The Quoddy Tides

2006 July 14

Quoddy Bay LNG details resource reports

Quoddy Bay LNG, the company developing a plan for a 2.0 billion cubic feet per day liquefied natural gas facility in Washington County, has completed the first phase of pre-filings with the Federal Energy Regulatory Commission (FERC). FERC has now received Resource Reports 1 through 13, which outline the design and environmental impacts of the proposed facilities.

Prior to filing the remainder of resource reports, Quoddy Bay filed the critical Resource Report 13, the only report that is specific to LNG terminals. FERC requires that Resource Report 13 be submitted at least 90 days prior to the final application submittal. Quoddy Bay LNG is now in a position to file its formal application to FERC as early as September 13.

"These resource reports are the culmination of the past year of evaluation of the Quoddy Bay LNG site," said Brian Smith, project manager of Quoddy Bay LNG, in a prepared release. "We are more confident than ever that the facility will be permitted by all agencies by the fall of 2007, now that world-respected experts have spent months researching and studying the proposed site."

Resource Report 1 offers a general project description of the project, including maps, aerial images, as well as construction methods, identification of permits, and interested landowners. Resource Report 2 covers water use and quality, detailing bodies of water, watershed areas, protected and sensitive areas, and consideration to wetlands.

Resource Report 3 discusses vegetation and wildlife, such as fisheries, terrestrial and wetland wildlife and habitats, potential impacts, and federally listed or proposed endangered species. Resource Report 4 documents cultural consultations with Native Americans. Resource Report 5 explores the socioeconomics of the facilities, including the impact on employment, housing, local government, local tax revenue, transportation and other factors.

Resource Report 6 looks at geological resources; mineral resources, geological hazards, seismic review requirements, and plans for any construction-related drilling and blasting.

Resource Report 7 concentrates on project site soils, identifying, describing, and detailing the possible impact and plans to mitigate and minimize impacts on soils. Resource Report 8 considers land use, recreation and aesthetics, namely the building of pipelines, access roads, and rights of way in relation to special land uses, scenic areas, existing residences, and local and national landmarks.

Resource Report 9 covers air and noise quality, describing existing air quality, quantifying existing and proposed emissions, quantifying current day and night noise levels, identifying noise-sensitive areas, and discussing impact and mitigation. Resource Report 10 considers project aspect alternatives, including energy conservation, transportation, and site alternatives.

Resource Report 11 documents reliability and safety measures in the design, construction, operation, and project maintenance, plus preparedness for accidents or natural catastrophes. Resource Report 12 concentrates on standards set by the Environmental Protection Agency regarding PCBs in the replacement or abandonment of facilities, and remediation requirements. This Resource Report is not applicable to the Quoddy Bay facilities, and was therefore not filed.

Resource Report 13, filed this month, includes a plan of locations of major components of the facility, safety measures such as hazard, fire, and oil containment, and fail-safe systems, plus a list of required permits and approvals and their status.

The filing of the draft resource reports allows FERC and state agencies to review all of the reports and provide comments and requests for more information to Quoddy Bay LNG. All regulatory agencies will work with Quoddy Bay LNG to file the final reports in September with the final application to FERC.

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. The public can access the publicly available reports on the FERC website (www.ferc.gov) by searching for docket number PF06-11.