Thursday, February 5, 2009

Neikes tells FERC: Stop processing application

Carrie Bartoldus August 31, 2008

James Neikes, in a recent letter to the Federal Energy Regulation Commission, stated that Oregon LNG has “troubling fundamental legal issues regarding property rights violations” which would prevent the Oregon LNG from “ever establishing site control, a fundamental prerequisite for any type of development.” Neikes goes on to point out that he, in fact, owns two properties on the East Skipanon Peninsula, one of which is located next to the Project Site. Neikes says that as an affected landowner, “I hereby declare that I will not consent to vacate the County road which runs directly through my property and through the Project Site to the pier head line in the Columbia River. Unless the road is vacated, the applicant cannot establish site control.”

According to Neikes, both of his properties on the East Skipanon Peninsula are leased under a long term agreement to a third party, who is exploring the development of the property consistent with the current zoning rules for Warrenton. The Neikes letter also states that access to the Columbia River and the wetlands on his property are fundamental to the plans of the tenant, and the tenant will not consent to any efforts to vacate the County road for the duration of their lease. Another point the letter brings up is that Oregon law also provides the general public with a vested right to access a river’s beach front for purposes of gathering shellfish. Vacating the road or developing the site in a way that limits the public’s access to the beach front are inconsistent with Oregon state law and County land use planning guidelines. Accordingly, the letter makes the conclusion, for these reasons the applicant cannot establish site control.

Neikes also brings up the fact that there are wetlands and a pond bordering the Oregon LNG project site and his property. The project proposal requires drainage of the pond and removal of wetlands located on Neikes’ property. It is impossible to drain a portion of the pond without violating his property rights, according to Neikes. Under these circumstances, pond drainage and wetlands removal are prohibited by Oregon state law leading to the conclusion that Oregon LNG cannot establish site control.

Pointing out that Oregon LNG intends on removing a dike on its project site, Neikes claims that the removal of the dike will cause damage to his property. Under those circumstances, dike removal is prohibited by Oregon state law. There is also a question as to the actual boundaries of the property that Oregon LNG is claiming for its project site. Neikes claims that the project site boundary, as defined in the lease between the Port of Astoria and Oregon LNG, encroaches on his property and that the current application before FERC does not reflect the correct legal boundary. This calls into question the viability of Oregon LNG’s site configuration, as well as the validity of Oregon LNG’s lease with the Port of Astoria.

Earlier this month Senator Betsy Johnson wrote a letter to the Port of Astoria (copying it to the Federal Aviation Association and FERC) regarding Oregon LNG’s terminal height. Neikes’ also pointed out the dangers of the height of the terminal in his letter to FERC saying that the 195-foot LNG storage tank height proposed by Oregon LNG in their recent application to the FAA seeking a waiver, is unsafe, dangerous and violates the Astoria Regional Airport Airspace Plan-Conical Surface. Because such a violation jeopardizes his ability to develop his property Neikes says that he opposes their plans to seek a waiver from the FAA and will be contacting the agency regarding his objections. Without the waiver, Neikes informed FERC, Oregon LNG will be required to redesign its facilities.

Neikes contends that Oregon LNG knew of all of these problems and, yet, failed to disclose most of this information to FERC in its pre-filing application. Because many of the issues are simply irresolvable with Neikes, leaving Oregon LNG never able to establish site control, the letter asks that FERC immediately cease processing the Oregon LNG application.

Oregon LNG has not yet responded to Neikes’ letter.
FERC has not yet received a letter from Senator Johnson regarding her concerns on Oregon LNG terminal.

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