The Price of Gas

Although the tribal council at Pleasant Point this week voted to sign a contract to build a liquefied natural gas facility on its land on Passamaquoddy Bay, the project is far from reality. In addition to needing numerous federal and state approvals, local opposition – both on and off the reservation – must be addressed for this to be a worthwhile endeavor.

Faced with a deadline to reach an agreement with the developer, the tribal council voted 4-3 Thursday night to accept a deal to build the LNG facility on reservation land in exchange for $8 million a year. The vote was immediately attacked by some tribal members. This does not bode well for the project or the tribe.

Quoddy Bay LLC, the Oklahoma company that proposes to build the gas terminal, considers the vote the final approval it needs from the tribe because the project was also approved by tribal members last summer by a vote of 193-132.

After the tribal vote, the project appeared to be moving forward. However, when the tribe annexed the land where the terminal was initially proposed on Gleason Cove, it signed an agreement giving the residents of the town of Perry power to approve or reject commercial development on the parcel. Perry residents rejected the project, and the promise of $1 million a year from Quoddy Bay, with a 279-214 vote in March.

Quoddy Bay and Passamaquoddy officials continued to look for a suitable location for the pier and tanks that would be needed to offload and hold LNG that arrives in tankers. They settled on the Slick Rock location, which does not need approval from neighboring communities.

The company now plans to seek approval of the contract from the U.S. Bureau of Indian Affairs. If that is granted, engineering and environmental studies would then be undertaken before applications for state and federal permits are filed.

The company and tribe also need to continue to reach out to neighboring communities and those who vehemently oppose the project. The debate has long been one of economic development versus preserving traditions and the environment. Both are possible, but only if there is real dialogue.

Demand for natural gas, which is cleaner burning than oil or coal, has grown rapidly. There are currently only four LNG terminals in operation in the United States, but dozens are on the drawing board. LNG projects in New Brunswick and Nova Scotia have already received preliminary approvals. Maine has no say and may derive little benefit from these projects.

If a terminal can be built and operated with minimal impact on the environment while providing good paying jobs in an area that sorely needs them and a cleaner energy source to communities, both local and nationwide, this project may have a future.