NorthernStar drops LNG plan

NorthernStar Natural Gas, LLC, announced Tuesday afternoon it is suspending its attempt to site a liquefied natural gas (LNG) terminal at Bradwood, Ore.

“The extended delays in the processing of state and federal permits for Bradwood Landing and the difficult investment environment have forced us to suspend development,” NorthernStar President Paul Soanes said in a press release.

“In particular, the challenging regulatory environment gives investors pause, especially considering that Bradwood Landing would have such a positive impact on the Northwest’s economy and environment while supporting the region’s transition to renewable energy by providing a new source of reliable and affordable natural gas.”

The proposal called for dredging for a berthing area for LNG tankers, construction of a dock, two and eventually three large holding tanks, a re-gassification plant and a 36-mile pipeline to connect with existing natural gas pipelines.

The Bradwood site had once had a sawmill and dock for shipping lumber, but the unused mill burned down in the 1980's, and the site has been idle since then.

Proponents said the facility would have provided a new source of natural gas for the Oregon and Washington natural gas market. It would have created more than 450 jobs over three years of construction and 65 permanent jobs and contributed as much as $7.8 million in taxes annually to Clatsop County.

Opponents argued that the shipping and operation of the plant posed serious fire hazards to adjacent lands and that the construction and location would adversely impact shipping and other navigation and use of the river; that it would have adverse impacts on endangered salmon species, and that the remote location was a poor location for a major industrial plant.

The Federal Energy Regulatory Commission (FERC) gave initial approval to the plant in 2008, but the State of Oregon and federal agencies demanded the project earn state and federal permit approval.

In 2009, the National Marine Fisheries Service joined the states of Oregon and Washington, the citizen group Columbia Riverkeeper, the Nez Percé Tribe, and various environmental groups in appealing the FERC approval to the 9th Circuit Court of Appeals.

In 2010, the Oregon Land Use Board of Appeals remanded Clatsop County's development permit back to the county.

The announcement apparently caught opponents by surprise, but they were no less happy.

"It's time to celebrate," said George Exum, president of Wahkiakum Friends of the River, a group which opposed the proposal from the start.

"LNG has no place in the Northwest," the Puget Island resident said. "Families on both sides of the river have worked for over five years to show the unsound financial aspects and the incredible environmental consequences of the Bradwood project. Finally, Matlin Patterson, the New York financial backers of NorthernStar, have seen the light and pulled the plug."

Cathlamet Mayor George Wehrfritz, whose election campaign last fall featured a plank of opposition to the proposed plant, said the project's demise leaves an open door for Wahkiakum County residents.

"The concerted effort by Friends of the River and other groups extended and stretched out the permitting process long enough that global economic trends turned against NorthernStar," he said.

"Imagine if that permit had been approved two years ago and the plant had been built," he said. "It would be an unused, unnecessary facility. We're very fortunate it isn't built.

"This is a good opportunity for us to take a good look at what we want to do to spur growth in our county."