Wu seeks energy study to assess the need for LNG

By Tony Lystra

The Daily News

Oct 10, 2007

A Houston company's proposal to build a liquefied natural gas terminal on the Columbia River has prompted Oregon Congressman David Wu to ask the Oregon Department of Energy to study Oregon's need for natural gas.

In a letter to the agency late last month, Wu said such a study is necessary to understand the proposed terminal's impact "on Oregon's energy landscape."

"This is an important question, and one that could help further shape the discussion about this specific project and Oregon's future energy priorities and needs as a whole," Wu wrote in a late September letter.

It's one of the most substantive statements the congressman, whose district includes Clatsop and Columbia counties, has made about NorthernStar Natural Gas' plan to build its LNG import terminal at Bradwood, Ore., just across the Columbia River from Puget Island. The company also proposes burying a new pipeline crossing Clatsop, Columbia and Cowlitz counties, which would connect with the Williams line just north of Kelso.

Jillian Schoene, a spokeswoman for Wu's office, said the congressman hopes a study could examine Oregon's entire energy sources.

"It's definitely an important piece of information to have as the discussion goes forward on all of the energy projects in our corner of Oregon," she said. "The common thread with every phone call that comes into this office is: 'More information, more information, more information.' We want an open process."

Some information is available about the state's natural gas supplies, ODE spokeswoman Kathy Shinn said. But, she said, a detailed analysis of Oregon's future demands would be difficult to produce, partly because much of the information is controlled by private companies.

Oregon's gas supplies come from British Columbia, Alberta, Wyoming, Colorado and New Mexico via two pipelines, she said. Power plants draw gas "right off the pipe," Shinn said, as do some universities and large mills. She said the state can measure how much gas utility customers are using, but gauging industrial use is "not an easy thing."

"It's hard to determine how much supply is coming in," she said.

Shinn said her agency would continue discussing the issue with Wu's office. But she said it "would be difficult" to produce an Oregon-specific study.

On Tuesday, the NorthernStar said the "long-term demand" for gas has already been documented by various studies.

"The Pacific Northwest needs a new stable supply of natural gas to ensure reliable service at reasonable prices in the future," Joe Desmond, the company's senior vice president for external affairs said in an e-mail.

In previous decades, Desmond said, Canadian natural gas supplies could only reach western markets. But, he said, "that vast supply basin is now connected to the Midwestern United States by new pipelines." Desmond said he expects demand from the Midwest to drive Canadian natural gas prices higher.

"At the same time," he said, "more domestic U.S. gas wells are being drilled each year, but the yields are declining."

The ODE's Energy Plan for 2005 through 2007 said that Oregon imports 100 percent of its natural gas via the Williams Company pipeline, which runs through Cowlitz County along Interstate 5 and the Gas Transmission Northwest pipeline, which crosses southeastern Washington and eastern and central Oregon.

That report noted several other West Coast pipeline projects are under way. But it said, "Although pipeline additions will likely keep pace with growing demand, U.S. domestic production may not. A drilling boom in 2001 did little to increase U.S. production. By early 2002, domestic production had returned to 2000 levels despite current high wholesale prices."

The report also said that U.S. gas production declined by nearly 3 percent between 2001 and 2003 and that Canadian imports declined by 8 percent.

"In order to make up for declining domestic production, the U.S. would have to import natural gas from abroad," the ODE report said.

Gayle Kiser, a spokeswoman for Landowners and Citizens for a Safe Community, a Cowlitz County group opposing the terminal, said the ODE should conduct the study, as should Washington state.

"I welcome this," she said. "They're saying this plant is to service the whole Northwest. I think we need to look into the facts and see if it is needed."

Greg Nothstein, an energy policy specialist for the Washington state Energy Policy Office, said he was not aware of any additional gas studies proposed for Washington as a result of NorthernStar's proposed terminal.

Still, he said, existing studies point to increasing northwest demand for natural gas.

"Everybody's forecast is just that --- it's a forecast, and it's quite prone to being wrong," Nothstein said. "The federal government's (reports) are wrong and sometimes they're right. You work off the best available information you have."

Clatsop County Planning Commission Recommends Approval of Bradwood Landing LNG Terminal Project

The Clatskanie Chief

September 6, 2007-09-05

The Clatsop County Planning Commission voted b a 4-3 margin last week to recommend that the board of commissioners issue land use approvals authorizing Bradwood Landing's construction of a liquefied natural gas (LNG) terminal at the former Bradwood mill site on the Columbia River, about midway between Clatskanie and Astoria.

The split vote, in a seven-hour meeting attended by about 60 people, reversed the planning commission staff recommendations against the project based primarily on the proposed dredging of 58 acres of the Clifton Channel and the rezoning of five acres of wetlands for industrial development.

Commissioners Mike Autio, Cary Johnson, Brian Pogue and Christine Bridgens voted in favor of the two most controversial of about 30 land-use requests made by NorthernStar Natural Gas, the parent company of Bradwood Landing LNG. Clatsop Planning Commission Chair Bruce Francis and commissioners Bill Harris and Dirk Rohne concurred with the staff recommendations to deny the land-use application.

The staff concluded the proposed dredging to create a turning basin for LNG tankers should not be authorized in an "Aquatic Conservation" zone, and that the county should not rezone wetlands at the Bradwood site to make room for the LNG terminal and related facilities.

The planning commission recommendation to approve Bradwood Landing's land-use application will now go before the Clatsop County board of commissioners for a final decision.

"This is another step forward in the local permitting process," said NorthernStar Natural Gas CEO William "Si" Garrett. "We look forward to presenting our case before the county commissioners and demonstrating how our project will boost the local and regional economy, enhance the environmental health of the lower Columbia River, and provide a stable supply of natural gas to the Pacific Northwest."

The Federal Energy Regulatory Commission (FERC) issued its draft environmental impact statement for Bradwood Landing Aug. 17 with a recommendation for approval with appropriate mitigation.

The Clatsop County Planning Commission is expected to draft its formal recommendation to the Clatsop County commissioners at a meeting set to begin at 10 a.m. on Friday, Sept. 21, in the Guy Boyington building in Astoria. This is a public meeting but without testimony or comment.

Clatsop County Board of Commissioners will meet on Thursday, Oct. 4, from 9 a.m. to 10 p.m. to discuss Bradwood Landing's land use application. That meeting is tentatively scheduled at the Liberty Theatre, 1203 Commercial St, Astoria. There will be public testimony all day and evening.

Interested persons may submit comments in writing to: Clatsop County Board of Commissioners, 800 Exchange Street, Suite 310, Astoria, OR 97103.

FERC hearings on the LNG project are set for Tuesday, Oct. 16, at Knappa High School; Wednesday, Oct. 17, in Longview, and Thursday, Oct. 18, in Cathlamet.

Precise locations and times are to be announced. There will be public testimony at these public hearings.

According to a press release from NorthernStar, a U.S.-owned and operated company, "Bradwood Landing believes that natural gas continues to be the best energy source for the Pacific Northwest.

"The company will deliver new sources of natural gas to this region creating new jobs and millions of dollars in local investment in surrounding communities. When completed, Bradwood Landing will provide an estimated 65 jobs averaging $60,000 a year and spend more than $30 million annually throughout the region to operate and maintain the facility.

"The facility will also increase Clatsop County's property tax base by more than $7 million annually, creating a valuable source of income for improvements in essential services and education throughout the region. The company's financial commitment includes unprecedented levels of investment in the local environment.

"Beyond our deep financial commitments, Bradwood Landing is driven by our promise to make life better wherever we live and work. We want more than a presence our communities; we want to create a positive and lasting legacy that generates community pride. For more information about Bradwood Landing LLC, please visit: www.bradwoodlanding.com."

Northern Star Files Intent for LNG Terminal at Bradwood with State EFSC

Northern Star Natural Gas LLC formally submitted a notice of intent Friday with the Oregon Energy Facility Siting Council (EFSC) to begin the state level siting process for a liquid natural gas (LNG) receiving, storage and send-out facility on a 420 acre site on the Columbia River at Bradwood, about midway between Clatskanie and Astoria.

The notice of intent to EFSC signals the company's intent to file an application to build an energy facility in the near future, and contains preliminary information about the facility, its location, its conceptual design and its potential impact.

As reported previously in the Chief, Northern Star Natural Gas filed preliminary paperwork with the Federal Energy Regulatory Commission (FERC) in early March.

"We look forward to working with local, state and federal authorities and members of the local community to develop a project that will meet the highest standards of safety and reliability, that will create jobs for Oregonians while contributing to the tax base of Clatsop County and providing low-cost clean energy for the entire Northwest," said Northern Star Natural Gas Chief Executive Officer Si Garrett.

If approved, the facility would occupy 55 acres of marine industrial zoned land, currently owned by Ken Leahy Construction Co. at Bradwood, an old lumber mill site along the Columbia opposite the western tip of Puget Island.

A copy of the notice of intent which provides information about the proposed facility, the site and the potential impacts of the development will be available on the EFSC website, http://egov.oregon.gov/ENERGY.

Copies are also available at the Clatskanie Library, 11 Lillich Street; the Astoria Public Library, 450 10th Street, and the Department of Energy office at 625 Marion St. NE in Salem.

The Oregon Department of Energy has scheduled a public information meeting on Northern Star's Bradwood proposal on Thursday, May 19, at 7 p.m. in the Knappa High School gym, 41535 Old Highway 30. Northern Star will host an open house at the same location from 5:30 p.m. to 7 p.m. on the same evening.

A public tour of the Bradwood site, hosted by Northern Star Natural Gas officials, is set for Saturday, May 14, from 10 a.m. to 3 p.m. Directions and details about the tour will be available on the company website at www.northernstar-ng.com. All interested parties are welcome and encouraged to attend.

The proposed facility would include:

►Marine terminal to consist of a single berth to receive LNG carriers ranging from 100,000 cubic meters to 250,000 cubic meters in capacity. The pier would be equipped with three 16-inch diameter unloading arms. The LNG would be transferred to storage tanks onshore by dual 30-inch diameter liquid (cryogenic) transfer lines. The associated dock would be about 1,200 feet long and located about 300 feet from the shoreline. The water depth at the berth and turning basin would be dredged to develop adequate draft for LNG carriers.

►Up to three full-containment insulated LNG storage tanks, each having a usable capacity of 160,000 cubic meters.

►Vapor management system consisting of two 50 percent capacity cryogenic blowers and two 50 percent capacity oil-free reciprocating compressors to discharge the balance of the vapors generated in the tank.

►Three submerged discharge pumps for each LNG storage tank to deliver the LNG to the high pressure send-out pumps.

►Either a new transmission line less than five miles long or an on-site generating facility of no more than 20 megawatts.

►Modification of a railroad right-of-way.

►Transferred and/or new water rights.

►Access roads, fences, buildings, pipe racks, electrical substation and fire protection system.

►36-inch diameter natural gas pipeline regulated under the FERC process that will run approximately 35 miles to the northwest to tie into the Williams Northwest pipeline system.

Capability of receiving about 125 tanker calls per year, depending upon ship size and market demand. Each tanker will have an approximate unloading time of 18 hours at the terminal, and full turnaround time of 26 hours (from open sea to open sea).

To receiving a site certificate from EFSC, the project must meet the "Need for Facility" standard which requires an economic analysis.

If the project moves beyond the notice of intent phase to file an application for a site certificate, the Department of Energy will notify adjacent property owners and any other members of the public who ask to be on the mailing list. The notification will invite public comments on the application and will say where members of the public can review a copy of the application.

Written comments are being accepted on the notice of intent between now and June 19, 2005 and may be sent to: Cathy Van Horn, Oregon Department of Energy, 625 Marion St. NE, Salem, OR 97301, Phone: 503 378-4034, Fax: 503 373-7806, e-mail: catherine.van horn@state.or.us

There will be a second opportunity for public comments after an application for site certificate is received, and another public hearing process following the issuance of a draft proposed order recommending either for or against the construction of the facility.

Finally, for the state level siting certificate, there is an opportunity for a "contested case" - a formal, legal hearing.

The federal FERC is also soliciting comments on the Northern Star LNG proposal at Bradwood. They may be submitted by mail and should include an original and two copies of a letter to: Magalie R. Salas, Secretary, Federal Energy Regulatory Commission, 888 First St., N.E., Room 1A, Washington, DC 20426.

U.S. Agency says LNG terminal would have minimal environmental impact

The Daily News

by Andre Stepankowsky

Aug 17, 2007

A key federal agency has concluded the liquified natural gas plant proposed for the Lower Columbia River would have limited adverse impact on the environment.

Construction of the LNG terminal at Bradwood Landing "would be an environmentally acceptable action," according to Federal Energy Regulatory Commission statement issued Friday morning.

FERC's staff released a draft environmental impact statement on the project, proposed for the Bradwood Landing area in Clatsop County just downstream from Puget Island.

Among other findings, the document concludes "the security provisions and operational controls that would be imposed (on LNG terminal and LNG tankers) would make the likelihood of an LNG spill, and the potential for an associated pool fire, remote."

The draft environmental study now becomes subject to a 120-day public comment period. Then a final report will be prepared and sent to FERC commissioners, who will decide whether to issue a permit for the project.

While not a decision whether to permit the project, the study is the first indicator of where FERC is leaning on NorthernStar Natural's proposal to build the $600 million terminal.

If built, the terminal would offload superchilled LNG from specially built tankers, heat the gas back into vapor, and then send it off to market through a 36-mile pipeline the company wants to build under the Columbia River and through Cowlitz County. The terminal, according to FERC, would handle an estimated 125 tankers a year, resulting in a 7 percent increase in river traffic in the lower Columbia.

The U.S. Army Corps of Engineers and the Coast Guard joined FERC in preparing the environmental study, which found the project is environmentally acceptable for a host of reasons. Among them:

• The LNG terminal would be designed to mitigate the effects of earthquakes, and measures would be taken to protect the proposed pipeline from landslide hazards.

• Dredging to create a terminal both would not change the nature of currents in the Columbia River or Clifton Channel, and the sediments to be dredged are not contaminated. The terminal site would be raised out of the flood plain with the dredge spoils.

• Northern Star would take steps to control erosion and stormwater pollution and protect wetlands and soils along the pipeline route in Washington.

• Using a horizontal directional drilling to thrust the pipe through the ground -- rather than digging a trench and lowering the pipeline into it -- would avoid damage to streams, rivers and sensitive waterbodies.

• Water intakes by LNG ships would be screened to prevent them from sucking in threatened or endangered salmon.

The public has until Monday, Dec. 24, to comment on the report, which is available online at www.ferc.gov under "What's new."

Look to Saturday's Daily News for more details.

Coast Guard issues study on LNG

The Daily News

By Tony Lystra

Mar 02, 2007

The U.S. Coast Guard said this week that liquid natural gas ships bound for a proposed Columbia River import terminal would be protected by a 500-yard buffer zone.

In a report issued Wednesday, the agency said the tankers would be accompanied by escorts and that recreational and other vessels would be allowed through the so-called "safety/security zone" on a "case-by-case" basis.

The Coast Guard's report comes as NorthernStar Natural Gas awaits federal approval to build a $600 million LNG terminal in Bradwood, Ore., just across the river from Puget Island. The facility would be accompanied by a new pipeline that would cross Cowlitz County.

The report shed some light on key questions overshadowing the Houston company's plans, including how river traffic would be affected by approaching carriers; what federal officials will do to protect the ships and terminal from terrorists; and what would be required in case of a spill or explosion.

If the Coast Guard's security and traffic measures are not met or if regulations do not change, the report said, "the Columbia River would be considered unsuitable for the LNG marine traffic associated with the Bradwood LNG terminal."

NorthernStar officials welcomed the report Thursday, saying the safety measures would improve the channel for shipping and recreation interests.

Joe Desmond, the company's senior vice president of external affairs, said NorthernStar will pay for "much of" the myriad security and safety measures prescribed by the Coast Guard report. Desmond said he still expects the Federal Energy Regulatory Commission will approve the proposed facility before year's end.

Lt. Shadrack Scheirman, of Coast Guard Sector Portland, said Thursday that the river is only 600 feet wide at its narrowest, far narrower than the 500-yard buffer. The report said the security zone surrounding LNG carriers would end at the shoreline.

The Coast Guard also said that officials will "routinely" let ships and other vessels through the security zone after they are approached by escorts.

Scheirman declined to say which agency would escort the ships, and he would not say whether those escorts would be armed.

Representatives from the Coast Guard and Federal Bureau of Investigation as well as ship pilots and escort crews would meet 24 hours before an LNG vessel enters the river to coordinate its journey, the report said.

Once docked at the terminal, the LNG carriers, each between 919 and 976 feet long, would be protected by a 200-yard security area. A 50-yard security zone would be enforced at the terminal when no vessels are docked.

Navigating the narrow channel poses a host of challenges for LNG carriers, the Coast Guard said, including wind and the riverbed's changing topography.

Carriers would only be allowed to travel the river during daylight for the first six months of the terminal's operation, unless the Coast Guard gives permission.

The agency also said that LNG tankers and other deep-draft vessels would be allowed to pass each other only on certain parts of the river.

In addition, the Coast Guard called for cameras and other equipment to monitor river traffic and to ensure the ships don't run aground.

The three tug boats required for the vessel navigate must be equipped with firefighting equipment.

"Firefighting capability is extremely limited along the entire transit route," the report said.

Officials also would need to develop plans for fighting fires at the terminal or along the shoreline, the Coast Guard said, and local police and fire agencies would have to be provided with equipment for detecting natural gas in the air.

The report also recommended that officials strengthen plans for communicating with the public and coordinating with multiple cities and agencies in case of an emergency.

The Clatskanie Chief

LNG Opponents Make Claims; Company Head Gives Replies

Clatskanie Chief

April 28, 2005

A group of about 70, mostly LNG (liquid natural gas) opponents, including delegations from Puget Island, Astoria and other northwest communities, met Thursday, April 21, in Clatskanie to view a video and listen to a talk by Tamara Maygra of Deer Island.

Karin Temple of Astoria told about Columbia River Vision, an opposition group formed after two LNG terminals were proposed near Warrenton. The group opposes those two as well as those terminals and regasification plants planned at Bradwood and on private land just west of the Port Westward industrial park boundary near Clatskanie.

Among charges made by Maygra was that because incoming LNG ships would be escorted by U.S. Coast Guard vessels, the Columbia River would be closed down perhaps 125 days a year.

"Absolutely not," Bob Ramage, president of Port Westward LNG, told the Chief on Tuesday. "We have had discussions with the Columbia River Pilots and PB Marine consulting firm."

The pilots will use a system already in operation under which a pilot on each large ship in the Columbia has a computer telling the current location of every other ship, Ramage explained. If the computers on two ships calculate that they might pass at a narrow location in the river, they adjust their respective speeds so that the passing is done at a wider spot.

Recreational boats are not supposed to go close to commercial vessels at any time, but under ordinary circumstances some disobey. The presence of the Coast Guard vessels will insure compliance with the law, Ramage said.

Security Discussed

Maygra read an extensive description of security personnel required in Boston Harbor, including county, city, and environmental police officers, and she said the cost of this security would be paid for by local taxpayers.

Ramage said the Coast Guard is paid by the federal government, and a rural area would not require as much policing as urban Boston. But if some officers were requested from the state police or the county, "we would expect to reimburse the agencies on an hourly basis."

Maygra said that the Port Westward property was in an enterprise zone and an LNG terminal there would not pay property taxes for seven years.

Janet Wright of the Columbia County Economic Development office said that the private property on which Port Westward LNG plans to build is not currently in an enterprise zone, and Sarah Tyson of the Columbia County counsel's office said that exemption from property taxes in an enterprise zone was limited to five years.

Ramage said he had been told by Tom Fuller, a consultant for Columbia County, that it is relatively easy to expand an enterprise zone boundary, and his company intended to apply for an extension of the Lower Columbia Maritime Enterprise Zone.

Local Hiring

Another charge by Maygra was that local people would not be hired, "except for a few sweepers," because the work force would have to be highly trained. Ramage said they would hire locally as much as possible and then train the new employees.

Temple introduced a video created by Tim Riley, a California attorney, to encourage opposition to LNG terminals. It included the campaign with which Oxnard, Calif., stopped two proposed LNG terminals in 1977.

A computer-generated flaming cloud was shown moving across a map of the Oxnard area, and Riley read statements in opposition.

"It's very important to understand the difference between 'hazard' and 'risk'," Ramage said in response to the video. "A hazard is anything that could cause a problem, while a risk is the probability that the problem could cause an accident."

Many hazards exist in everyday life, but few of them cause accidents because people learn how to deal with them, he said. The probability of accidents feared by the LNG opponents is very low, Ramage emphasized.

Ramage said that Port Westward LNG plans public meetings and displays, possibly in combination with public input opportunities to be set by the Federal Energy Regulatory Commission (FERC) and the Oregon Energy Facility Siting Council (EFSC) with which the company has filed preliminary paperwork.

Clatsop County Staff Report On Bradwood Landing Proposal Available

Wednesday, June 27, 2007

Clatsop County has released its staff report reviewing Bradwood Landing LLC’s consolidated application for multiple land-use permits and approvals for a proposed liquefied natural gas marine terminal and related facilities at Bradwood east of Astoria.

The staff report recommends the Planning Commission deny Bradwood Landing’s application based on facility size, road access, public safety, fish habitat and decommissioning issues.

The 226-page report can be viewed on the county’s web site at www.co.clatsop.or.us and will be distributed to public libraries in Astoria, Seaside, Warrenton, Clatskanie and Cathlamet, Wash., and at Knappa High School. Copies can be purchased at the Clatsop County Community Development Department office at 800 Exchange St., Astoria.

The Planning Commission will begin its deliberations on the application at a public hearing July 10 in the Astoria High School auditorium, 1001 W. Marine Drive. To give as many people as possible a chance to speak, the hearing will run from 10 a.m. to noon, resume at 1:30 p.m. until 4:30 p.m. and resume again at 6 p.m. to 10 p.m.

Much of the proposed site is planned and zoned for marine industrial uses. Bradwood Landing is seeking several amendments to the county’s comprehensive land use plan to enlarge the area zoned for marine industrial uses and to dredge areas of the river so large LNG carriers can dock and unload at the proposed storage and distribution facility. A proposed pipe from Bradwood would carry natural gas to the Williams Northwest interstate pipeline in Washington for distribution to users in the Pacific Northwest.

The staff report reviews the application for compliance with the county’s land-use plan and zoning regulations and is specific to the site of the proposed LNG marine terminal, pipeline and related facilities. It does not address issues such as LNG carrier traffic on the river that state and federal agencies will handle.

The report does contain an analysis of public safety issues as they apply to the county’s comprehensive plan and ordinances, completed by PBS&J, a national firm hired by the county for an independent public safety assessment of the proposed facility. The firm is continuing its work on the broader safety assessment that addresses planning for, responding to and recovering from a public safety disaster related to the LNG operation, and encompasses a broader geographic area, from the mouth of the Columbia River to the plant site at the former mill site east of Astoria and the pipeline.

People can submit comments in writing to the Planning Commission before or at the hearing:

by e-mail to comdev@co.clatsop.or.us,

by fax to (503) 338-3668 or

by mail to:

Clatsop County Planning Commission,

Community Development Department,

800 Exchange St., Ste. 100,

Astoria, OR 97103

Written material must be received by 5 p.m. Friday, June 29, in order to be distributed to the Planning Commission before the hearing. The county asks that 10 copies of all written material be submitted for distribution to the Planning commission and staff.

Bradwood Landing’s original and supplemental applications are available on the county web site: www.co.clatsop.or.us

NorthernStar predicts LNG would stay in region

The Daily News

by Tony Lystra

Aug 17, 2007

NorthernStar Natural Gas said Thursday that the liquefied natural gas it would import through a terminal on the Columbia River will stay in the Northwest, and only 1 percent of the fuel will go to California or other states.

Critics of the project claim the majority of gas will go to California, and one of them called the new study "black magic."

With the terminal operating at 40 percent capacity, the industry standard, Oregon consumers would use, on average, 73 percent of the gas; Washington would use 26 percent. The balance, the company said, would go to Idaho, Northern California and Nevada combined.

The Houston company's executives have long insisted that imported gas from their terminal would be used to fuel the Northwest economy, but Thursday's announcement was the first time NorthernStar provided hard numbers showing where the gas would go.

Citing a report, prepared for NorthernStar by Wood Mackenzie, an Edinburgh, Scotland, consulting firm, NorthernStar said the LNG imported to its Bradwood Landing terminal would represent approximately 55 percent to 57 percent of Oregon's gas supplies and 14-16 percent of Washington's supplies.

"The report clearly shows that the vast majority of the gas stays in the region," said Joe Desmond, NorthernStar's senior vice president of external affairs. "The Northwest has the first opportunity of benefiting from the gas."

He added: "What we have said is consistent and accurate. ... The gas flows benefit the Northwest."

NorthernStar proposes to bring liquid gas up the Columbia River via supertankers, where it would be unloaded to a $600 million terminal at Bradwood, Ore., just across the river from Wahkiakum County. From there, the gas would be pumped into a new pipeline crossing Cowlitz County and connecting with the Williams Northwest pipeline near Interstate 5 north of Kelso.

Desmond said the report used a model, widely employed by the industry, that takes into account the country's existing and proposed pipelines, storage facilities and LNG import terminals.

The region's imported gas supplies, he said, are expected to decline as Canada uses more of its supplies domestically and a new Rocky Mountain pipeline, expected to begin operating in 2009, ships more gas east. Gas imported to Bradwood Landing, he said, is expected to replace those declining supplies in the Northwest, as well as reduce and stabilize prices.

In addition, Desmond, said demand in the Northwest is expected to increase with the use of gas-fired electricity plants. Ninety percent of new electricity production in the Northwest since 1990 has been fueled by natural gas, he said.

But opponents of the project have insisted the imported gas is bound for California.

"It's almost laughable that they think people are seriously going to believe this," said Brent Foster, the executive director of Columbia Riverkeeper, an environmental group fighting the terminal.

Foster referred to the Wood Mackenzie study as "black magic" and cited an announcement last month that TransCanada Corp. and NW Natural Gas planned to partner to build a new pipeline connecting the Columbia River to an existing line stretching south to the Oregon border.

A map produced by the companies showed the new pipeline, known as the Palomar project, beginning at Bradwood.

NorthernStar said last month that its Bradwood terminal would not rely on the Palomar line and that, if the pipeline were built, it would provide "an option to ensure that the gas flows to customers in the Northwest."

But Foster said that the Palomar pipeline demonstrates NorthernStar's true intention to export the gas to California.

Desmond said Thursday's study did not take the Palomar line into account. Of Foster's accusations, he said, "I'm not going to respond to that.

"The facts," he said. "Speak for themselves."

Labor groups endorse LNG terminal

The Daily News

by Tony Lystra

Jul 21, 2007

To major labor groups have endorsed NorthernStar Natural Gas's plan to build a liquefied natural gas terminal on the Columbia River, according to the company.

The Washington Machinist's Council and the Oregon Machinists Council passed separate resolutions supporting construction of the $600 million terminal, NorthernStar said.

The facility, known as Bradwood Landing, would unload and store liquified gas brought up the Columbia on specially built supertankers.

"What I like about it is it's going to bring in a whole lot of construction work for a whole lot of people," said Steve Fluke, of the International Association of Machinists, which is affiliated with the two labor groups.

Fluke, based in Gladstone, Ore., also said the LNG industry has "a good, environmentally sound track record," adding, "It's no worse than anything that's on the river, I'll guarantee you."

In a statement issued by NorthernStar, Dan Sass, the executive secretary of the Oregon Machinist's Council, said his group is "impressed with the commitment NorthernStar Natural Gas has shown to work with the skilled trades, in both Oregon and Washington in the development of Bradwood Landing.

Also in the statement, Washington Machinists Council president Don E. Hursey said he favors the project because the region needs additional gas supplies. Hursey also noted that NorthernStar had established a training program at Clatsop Community College to teach skills workers will need to build and run the terminal.

NorthernStar's plans also have been endorsed by the Columbia Pacific Building Trades Council, the Building Trades Council of Longview and Local 1707 of the United Brotherhood of Carpenters and Joiners in Longview.

The terminal has faced staunch opposition from critics who say it would pose safety and environmental risks and that tight security measures would slow commercial river traffic.

Congressman Brian Baird came out against the terminal in March. Washington Sen. Brian Hatfield and Reps. Dean Takko and Brian Blake also have spoken out against the terminal.

The Oregon and Washington Machinists Councils represent thousands of machinists, including many in the aerospace industries.

The Federal Energy Regulatory Commission has the final say about whether the terminal is built.

Palomar Natural Gas Pipe Proposal an Addition, Not Alternative to Bradwood Line

The Clatskanie Chief

by Deborah Steele Hazen

August 16, 2007

Palomar Gas Transmission LLC (Palomar), a newly formed joint venture of TransCanada Corporation (TransCanada) and Northwest Natural Gas Company (NW Natural), announced last week a proposal to build a natural gas pipeline that would serve growing markets in Oregon, the Pacific Northwest, and the western U.S.

A Palomar spokesperson, Henry Morse, told the Chief this week that the main purpose of the project is to connect TransCanada's main transmission line in Central Oregon with NW Natural's system at Molalla to serve the Willamette Valley.

However, a second arm of the pipeline has been proposed from Wauna, west of Clatskanie, going south and passing west of the Mist gas fields, then down through the Timber and Yamhill-Carlton areas, turning east near McMinnville to connect to Molalla.

The Wauna to Molalla arm would be built only if an LNG (liquefied natural gas) terminal is built on the Columbia River, Morse said. That portion of the line would intersect with NorthernStar's proposed Bradwood Landing line at Wauna.

NorthernStar spokesperson Charles Deister told the Chief Tuesday that if the proposed "Palomar" line is built, including the Wauna to Molalla section, it would be in addition to - not an alternative - to the proposed Bradwood Landing pipeline which would roughly parallel the Columbia River from Bradwood, about 15 miles west of Clatskanie to the Port Westward Energy Park north of Clatskanie. Bradwood Landing's proposed approximately 38-mile-long pipeline would then pass under the Columbia River and go across Cowlitz County to connect with the Williams pipeline near Kelso.

"NorthernStar has said 'if you build it we may elect to put gas on it.' It doesn't mean we wouldn't use our own pipeline which we are siting," Deister told the Chief. "We're not assuming the Palomar project is part of ours. We're an independent serviceable entity without that pipeline." Although, Deister said, the Palomar proposal "would provide additional access" to gas markets.

The Port of St. Helens has been in negotiations with NorthernStar to ensure that the proposed Bradwood Landing pipeline route through Port Westward does not interfere with infrastructure, existing or proposed industrial development at the Clatskanie-area industrial site.

Palomar was formed by TransCanada and NW Natural to design, construct, and own the Palomar pipeline. TransCanada and NW Natural are equal owners of the joint venture. TransCanada's Gas Transmission Northwest System (GTN), headquartered in Portland, will operate the proposed pipeline. The partners are seeking a federal certificate to build and operate a pipeline extending approximately 220 miles from northwestern Oregon to north-central Oregon.

The Palomar pipeline will connect TransCanada's existing GTN System in central Oregon with NW Natural's distribution system near Molalla, approximately 30 miles southeast of Portland. NW Natural's utility operations have agreed to contract for about 100 million cubic feet per day of capacity on the 36-inch-diameter pipeline.

"NW Natural currently depends on a single interstate pipeline for its supply, approximately two-thirds of which comes through the Columbia Gorge," said Gregg Kantor, president and chief operating officer of NW Natural. "The Palomar pipeline would significantly diversify our delivery options and enhance reliability for NW Natural's customers." NW Natural serves about 641,000 residential, business, and industrial customers in Oregon and southwest Washington.

If approved, the new transmission line is scheduled to begin service in late 2011. The total cost of the project is estimated to be between $600-700 million in current dollars if both proposed sections are built.

Palomar will request preliminary environmental approval for the project from the Federal Energy Regulatory Commission (FERC), the pipeline's principal regulator. Even before that filing is made, Palomar will begin the public engagement process in which parties, including landowners, will have the opportunity to ask questions, register comments, and provide input into the overall pipeline certificate process.

The public is invited to attend four open houses about the Palomar Gas Transmission project scheduled next week: Monday, Aug. 20, at the Imperial River Company in Maupin; Tuesday, Aug. 21, at the Molalla Adult Center; Wednesday, Aug. 22, at the McMinnville Community Center, and Thursday, Aug. 23, at the Forest Grove Community Auditorium. All of the open houses are from 5 to 8 p.m. (See the advertisement on page 7 for more information.)

Palomar's Morse said no open houses had been scheduled for residents in the northern-most portion of the proposed Wauna to Molalla pipeline, because very few private property owners are involved, since the majority of the pipeline in this area would run through the Clatsop State Forest. Morse said Palomar has been dealing with the Oregon Department of Forestry, and that any property owners within a quarter mile of the pipeline have been mailed invitations to the open houses.

Those wishing further information may visit the project web site at www.palomargas.com or call 1-866-220-0268.

If there were a number of citizens in Clatsop and Columbia counties interested in meeting with Palomar concerning the proposed pipeline - "we'll figure out how to do that," Morse told the Chief.

According to a press release, TransCanada is "a leader in the responsible development and reliable operation of North American energy infrastructure. TransCanada's network of more than 36,500 miles of pipeline taps into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 360 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, approximately 7,700 megawatts of power generation in Canada and the United States. TransCanada's Gas Transmission Northwest system, headquartered in Portland, has been operating in Oregon since 1963."

NW Natural, also headquartered in Portland, is the largest independent natural gas utility in the Pacific Northwest, serving approximately 641,000 home, business, and industrial customers in Oregon and southwest Washington.

Gov. Kulongoski puts pressure on LNG proposal

By The Daily News and The Associated Press

February 16, 2008

Oregon Gov. Ted Kulongoski has told federal regulators they must study all alternatives to supplying natural gas to the region before moving forward with any proposals for a liquefied natural gas terminal in Oregon.

In a letter sent Thursday to the Federal Energy Regulatory Commission, Kulongoski said he has asked the state attorney general to examine Oregon's legal authority to refuse state permits for the projects until FERC complies with his request.

Kulongoski also told FERC Chairman Joseph Kelliher that he had asked Oregon's congressional delegation to push for legislation to wrest back state control for licensing LNG facilities. State authority was pre-empted by FERC under the Energy Policy Act of 2005.

"Ultimately we may end up in court over this," the governor said in an interview in the Oregonian Thursday. "We're not exactly clawless. ... The state doesn't have all the tools, but we are a critical piece. You're going to have to meet the state concerns."

The governor's posture marks a change in tone. He recently told a panel of editors that Oregon could benefit from the addition of liquefied natural gas to its energy portfolio, saying it would reduce the state's dependence on other sources of energy, especially coal and hydropower. But he has called for a more detailed analysis of potential environmental impacts, including the effect on fish and wildlife habitat, and water quality.

LNG opponents cheered Kulongoski's moves.

"This is just the type of leadership we want to see the governor take on this issue," said Brent Foster, executive director of Columbia Riverkeeper. "It's encouraging that he's recognizing that these LNG projects deserve a very close look, and it's important that the rush to approve these projects not leave us with a mistake."

Houston-based NorthernStar Natural Gas has proposed one of the two LNG terminals under consideration for the lower Columbia River.

NorthernStar's $600 million, 40-acre terminal would be located at an old 411-acre mill site at Bradwood Landing in Clatsop County, opposite Puget Island, and handle about 125 ships a year. Once the superchilled liquid is reheated back into gaseous form, 1.3 billion cubic feet of natural gas daily would be sent to market through a 34-mile pipeline built through Clatsop, Columbia and Cowlitz counties.

Each of three LNG terminals proposed to Oregon -- the other is in Coos Bay -- could import more natural gas than Oregon uses, a fact critics say proves project backers are looking to use Oregon as a back door conduit to California, which has rejected LNG terminals.

In a statement released Friday in response to Kulongoski's remarks, NorthernStar CEO William "Si" Garrett said, "We have pledged to the Governor and state officials, regardless of FERC's pre-emption power, we are committed to work with Clatsop County and state agencies to ensure we meet all of Oregon's high standards."

"The facts are clear: the Northwest needs additional supplies of natural gas," Garrett wrote to Kulongoski. "The Northwest's need for additional natural gas is well-documented."

Garrett said NorthernStar originally sought approval from Oregon, but the state attorney interrupted the process because Congress had pre-empted state authority.

Garrett asserted that LNG is "significantly cleaner than coal and releases half the greenhouse gases on a life-cycle basis (with) none of the sulfur or mercury emissions associated with burning coal."

Garrett added that NorthernStar's $59 million in watershed restoration projects "will set a new standard in corporate environmental stewardship" and mean the terminal would "actually provide a net ecological benefit to the Lower Columbia."

Kulongoski said in his letter that he isn't "unalterably opposed" to LNG being part of Oregon's energy mix. But he said FERC's "approach to the licensing of plants and pipelines has created a crisis of confidence with Oregonians."

Letter to the editor published in the San Diego Union Tribune: “Making the case for LNG.”

October 6, 2007

Letters Editor

The San Diego Union-Tribune,

Post Office Box 120191

San Diego, CA

Dear Letters Editor:

The Union-Tribune misses the bigger picture in its September 23rd article “Cross-border gas project fuels pollution fear.” The article claims that natural gas coming into California from Sempra Energy’s new liquefied natural gas (LNG) terminal in Baja California will create more pollution in San Diego. But the Union-Tribune fails to mention that natural gas is an essential part of California’s current and future energy mix and ensures a clean and reliable supply of energy. Natural gas is the cleanest burning fossil fuel and it is being used throughout the country to reduce air pollution caused by other fuels such as coal – which produces nearly five times more nitrogen oxide emissions than natural gas.

LNG, which will be imported from various regions throughout the world, is the ordinary, everyday natural gas we use domestically but super-cooled to reduce its size so that it can be transported to our shores and then warmed to convert it back to natural gas.

We need LNG because federal restrictions on natural gas exploration in the U.S. have limited access to domestic supplies. As a result, the U.S. Department of Energy predicts the gap between natural gas production and consumption will reach 21 percent by 2030. Importing natural gas in the form of LNG is critical to filling that supply gap.

Currently, 85 percent of California's natural gas comes from other states and with demand expected to rise, LNG is the most viable solution for ensuring more clean and reliable energy supplies for the people of San Diego.

Sincerely,

Bill Cooper

Executive Director

The Center for Liquefied Natural Gas

202-441-0920

The Daily News (Longview, WA)

LNG discussions heat up in Oregon

By Courtney Sherwood

Apr 19, 2005

With pressure mounting from developers who want to import liquefied natural gas to the Pacific Northwest, opponents to LNG imports are marshalling their forces.

Less than a week after Northern Star Natural Gas sent its first state filings to Salem, a citizens' group will hold a forum Thursday in Clatskanie aimed at highlighting the risks of liquefied natural gas.

Liquefied natural gas, or LNG, is a super cooled version of natural gas used to heat homes, cook meals and generate electricity across the United States.

As native reserves of natural gas run low, the U.S. Department of Energy predicts imports of LNG will increase significantly over the next 20 years. With demand rising in North America, the price for natural gas is expected to rise, and LNG importers stand to make millions.

LNG opponents worry about the impact a terminal would have on shipping, saying safety concerns could shut down the Columbia River while LNG ships pass. Although boating has been restricted near high-population LNG shipping routes on the East Coast, there's no guarantee that the same steps would be taken on the Columbia, however.

"We're not preaching that people should be opposed to LNG, we just want to get out information that industry might not present," said Ted Messing of Browns mead, Ore., an organizer of Thursday's community meeting.

Meeting organizers will show a video and discuss two LNG import proposals -- Northern Star's as well as that of Port Westward LNG, which wants to build near Clatskanie. Two other terminals have been proposed near the mouth of the Columbia River.

So far, Northern Star has taken the lead in a slow-motion race for permits that could last two years or more, applying to build a $520 million terminal in a ghost town across the river from Cathlamet. No other Pacific Northwest LNG developer has submitted any paperwork with the federal government.

LNG proponents say there may be enough demand in the region for one or two of the Columbia River's proposed facilities, but not for all four.

The Oregon Energy Facility Siting Council is trying to figure out how it will handle the onslaught of LNG applications.

The council met Monday to discuss the environmental standards that it will use when permitting LNG terminals. It will take feedback through May 2 before making a decision. Information about the Oregon Energy Facility Siting Council's deliberations may be found online at http://egov.oregon.gov/ENERGY/SITING/announce.shtml or by calling Sam Saddler at (503) 373-1034.

The Daily News (Longview, WA)

Economist sees value of LNG terminal

The Daily News

by Tony Lystra

Jun 21, 2007

A liquefied natural gas terminal in the Northwest could indirectly lead to more than 10,000 new jobs and increase the gross domestic product for Washington, Oregon and Idaho by more than $1 billion, according to a report released Wednesday by NorthernStar Natural Gas.

The report comes as Houston-based NorthernStar tries to convince federal regulators and the local public that its plan to build an import terminal in Bradwood, Ore., across from Puget Island, will be good for the region.

NorthernStar said it paid $70,000 for the report, authored by Philip Romero, a University of Oregon business and economics professor. Romero said a Northwest LNG terminal, operating at 40 percent capacity, which is the industry standard, could reduce local natural gas prices by 13 percent when it began operating in 2012.

Demand for natural gas here is spiking, the report said. Its use first outpaced electricity in the Northwest in 1998. Now, about one fifth of the region's electricity is generated by gas-fired plants, it said, and about one fourth of the natural gas delivered to the Northwest is used to generate electricity.

In addition, 94 percent of new plants constructed between 2001 and 2003 were fired by natural gas.

But, Romero said, supply will be scarce in years to come. That's partly because the West Coast is farthest away from the natural gas deposits of South Texas and the Gulf of Mexico. Companies are building new pipelines, such as the Rockies Express, which will carry more gas from the Rocky Mountains to East Coast markets instead of the Northwest, creating price competition, Romero wrote.

In addition, Canadian companies are expected to export less of that country's natural gas as they use it to mine oil from "tar sands" -- or oil suspended in clay and other sediment, he said.

If more natural gas supply isn't located, Romero said, "the free market will drive natural gas prices up" and companies, saddled with high prices, won't invest in productivity. Higher energy prices will drive up consumer prices, the report said, causing inflation and, perhaps, prompting the Federal Reserve to raise interest rates, which would further slow economic activity.

The scenario is unlikely to cause a recession, Romero said, but it could result in stagflation -- when reduced economic activity coincides with high inflation.

The solution, Romero said, is to build an LNG import terminal in the Northwest. There are five terminals operating in the U.S., one of which is offshore, and all of them are on the East and Gulf coasts. Natural gas supplies are abundant throughout the world, Romero said, and the best way to get it here is to chill it to a liquid state, import it on tankers, regassify it and pump it into the local pipeline system.

For his report, Romero said he used a number of economic multipliers -- which take into account savings on energy costs, companies' investment in new jobs and increased household incomes -- to forecast the a Northwest terminal's effect on the economy.

If the terminal were operating at 40 percent, the industry standard, it would create 10,100 new jobs, generate $304 million in extra household income and pump $1.04 billion into the Northwest's GDP, he said.

Romero conceded that energy price projections can be dodgy, but said his numbers are "conservative."

Romero, who has served as an economic advisor to the governor of California, said Wednesday that his work was done independently and that NorthernStar had no influence on its conclusions.

"I'm a realist," he said. "If you don't tell your client the truth, you're not serving your client very well." <

Comments & Responses Re: Bradwood Landing LNG Terminal	Other LNG Web Sites
U.S. Department of the Interior Response to FERC Association of Lower Columbia River Flood Control Districts Liquefied Natural Gas Ports and Pipelines: Putting Our Economy, Communities and Quality of Life at Risk	Race for Clean Energy Website Center for Liquefied Natural Gas Columbia Riverkeeper & Columbia River Clean Water Coalition