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September 1, 2009

Ensures all State permits, environmental approvals and conditions must be satisfied before ‘Notice to Proceed’ issued; Requests for Rehearing and Stay denied
 
On September 1, 2009, the Federal Energy Regulatory Commission (FERC) issued an Order denying the State of Oregon’s request for rehearing and stay and the Confederated Tribes of the Umatilla Indian Reservation’s (CTUIR) request for rehearing.  
 
Last week’s decision moves our project another step closer to providing additional jobs and a much needed economic boost to Oregon as well as providing the additional supplies of clean, affordable energy the Northwest needs.
 
To the casual reader, a FERC “Denial” Order may appear contrary to the State’s interest. In reality, FERC’s latest order guarantees that the State’s role in the project review and approval process is preserved.
 
Oregon had argued that the Commission erred in the January 15, 2009 Order by concluding that Oregon had abandoned its request for a stay of the September 18, 2008 Order. In response, the Commission addressed as a new motion Oregon’s request for a stay until a decision is reached in the related proceeding before the Ninth Circuit.
 
Citing the recent holding of the U.S. Court of Appeals in another LNG-related case, the Commission held that the public interest is already protected by the Commission’s conditioned authorization of the Bradwood project.  
 
FERC explained that NorthernStar cannot begin construction until it receives a ‘Notice to Proceed’ from the Commission. FERC will not issue that notice until NorthernStar receives all necessary authorizations from state and federal agencies, including state permits for clean air, clean water and coastal zone management. In addition, the National Marine Fisheries Service (NMFS) must complete their consultation process and issue a Biological Opinion as required under the Endangered Species Act.
 
NorthernStar has always committed to meet all applicable local, state and federal standards related to the construction and operation of its Bradwood terminal, which received a FERC certificate order on September 18, 2008.
 
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. In addition, the terminal will spend more than $30 million in annual maintenance and operations, much of that locally.
 
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 and support the creation of between 5,100 and 20,300 jobs.
 
For a downloadable pdf of the official decision from FERC, see below.


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