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SUNDAY FOCUS: LNG LNG project: Where the gas would flow, so would the money Comment By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Dec. 28, 2014 at 2:00 AM Updated Dec 31, 2014 at 12:55 PM By Greg Stiles Mail Tribune Posted Dec. 28, 2014 at 2:00 AM Updated Dec 31, 2014 at 12:55 PM » RELATED CONTENT Let FERC know what you think --> If you wish more information, you can read the more than 5,000-page draft environmental impact statement released in November by the Federal Energy Regulatory Commission at ... » Read more X Let FERC know what you think If you wish more information, you can read the more than 5,000-page draft environmental impact statement released in November by the Federal Energy Regulatory Commission at www.mailtribune.com/FERC-LNG-EIS . There are three ways you can comment on the proposal. Refer to the project document number, CP13-483-000, with your submission. Comments are due Feb. 13. Need help? Call FERC at 202-502- 8258. 1. eComment. Use the eComment feature at www.ferc.gov under the link to Documents and Filings as an easy way to submit brief, text-only comments. 2. eFiling. Use the eFiling feature at www.ferc.gov under the link to Documents and Filings to provide comments in a variety of formats by attaching them as a file with your submission. New eFiling users must first create an account by clicking on “eRegister.” Select “Comment on a Filing” as the filing type. 3. Mail . Mail comments to: Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission, 888 First St. N.E., Room 1A, Washington, D.C. 20426. Want to be kept up to date? FERC offers a free service called eSubscription that allows you to keep track of new filings, including notification, document summaries and direct links to the documents. Go to www.ferc.gov/docs-filing/esubscription.asp . • Colorado governor supports LNG project • Pacific Connector Gas Pipeline opponents rally in Medford » Social News A Canadian energy firm more than a decade ago searched the Pacific Coast for a perfect port to handle ships loaded with liquefied natural gas. It settled on Coos Bay, which once proclaimed itself "the world's largest lumber shipping port." Though the timber industry that fueled the Oregon Coast's only deep-water port faded away in the 1980s, the harbor remained a tantalizing prospect for potential importers — or, as it turns out, exporters. Calgary, Alberta-based Fort Chicago Energy Partners saw Jordan Cove, across the bay from the North Bend airport, as the optimum place when it announced plans for importing natural gas for domestic markets in 2004. Now called Veresen, the company and its partners plan to spend $7.6 billion to build the Jordan Cove LNG plant on Coos Bay and a 232-mile pipeline to Malin, just north of the California border in Klamath County, to connect to existing gas supplies. If the project wins approval, it will be the largest single private investment in Oregon history, Jordan Cove Energy Project spokesman Michael Hinrichs said. "We believe the port was ready to be brought back as a global shipping location and hub," Hinrichs said. "We were looking for an underutilized deep-water port between the Canadian border and San Francisco. Coos Bay doesn't have the amount of traffic as the Columbia River and there was land available for development." The slow-moving approval process for such developments, where years quickly turn to decades, proved a blessing in disguise for the project's developers. By 2010, the year the energy company had aimed for delivering gas to the Oregon Coast for import, the energy world had been turned upside down. North America was awash with unfathomable supplies of natural gas, thanks to fracking, and Asian markets were eager customers. In April 2012, Veresen vacated its FERC permit to import liquefied natural gas, and instead set out to export it. "We saw a revolution during 2009 and 2010 with new sources of natural gas extraction in the Rockies, the Northeast and Canada, and that's what turned things around for Jordan Cove," Hinrichs said. "So we refiled the application for export." The 5,048-page draft environmental impact statement, released in November by the Federal Energy Regulatory Commission, attests to the project's magnitude, detailing plans that cover more than 2 million acres in four counties and 19 watersheds. In shifting from importing to exporting, costs soared, Hinrichs said. "You don't need such a large infrastructure and power-generating equipment for an import facility." But long-term interest from customers in Japan, South Korea and India that could lead to 20- to 25-year commitments makes the project a potentially lucrative one. "We like to focus on Japan, because it has one of the longest-lasting LNG trade agreements with U.S. companies," Hinrichs said. Shipping liquefied natural gas from Coos Bay to Asia would cut delivery time by half — to 11 days in most cases — versus shipping from the Gulf of Mexico and through the Panama Canal. "It's ideally positioned for us to bring gas through Gas Transmission Northwest lines coming from Canada and the Ruby pipeline coming from the Rockies," said Vern Wadey, vice president of Jordan Cove LNG, developers of the LNG plant. There are three major elements involved: the LNG terminal at Jordan Cove, the South Dunes Power Plant about a mile away, and the Pacific Connector Gas Pipeline. Hinrichs said all three components can be built within four years after winning approval. The earliest operational date appears to be 2020. The LNG plant will take four years to build, the power plant and pipeline two years, he said. "The reason it takes two years to put in the pipeline is that it takes two seasons," he said. "The first season is clearing the route and for specific installation of equipment. The second is laying down and installing the pipeline." The pipeline would pass over the Southern Cascades through Camas Valley and the Coast Range, cutting through Klamath, Jackson, Douglas and Coos counties. Because the project will cross 400 water bodies — including perennial rivers and streams, seasonal streams, irrigation canals and ditches, stock ponds, the Coos Bay estuary and the Rogue River — it has drawn intense scrutiny from environmental groups. "FERC's approach is pretty unique," said Dan Serres, conservation director for Columbia Riverkeepers. "We don't buy their line (that) the damage can be mitigated. We fundamentally disagree with that. They are talking about remodeling the Coos Bay estuary, the Coquille, Umpqua and all the little streams and rivers. All this comes after an enormous effort to put fish back in watersheds. It will be more challenging now." FERC maintains it has developed measures that would reasonably avoid, minimize or mitigate environmental impacts resulting from construction and operation of the proposed project, adding that its recommendations be attached as conditions to the project going forward. FERC's draft environmental impact statement indicated construction of both the Jordan Cove facilities and connector pipeline would ignite an employment boom of 7,073 jobs over four years and generate another 6,100 non-project jobs through suppliers. The ripple effect — household spending by those new workers — would boost employment by another 7,350 jobs during construction. Total wages during terminal construction are estimated at $412 million. Pacific Connector's payroll for pipeline construction is estimated at $240 million. Jordan Cove would then employ about 145 workers at an average salary of $80,000 each to run the new facility, resulting in annual wages of nearly $12 million. Coos Bay's gross domestic product would rise by about $1.3 billion during the first year of Jordan Cove's operation, according to the draft EIS. The four counties through which the pipeline crosses would benefit economically, too. The operational pipeline is expected to produce $11.1 million total in annual property tax revenues. Jackson County's share would be $3.18 million. George Angerbauer, spokesman for Pacific Connector, said the company is preparing to negotiate land rights or permanent easements where the pipeline passes through 157 miles of private land. "What we're purchasing is an underground strip beneath the ground," Angerbauer said. "Typically, the landowner will continue doing whatever was being done before, including farming, ranching and operating equipment under certain conditions. You wouldn't want to build a barn over it or plant large trees over the top of it." Project operators would be required to compensate government entities for the timber cleared and the loss of logging income where the pipeline passes through 74.5 miles of Bureau of Land Management and Forest Service land. About 8.54 million board feet of timber would be logged on national forestland and another 8.84 million board feet on BLM lands in clearing the route for the pipeline. Combined, this is enough timber to build 1,100 houses that are 2,000 square feet. The value of lost timber productivity along the new right-of-way, trees cut prematurely and future maintenance for existing roads is pegged at $5.24 million. The government said about 660 existing roads would be in use during construction. Pacific Connector estimated it would modify about 65 existing roads. In addition, Pacific Connector would permanently maintain 13 new access roads. All temporary roads would be decommissioned and the areas restored to preconstruction conditions. While the gas would flow through sparsely populated regions, should natural gas resellers such as Avista find it economically feasible to offload gas along the route, it would be available, Hinrichs said. "Although we primarily plan to ship the majority of gas to customers in the Asia-Pacific region, Avista and other companies would be able to tie into our system to provide additional capacity," he said. Once the pipeline is in place and gas is shipped from the fields to Jordan Cove, the economic benefits for Jackson County will be the known — the $3.18 million in annual property taxes — and the unknown — commercial and industrial users who would benefit from potential availability. "The $3 million benefit, you can count on that," said Dan Kirschner, executive director for the Northwest Gas Association. "There are other possibilities that would come as the result of the infrastructure, but I would call that speculative." He said the first step for industrial use is availability. "If you check that box, then you go on," he said. "If not, then no, you can't go on." Reach reporter Greg Stiles at 541-776-4463 or [email protected] . Follow him on Twitter at www.twitter.com/GregMTBusiness , on Facebook at https://www.facebook.com/greg.stiles.31 , and read his blog at www.mailtribune.com/Economic Edge . For more stories, videos, an interactive map and links to online resources, visit www.mailtribune.com/project-pipeline . By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Dec. 28, 2014 at 2:00 AM Updated Dec 31, 2014 at 12:55 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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