LNG opponents target SEC

Members of citizens groups opposed to a planned liquefied natural gas plant across the Columbia River at Bradwood, Ore., journeyed to Washington, D.C., and New York City last week to voice their concerns to the financial industry.

In a related development, Washington legislative District 19 members, Sen. Brian Hatfield (D-Raymond), Rep. Brian Blake (D-Aberdeen) and Rep. Dean Takko (D-Longview), also issued a joint statement last Thursday oppposing the proposed plant and pipeline connecting it to existing natural gas pipelines.

Over 20 people representing a coalition of groups from Oregon and Washington hit the halls of the U.S. Capitol and then Wall Street in New York to press their claim that the plant's sponsor, NorthernStar Natural Gas, is making untrue claims as it prepares a sale of stock to fund the project.

The groups filed a formal complaint with the U.S. Securities and Exchange Commission (SEC) asserting that the business information filed by NorthernStar in their prospectus for an initial public stock offering relies on a number of questionable facts and assumptions that in a number of cases directly conflict with previous claims made by Northern Star.

For example, they said, NorthernStar has repeatedly claimed that its Bradwood Landing project would provide an “estimated 65 jobs averaging $60,000 a year.” However, the company's prospectus filed with the SEC on December 15, 2006 states, “We currently estimate that 35 to 40 employees will be required to operate each LNG terminal.”

Similarly, they said that while NorthernStar has repeatedly stated that its planned LNG project was intended to provide gas for Oregon and Washington, its SEC filing explicitly identifies both northern and southern California as “convenient” markets for the project’s gas.

“NorthernStar has really shown its true colors with this prospectus,” said Brent Foster, Executive Director of Columbia Riverkeeper. “They’ve misled the public for the last year and now they’re just up to more of the same.”

After filing the complaint with the SEC, the group traveled to New York City, where it marched on Wall Street with signs to alert investors to the claims, said George Exum, a Puget Island resident who made the trip.

The legislators echoed comments made early last week when Congressman Brian Baird voiced opposition to the proposed terminal.

“We oppose the siting of the proposed liquefied natural gas terminal at Bradwood Landing and the proposed natural gas pipeline through Cowlitz County, due to grave concerns over the cumulative effects of the project. Specifically, the security and safety problems identified in the Coast Guard’s preliminary report, effects on shipping and recreation, eminent domain issues, and environmental risks outweigh any potential economic benefits," the legislators said in their statement.

They felt that the February 28 Coast Guard report "clearly stated the Bradwood Landing site was unsuitable without extensive measures to improve safety and security. The project’s security requirements alone will have a strong impact not only on Oregon, but on Puget Island half a mile across from Bradwood.

"The proposed pipeline also presents a serious problem. Private property owners are worried because of landslide and seismic issues, past pipeline explosions in Cowlitz County, and eminent domain problems. The costs to local and state authorities for eminent domain and siting would be tremendous.

"Finally, any possible jobs created by the terminal could be offset by damage to the commercial fishing industry and costs from blocking the shipping lanes. Possible interruptions of existing and future shipping will be detrimental to the region’s economy.

"We understand that the LNG plant siting is solely a federal decision; however the people and the towns in Southwest Washington and Northwest Oregon have to live with that siting decision. The 2005 energy bill passed by Congress gave the Federal Energy Regulatory Commission (FERC), comprised of five individuals, sole authority to make siting decisions for the entire country. We support Congressman Baird’s efforts to convey to the entire United States Congress the strong opposition brought to his attention by an informed and committed constituency."