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Feds reject Jordan Cove LNG terminal

By Kelly House
Oregon Live

Federal regulators have rejected plans for a liquefied natural gas terminal in Coos Bay. On Friday, the Federal Energy Regulatory Commission denied applications from two Delaware companies to site the massive Jordan Cove Energy Project in the Southern Oregon coastal town.

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The companies in 2013 announced plans to run a 230-mile-long pipeline from Malin, a small town in Klamath County, to Coos Bay. There, liquefied natural gas from Canada and Colorado would be offloaded into massive tanks before being loaded onto ships bound for China.

In Friday's denial, the commission ruled that the drawbacks of the proposed pipeline would outweigh its public benefits. Specifically, the commission noted, the pipeline would have "adverse effects on landowners."

Building the pipeline would affect nearly 160 miles of private lands and 630 landowners, the commission found. Multiple landowners have voiced worry about losing property value and business productivity to the pipeline, and the commission worried some lands would need to be acquired through eminent domain.

"Here, Pacific Connector has presented little or no evidence of need for the Pacific Connector Pipeline," the commission's order stated.

Friday's rejection came with a caveat: The two companies are free to reapply in the future and the commission would consider their plans if they can demonstrate "a market need" for their product.

The project's supporters touted the $7 billion economic boost it could bring to Oregon, while opponents voiced environmental and safety concerns.

A proposal for a separate LNG terminal at the mouth of the Columbia River met a major stumbling block last week, when a lawyer for the city of Warrenton denied the Oregon LNG company's application for a permit to build the facility.

The company had failed to prove its terminal would not cause permanent harm to the river, the lawyer found.

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