FERC recommends more mitigation steps for Jordan Cove LNG project

Construction and operation of liquefied natural gas terminal and associated pipelines near Coos Bay, Ore., would have adverse impacts which nevertheless could be mitigated, the Federal Energy Regulatory Commission said in a final environmental impact statement.

"Most of these impacts would be reduced to less-than-significant levels with the implementation of the applicants' proposed mitigation measures and the additional measures we recommend," FERC's staff said as it issued the final EIS on May 1.

Jordan Cove Energy Project LP, which is jointly owned by Fort Chicago Energy Partners LP of Calgary and Energy Projects Development LLC of Evergreen, Colo., has proposed constructing an LNG import terminal on the bay side of Coos Bay's north spit, about 7.5 miles up the bay's existing navigation channel, according to FERC.

Its sponsors said that the terminal will cost about $500 million to build and could go into operation in early 2011, assuming it receives the necessary permits and clearances.

FERC said that the terminal would join a 230-mile sendout pipeline proposed by Pacific Connector Gas Pipeline LP, a joint venture of Williams Cos. Inc. of Tulsa, PG&E Corp. of San Francisco and Fort Chicago Energy Partners.

The 36-inch diameter pipeline would have the capacity to transport up to 1 billion cubic feet per day of regasified LNG from the Jordan Cove terminal to interconnections with Williams's Northwest pipeline near Myrtle Creek, Ore.; Avista Corp.'s distribution system near Shady Grove, Ore.; and transmission systems owned by PG&E and Transcanada Corp. subsidiaries Tuscarora Gas Transmission and Gas Transmission Northwest near Malin, according to its sponsors.

FERC's staff said that it reached its decision for several reasons, including the terminal's final engineering design incorporating detailed seismic specifications and other measures to mitigate earthquake impacts, and mitigation measures along the pipeline route to address landslides and other geological hazards.

It said that the terminal and pipeline would have specific plans to mitigate erosion and restore disturbed soil and vegetation; to compensate for impacts on water bodies, wetlands, vegetation and habitats; and to continue consulting with appropriate federal and Oregon government agencies.

The final EIS also recommended that the terminal and pipeline's sponsors implement an engineering peer review process to ensure compliance will all applicable regulations, codes, design specifications, and conditions of FERC's final order.

Commissioners will issue that order after considering the staff recommendations and the final EIS, FERC said.

Contact Nick Snow at [email protected]