LNG firm outlines plan for Calais area

BAILEYVILLE – Local liquefied natural gas developers met with town officials to talk about their company’s plans to site a facility near Calais.

BP Consulting LLC founders state tribal Rep. Fred Moore Jr., and state Rep. Ian Emery, R-Cutler, unveiled their plan at the Town Council meeting Monday night. Moore also talked about the proposed petition circulating throughout the state to put the issue of a Down East racino – a racetrack and casino – on the ballot.

BP Consulting is working with the Passamaquoddy Tribe at Indian Township and Calais city officials to build a $500 million facility on more than 250 acres in Red Beach between Devil’s Head Park and St. Croix Island, near Route 1. Red Beach is a village within Calais. In 1604, St. Croix Island was the site of the first French settlement in North America.

Under the plan, BP would own the land and the Passamaquoddy Tribe at Indian Township, near Princeton, would own the facility that would employ approximately 50 people. Plans call for a pier to be built in the St. Croix River, across from the Canadian shipping port at Bayside, New Brunswick. The gas would be piped along the pier to two storage tanks. Moore said the tribe would pay city, county, state and federal taxes.

The plan is one of three LNG proposals now being considered in the area.

Earlier this year, Oklahoma-based Quoddy Bay LLC entered into a lease agreement with the Passamaquoddy Tribe at Pleasant Point, a reservation located approximately 60 miles from Indian Township, to build a facility at Split Rock with an 8-mile underwater cryogenic pipeline connecting to storage tanks in Robbinston. Cost of the project is estimated at $400 million. In return for the land, the tribe would be paid between $4 million and $8 million a year.

A few months ago, Washington D.C.-based Downeast LNG proposed building a $400 million LNG terminal and storage tank facility in Robbinston.

Moore said that he believed the Federal Energy Regulatory Commission, which has federal approval powers, would favor a site that would have the support of so many communities. Calais has already given preliminary approval to the concept.

He said that Indian Township planned to share the benefits of its project with its neighboring reservation at Pleasant Point near Eastport if their project failed.

Moore said he would appreciate Baileyville’s support as they develop their economic impact analysis. “We would like to have your participation in developing a plan that we feel would help benefit your community as much as we can,” he said.

Town Manager Scott Harriman said in the past the town passed a resolution supporting LNG, but has not yet endorsed a specific project. He suggested they schedule a workshop to get a more in-depth analysis from Moore and Emery. No date was set.

This latest plan, like the others, calls for large ships to travel through Canadian waters to their respective piers. In the past few weeks, officials in St. Andrews, New Brunswick, have said they were opposed to an LNG terminal across from their shores. They also picked up support from New Brunswick Premier Bernard Lord who also said no to LNG.

Moore also talked about the tribe’s efforts to build a racino in Washington County.

Although Gov. John Baldacci has blocked the tribe’s efforts to build a racino, that hasn’t stopped the tribe. They are taking their demands to voters in the form of a petition and referendum vote.

The petition effort got off to a strong start in August with proponents collecting signatures in Calais and Topsham.

The proposal, which would allow the Passamaquoddy Tribe to place as many as 1,500 slot machines at a new harness racing track on or near tribal reservations near Calais and Eastport, twice received approval from state legislators only to be blocked by Gov. Baldacci.

Proponents will need to gather more than 50,500 certified signatures by Jan. 20 in order to place the issue on the statewide ballot in November 2006.

Town Councilor John Morrison asked Moore if the tribe had decided where the facility might be built.

He said although Calais has been on the tribe’s list as a possible location a site has not yet been selected.