This is the News

NorthernStar Natural Gas | February 26, 2009

PORTLAND, Ore. – Contrary to the claims of project opponents, the State of Oregon has not
suspended the permitting review of the proposed Bradwood Landing liquefied natural gas terminal.

A letter sent yesterday by the Oregon Department of Justice on behalf of the Oregon Department of Environmental Quality addresses procedural matters relating to processing certain permits for Bradwood Landing, but in no way constitutes a suspension of work, as has been misreported by some of the local media on Thursday.

“The permitting process associated with an LNG terminal and pipeline is highly complex,” said Joe Desmond, senior vice president for external affairs for NorthernStar Natural Gas. “It consists of hundreds of local, state and federal permits, many of which are connected to other permits. In addition, there are overlapping and interdependent schedules for review and processing.”

The Department of Justice letter largely addresses a recent Land Use Board of Appeals decision that rejected 21 of 23 arguments raised by project opponents. The remaining two issues were remanded to the Clatsop County to be fixed. Such decisions are not uncommon in a project such as Bradwood. Because the issues are definitional in nature, Bradwood remains confident they will be resolved in a timely manner.

An important point missed by project opponents and some media is that two discharge permits referenced in the letter are NOT on the project’s critical path, which means there is flexibility within the overall schedule to resolve the issue without changing the expected construction date.

“Starting and stopping the regulatory clock is standard practice for any agency,” said Desmond. “There are multiple permits addressed in the letter. As noted, DEQ had already informally suspended processing two items pending resolution of the LUBA issue.”

Nothing in LUBA's rules or state law says that a remand invalidates or alters the effectiveness of the underlying decision until such time as the local government that made the original decision revises it. As a result, the Clatosp County’s land use decision remains effective until a final decision is reached in the LUBA appeal.

“Bradwood Landing continues to work closely with the State of Oregon while it processes our
application,” said Desmond. “We have always anticipated legal challenges to the permitting process and have factored that into our plans.”

The Bradwood Landing LNG terminal and its associated 36.3 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.

A regional analysis of the effects of increased natural gas supply from a Columbia River LNG
terminal by University of Oregon economist Dr. Phil Romero, showed that Bradwood could reduce the wholesale cost of natural gas by 13 percent. Dr. Romero’s analysis showed this decrease in energy costs would help support the creation of between 5,100 and 20,300 jobs.

Bradwood is the first U.S. West Coast LNG terminal to receive approval from FERC and has
consistently stated its commitment to comply with all applicable local, state and federal regulations.

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