LNG & WAHKIAKUM COUNTY

 

Liquefied Natural Gas on the Columbia River has brought forth a mixed bag of anger, suspicion and fear while promising new jobs, energy supply stability and opportunity.

 

It is uncertain that the Bradwood, Oregon LNG terminal, as proposed by Northern Star will ever come to fruition.

 

Regardless, the process, from proposal to possible reality sheds light on county policy in the face Federal power and the international energy trade.

 

Neutral Position

 

Concerned citizens, especially those living very near the Bradwood Landing, started to mobilize in opposition to the LNG proposal immediately upon its announcement.

 

Wahkiakum Friends of the River along with other groups based out of Oregon and elsewhere, attended public meetings, wrote letters, staged protests and followed the FERC process along every step of the way.

 

The Energy Bill of 2005 gave sole siting of LNG facilities to the Federal Energy Regulatory Commission (FERC).  This happened because communities in other states, (Like those in nearby Northern California.) successfully drove away LNG proposals by using local rules and laws.

 

We must remember the 2005 Energy Bill was borne in the climate Ņplay-to-playÓ politics gripping Washington DC.  And itÕs very indicative of the greater trend of a decadent Federal largesse that dominates national politics at the turn of the 21st century.  While this author offers no evidence supporting this - itÕs no stretch to envision the Energy Bill getting drafted under ice sculptures at high donor fundraising events, on board complementary jets whisking lawmakers to golf weekends or other examples of our Congress out of control.

 

The Wahkiakum County Board of Commissioners (BOCC), representing the population nearest to Bradwood declared a policy of neutrality.

 

Could Wahkiakum County fight both the Federal government and international energy speculators at the same time?  And could this be done in the face of clear federal law and White House policy? 

 

It would be very difficult to do so and certainly not alone.

 

County officials know that theyÕre going to be stuck with whatever they get.  To expend resources fighting LNG could mean even less for the county at the end of the day.

 

Therefore a neutral policy makes sense.  But as we shall see, the execution of that policy, in regards to communication with constituents and reaching out to the state has caused problems within itself.

 

Opinions

 

An intervener is a person, institution or organization admitted as a participant to a proceeding in order to protect its interests.

 

FERC allows individuals or entities that can demonstrate they will be directly impacted by LNG terminals to be granted status as interveners.

Intervener status would allow access to documents related to Northern StarÕs application to FERC as well as materials filed by other interested parties.  Holding intervener status would make a party be able to file briefs, appear at hearings, question witnesses, and present evidence at a trial if it chooses to appeal FERCÕs final decision on the application. 

On February 7th, 2006 the BOCC voted unanimously to not intervene in the anticipated Northern Star filing with FERC.  The decision was based on the legal advice of county prosecutor Fred Johnson.

 

(This author must now rely upon statements by the county commissioners and outright hearsay to piece together the following narrative because the legal opinion is shrouded under client / attorney privilege.  Granted, as elected public officials, the BOCC holds this privilege.)

 

From what I surmise, the opinion sites legal precedents of why intervening would not be in the best interests of the county.  Intervening would be expensive and could open up the liability of a lawsuit.

 

Many citizens are worried about LNG.  It would be nice to review the case law in the letter if only to try to soothe the feelings of those concerned.  (Perhaps there is something that Northern Star shouldnÕt see?  I donÕt know.)

 

Commissioner Linquist and Trott have mentioned the high legal costs to the county of being an intervener.

 

If LNG does become a reality at Bradwood, its proponents claim increased supply will benefit energy consumers throughout the NW region.  So why should Wahkiakum County, with its barely 4000 residents, bear the brunt of the impact of the terminal without any help from the state?

 

At a June 6 BOCC meeting attended by over 30 citizens, according to the official minutes; George Trott asked the Friends of the River organization if they were prepared to pay for legal costs.

 

The Friends of the River, like all County residents, could indeed pay the legal costs Š because they already pay through their property taxes!  And most property taxes go to the state treasury!

 

Let us recall that the Washington State legislature announced a $500 million surplus this 2006 session.  There was a golden opportunity for money available to cover the county, especially with our delegation in the majority Democrat caucus.

 

Furthermore, potential state funds could have tempered the concern of the exposure to lawsuits that was claimed as another reason to not intervene.  With money for things like minor league baseball in this yearsÕ budget, it wouldnÕt be a stretch to ask the state to pay for legal council.  The county could retain a law firm specializing in the energy trade and have the state foot the bill.

 

The arguments regarding the lack of funding are weak. There was no attempt that IÕm aware of, to acquire funds or any other kind of assistance from the state.  In fact, the minutes from the same meeting read; Trott also noted that he read, but has not seen any solid confirmation, that the state Department of Ecology has agreed to file as interveners.  Trott indicated that if the state files as interveners, then the county can work through the state to express its concerns. 

 

This only reveals that information supporting TrottÕs statement was gleaned from the local newspaper.  It also tells us there has been no coordination with state officials as of the June 6th meeting.

 

I must repeat that IÕm only responding to statements made by the aforementioned commissioners.  I cannot comment on the legal opinion driving BOCC policy on intervention because it is shrouded in confidentiality.

 

But somehow this opinion was forwarded to the Wahkiakum County PUD when news broke that their board was considering intervention.  I tried to get a comment on the letter from the PUD folks and they refused on legal grounds.

 

No wonder people are nervous and frustrated?  A veil of secrecy only breeds suspicion.

 

Neutrality Anxiety

 

Many people, especially those living next to Bradwood are scared of LNG.  The fear is only compounded by a sense of helplessness.  County citizens are looking to their Commissioners for assurances.

 

The public record of the June 6th meeting stated; Between the three board members, they estimated they have been to 15 meetings, which include community meetings, informational meeting, meetings with state and federal agencies, and representatives of NSNG, as well as the meetings they have held for the public.

 

Regarding emergency preparedness; Chairman Cothren reported that there has been communication between Northern Star Natural Gas and some county officials to discuss safety, security, and economic issues.

 

Even though Board will speak to the issue, there is a sense, shared by many, that there is no kind of real plan or strategy.  The neutrality policy can give an appearance that LNG hasnÕt been a priority. ItÕs as if the confidential opinion provided by the County Prosecutor has some kind of ŅgagÓ component.

 

The handling of LNG lies in stark contrast to how the Commissioners dealt with the HWY 4 landslide earlier this year.  I must say that the response and coordination to that problem was a stellar example of good management.  So much that it deserves mention even in the context of this critical treatise.

Perhaps some kind of coordinated statement with public safety officials and the BOCC could help meet the public clamor for information?

 

State Government

 

LNG on the Columbia is not a local issue.  If it comes it will impact the whole region.  Wahkiakum County canÕt face LNG alone.  I arranged for a meeting with people I know in Gov. GregoireÕs office to get more information.

 

Victor Moore, Director of the Office of Financial Management and Kathleen Drew, a former state senator whom I worked with in 1995, attended the meeting.

 

The whole 19th District delegation was there. A staffer from the Senate Energy committee also attended by request of Sen. Erik Poulsen, chairman, and someone who I had spoke with regarding LNG.

 

I was told initially that Matt Steuerwalt, top advisor to the governor on energy issues, would not be available.  But he called in on speakerphone and revealed a breadth of knowledge on the issue.

 

He told us that the State Dept. of Ecology is going to be an intervener in LNG on the Columbia.  The state also has 15 opportunities to raise issues. US Rep. Brian Baird wrote a letter to the Coast Guard expressing his concerns.  There was mention of an interstate compact taskforce for LNG on the Columbia. 

 

Most importantly Mr. Steuerwalt said that an inventory of Ņmust-havesÓ needs to be submitted to Northern Star and that our county, with the 19th District delegation work with US Senators and Rep. Baird to ensure FERC make accommodations.

 

He felt that there was no reason to file as intervener if the inventory is presented to Northern Star.

 

Surprisingly, he said he felt that LNG is not going to happen anywhere on the Columbia because the economics donÕt add up.

 

Sen. Mark Doumit said heÕs seen Northern Star advertising on Portland TV stations.  He asked why would they spend that kind of money if it wasnÕt going to happen?  I told about reading generic LNG ads in the New Yorker magazine.

 

I need to pause and express my gratitude to our state delegation and the good people in the governorÕs office.  Our county has barley 2000 voters whom the majority went for Dino Rossi.  Regardless, the information and concern of Gov. GregoireÕs staff was inspiring and consistent with an emerging fact Š Democrats Know How To Govern.  (Look at the ruling national Republicans as compared to the majority in Olympia!)

 

More New Information

 

Wahkiakum Democratic Chairman William Coons went to meet with our Sheriff Dan Bardsley. 

 

Sheriff Bardsley told Mr. Coons about attending two Water Suitability Assessment meetings sponsored by Northern Star and their consultant, ABS Consulting. In those meetings he and Fred Johnson, as Cathlamet Fire Chief, developed a wish-list of equipment and personnel needed to be prepared to protect the citizens of our county in the event the LNG plant is built. The list contains new equipment such as fire trucks and all-weather boats, an Emergency Notification System for Puget Island, and new personnel such as 8 people to operate the security boat around the clock. The Sheriff also provided information from Section 311 of the Energy Policy Act of 2005 which requires Northern Star to develop an Emergency Response Plan in consultation with local authorities, among others, and to develop a cost-sharing plan that would describe any direct cost reimbursements that Northern Start agrees to provide to any local agency with responsibility for security and safety.  There are more things planned.

This information was outstanding.  Finally there was news that something was being done.  And this falls in line with the recommendation of Mr. Steuerwalt regarding an inventory of needs.

Conclusion

As mentioned earlier, Wahkiakum County is at a disadvantage if only because of its very small population. The energy barons are holding a tight grip on the reigns of power in DC.  IÕm convinced that an official attempt to oppose LNG, no matter how intense, would yield little Š if not harm things in the long run.

However, a good faith attempt to protect the interests of our county can yield results.  And information is starting to emerge that this is occurring.

An expert has said itÕs a good possibility that LNG on the Columbia will not happen.  This suggests the effort as merely an energy speculation device.  So this whole affair could all be for naught. 

This ordeal is indicative of the GW Bush years. ItÕs where high flying financial speculation intercourses with the high-flying Republican Congress.  And like the Enron scams, the war profiteering borne from deceit or the Katrina response, people will be hurt if LNG comes to fruition.  Hurt not the sense of being bombed or drowned or looted electric bills.  Hurt, in this case, comes from a feeling of being discounted and helpless.  We can at least do something about that here in the county.

Krist Novoselic

June 15, 2006

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