30-year extensions.

After an executive session with three attorneys present, the Commission unanimously accepted a DSL offer to extend the Port’s renewal date by two years. This effectively changes the lease terms to 7-28-30.

The commissioners explained their vote as allowing time for the state investigation to play out, and other questions regarding ownership of the property to move toward resolution.

Oregon LNG had asked the court for injunctive relief to force renewal of the lease. A court date had been set for August 31. There was no indication if the case will now be dropped.