US Commerce Secretary rejects Broadwater LNG project's appeal

April 14, 2009
US Commerce Secretary Gary Locke refused on Apr. 13 to overturn a New York state finding a year earlier that the proposed Broadwater liquefied natural gas project is not consistent with the state's coastal zone management plan.

US Commerce Secretary Gary Locke refused on Apr. 13 to overturn a New York state finding a year earlier that the proposed Broadwater liquefied natural gas project is not consistent with the state's coastal zone management plan.

Locke's decision rejected an appeal by the project's sponsors, TransCanada Corp. and Shell Gas and Power, of the state's CZMA finding on April 10, 2008. They asked the federal department to overturn the finding because they said it was based on unenforceable policies.

Locke responded that the state's objection properly considered all coastal effects from the proposed project, that its federally-approved CZMA's policies can be enforced, and that the proposed project's national interest does not outweigh its adverse coastal effects.

A Broadwater official expressed disappointment at the latest ruling on Apr. 13, especially since it followed approval of the project by the Federal Energy Regulatory Commission and the US Coast Guard's issuing a positive letter of recommendation.

"We believe the region will need additional natural gas to ensure a reliable supply of energy, help reduce price spikes and meet air quality and climate change goals. We will review the specifics of the ruling before making a decision on our next steps," said John Hritcko, senior vice president and regional project director for Broadwater Energy in Riverhead, N.Y.

Contact Nick Snow at [email protected]