LNG – Liquid Natural Gas

LNG is natural gas (methane), which has been cooled to a temperature of about 260 degrees below Fahrenheit so that it becomes a liquid.  Because LNG is more compact than the gaseous equivalent (with a volumetric ratio of about 610:1), it can be transported long distances across oceans using specially designed ships.  Import terminals receive the LNG from the ships and transferred to storage tanks.  The LNG then goes through a warming process and is converted back to gas.  After regasification, the natural gas is then distributed by pipeline.

Photo courtesy of lngoneworld.com

There are four proposals for Liquid Natural Gas (LNG) import terminals at different locations within the Columbia River Estuary.  The proposed sites include Bradwood Landing, located on the Oregon side of the Columbia River at approximately River Mile 38; Tansy Point, within the City of Warrenton, Oregon; and the east and west banks of the Skipanon River mouth, also within the City of Warrenton.  The proposals are in various stages of development and regulatory review.  The two proposals which have begun moving forward through regulatory review are Bradwood, proposed by Northern Star Natural Gas, LLC and the proposal for the east bank of the Skipanon River, originally proposed by Calpine Corporation.

Bradwood Landing

Mouth of the Skipanon River

CREST and LNG

As a council of governments, CREST’s role is that of technical advisor to its member jurisdictions.  CREST is neither an advocate for, nor opponent to an LNG import terminal.  CREST’s staff, comprised of biologists, natural resource specialists and planners is uniquely qualified to assist member jurisdictions with review of development proposals to ensure compliance with Comprehensive Plans, Statewide Planning Goals and the Coastal Zone Management Act.  CREST is monitoring the overall permit process and available to provide general information about the LNG proposals within the Columbia River Estuary.

Local/State/Federal Reviews

One can expect that any LNG import terminal will be subject to local (County or City), State and Federal regulations.  However, the permit process has recently been affected by the Federal Government’s 2005 energy bill and the regulatory bodies are adjusting their processes accordingly.

Local Review

The Bradwood site is located within unincorporated Clatsop County; therefore, local permits will be reviewed by Clatsop County staff.  Clatsop County prepared a detailed description of the permits and requirements that the project is subject to for the State of Oregon Energy Facilities Council.  The County’s letter can be reviewed by clicking here.

The East and West Skipanon and the Tansy Point sites are located within the City of Warrenton; therefore, local review will be through the City.  Warrenton’s Development Code requires that an industrial facility of this size be subject to a Type III Site Design Review.  Depending on the site, additional local reviews may also be required (i.e. Zone Change, Flood Hazard Overlay review, etc.).

Both Clatsop County and the City of Warrenton are CREST member jurisdictions.  As such, both jurisdictions have adopted Columbia River Estuary Shoreland and Aquatic Area Development Standards as part of their Development Codes.  These standards were developed with the original Columbia River Estuary Regional Management Plan and will apply to any LNG facilities constructed within the Estuary.  The purpose of the Columbia River Estuary Shoreland and Aquatic Area Development Standards is to protect the unique economic, social and environmental values of the Estuary.  The Standards set forth specific requirements for a host of potential activities including, dredging and dredge material disposal; development of industrial and port facilities; and, restoration and resource enhancement.

State Review

The State of Oregon Energy Facilities Council typically reviews new energy facility locations within Oregon.  However, under the new Energy Bill, siting approval authority may be solely the jurisdiction of FERC.  Notwithstanding, new LNG facilities will be required to comply with the Coastal Zone Management Act through the Oregon Coastal Management Program which is administered by the Oregon Department of Land Conservation and Development (DLCD).  DLCD will certify that the proposal is consistent with the Coastal Zone Management Act upon demonstration of compliance with all state planning goals, applicable City or County Comprehensive Plan goals and policies and applicable state agency authorities (i.e. water quality certification, removal-fill, etc). The proposed LNG facilities must obtain a permits from Oregon Department of Environmental Quality (DEQ) for air emissions and water discharges before they can operate. To learn more about DEQ and their role in permitting and regulating new development in the lower Columbia River click here.

Federal Reviews

The Federal Energy Regulatory Commission (FERC) is the lead federal agency for the siting of new energy facilities.  The FERC process involves an initial notice of intent to file, preparation of an Environmental Impact Statement (EIS), public notice process and staff recommendation to the Commission.  An overview of the FERC process is located at the FERC website .  Public documents related to FERC applications are available to view at the FERC electronic library.  The pre-filing docked number is PF05-10. Pre-filing materials, such as draft environmental reports can be found by searching under this number. The new docked number for the application is CP06-365. The formal application materials and environmental reports can be found under this docket number.

Review Status

Note:  The following information is provided for informational purposes and updated periodically.  For the most current information, particularly as it relates to deadlines for public comment, interested parties should review official public notices provided by the reviewing agencies.

Northern Star Natural Gas has formally filed an application for an LNG terminal with FERC and has been assigned a new docket number (CP06-365).  The application materials can be viewed at the FERC electronic library at the following address:  http://elibrary.ferc.gov/idmws/docket_search.asp.  Now that a formal application has been filed, the next step will be preparation of an Environmental Impact Statement by FERC.

Northern Star Natural Gas has submitted it's local land use applications for the Bradwood facility to Clatsop County. Additional information was requested by the County and submitted on February 14, 2007.

In July 2007 staff presented a report and recommendation to the County Planning Commission and public comment was taken on the land use application. The Planning Commission will reconvene on Wednesday, Aug. 29, 2007, at 10 a.m., in the Judge Guy Boyington Conference Center, 857 Commercial St., Astoria, Oregon. The Planning Commission will deliberate and make a tentative recommendation at that time. The Planning Commission also will direct preparation of Findings of Fact and Conclusions of Law in support of its tentative recommendation and set a subsequent time and place to consider the findings and conclusions and adopt its final recommendation to the Clatsop County Board of Commissioners..

The Calpine Corporation declared bankruptcy in December 2005. In order to satisfy creditors, Calpine sold their lease of the Skipanon Peninsula. The lease was sold to Leucadia National Corportation which is a New York holding company with investiments in telecommunications, real estate, manufacturing and health care. Calpine's LNG project manager Peter Hansen will stay with the project moving to LNG Development Co,. a subsidiary of Leucadia set-up to take over the lease.

LNG Related Events:

1. Warrenton City Commission Meeting:  December 15, 2005, 6:00 PM.  Warrenton Community Center, 170 SW 3rd Street, Warrenton.
2.  Warrenton City Commission’s First Reading of the East Skipanon Zone Change, Comprehensive Plan and Development Code Amendment Ordinance:  January 10, 2006.

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