Oregon liquefied-natural-gas terminal approved

WASHINGTON — The Federal Energy Regulatory Commission Thursday approved a liquefied-natural-gas terminal along the Columbia River — the first LNG terminal on the West Coast to receive such approval.

The vote was 4-1. Advocates on the commission, including Chairman Joseph Kelliher, said the terminal will help provide needed energy for the region and the country.

The $650 million Bradwood Landing project, 20 miles east of Astoria, Ore., would import superchilled natural gas aboard tankers and warm it so it can be distributed regionally in pipelines.

The commission imposed more than 100 conditions that it said would help assure safety and mitigate environmental damage from the plant.

The plant's developer, Houston-based NorthernStar Natural Gas, must obtain state-level permits before it can start construction. Officials hope to begin work late in 2009 and be operational by 2013.

Officials called the FERC vote a significant milestone that positions the project to help supply natural gas to the Pacific Northwest and beyond.

"We are certainly pleased with the FERC decision," said Joe Desmond, senior vice president with NorthernStar Natural Gas. "It represents 3 ½ years of work, and we are satisfied we can meet the 109 conditions identified by FERC."

Desmond and other officials said the company will work with the states of Oregon and Washington to secure necessary state approvals.

But Oregon Gov. Ted Kulongoski said the state will request that federal officials conduct a new hearing on the project to ensure that concerns of the state and local communities are addressed.

A rehearing is an administrative step that must be taken before parties initiate legal action.

"Today's decision by the federal government lacks accountability to the environment and the people of Oregon," Kulongoski said in a statement. "The commission has decided to ignore the law and instead approve a project with incomplete mitigation plans and without regard to Oregon's important concerns."

Brent Foster, executive director for Columbia Riverkeeper, an environmental group, said the FERC action was no surprise.

"We expected FERC to rubber-stamp the LNG project from day one," Foster said. "At this point, Oregon needs to use all the authority it has to stop this project."

Foster said he is confident state officials will move to stop the project because Oregon Treasurer Randall Edwards and Secretary of State Bill Bradbury, who along with Kulongoski constitute the State Land Board, have announced they oppose LNG projects in Oregon.

The State Land Board approves leases for state lands.

The Bradwood Landing terminal and its 38-mile pipeline would create more than 450 jobs during construction and 65 permanent jobs while contributing more than $7.8 million annually in taxes to Clatsop County in Oregon, company officials say.

The project is one of three proposed LNG terminals in Oregon that have raised the ire of some residents and most of Oregon's congressional delegation.

Supporters say more natural gas is needed to diversify the Northwest's energy sources as supplies tighten. Opponents argue there is no clear need for LNG terminals and pipelines and say they pose an environmental threat.