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U.S. decisions delay two LNG proposals

BY TOM INCANTALUPO | tom.incantalupo@newsday.com

January 12, 2009

Separate decisions by a federal judge and a federal regulatory agency have dealt potential setbacks to the two proposals for liquid natural gas receiving terminals near Long Island. But proponents of both projects say they aren't giving up.

On Dec. 8, a U.S. District Court judge in Washington ruled New Jersey's government should have veto power over a proposal by Manhattan-based Atlantic Sea Island Group for a gas terminal to be constructed 13 1/2 miles south of Long Beach and 19 miles east of the Jersey shore. New York State has that power.

Atlantic Sea Island can appeal a rejection by either state to the U.S. Department of Commerce.

Howard F. Bovers, chairman of the privately held Atlantic Sea Island, said he is seeking a meeting with New Jersey Gov. John Corzine, who has not publicly opposed the project, and noted Corzine has included liquid natural gas in an energy plan released in the fall. "So," Bovers said, "we think we can reach an accommodation with the governor."

Last week federal officials announced plans for public hearings on the project, on Jan. 29 in Long Beach and Jan. 27 in Eatontown, N.J.

Atlantic Sea Island's lawyers are appealing last month's court decision in the U.S. Court of Appeals in Washington, D.C.

Meanwhile, there was a development Dec. 10 related to the proposed Broadwater Energy LNG platform for Long Island Sound. The Commerce Department in effect tossed to the incoming Obama administration the matter of whether the department should, as Broadwater requests, overrule New York State's rejection of that project last year. The Commerce Department pushed back the deadline for accepting documents related to its decision from Dec. 15 to Feb. 13.

John Hritcko, regional director in charge of the Broadwater project, said such extensions are routine. Broadwater opponents, though, think a rejection of the project is more likely by the Obama administration than it would have been by George W. Bush's administration.

The Federal Energy Regulatory Commission has approved the Broadwater project. The Atlantic Sea Island project needs approval from the Coast Guard and the U.S. Department of Transportation's U.S. Maritime Administration, where it is pending.