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Save Passamaquoddy Bay
3-Nation Alliance

Alliance to Protect the Quoddy Region
from LNG Development

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"For much of the state of Maine, the environment is the economy"
                                           — US Senator Susan Collins, 2012 Jun 21



 

News Articles
about
Passamaquoddy Bay & LNG

2006 July


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2006
Jul
31
Candidates open to LNG site: Wind power supported, survey finds
Man charged in connection with Grand Manan riot
MLA wants inquiry into Grand Manan riot (Jul 28)
House torched, shots fired in Grand Manan riot (Jul 24)
Anadarko: Supply worries led to deals (Jul 28)
Panel erupts in dissent over LNG siting report (Jul 29)
Company Wants To Put LNG Tanks On Harbor Island (Jul 27)
Supplying demand for natural gas (Jul 30)
Bill To Govern LNG
Green Coast Related
Solar power runs 'world's largest laundry' (Jul 30)
27
Grand Manan riot shows Canadians want crackdown on crime: Harper
Pipeline Pressure
Law would stall Fall River LNG: Mass. bill’s ‘buffers’ mimic R.I.
Romney says LNG needed, but not in Fall River (Jul 26)
Bill in the pipeline addresses looming LNG terminal
Baltimore Mayor Opposes Sparrows Point LNG Proposal (Jul 26)
Northern Star responds to LNG protests (Jul 26)
FERC head warns of natural gas woes
Alliance looks to build pipeline to U.S. markets
26
Whale death fuels LNG debate
Whale's death a call to arms for LNG opponents
Body of dead right whale examined at Campobello
Change of representation on county board and minutes of meetings irks Perry selectwoman
Senate vote could lead to drilling off Maine
North American LNG Import Terminals: Status of Proposed and Existing Facilities
Report recommends moving forward with LNG terminal proposal (Jul 25)
Expert calls LNG terminal applications 'deficient' (Jul 25)
25
Rare right whale found dead in Bay of Fundy
Recall measure to face vote on Nov. 7 ballot: Perry's chairman of selectmen states opposition to initiative
City fires back at Hess
Legislature passes bill to thwart proposed LNG facility in Fall River (Jul 24)
LNG proposal keeps moving
Blanco to get new LNG plan
LNG Announcement Expected Soon (Jul 24)
Russia blocks U.S. oil majors from bids
BG in talks with Gazprom over supplying liquid gas to America
In Bonny it never becomes night anymore (2004 Jul 13)
BG 2Q LNG Profit Disappoints Merrill Lynch (Jul 24)
House Democrats push new energy plan
24
McMoran expects LNG decision by end of year
BP chief to step down
4 ton crude spill in Russia's Sakhalin
Shell slips on Sakhalin ice, costs in bid to up reserves
22
Boaters rally against LNG development (Jul 14)
Group visits planned LNG terminal sites (Jul 14)
Downeast LNG: bay study not transparent (Jul 14)
Perry citizens' petition seeks recall provision (Jul 14)
Quoddy Bay LNG details resource reports (Jul 14)
Bridge bill blocks LNG
Hess: Providence-like blaze improbable scenario
"Concern" over lightning incident
A new effort to halt LNG
The lures (and limits) of natural gas: LNG spurs debates
21
Letter: Reasonable questions regarding LNG terminal [Letter to the editor] (Jul 20)
Bill in the pipeline addresses looming LNG tanker
FERC approves Tennessee pipeline expansion, rejects Everett LNG expansion argument
Fire didn't threaten nearby LNG tank, officials say (Jul 20)
Delaware says federal regulators erred in LNG decision
Marine Resources OKs dredging for Gulf LNG (Jul 19)
4 coastal construction projects get approval (Jul 20)
Dr. Bethel says legal woes of AES have no bearing on Bahamas proposal (Jul 19)
Federal agencies collaborate to expedite construction of Alaska Natural Gas Pipeline (Jun 19)
Canada LNG deals on roll
Local ports leery of LNG project (Jul 16)
Proposed Canada-Russia LNG deal gets boost at G8 (Jul 17)
Observations - Rosneft rakes it in (Jul 12)
14
Opponents speak out during fed official's tour
Canadian opponents of Maine LNG terminals seek rapid action from Ottawa (Jul 13)
Suffolk Moves to Ban Floating LNG Facilities
FERC Orders Broadwater to Produce Documents in Response to FOIA Requests (Jul 13)
U.S. attorney asked to stop LNG project
LNG plant to pay taxes early
USCG: San Pedro Bay Suitable for Vessel Transit to Long Beach Terminal (Jul 13)
Coast Guard and Maritime Transportation Act of 2006
12
LNG fallout divides Perry town leaders
Citizens of Perry reconsidering recall procedures (Jul 11)
Why the big buyer mystery?
LNG plan for site off Gloucester gets 1st ok (Jul 11)
Governor signs law restricting LNG tankers from Narragansett Bay
Mustang Engineering to upgrade Trunkline LNG facility
Delays may doom plans for Alaska gas pipeline
US Welcomes Russian Investment in LNG Terminals (Jul 10)
5
FERC Announces Visit To Quoddy Bay's Proposed LNG Sites (Jul 4)
Canaport™ LNG reaches two key milestones: EPC contracts awarded and pipeline agreements reached
An island sacrificed [Op-ed column] (Jul 4)
Proposed LNG Storage Facility Under Fire
LNG in the open [Editorial]
Governor asks state Energy Department to work closely with feds on LNG process
Who says LNG should go ahead? (Jul 4)
Report: Expanding Global LNG Market Will Draw More LNG to the United States
LNG plant still leaking gas (May 11)
2
Concert raised over $1,300 towards fights against LNG (Jun 20)
Save Passamaquoddy Bay now incorporated as legal organization (Jun 20)
BP, wharves board file LNG appeals
Locals keep eye on LNG
1
Getting real on LNG site [Editorial]
Boston’s ‘ticking time bomb’ (Jun 30)
LNG company accuses R.I. government of stalling permits
Western Canada pipelines close to hitting capacity

Top

31 July 2006

Candidates open to LNG site: Wind power supported, survey finds — Bangor Daily News, Bangor, ME

WEBMASTER'S COMMENTS: The only candidate to contact Save Passamaquoddy Bay to learn about the LNG issues from our perspective was Green candidate Pat LaMarche, although our concerns weren't addressed in the newspaper article.

Candidates were asked whether they favored having an LNG plant in eastern Maine, and if they favor any of three active plans in particular.

Gov. Baldacci, after initially backing LNG facilities here, has flipped to a non-committal approach, showing no responsible leadership on the issue, and has formed no statewide energy policy.

Apparently the other candidates don't really care what happens to the Way-Downeast economy and way of life. They have simply jumped into the pro-LNG pool head first, without looking, because it "sounds good" — without informing themselves on the issues. It will be no surprise when they come out of the pool with some enormous headaches.

The pro-LNG candidates show their intellectual disconnect with reality by opposing offshore drilling in order to "protect the scenic coastline," but supporting LNG terminals in Passamaquoddy Bay.

Man charged in connection with Grand Manan riot — CBC News New Brunswick

MLA wants inquiry into Grand Manan riot — CBC News New Brunswick

House torched, shots fired in Grand Manan riot — CBC News New Brunswick

WEBMASTER'S COMMENTS: The above three stories about the vigilante event, including the sympathetic statements by the Prime Minister and Grand Manan's mayor, makes one ponder how effective security issues regarding LNG tanker transit through the waters of this area can be addressed.

Panel erupts in dissent over LNG siting report — Boston Globe, Boston, MA

Six legislators on the 18-member commission are angry that the report, formally released yesterday, appears to endorse a controversial LNG terminal proposed on Outer Brewster Island in Boston Harbor, but makes no mention of the other three proposed facilities in Massachusetts. Five of the six also said in a statement that the 14-page report fails to analyze a suite of other environmental and safety issues.

Five other members of the commission, including the state's public safety secretary and the state's energy commissioner, said they want their names removed from the report if they are not allowed to amend it to reflect other concerns they have, including the need to more extensively study storage of LNG. (Jul 29)

Company Wants To Put LNG Tanks On Harbor Island — WCVB-TV, Boston, MA

...AES faces an uphill battle -- not only from environmental groups, but from competitors that want to build their own LNG facilities off the New England coastline. (Jul 27)

WEBMASTER'S COMMENTS: AES is the same company that is being sued by the Dominican Republic for creating an environmental disaster there, but FERC ignores a company's character when granting LNG permits in the United States. FERC has publicly stated on multiple occasions that they'd grant permits even to Adolf Hitler, Idi Amin, and Charles Manson. Osama bin Laden also fits the same criteria. Does that make it easier for you to sleep at night?

Supplying demand for natural gas — Anchorage Daily News, Anchorage, AK

Regardless of the fate of the Alaska gas pipeline, the three oil giants are moving to feed Lower 48 gas needs one way or another.

All three have huge LNG projects in the works on the East Coast and around the Gulf of Mexico, and other energy companies have dozens more on the drawing boards.

Oddly, despite ambitious plans to boost LNG imports, the existing LNG terminals are operating far below capacity, according to trade reports and the Department of Energy.

[T]he U.S. gas market is big and "there is ample room to support large volumes of LNG without radically depressing prices," Anthony Finizza, a consultant, told Alaska lawmakers last week. [Bold, red emphasis added.] (Jul 30)

WEBMASTER'S COMMENTS: This article substantiates how FERC's push for more LNG terminals is wrong-headed:

  1. Importing LNG will not reduce natural gas prices;
  2. The U.S. doesn't need boodles more LNG terminals. The existing terminals aren't even close to running at full capacity.

Bill To Govern LNG — Bahama Journal, Nassau, Bahamas

[Minister of Agriculture and Marine Resources Leslie Miller] was asked to respond to comments made recently by Ambassador to the Environment Keod Smith, who said he was concerned that the government was negotiating an agreement with the AES Corporation in the absence of regulations.

Green Coast Related

Solar power runs 'world's largest laundry' — AP, Dallas Morning News, Dallas, TX

Scaling a ladder to the scorching roof one recent morning, the 61-year-old beamed with pride as he showed off the 36 10-by-4-foot panels that supply his 24-hour laundry with hot water.

Benson first converted from natural gas to solar in 2001, two years after buying the laundry. The motivation, he says unapologetically, was pure dollars and cents. (Jul 30)

WEBMASTER'S COMMENTS: The Chicago area isn't known for hot sunshine like southern states, so this model should encourage others in more northern climes to follow suit.

Top

27 July 2006

Grand Manan riot shows Canadians want crackdown on crime: Harper — CBC News New Brunswick

Harper referred to the Grand Manan incident four days after a group of about 40 residents burnt a house to the ground in the community of Castalia and beat up the occupants.

The riot was attributed to a group of vigilantes who were responding to reports that drugs were being sold in the house. They allegedly marched on the house carrying guns, knives, and baseball bats. [Bold emphasis added.]

WEBMASTER'S COMMENTS: Apparently, threats to acceptable way of life in the Fundy Isles aren't well tolerated. This introduces a new dimension to the security issues surrounding the proposed LNG freighter transit through Canadian waters.

Pipeline Pressure — BSR News, Bozeman, MT

On July 7, 2006, the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) granted pressure-standard waivers to three existing or proposed natural gas pipelines: the Alliance pipeline from the Canadian border to near Chicago, the Maritimes and Northeast pipeline from northern Maine to near Boston, and the proposed Rockies Express pipeline. The waivers permit the pipelines to operate at a pressure 10% greater than standard limits.

Other proposed or recently-constructed pipelines are likely to apply for similar waivers because there is a substantial economic incentive for natural gas pipelines to increase pipeline pressure. By moving more gas through the same pipeline, volume (and income) increase. So do stresses on the pipeline.

Allowing higher operating pressure in natural gas pipelines reduces the overall safety margin of the pipeline. An operating pressure increase of 10%, from 72% to 80% of SMYS, is a reduction in the safety margin from 28% to 20% of SMYS, or nearly 30%. That's a big difference. PHMSA recognizes that difference and required all three pipeline operators to conduct hydrostatic testing of the pipelines at 125% of MAOP, the theory being that if the pipeline can survive the test, the safety margin is sufficient.

The U.S. does not regulate separation distances between pipelines, between pipelines and buildings, or between pipelines and high-voltage electrical lines. [Bold & red emphasis added.] (Jul 26)

WEBMASTER'S COMMENTS: If your property is near the Maritimes and Northeast natural gas pipeline route and your anxiety is building after reading the above, knowing that FERC and the U.S. Department of Transportation say that "public safety is their first concern" is of little comfort.

Law would stall Fall River LNG: Mass. bill’s ‘buffers’ mimic R.I. — Boston Herald, Boston, MA

Correia acknowledged he’s merely using the same tactics as Rhode Island — and applying them to Massachusetts.

Romney says LNG needed, but not in Fall River — WRGB-TV, Albany, NY

State officials in both Rhode Island and Massachusetts have called the proposed terminal a safety hazard, especially if the flammable cargo ignites and explodes. (Jul 26)

Bill in the pipeline addresses looming LNG terminal — Swampscott Reporter, Swampscott, MA

"This plan should include the number of facilities, if any, that are actually needed. Proposed locations should be well researched to assure that there is no negative impact on the waters and the shores of Marblehead and other surrounding communities."

The letter continued, "We are not aware of any comprehensive study that has been completed to determine New England's broad energy needs. It is our opinion that federal and state authorities need to conduct a regional assessment of our energy needs in order to consider the benefits and the dangers of the Neptune project, as well as other proposed LNG terminals." [Bold emphasis added.]

Baltimore Mayor Opposes Sparrows Point LNG Proposal — LNG Law Blog, Washington, DC

In a letter to FERC dated June 28, Baltimore Mayor Martin O’Malley expressed opposition to AES’ Sparrows Point LNG terminal proposed for Dundalk, Md., saying that the project poses "unacceptable security and environmental risks." (Jul 26)

Northern Star responds to LNG protests — Daily Astorian, Astoria, OR

While the terminal is proposed for Oregon, it would sit just across the river from residents of Washington's Puget Island. (Jul 26)

FERC head warns of natural gas woes — United Press International (UPI)

FERC Chairman Joseph Kelliher said Wednesday at a Platts conference that an increase in summer liquefied natural gas imports could cause U.S. gas storage to fill up routinely by the end of August instead of October, easing prices in the summer but possibly contributing to volatility in the winter.

WEBMASTER'S COMMENTS: Let's get this straight: Importing more LNG will, according to industry proponents, bring the price of natural gas down. But, if natural gas storage is all filled up in the summer, when prices are cheapest, then we'll be paying "volatile" natural gas prices in the winter?

Alliance looks to build pipeline to U.S. markets — Globe and Mail, Toronto, ON

One option is to link Alliance's pipeline, which begins in northeastern British Columbia and ends in Illinois, with a storage hub in Lebanon, Ohio, from which gas could be moved to the East Coast.

WEBMASTER'S COMMENTS: Here's another example of why Downeast LNG and Quoddy Bay LLC projects are moot.

Top

26 July 2006

Whale death fuels LNG debate — Telegraph Journal, Saint John, NB [Paid subscription required]

"It is hard to say where the whale was struck, but it appears it was found directly in the route leading into Passamaquoddy Bay. My understanding is that it was near an area that we've been arguing is one of the most important calving and feeding grounds for whales in this part of the bay," [said Arthur MacKay, director of the St. Croix Estuary Project in St. Stephen].

"Hopefully, this little guy's life won't go to waste."

Whale's death a call to arms for LNG opponents — Telegraph Journal, Saint John, NB [Paid subscription required]

The young whale, a female, was found floating Monday off Grand Manan by a whale-watching operator. Opponents of an LNG facility in Maine say the death shows a proposed project is too dangerous to marine life, but researchers have yet to decide how and where the whale died.

Body of dead right whale examined at Campobello — Bangor Daily News, Bangor, ME

Those who gathered to perform a necropsy on the animal believed it had been the victim of a ship strike; however, they were not sure if the strike had killed the whale or if it had died naturally and been hit as it floated. Ship strike is one of the most common causes of death in the endangered species.

The whale had a major propeller wound and 13 smaller propeller cuts. The researchers believe the whale, 31 feet long, had been dead for about a week.

Change of representation on county board and minutes of meetings irks Perry selectwoman — WQDY-FM, Calais, ME

Two Perry Selectmen, chairman David Turner and Dick Adams voted themselves in as the new representatives of the town for the Washington County Council of Governments at Monday's meeting.

Selectwoman Jeanne Guisinger and Planning Board chair Nancy Asante had held those two positions.

Turner and Adams are pro-LNG, while Guisinger and Asante are fiercely opposed to LNG in Perry or anywhere else.

WEBMASTER'S COMMENTS: Setting the record straight: Guisinger and Asante are not opposed to appropriately-sited LNG terminals.

Senate vote could lead to drilling off Maine — Portland Press Herald, Portland, ME

While Snowe is leaning against even debating the measure, Collins said she would support a debate — and then oppose the legislation if negotiations with the House ultimately lead to coastal drilling near Maine.

Collins said the country should increase domestic oil production — without coastal drilling in the Northeast — while also pursuing conservation efforts.

"I think we need to draw the line very carefully," she said. "I cannot support any bill that would put the Maine coast or any ecologically sensitive areas at risk for offshore drilling."

"It invites the prospect of that type of drilling off the coast - to the Gulf of Maine, Georges Bank - all of the areas that are so vital to New England fisheries," Snowe said.

WEBMASTER'S COMMENTS: Collins's stand is curious, since she has stated that LNG issues affecting the Passamaquoddy Bay fishery aren't within her sphere of responsibility.

North American LNG Import Terminals: Status of Proposed and Existing Facilities — Natural Gas Intelligence

In addition to the approved terminals, there are another 25 projects, with 27.75 Bcf/d of proposed peak sendout, on file with regulators in Canada, the United States and Mexico. Another 21 projects, with 17.3 Bcf/d of expected peak sendout, are in the planning stages. And at least 11 LNG projects have been canceled so far. [Bold, red emphasis added.]

WEBMASTER'S COMMENTS: LNG projects are dropping out, perhaps because they realize that LNG importation infrastructure for New England is already 400% over the capacity of the market. Watch for Downeast LNG and Quoddy Bay LLC, to appear soon on this dropout list.

Report recommends moving forward with LNG terminal proposal — Boston Globe, Boston, MA

The report, obtained by The Associated Press and scheduled for official release on Friday, says additional LNG terminals are critically important for the region's future energy demands, and are best built away from densely-populated areas to reduce safety concerns. The commission has been studying critera for siting proposed LNG facilities in the state. (Jul 25)

Expert calls LNG terminal applications 'deficient' — Daily News, Longview, WA

A former petroleum industry executive said Tuesday that documents submitted by a Houston company hoping to build a liquified natural gas terminal on the Columbia River are "deficient in technical information" and do not adequately address questions about safety, river traffic or even the company's business plan. (Jul 25)

Top

25 July 2006

Rare right whale found dead in Bay of Fundy — CBC News New Brunswick

The 25-tonne, nine-metre long whale was found Monday afternoon between the islands of Campobello and Grand Manan, said Jerry Conway, a marine mammal advisor with the department.

He said the whale was towed to a beach in Campobello, where a necropsy was being performed Tuesday.

Conway said the whale was two or three years old, and may have been struck by a ship.

In recent years, marine scientists have managed to get shipping lanes in the Bay of Fundy rerouted and large tankers diverted away from whale habitats.

WEBMASTER'S COMMENTS: LNG terminals in Passamaquoddy Bay, especially with Quoddy Bay LLC's proposed 180 ships per year (a ship coming or going nearly every day), more whale mortality can be expected.

Recall measure to face vote on Nov. 7 ballot: Perry's chairman of selectmen states opposition to initiative — Bangor Daily News, Bangor, ME

Residents and neighbors have been sorely divided ever since an Oklahoma company, Quoddy Bay LNG, announced its proposal to bring a liquefied natural gas facility to Perry and Passamaquoddy Bay.

WEBMASTER'S COMMENTS: At the July 13 FERC site visit to the proposed Quoddy Bay LLC site, Project Manager Brian Smith was asked if he didn't feel badly about the division among friends, family, and neighbors that his project had brought to the area. Smith stated "no," that he thought debate was good, confirming his insensitivity about the area's residents.

City fires back at Hess — Herald News, Fall River, MA

"The city of Fall River believes that the continuing revisions and modifications of this Project which, when considered in conjunction with the omission of vital data concerning site remediation, water quality, and impacts on struggling marine resources, make it infeasible to certify, with any degree of confidence, that damage to the environment has been avoided, minimized and mitigated to the maximum practicable extent," the report states.

LNG proposal keeps moving — Times-Picayune, New Orleans, LA

McMoran modified its application for a liquefied natural gas port east of the mouth of the Mississippi River after its original application was vetoed in May by Gov. Kathleen Blanco. The modified application calls for a technology that will use natural gas rather than seawater to warm the supercooled gas. Environmentalists and Blanco had opposed the original application because the use of seawater to warm the gas would kill sealife.

Blanco to get new LNG plan — Advocate, Baton Rouge, LA

Still at issue is a second condition Blanco attached to her veto.

“I will insist on Louisiana receiving a share of the revenues gained from LNG projects,” the governor said in May. “This is only right.”

But unlike Blanco’s separate challenge to secure a larger state share of federal offshore mineral leases, LNG projects are different.

“This is potentially a gray area,” said David Dismukes of the LSU Center for Energy Studies. “The real asset (imported liquefied natural gas) originates somewhere else in the world, not here.”

LNG Announcement Expected Soon — KFDM-TV, Beaumont, TX

...ExxonMobil expects to make an announcement in the next couple of weeks about a $1 billion LNG terminal in Sabine Pass. (Jul 24)

Russia blocks U.S. oil majors from bids — UPI, Washington Times, Washington, DC

Putin is set to keep U.S. oil companies from developing in fields in the Barents Sea due to President Bush's attempts to block Russia's bid to join the World Trade Organization, the newspaper reported Sunday.

The retaliatory measure will be a blow to U.S. oil companies, which are scrambling to gain access to Russia's huge gas reserves at a time of soaring energy prices.

WEBMASTER'S COMMENTS: At the same time, the U.S. has invited Russia to own U.S. energy infrastructure, including LNG terminals. That's good for U.S. energy security?

BG in talks with Gazprom over supplying liquid gas to America — Telegraph, London, UK

Gazprom wants to supply the market for LNG, where gas is turned into a liquid to enable the fuel to be transported round the globe by ship, but would like to use BG's import plants.

WEBMASTER'S COMMENTS: ...Or, to own BG's import plants.

BG 2Q LNG Profit Disappoints Merrill Lynch — New Ratings, New York, NY

BG Groups' (BRG) second quarter earnings before interest and tax at its liquefied-natural-gas unit were a disappointment, says Merrill Lynch. (Jul 24)

WEBMASTER'S COMMENTS: Here's another indication that LNG isn't in as good a shape as developers want us to believe.

House Democrats push new energy plan — UPI, Washington Times, Washington, DC

Democratic Whip Hoyer said the Program for Real Energy Security, dubbed the PROGRESS Act, will focus U.S. energy policy on independence from foreign oil and build domestic energy capacity.

This includes funneling money to invest in transportation infrastructure, new technology for automobiles and biofuels such as cellulosic ethanol.

The bill would create a National Energy Security Commission to collaborate with government, academic and industry officials.

Top

24 July 2006

McMoran expects LNG decision by end of year — Advocate, Baton Rouge, LA

The proposed terminal facility, 38 miles east of Venice in the Gulf, could regasify 1 billion cubic feet of natural gas a day, store up to 28 billion cubic feet and deliver up to 2.5 billion cubic feet a day. McMoran expects the Coast Guard to publish its environmental assessment in September, followed by a 45-day comment period and an ultimate decision near the end of 2006.

BP chief to step down — Washington Times, Washington, DC

The head of London-based BP plans to announce his resignation Tuesday, four days after a death at its Texas City, Texas, plant and amid other safety concerns.

The Wall Street Journal reports it is the same plant where 15 contractors were killed in a March 2005 explosion and where numerous safety violations took place, resulting in $21.4 million in fines.

In March 2006, the biggest oil spill ever leaked from BP's Prudhoe Bay, Alaska oil field, the Financial Times reported.

A criminal investigation and grand jury inquiry is ongoing.

BP has been accused by U.S. officials of fraud in the propane gas market in 2004 and last year's Hurricane Dennis wracked a Gulf of Mexico platform so bad production may not begin until next year.

WEBMASTER'S COMMENTS: The BP chief falls on his sword, acknowledging a serious problem that even FERC refuses to recognize.

As FERC personnel have previously stated, FERC policy doesn't require LNG terminal developer or operator good character. FERC has literally — and incredibly — stated that they'd allow anyone to build, own, and operate an LNG terminal, including the likes of Adolf Hitler, Idi Amin, and Charles Manson, as long as the sociopaths follow FERC's rules. But that's the problem with FERC's logic: sociopaths and criminals don't follow society's rules.

Hopefully, BP's lack of safety and dealing in fraud will be a thing of the past once a new corporate leader is in place, despite FERC's lack of regulatory sensibility. Hopefully, Congress will legislate reasonable veracity and character requirements on FERC and on those regulated by FERC.

4 ton crude spill in Russia's Sakhalin — Washington Times, Washington, DC

The spill occurred Saturday, but the media was not informed of the event until Monday.

WEBMASTER'S COMMENTS: If ever there were a case of gross environmental and social injustice committed against an indigenous population, Sakhalin Island is it. Thankfully for everyone in the Passamaquoddy Bay area — and although Quoddy Bay LLC, the Bureau of Indian Affairs, and FERC are trampling on indigenous people's rights — the local LNG projects are dust and the misdeeds will cease.

Shell slips on Sakhalin ice, costs in bid to up reserves — Gulf Times, Doha, Qatar

Europe’s second-biggest oil company is struggling with rising costs for steel, equipment, and labor on Sakhalin.

Environmental groups seeking to protect whales and salmon have forced Shell to redesign and reroute pipelines, while the European Bank for Reconstruction and Development is reviewing Sakhalin II before approving loans for the project.

The Hague-based Shell is still recovering from the 2004 accounting review that forced it to reduce proven reserves by 5.63bn barrels, or 29%. The cut cost Chairman Philip Watts his job and persuaded Shell to ditch its century-old dual-ownership structure.

Top

22 July 2006

Boaters rally against LNG development — Quoddy Tides, Eastport, ME

On July 3, between the celebration of Canada Day and the U.S. Independence Day on July 4, Save Passamaquoddy Bay Canada held its second annual Sailabration. The event was a celebration of the beauty, majesty and purity of the natural environment of Passamaquoddy Bay and a rally to prevent the building of liquefied natural gas facilities, which the group believes will pollute and despoil the bay. (Jul 14)

Group visits planned LNG terminal sites — Quoddy Tides, Eastport, ME

The July 12 meeting of the Maine and New Hampshire Port Safety Forum held at the Boat School in Eastport included slide presentations by Downeast LNG and Quoddy Bay LNG representatives. Both companies propose to construct liquefied natural gas (LNG) facilities in the Quoddy Bay area. (Jul 14)

WEBMASTER'S COMMENTS: At the Port Safety Forum, Robert Godfrey, of Save Passamaquoddy Bay 3-Nation Alliance, gave a presentation on the Society of International Gas Tanker and Terminal Operators (SIGTTO) LNG terminal siting safety standards, and how the proposed LNG terminals in Passamaquoddy Bay cannot meet those standards.

Godfrey also refuted a statement made by Downeast LNG's President Dean Girdis, who said that LNG terminals need protected harbors, which is why they chose Passamaquoddy Bay out of all the other possible locations along the New England Coast. Godfrey pointed out that the Excelerate Energy project 13 miles off the coast of Gloucester, Massachussetts, had just received its first approval from that state to site there offshore — not in a protected harbor — submerged buoy LNG terminal, and that their Gulf of Mexico offshore terminal offloaded LNG during the Katrina Hurricaine.

It should also be pointed out that the Canaport LNG terminal now under construction at Saint John, New Brunswick, is not in a protected harbor.

Girdis's statement was "blowing smoke" to justify Downeast LNG's poor siting location.

Downeast LNG: bay study not transparent — Quoddy Tides, Eastport, ME

Commenting on the recently released Whole Bay Study dealing with the potential economic and fiscal impacts on the Passamaquoddy Bay Region of liquefied natural gas (LNG) terminals in the Quoddy Bay area, Dean Girdis, president of Downeast LNG, which proposes to construct an LNG facility at Mill Cove in Robbinston, says, "I don't believe the report was very transparent. There were a lot of leading questions asked of local people." (Jul 14)

WEBMASTER'S COMMENTS: Those remarks are to be expected from a company that didn't do their homework, using second-class methods — such as the deficient IMPLAN model — for their own studies.

Perry citizens' petition seeks recall provision — Quoddy Tides, Eastport, ME

Perry resident Bill Kendall read a brief statement: "With this initiative, the citizens of Perry are making a clear statement that they have the utmost respect for the dedicated, hard-working and committed public servants that hold elected office. But they also expect that their trust not be abused, the authority they delegate not be overstepped and that the will of the people will be consulted and respected. We are setting a standard of accountability with this petition and reaffirming the basic principle of democratic rule." The request asked for the town clerk to certify the signatures contained on the petition within 10 days. (Jul 14)

Quoddy Bay LNG details resource reports — Quoddy Tides, Eastport, ME

Resource Reports 1 through 11 are available to the public, while Resource Report 12 is not applicable to the Quoddy Bay LNG terminal, and Resource Report 13 is considered by the U.S. Government to be Critical Energy Infrastructure Information, and therefore not available to the public. (Jul 14)

WEBMASTER'S COMMENTS: FERC claims that their process is "open and public"; however, Resource Report #13 contains such things as thermal radiation hazard zones, something that the public has a great interest in, but FERC is keeping that information from the public.

Bridge bill blocks LNG — Herald News, Fall River, MA

State Sen. Joan Menard, D-Fall River, and state Rep. Robert Correia, D-Fall River, told The Herald News Friday morning that legislation they have created to restrict LNG tankers passed in both the House and Senate late Thursday night, with enactment of the bill expected on Monday.

According to the act, which amends Chapter 102 of the General Laws on Harbors and Harbormasters, no person can operate a vessel transporting LNG through a bridge having a horizontal clearance of 250 feet or less unless the beam of such vessel is equal to or less than two-thirds of the horizontal clearance of the bridge. Operation of a vessel under a bridge having a vertical clearance of 185 feet or less is also prohibited.

Any violation of the safe clearance requirements established in the bill would subject the operator to a civil penalty not to exceed $1 million.

Along with the clearance restrictions, Correia and Menard included language in the bill that mimics a law recently passed Rhode Island that would prohibit assets of the commonwealth from being in the safety and security zones for LNG tankers as established by the Coast Guard. That zone extends two miles ahead of the ship, one mile behind it, 1,000 yards on each side and 30 feet above the ship.

The bill prohibits in the zone any people, piers, wharves, docks, bulkheads, waterfront facilities, flammable materials, hunting grounds or areas from which an incendiary device could be launched, or where welding, torch-cutting or hot work is being performed.

WEBMASTER'S COMMENTS: It appears that Congress's attempt to give FERC superior LNG terminal siting authority over states has failed.

Hess: Providence-like blaze improbable scenario — Herald News, Fall River, MA

"LNG does not explode because it is not mixed with oxygen," project spokesman James Grasso said.

Grasso explained that when LNG is cooled to 260 degrees below zero all of the oxygen is removed, resulting in pure methane.

"I can tell you gasoline explodes, jet fuel explodes, oil explodes and all other fuels explode, but LNG does not explode, especially in unconfined areas," Grasso said

Mayor Edward M. Lambert Jr. said the Providence incident is an example that unscheduled events could have an effect on the presence on LNG in the city.

"As I've said from the start, it's not just intentional acts that people have to be worried about because natural acts or human error are possible," Lambert said. "This is just another reason to highlight why these facilities should be kept out of highly populated areas."

WEBMASTER'S COMMENTS: Hess spokesman James Grasso doesn't understand chemistry or physics, or he's simply "blowing smoke" at the public. Grasso states that "gasoline explodes, jet fuel explodes, oil explodes, and all other fuels explode, but LNG does not explode, expecially in unconfined areas."

"Earth to Grasso":
Just like LNG, none of the vapors from the fuels that Grasso mentions will explode without oxygen.

LNG is not made up of pure methane, since no LNG liquifaction facility in the world makes pure-methane LNG. LNG contains other gasses, some of which are more volatile than methane. Some LNG contains a high enough percentage of other hydrocarbon gasses that the LNG is termed "hot."

LNG vapors can explode in unconfined areas when the LNG is "hot" (contains a large amount of non-methane hydrocarbons). See: "LNG and Public Safety Issues: Summarizing current knowledge about potential worst-case consequences of LNG spills onto water," by Jerry Havens, in the U.S. Coast Guard publication, Proceedings of the Marine Safety & Security Council: the Coast Guard Journal of Safety at Sea, Fall 2005 (PDF), page 29. U.S. Coast Guard-sponsored research proves that "hot" LNG vapors can explode, exploding the FERC & LNG industry's non-exploding-LNG myth.

Grasso's comments merely emphasize the need for Congress to require the LNG industry and FERC to be honest with the public.

The lures (and limits) of natural gas: LNG spurs debates — Mywesttexas

Russia is the world's dominant player in natural gas, and the summit's host, Russian President Vladimir Putin, has made "energy security" — and implicitly, his country's increasing leverage on energy matters — a central theme of the meeting. In the coming years, the distance from St. Petersburg to Fall River may get a lot shorter.

[S]ome European governments have been looking for ways to move away from gas altogether.

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21 July 2006

Letter: Reasonable questions regarding LNG terminal [Letter to the editor] — Marblehead Reporter, Marblehead, MA

The companies involved in the proposed LNG offshore terminals should be commended for proposing a more innovative siting plan that places the proposed LNG terminal at a significant distance offshore. This offers the potential to reduce the potential for both loss of life and property damage in the event of a catastrophic LNG event, such as a Boiling Liquid Expanding Vapor Explosion. By employing a relatively remote site, the attractiveness to terrorists for attack is simultaneously reduced compared to onshore facilities in major metropolitan areas, such as the Distrigas terminal near downtown Boston. (Jul 20)

FERC approves Tennessee pipeline expansion, rejects Everett LNG expansion argument — LNG Law Blog, Washington, DC

FERC yesterday issued an order approving an expansion to Tennessee Gas' pipeline system in Massachusetts.

Fire didn't threaten nearby LNG tank, officials say — Providence Journal, Providence, RI

The gasoline explosions at the Motiva terminal occurred on a pier just 970 feet from the 600,000-barrel storage tank that is nearly full of liquefied natural gas. (Jul 20)

Delaware says federal regulators erred in LNG decision — News Journal, Wilmington, DE

Federal energy regulators neglected their duties and violated regulations in granting BP a license last month to build a liquefied natural gas terminal along the Delaware River opposite Claymont, according to a Delaware petition released this morning.

In a request for a re-hearing by the Federal Energy Regulatory Commission, Delaware officials argued the agency illegally ignored state findings that the project conflicts with the state’s coastal area protection laws.

FERC commissioners, Delaware added, approved an application for the BP Crown Landing site “while refusing to resolve numerous” environmental and state oversight issues. Some of FERC’s actions, Delaware argued, appear to be an effort to evade public hearing and comment requirements. [Bold & red emphasis added.]

WEBMASTER'S COMMENTS: FERC doesn't appear to be as "open and public" as claims to be.

Marine Resources OKs dredging for Gulf LNG — Mississippi Press, Biloxi, MS

The Commission on Marine Resources Tuesday gave Gulf LNG the go-ahead to dredge 61.3 acres of Bayou Casotte and fill in more than 15 acres near the site of the company's proposed liquefied natural gas facility. (Jul 19)

4 coastal construction projects get approval — Clarion Ledger, Jackson, MS

Gulf LNG Energy was also cleared on the DMR-regulated portions of their proposed LNG terminal south and east of Bayou Casotte in Jackson County. (Jul 20)

Dr. Bethel says legal woes of AES have no bearing on Bahamas proposal — Bahama Journal, Nassau, Bahamas

The fact that the government of the Dominican Republic is suing the AES Corporation claiming that it damaged the environment is irrelevant to The Bahamas government's ongoing considerations of the energy company's proposal to construct a liquefied natural gas (LNG) project on Ocean Cay in the northern Bahamas, according to a senior government official. (Jul 19)

WEBMASTER'S COMMENTS: It looks like Bahamian government takes the same devil-may-care attitude as FERC does regarding the character of LNG developers and operating companies. FERC officials say they'd grant LNG terminal permits to the likes of Adolf Hitler, Idi Amin, and Charles Manson.

Federal agencies collaborate to expedite construction of Alaska Natural Gas Pipeline — Fossil Energy Techline, U.S. Dept. of Energy - Fossil Energy

The U.S. Department of Energy and fourteen other federal departments and agencies have signed an agreement to expedite the permitting and construction of the Alaska Natural Gas Pipeline which, when operational, will substantially increase domestic natural gas supply and advance the Administration’s energy security policy.  The agreement signals the U.S. government’s commitment to expedite the federal permitting processes for the Alaska Natural Gas Pipeline and establishes a project management framework for cooperation among participating agencies to reduce bureaucratic delays in construction of the pipeline and delivery of natural gas to consumers. (Jun 29)

WEBMASTER'S COMMENTS: The Alaska Natural Gas Pipeline will reduce the need for importation of LNG.

Canada LNG deals on roll — Petroleum News, Anchorage, AK

Government leaders endorse Gazprom, Petro-Canada’s deal in pushing LNG. (Jul 23 edition)

Local ports leery of LNG project — Daily News, Longview, WA

Just before a deadline this month to peak up, the ports of Kalama and Vancouver warned the Federal Energy Regulatory Commission that tankers carrying liquified natural gas (LNG) could "wreak havoc on shipping in the Columbia River."

Port officials say a moving bubble of protection in the 600-foot wide Columbia River channel could turn the waterway into a one-way river, with LNG tankers getting the right-of-way, while other ships get stopped. An LNG tanker would take three hours to travel from Astoria to Bradwood. Ships leaving ports between Longview and Portland could be held up for those three hours, according to a report filed by Northern Star.

Disruptions would make Lower Columbia ports less attractive to shippers and jeopardize the business advantages ports will gain with a deeper channel, Kalama port director Lanny Cawley said.

The threat to the port's economic interests will be one of the stronger arguments against the terminal, he said. "If ports want to attract new shipping companies, having LNG here is going to be a major strike against them." (Jul 16)

Proposed Canada-Russia LNG deal gets boost at G8 — Globe and Mail, Toronto, ON

A deal that would send tankers of Russian natural gas to Canada could become a major link between the vast Russian gas fields and North American markets, Russia's Energy Minister says, although it won't be the only route.

The liquefied gas would travel from a processing plant in Ust-Luga in northern Russia to a terminal in Cacouna, Que. Competing projects would send Russia's liquefied gas to seaports on the Gulf of Mexico and the U.S. West Coast.

Russia has also been pushing to diversify its routes of energy export as a way of gaining leverage over its customers. After a flurry of controversy this year over a decision to cut gas supplies to Ukraine during a pricing dispute, some Kremlin officials suggested expanding the country's exports east to China in response to criticism from the West.

But as Mr. Harper travelled to the G8 summit, he warned that Canada has little tolerance for "self-serving monopolistic political strategies," alluding to Russia's aggressive pursuit of what it refers to energy superpower status. [Bold emphasis added.] (Jul 17)

WEBMASTER'S COMMENTS: Prime Minister Harper's reservations regarding Russia's monopolistic business model is appropriate. Allowing Russia to put its grip on energy security in North America is a patently bad idea.

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14 July 2006

Opponents speak out during fed official's tour — Bangor Daily News, Bangor, ME

[J]udging from the comments and questions posed by people who accompanied the officials on the tour, many members of the public saw it as an opportunity to challenge the proposal and to question the effectiveness of FERC's review process.

WEBMASTER'S COMMENTS: This FERC official site visit exemplified one more reason why the project won't happen: Quoddy Bay LLC project manager Brian Smith demonstrated an appalling lack of knowledge about his own project and his newly-entered industry, made several factually incorrect statements, made empty promises, and initially couldn't even find his tank storage site. He lead the entire vehicle caravan of visitors all the way to the southern dead end of the Old Eastport Road, requiring the caravan to turn around and drive all the way back to find the proper location.

Smith insisted that pure methane (methane — a.k.a. "natural gas" — is the fuel product in LNG) is what Quoddy Bay would be receiving from their supplier. He claimed that pure methane burns too "hot" for end users, and must have nitrogen added to make it less hot. Smith also referred to the gasses that make LNG hot as "inert." He stated that Quoddy Bay LLC would be receiving hot LNG, and so, would be adding nitrogen to the regasified LNG. When he was verbally backed into a corner by this writer because of his errors, he even asked if this writer would provide him with the correct information, if he were wrong.

Well, then...

...Quoddy Bay LLC Project Manager Brian Smith was as wrong as anyone could possibly be, and the correct information is provided below.

"Inert" gas does not burn. Propane, ethane, butane, as well as methane, are not inert. Nitrogen, however, is inert.

LNG is not delivered as pure methane, but contains other flammable gasses: ethane, propane, and butane. It is those other gasses in the LNG that can cause it to be hot, and therefore unacceptable to the pipeline and users. In fact, according to recognized LNG safety experts Prof. James Fay and Dr. Jerry Havens, and as demonstrated in tests conducted by the U.S. Coast Guard, natural gas hotness can enable unconfined LNG vapor to explode — another fact that Smith insisted is untrue.

See: "LNG and Public Safety Issues: Summarizing current knowledge about potential worst-case consequences of LNG spills onto water," by Jerry Havens, in Proceedings of the Marine Safety & Security Council: the Coast Guard Journal of Safety at Sea, Fall 2005 (PDF), page 29. This article information is also contained in the quotes from the California Public Utility Commission's filing with FERC, below. The article in the above 2005 U.S. Coast Guard publication indicates that unconfined "hot" LNG vapors can explode.

U.S. Coast Guard take note:
Since Smith volunteered that Quoddy Bay LLC intends to receive hot gas, then an unconfined gas vapor cloud from Quoddy Bay LLC's LNG tankers could explode.
This must be taken into account during the Coast Guard's Waterway Suitability Study.

Following are quotes from the California Public Utility Commission's 2005 October 4 filing with FERC (PDF, 1.7 MB), with the following quotes from U.S. Government-recognized LNG safety authority, Dr. Jerry Havens:


"[M]ixtures of methane with heavy components such as ethane and propane, when contained in concentrations greater than about 12-18%, are subject to high order explosions." — PDF page 25


"LNG is ... imported from some other locations with concentrations of heavier hydrocarbons as high as 15-20%. Such gas is termed “hot gas” in the industry because its calorific value (energy content) is higher than an equivalent volume of methane. Typical heavy hydrocarbon gases present in LNG are ethane and propane, but others are present as well.

"We know now that even unconfined vapor cloud explosions (UVCEs) cannot be dismissed for LNG spills if the gas contains significant amounts (say greater than about 12 to 18%, based on Coast Guard sponsored tests at China Lake in the Eighties) of gas components heavier than methane. Furthermore, enrichment in higher boiling point components of the liquid remaining as the LNG vaporizes can lead to vapor cloud concentrations that could pose a UVCE hazard, even if the concentration of the heavies in the liquid initially spilled do not. Since the LNG terminal proposed to be located in the POLB is planned to receive “hot gas”... questions of whether major releases of LNG at the terminal might pose an unconfined vapor cloud explosion hazard, with the attendant potential to initiate further cascading effects, remain highly relevant." — PDF page 57


Smith's awkward bungling at an official FERC event, in front of a FERC representative, the news media, and the public, convincingly demonstrated that Quoddy Bay LLC doesn't have the required competency to build or operate their proposed project.

Canadian opponents of Maine LNG terminals seek rapid action from Ottawa — CanadaEast.com

Janice Harvey of the Save Passamaquoddy Bay group says Prime Minister Stephen Harper has stated his opposition to the projects, but has yet to introduce regulations to stop them. (Jul 13)

Suffolk Moves to Ban Floating LNG Facilities — Northender, Oyster Bay, NY

Suffolk County Executive Steve Levy and the leaders of the Suffolk County Legislature announced today that they were filing a bill that would prevent the construction of LNG (Liquefied Natural Gas) facilities in the waters of the Long Island Sound off Suffolk's north shore. The officials insist that there are several provisions within New York State Law that give the County regulatory authority over the Long Island Sound and its tidal waters within its borders. 

FERC Orders Broadwater to Produce Documents in Response to FOIA Requests — LNG Law Blog, Washington, DC

FERC Commissioners order documents be made public. (Jul 13)

U.S. attorney asked to stop LNG project — Baltimore Sun, Baltimore, MD

Saying that construction of a liquefied natural gas facility at Sparrows Point would violate an agreement that requires the former Bethlehem Steel shipyard to be cleaned up, a lawyer for Baltimore County residents opposed to the LNG terminal is asking the U.S. attorney to stop the project.

LNG plant to pay taxes early — KLFY-TV, Lafayette, LA

Houston-based Cheniere Energy has agreed to begin paying (m) millions in property taxes to Cameron Parish a decade before they are due in order to help the ailing parish fund its hurricane recovery projects.

WEBMASTER'S COMMENTS: The LNG industry and people, themselves, aren't necessarily bad. It's the siting process, greed, back room deals, and open season on anywhere and everywhere that's ugly.

Coast Guard and Maritime Transportation Act of 2006 — MarineLink.com

Among the provisions in the legislation [is] the following:

Developers of LNG import facilities will get a higher priority if they agree to be supplied by US-flag LNG vessels....

WEBMASTER'S COMMENTS: The Act is unlikely to affect LNG import facility development. See: U.S.-Built LNG Vessels Unlikely Despite Bill.

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12 July 2006

LNG fallout divides Perry town leaders — Bangor Daily News, Bangor, ME

A recall ordinance petition, allegations of bogus signatures, questions about spending money not approved by the town and a selectman lashing out at a resident summed up a selectmen's meeting Monday night.

Citizens of Perry reconsidering recall procedures — Bangor Daily News, Bangor, ME

The town has been a hotbed of controversy for the past two years ever since the Oklahoma-based Quoddy Bay LNG landed in this community.

Several residents have suggested that LNG has split the town. (Jul 11)

Why the big buyer mystery? — Chronicle Herald, Halifax, NS

It is still a mystery who the group of so-called international investors are that have signed a $125-million US deal to buy a liquefied natural gas project in Cape Breton from Anadarko Petroleum of Houston.

A day after the sale was announced, there is little known about the backers of the Paris-based group called U.S. Venture Energy, a private investment firm, which bought the assets, including a 72-hectare site, steel, tank foundations and environmental permits for the proposed $650-million US project.

Nova Scotia Energy Minister Bill Dooks referred to U.S. Venture Energy as a "group of investors from Europe or Spain" and expects to meet with them within a week or 10 days.

Mr. Doucet said the firm’s priority is to restart construction of the facility in Bear Head, Richmond County, that was put on hold by Anadarko earlier this year after it had difficulty finding a supply of natural gas.

WEBMASTER'S COMMENTS: Reviving the Bear Head LNG project means more doom and gloom for Downeast LNG and Quoddy Bay LLC.

LNG plan for site off Gloucester gets 1st ok — Boston Globe, Boston, MA

An offshore liquefied natural gas terminal 13 miles from Gloucester won initial state approval yesterday, the first significant step toward delivering the fuel far from populated areas to satisfy New England's growing demand for gas.

The Excelerate Energy LLC project must still meet a slew of federal and other state approvals before it can be built, but the state determined that the first round of environmental studies by the company adequately documented the potential consequences of their project to the marine ecosystem.

Construction of an offshore terminal would not force closure of the Everett terminal, New England's only operating LNG facility, but it may provide enough to meet New England's growing energy demand so that other projects wouldn't need to be built on land. (Jul 11)

WEBMASTER'S COMMENTS: Downeast LNG developer Dean Girdis's claims that Passamaquoddy Bay is the best location in all of New England. His claim is again shot full of holes. The Gloucester location is 13 miles offshore, with fewer security problems, lower construction cost, fewer navigation hazards, next to the market, and far away from the public.

In addition, the Gloucester LNG project will moot the need for terminals this far from the Boston-area demand. The LNG projects in Passamaquoddy Bay have no future other than as a money pit.

Governor signs law restricting LNG tankers from Narragansett Bay — Boston Globe, Boston, MA

A recently adopted law effectively bans tankers carrying liquefied natural gas from entering Narragansett Bay — a restriction Rhode Island lawmakers hope will prevent an LNG terminal from being built in nearby Fall River, Mass.

Coast Guard officials say the law may prove illegal and could seek to block it.

The bill, signed Monday by Gov. Don Carcieri, prohibits LNG tankers from coming within hundreds of yards of multiple obstacles and hazards, including people, docks, waterfront facilities, hunting grounds or anywhere workers are welding.

Gallison said his bill increases pressure on Weaver's Cove Energy to abandon plans to build a $250 million LNG terminal along the Taunton River in Fall River. To reach the terminal, LNG tankers must pass through Narragansett Bay.

WEBMASTER'S COMMENTS: This is one good example of why FERC's dominant authority over states is abominable. States and communities should have the ability to protect people and assets, as well as the LNG cargo and personnel, from potential catastrophe.

Mustang Engineering to upgrade Trunkline LNG facility — OilOnline, Houston, TX

The project involves the installation of Mustangís LNG Smart Air Vaporization Process and a natural gas liquids (NGL) extraction plant to recover ethane and other heavier hydrocarbons from the LNG stream.

The LNG Smart Air Vaporization Process captures the natural heat in ambient air and humidity to vaporize LNG. This is the first commercial-scale application of Mustangís LNG vaporization process.

WEBMASTER'S COMMENTS: Mustang's Smart Air Vaporization Process uses air, rather than burning gas (or using the heat from seawater) to reheat LNG into natural gas, eliminating a significant source of NOx pollution.

Significant NOx pollution is just one of the numerous unsavory attributes that Downeast LNG's Brian Smith promised to the Sunrise County Economic Council that his project would bring to the Passamaquoddy Bay area.

Delays may doom plans for Alaska gas pipeline — Seattle Times, Seattle, WA

"For Alaska to be a meaningful part of the natural-gas supply mix of the U.S. in the coming years, action needs to be taken now," the Federal Energy Regulatory Commission (FERC) said in a report to Congress issued Monday. "Any further delays may serve to make the Alaska gas pipeline uneconomic in comparison to LNG imports."

WEBMASTER'S COMMENTS: What's this! FERC has openly taken an advocacy position on this project. Doesn't FERC claim that their process is project-neutral?

Incidentally, BP is a partner in this project. BP is the company labeled as "lacking a corporate safety culture," due to its intentional safety violations that resulted in fatalities in their Texas City, TX, oil refinery explosion. BP is also under criminal investigation for illegally manipulating the natural gas market last winter, artificially raising natural gas prices.

FERC is totally unconcerned about the integrity of energy companies that it regulates.

This all fits with FERC's openness — as they have told us and the public — to permitting LNG facilities to the likes of Adolf Hitler, Idi Amin, Charles Manson, or even, perhaps, Osama bin Laden.

US Welcomes Russian Investment in LNG Terminals — MosNews, Moscow, Russia

The U.S. government encourages Russian companies to invest in U.S. energy assets, including politically sensitive liquefied natural gas (LNG) terminals, while at the same time urging Russia to open more of its oil and gas fields to foreign investment, Lloyds List reported on Monday, July 10.

[Karen Harbert, assistant energy secretary for policy and international affairs] said the United States would not mind, for example, if Russian companies invested in LNG import terminals.

The U.S. attitude on LNG terminals will be welcomed in Moscow, as Russia’s state-controlled gas giant Gazprom has ambitions to become a leading LNG supplier to the U.S. market. Gazprom is eager to claim more than 10 percent of the U.S. market by 2010 and then increase its share up to 20 percent. The company has also signaled it is interested in downstream assets, such as transport and re-gasification terminals, in the U.S. (Jul 10)

WEBMASTER'S COMMENTS: Inviting Russia to own U.S. energy assets, including LNG import terminals? Exactly how will this improve U.S. energy security? How does this idea fit with the recent foreign-controlled port fiasco?

Where are Snowe, Collins, and Michaud on this issue? Where is Lou Dobbs? Where is 60 Minutes?

Top

5 July 2006

FERC Announces Visit To Quoddy Bay's Proposed LNG Sites — WQDY-FM, Calais, ME

The site visit will be held Thursday July 13. Anyone interested in participating in the site visit should meet at 9 a.m. in Quoddy Bay LLC's parking lot on Route 190, at 95 County Road in Perry, Maine. Participants must provide their own transportation. (Jul 4)

WEBMASTER'S COMMENTS: We incourage all Save Passamaquoddy Bay supporters to attend this FERC event.

Canaport™ LNG reaches two key milestones: EPC contracts awarded and pipeline agreements reached — Irving Oil, Saint John, NB

Canaport™ LNG, the partnership between Repsol YPF and Irving Oil, today announced that it has awarded the on-shore and off-shore Engineering, Procurement, and Construction (EPC) contracts and issued the final notice to proceed for the construction of the first new liquefied natural gas (LNG) receiving terminal on the East Coast of North America in decades. Also completed were agreements to transport natural gas from the Canaport LNG Terminal to markets in Canada and the Northeast US via the Brunswick Pipeline and an expansion of the Maritimes & Northeast Pipeline system in the US.

SNC-CENMC, G.P., a partnership between SNC-Lavalin Inc., Canada’s largest engineering and construction firm, and Saipem S.p.A. of Milan, Italy, was awarded the Engineering, Procurement, Construction (EPC) contract for onshore facilities and jetty topsides, providing full procurement and supervisory responsibilities for the onshore portion of the project.

Kiewit-Weeks-Sandwell Partnership, a consortium of Peter Kiewit Sons Co of St. John’s, Newfoundland & Labrador; Weeks Marine of Cranford, New Jersey; and Sandwell Engineering of Vancouver, British Columbia, was awarded the EPC contract for the terminal’s offshore facilities, including the receiving pier. [Bold emphasis added.]

WEBMASTER'S COMMENTS: Canaport's selection of engineers and contractors — all from outside New Brunswick, and some from outside of Canada — supports the Whole Bay Study's conclusion that LNG terminal construction jobs go to large companies with experience in LNG-related projects, not to local workers.

Downeast LNG's & Quoddy Bay LLC's promises that similar jobs for the proposed Passamaquoddy Bay-area LNG proposed projects will go to local and state workers is simply "blowing smoke," in order to win public support and to obscure the truth.

An island sacrificed [Op-ed column] — Boston Herald, Boston, MA

Building another LNG terminal in Massachusetts will [neither] guarantee lower natural gas prices, nor will it assure a more reliable supply of natural gas. The demand for natural gas is worldwide and increasing; its price will only increase and we will find ourselves in conflict with India, China, Japan, and Europe over an uncertain and inadequate supply of this fossil fuel. But building an LNG terminal on Outer Brewster Island will guarantee that a significant element of the Harbor Islands National Recreation Area is irrevocably lost to future generations, while it will do nothing to increase the likelihood that those generations will live in a safe world or have enough clean, renewable energy to meet their needs. [Bold emphasis added.] (Jul 4)

Proposed LNG Storage Facility Under Fire — Suffolk Life, Riverhead, NY

The legislation would establish a permit process for any “new industrial uses in New York State’s coastal zone,” under the NYS Coastal Zone Management Program, as previously reported. With both Thiele and Alessi citing environmental concerns about the LNG project, the assemblymen believe this law, if it goes into effect, would allow the state to supersede the federal government in making decisions about what is built in local waters.

Noting that other states, including Delaware and Connecticut, have similar laws in place, Thiele cited a court case from 2005 in which a similar facility was being proposed on the coast of Delaware. “Because Delaware had the permit process, they were able to stop the facility [from being built],” Thiele explained.

LNG in the open [Editorial] — Providence Journal, Providence, RI

The Outer Brewster Island proposal is one of hundreds of great and small matters that the legislature waits till the frenzy of the budget deadline to dispose of. This happens every year — by design: The budget becomes a cover for legislators' doing in secret what they would have difficulty doing openly.

[W]hat Woodrow Wilson called "open covenants, openly arrived at," are the only way a project of this magnitude should be considered.

WEBMASTER'S COMMENTS: Likewise, the Bureau of Indian Affairs (BIA) and the Department of the Interior should not have, behind closed doors, illegally passed their statutory Indian trust obligations over to FERC — an agency that has no such obligation — regarding the Quoddy Bay LLC project at Split Rock in Sipayik (Pleasant Point). With all the additional show-killing obstacles in their way, Quoddy Bay LLC's project has no hope of completion.

Governor asks state Energy Department to work closely with feds on LNG process — Daily Astorian, Astoria, OR

It ... may have to address land use issues, according to Clatsop County commissioners, who said recently the project doesnít comply with existing zoning on its site.

In addition, the U.S. Coast Guard, the agency charged with addressing security concerns and procedures for LNG tanker traffic, has assembled a committee of maritime experts to review a Waterway Suitability Assessment submitted for Bradwood Landing.

It has refused to make the assessment public as a matter of national security. Components of the document will be incorporated into a draft Environmental Impact Statement from FERC, expected in less than four months, said USCG Lt. Shadrack Scheirman, chief of port operations in Portland.

Who says LNG should go ahead? — Daily Astorian, Astoria, OR

U.S. Rep. Brian Baird, D-Wash., on Friday called for the Federal Energy Regulatory Commission to establish bistate authority in the Bradwood Landing review process, giving Washington agencies permitting rights equal to those in Oregon.

"Any state directly affected by an LNG terminal should have a formal opportunity to assess within their state regulations the potential impacts to their citizens and environment," Baird said in a statement he filed with FERC. "Ideally, a change in administrative policy would allow the state in which the terminal is not constructed to decide whether it wants to join the efforts of the host state concerning ... permitting actions."

Baird thinks Washington should have a say, too. He voiced appreciation "that Oregon has reached out to Washington in an effort to incorporate concerns and perspectives in its reviews," but the LNG site proposed at Bradwood sits less than a half-mile from Puget Island on the north side of the river, he said.

"In fact, more Washington residents would live closer to the terminal than would Oregon residents," his filing states. "As a result, Washington residents and wildlife would share many of the water, air and coastal environmental impacts from the proposed project."

"FERC should not be in the business of simply permitting an overabundance of terminals and letting the market decide which will be built," Baird said. "The costs to state and local jurisdictions for participating in a federal LNG application review, as well as the potential environmental and safety impacts of a built terminal and pipeline, are too high to approach LNG siting without a national and regional plan." [Bold emphasis added.] (Jul 4)

WEBMASTER'S COMMENTS: Washington & Oregon have a similar situation to the Passamaquoddy Bay LNG proposals that include Maine and New Brunswick, Canada.

Report: Expanding Global LNG Market Will Draw More LNG to the United States — LNG Law Blog, Washington, DC

[T]he IEA notes the difficulty in making accurate predictions regarding LNG because of the global market’s "spectacular" growth over the past five years, citing a 75% increase in the number of LNG vessels over the last five years.

WEBMASTER'S COMMENTS: The International Energy Agency is correct to "cover its behind" by the above qualifying statement, since the "spectacular" LNG market growth also means more foreign demand for natural gas consumption — by some really big energy consumers, like China and India That means that perhaps less, not more, LNG will come to the U.S.

LNG plant still leaking gas — ABC Australia

Conoco Phillips has confirmed gas is still leaking from its LNG plant in Darwin more than two months after the problem was first identified.

"All sorts of assurances were given that this facility that was going to be built right in the middle of the harbour and close to residential areas was going to be very safe and that there was going to be strict monitoring and regulation and so on and so forth," he said.

"But what appears to be happening here is that the Government bodies who are responsible for doing the monitoring and regulating, as so often happens, have become captured by the company." [Bold emphasis added.] (May 11)

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2 July 2006

Concert raised over $1,300 towards fights against LNG — Saint Croix Courier, St. Stephen, NB

Five local teenagers — Luke Macdonald, Ashley Crichton, Graham Stephenson, Tynan Dunfield and Catrina Haun — were the brains behind the event which brought seven bands and about 200 people to the W.C. O'Neill Arena Saturday, May 27. (Jun 20)

Save Passamaquoddy Bay now incorporated as legal organization — Saint Croix Courier, St. Stephen

The group's mandate is threefold: to ensure Canadians are well informed about proposals to establish LNG terminals in the Passamaquoddy Bay/St. Croix region; to provide a voice for Canadians who oppose such development; and to ensure this voice is properly represented to government (Canada and US) and the public. (Jun 20)

BP, wharves board file LNG appeals — Daily News, Galveston, TX

Nancy Saint-Paul, a Galveston resident who filed the original lawsuit against BP, the wharves board, and city over the LNG deal, also appealed the ruling, but from a broader perspective.

Her attorney alleges that the deal is “tainted” and that the lease agreement amounts to a property sale.

Locals keep eye on LNG — Gloucester County Times, Woodbury, NJ

"LNG, for the most part in history, they've never had a major catastrophe to my knowledge," he said. "And that's a pretty good safety record."

WEBMASTER'S COMMENTS: The citizens quoted in this article apparently don't pay attention to the news, or they'd know about the following LNG-related catastrophic events:

We recognize that some of the older above-mentioned catastrophes have resulted in improved safety technology and/or procedures by the industry and regulatory bodies; however, our concern is that, while the LNG industry claims that their future facilities and operations will be safe:

The history of the LNG industry doesn't necessarily predict its future, especially when LNG developers and FERC continue down this careless and irresponsible path.

Senator Snowe, Senator Collins, and Representative Michaud — when will you stand up and protect Maine and U.S. citizens by authoring legislation that requires sensible FERC policy and regulations?

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1 July 2006

Getting real on LNG site [Editorial] — Boston Herald, Boston, MA

The vulnerability of facilities in urban centers was freshly underscored when the Coast Guard shut down an ExxonMobil fuel depot in Everett - a neighbor to the Distrigas LNG plant - because of a “serious security breakdown.”

There’s no indication that the 15 illegal immigrants found working at ExxonMobil, with access to Distrigas, had terrorism on their minds. Still, today’s illegal immigrant simply earning a paycheck from a subcontractor working on the facility could be next week’s al-Qaeda wannabe with something far more malicious on his mind.

WEBMASTER'S COMMENTS: The Massachusetts area needs energy, and LNG is one way to get it there. Siting LNG import facilities near the demand makes sense; however — and although the Boston Herald recognizes that there are some real risks that accompany LNG terminals — its befuddling that the newspaper editorial staff doesn't recognize the need to site terminals far enough away from people that people won't be harmed if a disaster occurs.

LNG company accuses R.I. government of stalling permits — Boston Globe, Boston, MA

One condition [in the FERC permit] was that the company get permission from Rhode Island authorities to dredge part of Mount Hope Bay leading to the proposed terminal. Without dredging, LNG tankers can't reach the site.

[Weaver's Cove Energy] wants federal officials to excuse it from seeking the dredging permission from Rhode Island authorities.

WEBMASTER'S COMMENTS: The Energy Act of 2005 gave FERC supremecy over most state and local say in LNG terminal siting; however, the Act still left states with the ability to reject projects due to water and air environmental issues, as well as for reasons related to the Coastal Zone Management Act.

Apparently, Weaver's Cove Energy isn't satisfied with the additional advantages given to the natural gas industry, and thinks that all state and municipal rights should be abolished.

If Weaver's Cove Energy had adhered to LNG-industry terminal siting standards, published by SIGTTO, then they wouldn't be in their current predicament.

Western Canada pipelines close to hitting capacity — Globe and Mail, Toronto, ON

[N]ew pipelines will be needed to feed LNG from receiving terminals into pipelines, the NEB said, adding that there is uncertainty about the effect that LNG will have on patterns of supply, demand and natural gas flow.

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