Natural gas plan in the pipeline.

Byline: Winston Ross The Register-Guard

COOS BAY - Federal regulators will hold hearings next week to gather public input on plans to build a liquefied natural gas terminal in Coos Bay and a 223-mile pipeline that would cross four Oregon counties into California.

The proposal could have a significant impact on Coos Bay's economy, energy affordability and the environment, according to proponents and skeptics alike.

The Federal Energy Regulatory Commission and the U.S. Coast Guard are hosting four meetings from Coos Bay to Klamath Falls to hear from residents as the agencies prepare a lengthy review of the project's safety and environmental issues during the next several months.

Because of a change in the law, Oregon officials will not make the final decision on where to locate the terminal. In the past, both the federal commission and the state's energy facility siting council would have had to sign off on the location. But last year's energy bill stripped that authority from the state and vested it squarely in the federal government's hands.

Oregon still could halt the project if land use officials determine it doesn't conform to coastal zoning laws, but the terminal's developer would have the opportunity to revamp its design to meet state standards.

"We were fully intending from the get-go to go through the state process," said Bob Braddock, project manager for the LNG terminal. "No matter how the law came out, we would have done all the environmental research that would satisfy state and federal requirements. We were quite indifferent as to how it came down."

Residents such as Jody McCaffree worry that an LNG terminal could expose the bay to terrorist threats, damage the environment or cause explosions in the event of an earthquake or tsunami.

McCaffree has organized a group of local citizens against the project, mirroring opposition efforts on the Columbia River, where four such terminals are proposed, and elsewhere in the United States, where liquefied natural gas facilities are often met with stiff resistance.

"The negative impacts far outweigh the positive," McCaffree said.

Liquefied natural gas is natural gas cooled to minus 259 degrees Fahrenheit, which allows it to occupy 1/600 the space it does in gas form. With rising oil prices, it's often touted as a part of the solution to the nation's energy woes, allowing transport from places such as Trinidad, Qatar and Algeria and lessening this country's dependence on oil.

The proposed facility includes a receiving and off-loading terminal for ocean-going liquefied natural gas vessels, which would make an estimated six or seven vessel calls per month to the Oregon International Port of Coos Bay.

The site also would house two full-containment gas storage tanks, which would hold more than 1 million barrels of compressed gas.

A terminal in Coos Bay and the pipeline construction could bring up to 1,000 temporary jobs and 60 permanent jobs to Oregon once the terminal is online, Braddock said.

Since first floating the idea, demand has spiked, prompting Braddock's Energy Projects Development LLC to shift the proposed location of the plant to a bigger parcel of land on Coos Bay's North Spit, requiring that a new pipeline be built to transport the gas.

In part, the location change comes at the request of officials at the port, Braddock said. The port wanted to build a bigger ship berth so that it could accommodate two vessels at once, thereby increasing the port's opportunity to attract customers to the bay.

The change also reflects growing interest in liquefied gas. Initially, the idea was for the terminal to serve only Coos Bay and the Willamette Valley, Braddock explained, using Coos County's 60-mile existing pipeline to Roseburg to transport the gas.

But rising demand for natural gas in other parts of the West means Braddock is now seeking customers outside of Oregon. Coos County's 12-inch line can't carry as much gas as Braddock's company plans to sell. The federal government will consider the terminal and the pipeline as if they were a single project, Braddock said, because one wouldn't be built without the other.

The analysis will attempt to answer whether the port is capable of receiving such ships, what risks are involved in locating a terminal in Coos Bay and what impact the construction or operations of the terminal and the pipeline could have on the environment.

Residents already have raised concerns about the line's impact on erosion and the quality of salmon-bearing streams.

"People have a lot of questions about where we're putting the pipeline," said Jan Camp, land lead for the project, which is owned by three companies. "But Williams (Northwest Pipeline) has been in the pipeline business for a lot of years. That's what we do, is construct and operate natural gas pipelines."

The pipeline is expected to be built and the terminal up and running by 2010.

Winston Ross can be reached at [e-mail].

LIQUEFIED NATURAL GAS PROJECT

The Federal Energy Regulatory Commission and the U.S. Coast Guard are evaluating the safety and environmental effects of a proposed liquefied natural gas terminal and pipeline in Coos Bay. They're holding public hearings next week.

Roseburg: Monday, July 10, at 6:30 p.m. at Umpqua Community College in the Campus Center Dining Room/Timber Room, 1140 Umpqua College Road

Coos Bay: Tuesday, July 11, at 6 p.m. at Southwestern Oregon Community College, Hales Performing Arts Center, 1988 Newmark Ave.

Medford: Wednesday, July 12, at 7 p.m., Red Lion Inn, Rogue River Ballroom, 200 N. Riverside Ave., Medford

Klamath Falls: Thursday, July 13, at 6:30 p.m., Oregon Institute of Technology Auditorium, College Union, 3201 Campus Drive

For written comments: Mail the original and two copies to Magalie R. Salas, Secretary, Federal Energy Regulatory Commission, 888 First St. NE, Room 1A, Washington, D.C. 20426. Label one copy for attention of DG2E/G3 and reference docket Nos. PF06-25-000 and PF06-26-000 on the original and both copies. Mail by July 24. To file electronically, visit www.ferc.gov and look for the "e-filing" link.

To write to the U.S. Coast Guard: Written comments are due July 21, and may be sent to Commanding Officer, U.S. Coast Guard, Sector Portland, 6767 N. Basin Ave., Portland, OR 97217; e-mail: [e-mail]; fax: [phone]

Project Web sites: www.pacificconnectorgp.com; www.jordancoveenergy.com