Oregon LNG, DLCD Agree on CZMA Application Extension

Oregon LNG applauded the execution of a three-month stay agreement between Oregon LNG and the Department of Land Conservation and Development (DLCD) of the state of Oregon with respect to its completed Coastal Zone Management Act (CZMA) application.

Oregon LNG has proposed a $6-plus billion LNG terminal and associated pipeline which will be sited near the mouth of the Columbia River in Warrenton, Oregon.

Peter Hansen, CEO of Oregon LNG, stated: “The project remains on track to receive most of its federal permits by the end of 2014, making Oregon LNG one of the first LNG export projects on the West Coast of North America. We are excited about the economic progress, exports, and clean energy that this project will provide to the Pacific Northwest and the world.”

The CZMA is the primary regulatory construct under which coastal cities, counties, and state and federal agencies administer Oregon’s federally approved Coastal Management Program. On July 3, 2013, the state of Oregon determined that the application of Oregon LNG for a consistency determination from the state of Oregon under the CZMA was complete. Under the CZMA, the state of Oregon has six months to make a consistency determination for a project once its application is deemed to be complete.

Under the stay agreement, Oregon LNG will work closely with the state of Oregon to ensure that its application contains necessary data and information for the state to make a consistency determination.

Hansen stated: “Although the review was to be completed on January 3, we appreciate the recent efforts of the state of Oregon to clarify the enforceable policies that govern the issuance of CZMA decisions. We will continue to work closely with DLCD and other key stakeholders to deliver the necessary data and information that will enable the project to receive a consistency determination at the earliest possible time. The stay agreement will enable all parties to work constructively together to achieve this result.”

Once built, the project will represent the largest private development in Oregon’s history. The project is anticipated to result in $6.3 billion in direct spending during construction, another approximately $3 billion in related economic stimulus, and provide the state and local governments with high-value jobs and much needed tax revenues.

Expected economic benefits will reach nearly $60 million annually in state and local property tax revenues over the life of the project and will provide nearly 3,000 family-wage jobs during construction and an estimated 1,550 direct and indirect or induced permanent jobs. In addition, the project will dramatically upgrade the region’s natural gas infrastructure, providing a more reliable supply of natural gas throughout the Pacific Northwest.

Oregon LNG has commitment letters with several construction unions in the Pacific Northwest, agreeing to hire contractors who use union labor. In addition, certain contracting funds are reserved for local small business, and women and minority owned contractors.

Doug Tweedy, Executive Secretary Treasurer/CEO of the Pacific Northwest Regional Council of Carpenters, stated: “We look forward to the opportunities this project will bring; not only through the thousands of union jobs during the construction process, but the good permanent family wage jobs which are vital to the Northern Oregon Coastal economy, and the State’s revenue by increasing its tax base for years to come.”

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LNG World News Staff, December 31, 2013; Image: Oregon LNG