Issues continue to arise for proposed LNG plant

NorthenStar Natural Gas executives are dealing with a variety of challenging issues arising over the past month in response to their proposal to build a liquefied natural gas (LNG) receiving terminal and gasification plant at Bradwood, Ore., across the Columbia from Puget Island.

Last week, the National Oceanic and Atmospheric Administration National Marine Fisheries Service (NMFS), which handles environmental permitting relating to salmonid habitat, urged the US Army Corps of Engineers to deny a key permit for the proposed plant.

In a December17 letter to the Corps, Michael P. Tehan, director of the Oregon State Habitat Office of NMFS, said the proposal wasn't clear enough in how the sponsors will address a variety of environmental issues and identified the areas that needed clarification before NMFS would approve any permitting.

NMFS regards the estuary as a "unique and dynamic system that provides important ecological value to numerous marine, estuarine, and freshwater species," the letter also said, and further, the Lower Columbia Fish Recovery Board recovery plan indicates that one of the elements likely to yield the greatest benefit is to protect and enhance the existing juvenile rearing habitat in the lower Columbia River estuary.

NMFS commented that project construction and operation would likely result in numerous impacts to habitat quality of the estuary. Without a clear project description, the letter says, it is difficult to understand the impacts and also the impacts of proposed mitigation efforts.

"Billions of dollars have been spent on salmon and steelhead recovery in the Columbia River basin," the letter states."The continued improvement in the quality of the Columbia River estuary has been linked to the survival and recovery of 13 (endangered) species. Recovery plans . . . and recent consultations have been founded on improvement of estuary habitat and stated that remaining salmonid habitat should be protected and enhance . . .

"NMFS recommends the applicant be required to hold a bond to ensure habitat impacts are fully restored or mitigated in the event of bankruptcy or abandonment."

The National Grange, the oldest general farm and rural public interest organization in the country, has followed up on a stand taken earlier in 2007 by the Washington State Grange and formally voiced opposition to the Bradwood Landing proposal.

The National Grange sent a letter December 19 to the Federal Energy Regulatory Commission (FERC) urging the agency to develop and strengthen regulations regarding the siting of LNG terminals and to consider the overall economic impact on any region being considered before any LNG site is approved.

In its letter, the National Grange said the primary concern "with the Bradwood Landing option is the danger associated with the movement of large LNG vessels through the bar at the mouth of the Columbia River and the narrow channels upstream to the site. The potential hazards and disruption caused by this traffic to other shipping on the river are great, particularly the movement of agricultural commodities from existing facilities further upstream. Additionally, the proposed terminal and pipeline threatens public safety and security in the Lower Columbia River area for local citizens. Finally the proposed terminal creates a threat to the critical salmon habitat in the Columbia River Estuary."

The federal Government Accountability Office (GAO), at the request of three congressmen, recently issued a report saying the US Coast Guard is stretched too thin in some cases "to meet its own self-imposed security standards such as escorting ships carrying liquefied natural gas."

The U.S. Coast Guard lacks the resources to adequately protect tankers carrying liquefied petroleum or crude oil from a possible terrorist attack, GAO auditors said.

Coast Guard officials have acknowledged in their own report on the Bradwood Landing proposal that safely bringing LNG to the Oregon Coast or up the Columbia River would require more resources than are now available in the area. Coast Guard officials have said that the resource gap needs to be corrected before Bradwood Landing could go into operation.

Tankers carring LNG to Bradwood Landing would require a 500-yard moving security zone around LNG-carrying tankers escorted by armed Coast Guard boats. The facilities and tankers would also require additional inspections.

A report by the GAO in March concluded that further research is needed to understand the consequences of an LNG fire arising from a terrorist attack or handling or equipment malfunction. The report did conclude that fierce heat from the intense fire, not explosions, would be the biggest threat to the public.

Fire from a tanker carrying LNG could be so hot that it would burn people one mile away, according to government studies and expert comments.

Representatives of fire departments and law enforcement agencies on both sides of the Columbia are continuing to negotiate with NorthernStar over their own resource gap for dealing with emergencies at Bradwood Landing.

The agencies have said they lack the man power and equipment to respond to LNG fires resulting from Bradwood Landing operations.

If FERC approves the Bradwood project, NorthernStar would have until the start of construction to reach agreements with local agencies on how to cover the additional public safety costs.

Wahkiakum County Sheriff Dan Bardsley has been one of the local and state leaders and company representatives who have been negotiating details of what resources would be needed to handle LNG-related incidents and who is going to pay for them.

Because the topic is classified as "a matter of national security," the meetings have been held behind closed doors.