FERC Tuesday upheld its orders conditionally approving the first liquefied natural gas (LNG) import terminal and associated sendout pipeline to serve rising natural gas demand in the Pacific Northwest. It also denied the state of Oregon’s bid to stay the project.

Specifically the Federal Energy Regulatory Commission denied requests for rehearing of a Jan. 15 order, which upheld the agency’s September 2008 decision approving the LNG project. Oregon and the Confederated Tribes of the Umatilla Indian Reservation sought rehearings, citing procedural errors.

Also denied was Oregon’s bid for a stay of the project pending a decision by the U.S. Court of Appeals for the Ninth Circuit on the merits of the Commission’s orders approving the Bradwood LNG project and associated pipeline. The state in January filed a petition with the court seeking reversal of the FERC decisions (see Daily GPI, Jan. 28).

“We find that Oregon has not met its burden to demonstrate that it will suffer irreparable harm absent the granting of a stay. The harm to itself that Oregon claims relates only to economic and time expenditures. It is established that economic loss, in and of itself, does not constitute irreparable harm,” the FERC order said [CP06-365].

In addition, FERC rejected Oregon’s argument for a stay on the grounds that the LNG project does not comply with the Endangered Species Act (ESA). “The Commission is complying with both the procedural and substantive requirements of the ESA, and any endangered species and their habitats affected by the Bradwood project are receiving all the protections afforded under the ESA…We will deny Oregon’s request for stay on those grounds,” the order said.

In approving the terminal and pipeline project in September 2008, FERC attached 109 safety conditions and mitigation measures to the order (see Daily GPI, Sept. 19, 2008). The proposed terminal would be located on a 40-acre site at the former townsite of Bradwood in Clatsop County, OR, which is about 38 miles up the Columbia River — the main economic artery for the Pacific Northwest. The project would provide up to 1.3 Bcf of natural gas to the region.

The Bradwood Landing project calls for the construction of a single ship berth capable of receiving and unloading LNG tankers with capacities ranging from 100,000 to 200,000 cubic meters; two 160,000-cubic meter storage tanks; and associated facilities. NorthernStar Energy LLC proposes a 36-mile, 30- and 36-inch diameter sendout pipeline in Clatsop and Columbia Counties, OR, and Cowlitz County, WA.

The sendout pipe would extend from the terminal to an interconnect with Williams’ Northwest Pipeline system north of Kelso, WA. Between the terminal project and the terminus at the Northwest system, the sendout pipeline would deliver regasified gas to Northwest Natural Gas Co.’s pipeline system, Georgia Pacific’s Wauna paper mill and Portland General Electric’s Beaver Power Plant.

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