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Statement from NorthernStar Natural Gas regarding state authority over LNG facility siting

April 7, 2008

NorthernStar Natural Gas | April 7, 2008

PORTLAND, Ore. – Bradwood Landing has been working with the State of Oregon on the siting of its proposed LNG terminal for several years. In fact, we initially applied to Oregon's Energy Facility Siting Council for permitting and approval. Oregon's EFSC process is an inclusive process that has worked well for the state siting energy infrastructure projects.

However, following the passage of the federal Energy Policy Act of 2005, the Oregon Attorney General directed us to apply directly to FERC, citing FERC's new authority. This transfer of authority caused delays in the development of our project.

Bradwood has consistently stated its intent to comply with all applicable local, state and federal requirements. As evidence of this commitment, we have been working with Clatsop County and the State to ensure they have meaningful input into the siting of our facility. Specifically, we applied for local land use approval with Clatsop County. After a nine month public process that included public hearings, testimony and public deliberations before both the county Planning Commission and Board of Commissioners, our project received its local land use approval on March 20.

"To ensure that local concerns would be addressed, we also signed a contract with the county committing that we would not appeal the county's conditions of approval to FERC," said Joe Desmond, senior vice president for external relations. "To our knowledge, we are the only LNG terminal project in the U.S. that has ever proposed or agreed to such a contract. Just as we have worked with Clatsop County, we are working with the State to address its concerns."



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