U.S. decision gives both sides hope
Published Tuesday May 26th, 2009
LNG terminal American agency generally favours project, but foes point to conditions
ST. STEPHEN - Supporters and opponents both see hope from a decision this month on liquefied natural gas in Passamaquoddy Bay.
On May 15 the United States Federal Energy Regulatory Commission (FERC) released its draft environmental impact statement on the proposal by Downeast LNG, Inc. to locate a liquefied natural gas terminal on the south side of Mill Cove on Passamaquoddy Bay in Robbinston, Maine.
A 30-inch-diameter natural gas pipeline would extend from the Downeast LNG terminal about 48 kilometres to connect to Maritimes & Northeast Pipeline LLC's pipeline near Baileyville.
The commission generally favours the project but sets out many conditions to mitigate environmental impacts.
The decision acknowledges Canada's stance that it will not allow LNG tankers to cross Head Harbour Passage - between Deer Island and Campobello Island - to get to Robbinston, across Passamaquoddy Bay from St. Andrews.
However, the commission issued the draft environmental impact statement regardless, ruling that most of the environmental impacts "would be reduced to less-than-significant levels with the implementation of the applicants' proposed mitigation measures and the additional measures we recommend in the draft (environmental impact statement)."
Downeast LNG founder and president Dean Girdis welcomed the news.
"The (draft environmental impact statement) is a validation that this is a viable, responsible, environmentally sound project, which is what we have been saying all along," he said in a news release. "As expected there are some conditions that we need to address, but nothing that is insurmountable or unreasonable as we continue to move forward through the approval process."
He hopes for approval to begin construction by the end of the year.
Robert Godfrey of Calais, Maine, researcher and webmaster for the Save Passamaquoddy Bay Three Nation Alliance, would not bet on it.
The draft environmental impact statement includes a condition that Downeast LNG implement measures outlined by the United States Coast Guard on Jan. 6 - including Canadian co-operation necessary for LNG tankers to safely navigate Head Harbour Passage.
"What that means is, if the applicant can't obtain Canadian co-operation, they can't do it," Godfrey said in an interview Monday.
Veterans Affairs Minister Greg Thompson, in his role as MP for New Brunswick Southwest and regional minister for New Brunswick, opposes LNG tankers in Passamaquoddy Bay. Prime Minister Stephen Harper supports his position.
"It's not over by any means," said Jessie Davies of St. Andrews, who co-chairs Save Passamaquoddy Bay Canada.
The commission set July 6 as the final date it will accept public comment. It plans to release the final environmental impact statement by Sept. 18, then decide by Dec. 17 on the permit to construct.
The project must still clear environmental approval by the State of Maine.
The New Brunswick government, an intervener in Downeast LNG's application to the FERC, will file its comments on the draft environmental impact statement by July 6, a news release stated last week.
During a recent trip to St. Stephen, Premier Shawn Graham restated his opposition to the three proposals for LNG terminals on the Maine side of Passamaquoddy Bay.
In Maine, supporters say these projects will provide desperately needed work in a poor corner of the state, while improving American energy security.
Opponents, in Maine and New Brunswick, say the threat to tourism, fisheries and other livelihoods by sending LNG tankers through a treacherous waterway would outweigh the gains.
The commission went beyond its authority when it included effects on the Canadian side of the border in the draft environmental impact statement, the provincial government news release states. "For example, references to the application of the New Brunswick Endangered Species Act, or any other Canadian or provincial law, are misplaced."
The FERC cannot rule on who navigates Canadian territorial waters, which fall within the exclusive jurisdiction of the government of Canada, the province's news release says.
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