Thursday, February 5, 2009

Bradwood letter may spell doom for Oregon LNG

Carrie Bartoldus June 19, 2008


Bradwood LLC and Oregon LNG have traded barbs in the past, with Oregon LNG recently coming out against Bradwood in protesting Clatsop County Commissioner’s decision in allowing the variance on Clifton Road and even protesting LNG tankers passing Astoria “within the blast zone.” Now, it appears the shoe may be on the other foot as Bradwood’s William “Sy” Garrett writes in a letter to the Federal Energy Regulatory Commission (FERC)on June 12th, asking that the agency suspend all processing of the Oregon LNG application until the corporation is able to demonstrate that it has control of its Skipanon Peninsula site.

“Several years ago,” writes Garrett, “Bradwood’s developers, while looking at potential site locations, had opportunity to visit the Project Site. During this visit it was readily apparent that there was a road providing access through what is now known as the Project Site and to the beach. Our inquiries at the time revealed that that the road was frequented by local residents for recreation and other uses. Further research revealed that it was a city and county road, and a copy of the Deed of Dedication which created the road was obtained. A copy of the Deed of Dedication is attached hereto.”

The deed, dated June 1, 1967,states that Clatsop County Board of County Commissioners directs the execution of a deed of dedication of certain property take place. The deed stipulates that the deeded land be used expressly for “street purposes” for public use. “TO HAVE AND TO HOLD the above described premises unto the public forever.” The deed contained a description of the property that Garrett’s letter claims is the road that goes directly through Oregon LNG’s proposed site for its development for an LNG receiving terminal and holding facility.

County Manager Scott Derickson and Warrenton City Manager Bob Maxfield both stated that staff are currently researching the matter and they will not have a statement to make until they have all the facts surrounding ownership and right-of-way.

Garrett states, “One of the essential prerequisites for submission of an LNG terminal project to FERC is demonstrable site control.” Furthermore, Garrett goes on to write in his letter that Oregon LNG, “did not identify the existence of this public road nor disclose the material impact on its application and control of the Project Site as evidenced by the attached deed.”

Without site control, asserted Charles Deister, Bradwood Landing spokesperson in a telephone interview, Oregon LNG will have no choice except to withdraw its application for the project from FERC. Similarly, Sound Energy Solutions, a Mitsubishi Corp. and ConocoPhillips subsidiary, a Long Beach California LNG company, recently withdrew its application from FERC stating that it did not have site control.

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