Oregon officials declared almost immediately following FERC’s conditioned approval Thursday of the proposed Jordan Cove liquefied natural gas (LNG) terminal and connecting transmission pipeline that they will appeal next month to the federal regulators and through the appellate court system if necessary. The backers of the LNG project, however, expressed confidence that they will have all necessary local, state and federal permits by the end of next year.

“FERC’s decision does not address Oregon’s very real concerns about the environmental impact of the pipeline associated with the proposed LNG facility,” Oregon Gov. Ted Kulongoski said. “The information guiding this decision is woefully inadequate to license a project with such profound potential impacts on the lives of Oregonians, and we will appeal to FERC to ensure the people of Oregon’s concerns are fully addressed.”

Jordan Cove Project Manager Bob Braddock told NGI Friday that he expects the project to meet all of FERC’s 128 conditions and secure all of the Oregon permits (12 consents, easements or permits), making the proposed appellate filings by the state academic (see Daily GPI, Dec. 18). Settling the remaining issues with FERC and the various state permitting agencies should be completed by the summer, Braddock said.

In the meantime, Braddock said he hopes to have an announcement on supplies for the project as the permitting moves along. “The permitting certainly isn’t going to hold up that end of our project,” he said. “It’s just one of those parallel paths.”

Braddock noted that the concerns expressed by the governor seem to be focused on the pipeline part of the project as opposed to the terminal, and there may be a certain amount of political posturing being done because the state for some time has opposed FERC making determinations on projects that have not yet obtained all of their state permits.

“In the state’s view, FERC should have waited until all the other permitting agencies had issued their permits before issuing a certificate for the project,” Braddock said. “It’s as much of a philosophical approach as to who should be entitled to issue permits first.”

Kulongoski and Oregon’s attorney general said their concerns include “the unresolved issues around the Energy Policy Act of 2005,” specifically the Coastal Zone Management Act, the Clean Air Act and the Federal Water Pollution Control Act. Oregon maintains that FERC should not issue any license for the LNG facility or associated pipeline until those approvals have been obtained.

As with the Bradwood Landing LNG facility [also in Oregon and approved by FERC], Oregon’s request for rehearing will exhaust the administrative options before Oregon appeals FERC’s decision to the Ninth Circuit Court of Appeals, the governor’s office said. The state expects to file its request for reconsideration with FERC by Jan. 19.

The Jordan Cove project, a limited partnership of an affiliate of Alberta-based Fort Chicago Energy Partners LP and Energy Projects Development LLC, would provide up to 1 Bcf/d of regasified LNG to customers in the Pacific Northwest and California. Plans call for it to be constructed at the international port of Coos Bay on the Pacific Coast.

The terminal would be linked with the Pacific Connector, a 234-mile, 36-inch diameter 1 Bcf/d pipeline. The line would make connections with a number of pipelines near Malin, OR, including Williams’ Northwest Pipeline near Myrtle Creek, Avista Corp.’s distribution system near Shady Cove, Pacific Gas and Electric Co.’s transmission system, Tuscarora Gas Transmission’s system and Gas Transmission Northwest’s system.

Pacific Connector said previously it had entered into agreements with seven customers for the full capacity of the pipeline. The proposed pipeline is a limited partnership of Williams Pacific Connector Gas Pipeline LLC, PG&E Strategic Capital Inc. and an affiliate of Fort Chicago Energy Partners, Fort Chicago LNG II US LP.

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