The Astoria, OR, port commission failed to give Oregon LNG the 30-year state land lease it needs to develop a liquefied natural gas (LNG) receiving terminal on a 96-acre tract on the Skipanon Peninsula near the mouth of the Columbia River. Because of pending litigation and an investigation, company executives said they could not comment on the port action. Oregon LNG backers contend they already had a commitment for a 30-year lease with the Oregon Department of State Lands, but the five-member Astoria Port Commission, following four hours of discussion, voted unanimously to extend the existing lease by only two years. Oregon LNG filed an application last October with the Federal Energy Regulatory Commission, noting that it was staying on schedule and the extensive application demonstrated the project, originally conceived by a Calpine Corp. affiliate, was still feasible and should be approved (see Daily GPI, April 28). FERC formally accepted the application, and the project already has completed local land-use approvals, according to Oregon LNG CEO Peter Hansen, who helped launch the project at Calpine. The commissioners faced an Aug. 31 deadline to act on what they said was a “pass-through lease” of state land for Oregon LNG. The port leased the land from the state and in turn subleased it to the LNG developer. The five-year terms expire this year.

A Fort Worth, TX-based land drilling services company, which caters primarily to natural gas producers, has been cited by the federal government for alleged workplace safety and health violations at a New Salem, PA, worksite. The Occupational Safety and Health Administration (OSHA) has proposed penalties of $54,600. Union Drilling Inc. was cited for one repeat citation with a penalty of $28,100, one serious citation with a penalty of $26,500 and a minor citation that carried no financial penalty, according to OSHA. The agency said it uncovered the alleged violations during an investigation of oil and natural gas well operations in the Appalachian region. The alleged violations ranged from failure to install guardrails; provide fully charged, mounted fire extinguishers; safety glasses and impervious gloves; eyewash and deluge showers for emergencies when employees are working with corrosive material; and improper use and storage of oxygen and acetylene cylinders, OSHA said. “This company previously was cited by OSHA for the same violations at a different worksite,” said Robert Szymanski, area director of OSHA’s office in Pittsburgh. “Complete disregard of OSHA regulations and unnecessarily exposing workers to risky hazards will not be tolerated.” Union Drilling was given 15 business days from receipt of the citations to comply, request an informal conference with the OSHA area director, or contest the citations and proposed penalties.

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