New Oregon A.G. dead set against LNG ports

Oregon Attorney General John Kroger

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By RYAN KOST Associated Press Writer

SALEM, Ore. (AP) - John Kroger, Oregon's new attorney general, took a hard line against proposed liquefied natural gas terminals and pipelines Tuesday, saying they are bad for landowners, the environment and energy independence.

He was just one in a string of lawmakers that spoke at a Capitol rally Tuesday, promising movement on the environmental front and, as such, little movement on the natural gas front.

More than 100 people gathered on the Capitol building's steps, waving cardboard salmon and singing familiar tunes with ecologically minded lyrics - "Oh I want to be in that number, when we are free from LNG."

Meanwhile, proponents of the plans held their own press conference, arguing the terminals would create hundreds of jobs.

The proposal of three different LNG terminals - which would import superchilled natural gas aboard tankers and warm it so it can be distributed regionally in pipelines - has become a divisive issue in Oregon. Landowners worry pipeline installation will destroy their property, though the companies involved have promised adequate compensation.

At the rally, Kroger said there were a number of reasons to oppose pipelines and terminals, but his main concern was dependence on foreign energy.

"For the last 50 years, this country has had no energy policy," he said. "Do you want LNG from Iran and Russia or do you want energy independence?"

The crowd preferred the latter.

Kroger said he was bound to protect Oregon law and wouldn't "twist the law into a pretzel" to deter interested companies, but said he would welcome legislation to make state permitting more stringent.

Rep. Deborah Boone, D-Cannon Beach, has begun work on such legislation. Though the bill isn't complete, it would essentially force companies to prove that LNG is needed in the state, that the plan met public safety standards and that natural resources would be protected. It would also require them to show the imported gas would be cheaper than local sources.

At the rally, Boone said she understood the need for energy, but "you'll see me working more in all sorts of renewable energy. That's for sure."

Of the proposed projects, the Bradwood Landing LNG terminal, a project slated to go on the Columbia River, east of Astoria, is the closest to becoming reality.

On Thursday, the Federal Energy Regulator Commission is set to rule on appeals of the OK it already granted the terminal. If it denies the appeals, the project would only need state permits before proceeding.

The proposed legislation, however, could make that permitting more onerous.

Charles Deister, a spokesman for Bradwood's backer, NorthernStar Natural Gas Inc., said in an e-mail that the bill's stipulations were "either unnecessary or unworkable."

"This bill concept would help ensure higher energy costs and cost even more Oregonians their jobs," he said. "Limiting the state's supply of natural gas is a bad idea."

Energy Action Northwest, a business and labor organization, held a competing event Tuesday in favor of the pipeline and terminals.

Executive director Edward Finklea said the Bradwood project could be shovel ready by the end of the year. He estimated that going forward with the facility would create about 1,000 jobs.

The alliance unveiled ads that painted opposition as rainbow-wearing, peace-sign slinging activists. One sign asks: "Who put them in charge of our energy policy?"

He said the group would be lobbying legislators, trying to help them cut through the hype.

"We see a small group of people who can get attention by engaging in antics." Finklea said. "There's been so much misinformation up until now."

 

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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