Backers of a proposed liquefied natural gas terminal near the mouth of the Columbia River have filed for a federal permit, and say that approval would preempt opposition from Clatsop County, which has withdrawn land use approvals for the project's feeder pipeline.
The move could presage another showdown between federal and state authorities over who has siting authority over the controversial projects.
Oregon LNG, based in Warrenton, filed its formal application on Friday with the Federal Energy Regulatory Commission to build an LNG terminal with the capability to both import and export natural gas. Its filing follows a similar export terminal application filed last month by the backers of the proposed Jordan Cove LNG terminal in Coos Bay.
The commercial viability of both projects rests on the same premise: the ability to pipe low-priced gas produced in North America to liquefaction facilities on the Oregon coast, then load it aboard tankers for shipment to lucrative markets in Asia.
Both projects are controversial, attracting opposition from environmentalists, local residents where the terminals are proposed, and landowners along the pipeline routes. Unions have been vocal supporters of the terminals and associated pipelines for the construction and ongoing operations jobs they will provide.
The Warrenton project, with a price tag backers estimate at $6.3 billion, includes an affiliated pipeline that would run through Clatsop, Tillamook and Columbia counties and under the Columbia River to connect with Williams' interstate pipeline near Woodland, Wash. Accommodating the increased gas flows would also require a significant expansion of Williams' pipeline system through Washington.
Getting local land use approval for the last few miles across Clatsop County may not be possible, however. In March 2011, a newly elected slate of Clatsop County Commissioners voted to withdraw earlier land use approvals for the section of the pipeline that runs through Clatsop County. Oregon LNG appealed that decision, but it was upheld in court. The county commissioners are expected to take their final vote this summer, which could leave the project without a feeder pipeline.
Oregon LNG has previously said it would comply with all state and local requirements. Peter Hansen, chief executive of Oregon LNG, says the company's position now is that it does meet all the county standards, even if the county decides otherwise.
"It's quite clear that a local county does not have jurisdiction over an interstate pipeline," Hansen said. "We've shown the county we meet all the standards. If that's not enough then we have to move on and do it in a different way."
The federal permitting process takes at least a year. Both LNG projects also still need state approval under clean air, clean water and coastal zone management regulations. The expansion of Williams pipeline in Washington also needs federal approval.
The state of Oregon previously locked horns with federal authorities over the proposed Bradwood Landing LNG terminal on the Columbia River. The state criticized FERC at the time for rubber stamping that project with insufficient analysis, and before the state had granted necessary permits. Backers abandoned that project after spending more than $100 million on permitting efforts.
Ted Sickinger: 503-221-8505, tsickinger@oregonian.com