LNG security pact up in the air

Negotiations between Wahkiakum County and NorthernStar Natural Gas over a contract to provide security for shipments of liquefied natural gas (LNG) are at a crucial point, officials said this week.

NorthernStar has proposed to build an LNG receiving terminal at Bradwood, and as a condition of operation, the operator must provide security, including armed marine escort, for tankers bringing LNG to the terminal. The company and county officials have been negotiating a pact for close to two years.

County officials have said their goal in negotiations is to make sure there is no cost to the county to provide the service, and they have been pressing NorthernStar negotiators to make sure all costs will be covered.

However, at a closed negotiating session last Thursday, NorthernStar came close to making its final offer, commission Chair Blair Brady reported Tuesday. The security measures are classified as a matter of national security, so negotiations are closed to the public. Present were three NorthernStar personnel, Commissioners Brady, Dan Cothren and Lisa Marsyla, Sheriff Dan Bardsley, Undersheriff Jon Dearmore, and Prosecuting Attorney Dan Bigelow.

Officials have revealed that the sheriff's office would hire 5-7 extra deputies for the security patrols. NorthernStar would pay into an escrow account, and the county would bill the account for all time and expenses incurred in providing security patrols.

The county would be responsible for paying the officers during times they're not on LNG security patrol.

After the 2.5 hour meeting, commissioners met in another executive session to discuss the matter among themselves, and they prepared a letter to send to NorthernStar with their latest position.

"The negotiations are at a crucial point," Sheriff Bardsley said Tuesday. "It could go either way.

"We want to be able to provide the service; however, if we sign the agreement, we must receive a benefit from the personnel."

The major point of contention, Bardsley said, is who will cover a small portion of expected expenses, $70,000 to $80,000, estimated for overtime and other employee overhead costs that will be incurred when the deputies aren't on marine security patrol.

"It would cost us to use these officers," Bardsley said. "Where is the benefit to the county?"

Commissioner Cothren echoed that question and concern.

"There has to be a benefit for the county," he said. "We're doing it as a service to them. There shouldn't be a cost to the taxpayers."

"My thinking is that we need to decide if the potential cost is something we want to do," Brady said.

Members of the public, with one exception, urged county officials to protect local interests.

Kristen Lee, who has residences in Portland and Puget Island, said she and other members of Wahkiakum Friends of the River, who opposed the proposed plant, want the commissioners to be sure to evaluate all aspects of the potential agreement and carefully consider what constitutes "a benefit."

"Why would our county give away our prime asset, our waterfront, to turn it into a military area?" she asked.

Former Island resident Dan Keilwitz criticized the proposed plant. "I don't see what we're getting out of it," he said. "I know what industrial development does to the river," he added. "Let's leave the river as it is."

Mike Dooley, also of Portland and Puget Island, commented that promises and contracts are like confetti in the business world; if the plant is sold or goes through a bankruptcy, there's no agreement the county would received the promised compensation, he said.

Cathlamet Mayor George Wehrfritz urged care in considering expenses and the wide impact LNG shipping and processing could have on the Cathlamet area. All aspects of emergency services would need additional funding, he said.

No one should assume that the people of Cathlamet support the plant and would allow changes to zoning laws and development standards to accommodate LNG support facilities, he said.

"My sense is that Wahkiakum County has tremendous power," he said. "Make your decision from the position of power and remember the people of the county."

Richard Erickson, Cathlamet, and former executive director of the Lower Columbia Economic Development Council, made the only comments in support of the proposed plant.

"Jobs are important," he said. "Look at Main Street. Jobs are what keep a community alive.

"I ask you: Please understand that if we lose the security agreement and the plant does come in, what did you do to make sure this county got something?

Commissioners said that if they reach an agreement with NorthernStar, they'll have an attorney specializing in maritime law review the contract. Before final approval, they'll provide redacted copies to the public and hold a public forum to discuss it.