This is the News

NorthernStar Natural Gas| June 6, 2008

PORTLAND, Ore. – The Federal Energy Regulatory Commission (FERC) today issued a positive final Environmental Impact Statement (fEIS) for the proposed Bradwood Landing liquefied natural gas terminal near Astoria and its associated pipeline; stating that:

“We conclude that construction and operation of the Bradwood Landing Project would have limited adverse environmental impacts. However, that implementation of NorthernStar’s proposed mitigation measures, and additional measures we recommend, would substantially reduce the environmental impact of the project.” - Bradwood Landing final Environmental Impact Statement, page ES-9

FERC staff prepared the EIS to fulfill the requirements of the National Environmental Policy Act (NEPA). The purpose of the document is to inform the public, other permitting agencies and FERC Commissioners about the potential environmental impacts of proposed projects and their alternatives.

With FERC’s action today, Bradwood Landing becomes the first and only proposed LNG terminal on the U.S. West Coast to have received a final Environmental Impact Statement. Neither of the two other LNG projects proposed in Oregon has yet to receive their draft Environmental Impact Statement.

“FERC’s acceptance of our comprehensive environmental commitment is a testament to the thoroughness with which we have approached the development of this project,” said NorthernStar Natural Gas CEO William “Si” Garrett. “We have been sensitive to the concerns of local counties, the State of Oregon, and the public.”

The fEIS comprises two volumes totaling thousands of pages and addresses comments submitted after the issuance of the draft EIS on August 17, 2007. To allow for maximum public input, FERC extended the comment period on the dEIS until December 24th, 2007 for a total of 120 days. The normal comment period is 45 days.

“Bradwood Landing has consistently stated its intent to comply with all applicable local, state and federal requirements,” said Garrett. “We look forward to continuing our work with State agencies in the coming months and to supplementing the fEIS record as may be appropriate to ensure the project is in full compliance with Oregon’s environmental standards and statutes.”

As part of its NEPA analysis FERC must comply with certain statutory requirements. These include section 307 of the Coastal Zone Management Act, section 7 of the Endangered Species Act, section 106 of the National Historic Preservation Act, and the Magnuson- Stevens Fishery Conservation and Management Act. As the lead federal agency FERC staff also coordinates closely with the U.S. Army Corps of Engineers and the U.S. EPA in fulfilling the requirements of the Clean Water Act, the Rivers and Harbors Act, and the Clean Air Act.

FERC coordinates with the Coast Guard to ensure the waterways management/navigation safety issues under the Ports and Waterways Safety Act and the maritime security issues under the Maritime Transportation Security Act are addressed.

Once a project is authorized, the comprehensive design review and inspection process continues. This occurs in two main phases during construction and during operation. If a company receives FERC authorization for a project and has met all pre-construction conditions required by a FERC Order, including approval of an emergency response plan, FERC will authorize construction to begin.

Earlier this week, Bradwood Landing submitted its Biological Assessment and Mitigation Plan to FERC, which will be used by FERC to request formal consultation with the National Marine Fisheries Service and the U.S. Department of Fish and Wildlife. In turn, NMFS and USFWS will use the information provided in the Biological Assessment to create a Biological Opinion which will provide the final determination on the project’s compatibility with federal Endangered Species Act requirements.

“We invested in excess of $6 million and three years on detailed field studies and research in developing the Biological Assessment. Our avoidance, mitigation and voluntary measures not only create a net environmental benefit for the Lower Columbia River, but also create a new model for sustainable development and corporate responsibility,” said Garrett.

Bradwood’s environmental commitment includes its voluntary Salmon Enhancement Initiative (SEI), which at $59 million, represents the largest private commitment to improve watershed health on the Lower Columbia River. Using NMFS’ own methodology to model the benefits of the SEI, the program is projected to improve salmon survival by 1.77 million juvenile fish per year. This would represent 50 percent of NMFS’ own survival improvement target for oceantype fish, such as salmon.

The Bradwood Landing LNG terminal and its associated 38 mile pipeline would provide a new source of natural gas directly into the Oregon and Washington natural gas market. It would create more than 450 jobs over three years of construction and 65 permanent jobs while contributing more than $7.8 million annually in taxes to Clatsop County. Today’s release of the fEIS is a further step in the permitting of the Bradwood Landing terminal which could begin construction in 2009 and be operational by 2013.

Download PDF (25 KB pdf file)