Friday, April 29, 2011

Oregon LNG/Pipeline: Leucadia National Corporation's(OLNG's Money People) Annual Letter To Shareholders. This Is Their Statement On LNG

In January 2007, Leucadia acquired a leasehold interest and certain permits to construct and operate an onshore liquefied natural gas (“LNG”) receiving terminal.

The site is located on the Skipanon Peninsula at the mouth of the Columbia River, in Warrenton, Oregon.

Since that time,we have been working with the Federal Energy Regulatory Commission (“FERC”) to permit the site for an onshore LNG terminal. That process has been much slower, challenging and frustrating than we anticipated.

If we had known what we were getting into, we would not have done it! However, we are making progress.

In 2010, the Biological Assessment was issued by FERC,which indicated that the project does not have any significant impact on endangered species.

In 2011, we anticipate FERC will issue an Environmental Impact Statement, the last hurdle to clear before receiving final FERC approval. We are not naive – and now even less so – to the nature of development projects, and anticipate an ongoing stream of opposition and challenges in the future.

We are keenly interested in the global energy market. Like it or not, the world’s appetite for power and light shows no sign of slowing and no one is moving back to oxen or whale oil lanterns. It appears to us that the environmental and economic benefits of natural gas will make it a preferred worldwide energy source in the foreseeable future.

The import and export of LNG has a role to play within that market. With this theme in mind, we’ve opened our wallet to fund this venture for another year, within which time frame we hope to cross the finish line. Tune in next year.

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