FERC warns of delay for LNG developers Coast Guard seeks safety, impact data

Federal regulators have warned the developers of liquefied natural gas facilities proposed in Washington County that their applications could be delayed unless the companies promptly address Coast Guard concerns about the massive ships.

In letters sent Friday, the Federal Energy Regulatory Commission requested that officials with Quoddy Bay LNG and Downeast LNG respond within 20 days to an earlier U.S. Coast Guard letter for more information on issues of maritime safety, security and environmental impacts.

The Coast Guard said in a June 19 letter that the information – which ranged from tanker routes to emergency response plans and fisherman gear loss – was necessary to complete Waterway Suitability Reports for the projects.

The Coast Guard requested the information from the developers, in part, because Canadian officials opposed to the projects have stonewalled U.S. requests for input on safety, security and environmental issues.

On Friday, FERC underscored the importance of that earlier letter by pointing out that the agency cannot complete its draft environmental impact statements of the two projects – proposed for Robbinston and Pleasant Point – without the Coast Guard’s suitability report.

Furthermore, FERC said it couldn’t begin the notification process for its environmental review schedule until all of the information is received.

“Failure to provide a timely, accurate and complete response will delay the processing of your application,” Richard Hoffman, with FERC’s Office of Energy Projects, said in a letter to Quoddy Bay LNG.

Brian Smith, project manager for Quoddy Bay, said his company should not have a problem meeting the 20-day deadline. He said the company has been gathering such information for more than six months and it’s now just a matter of compiling it in one document.

The Coast Guard’s June 19 letter acknowledges an “informational void” about the two projects’ impacts on Canada because, to date, officials from across the border have not responded to requests.

Canadian authorities have urged FERC to reject the applications and have threatened to block the massive LNG tankers from passing through Canadian waters. The Coast Guard letter asked for specific options “to facilitate safe and secure movement of LNG tankers through U.S. and Canadian waters should Canada remain committed to a policy of non-cooperation.”

Smith sounded upbeat Friday even after receiving FERC’s letter, which did not ask for any additional information. Unlike the Coast Guard letter, the FERC correspondence made no mention of an unreleased Canadian study on possible navigational safety, environmental and other impacts of the LNG facilities.

“The intent is for … us to provide information on how the Coast Guard and our staff and everyone in law enforcement can make sure these ships remain safe and secure whether or not we have Canadian participation, and that’s what we intend to do,” Smith said.

Both the Quoddy Bay and Downeast LNG projects also have encountered opposition from some local residents concerned about safety and environmental impacts.