So let’s start with the one that hasn’t been reported.

The proposed site of the Oregon LNG terminal. Photo from Oregon Sierra Club.

The Oregon Sierra Club and Bark are trying to overturn a complicated lease deal between the state of Oregon, the Port of Astoria and the Oregon LNG company. Oregon LNG leases 96-acres of state owned land along the Columbia River near Warrenton. That’s where the company wants to build an LNG import terminal.

Opponents say Oregon LNG is being way undercharged. The company pays $418 per acre, per year, to lease the land. Contrast that with the lease for the Jordan Cove LNG project near Coos Bay. Jordan Cove pays $11,000 an acre. If both companies were paying the same rate, Oregon LNG’s rent would jump from about $40,000 a year, to more than $1 million.

Sierra Club and Bark say the Department of State Lands made a mistake last month when it extended the lease for another 30-years. The groups filed an appeal, saying DSL should reconsider. They argue:

• DSL failed to evaluate whether the lease was in the public interest, as required by law and the Oregon Constitution.
• DSL failed to hold public hearings, even though an LNG terminal would have a major impact on the state.
• DSL undervalued the land, by appraising it as a golf course instead of heavy industrial marine site.

It appears the enviros hope the state will cancel the lease, which could mean Oregon LNG will have no place to build a terminal. Or the price will be jacked up so much, the company may not be able to afford the rent.

Don’t underestimate the impact of these kinds of tactics. The Bradwood Landing LNG project went into bankruptcy just a couple of weeks after enviros won an appeal of the Clatsop County planning process.

A Pipeline On Hold

A one-page letter to the Federal Energy Regulatory Commission created quite a stir this week. The company behind the Palomar natural gas pipeline says it’s reviewing the project to, “reflect potential changes in its commercial arrangements.”

The letter goes on to say, “Palomar continues to seek additional commercial underpinning for the project.”

What’s happened is that Palomar is suddenly without one of its big partners in the project. The pipeline was supposed to bring in natural gas from the defunct Bradwood Landing LNG. Now that supply of gas is gone and Bradwood owes Palomar more than $17 million.

Bark and Hey! NW Natural jumped on the news and called it a win in their campaign to kill Palomar. “Palomar’s initial schedule had them cutting trees this summer,” says Bark Program Director, Amy Harwood. “Every day the pipeline hasn’t been constructed is another day of victory. There’s just too much stacked up against this project.”

Palomar is looking for ways to continue with the eastern half of the pipeline, the part that wasn’t dependent on LNG. Running from Maupin to Molalla, that segment could conceivably be used to bring in natural gas from the Rocky Mountain states. Environmental groups are opposed because building the pipeline would leave a 47-mile long path of clear cut through the Mt. Hood National Forest, impacting endangered species such as the Northern Spotted Owl and the Columbia White Tailed Deer.

Palomar isn’t dead. But as the environmental groups note, the Forest Service has stopped working on the project.

An LNG protest sign from FERC's December 2009 field trip in Washington County.

If LNG opponents were hoping for a new angle in their fight against Oregon LNG, this isn’t it.

A report by the Federal Energy Regulatory Commission (FERC) clears the company of any serious wrongdoing in how it dealt with landowners along the route of its proposed pipeline in Northwest Oregon.

“No Misconduct”

At three public hearings in April, landowners along the pipeline accused Oregon LNG of trespassing, harassment and retaliation. They complained about not being notified about important meetings and about changes made to where the pipeline would be located.

The hearings were held in front of FERC Administrative Law Judge Bobbie McCartney. In her report, McCartney finds little or no evidence to support those charges.

Her conclusion? That while FERC and Oregon LNG could do a better job communicating with landowners, “the evidence of record does not support a finding of misconduct as to any of the allegations.”

A Closer Look At The Charges

Threats and Retaliation: Some of the landowners accused Oregon LNG of changing the route of the pipeline to punish them for not cooperating with the company. McCartney says she couldn’t find any evidence of that. Instead, she says, company officials offered “compelling testimony” that changes were made for environmental reasons.

On the other hand, she does list threats and intimidation made by landowners against Oregon LNG officials.

Trespassing: McCartney says there’s little evidence that Oregon LNG officials trespassed on private land. Getting to the truth on this issue was made more difficult – she says – because landowners were also dealing with officials from the Palomar pipeline and may have been confused.

The GPS Incident: During a field visit by FERC and Oregon LNG staff in December of 2009, one of the company officials recorded GPS data of the location of a well on private property. Doing that was a direct violation of the agreement giving the company access to the property. But McCartney portrays the incident as an honest mistake, noting the data was quickly erased and that the official apologized.

Security Guards With Guns: One of the stranger stories out of the hearings was about the presence of armed security guards at a public information meeting at Banks High School in May of 2008. Landowners called the experience intimidating and offensive. One of the witnesses testified he was told by FERC Chairman Jon Wellinghoff that Oregon LNG hired the armed guards.

But the report concludes that company didn’t do any such thing. Instead, McCartney finds that the armed guards were requested by the school.

In conclusion, McCartney writes:

“It should be noted that at the heart of many of the concerns raised by the participants in this proceeding is the compelling and quite understandable fact that most landowners don’t want an LNG pipeline project to come across their property or otherwise adversely impact their quality of life. In fact, many participants readily admitted that they were availing themselves of the opportunity to provide testimony affirming their opposition to all of the proposed liquefied natural gas terminals and associated pipeline projects. However, while the evidence of record does not support a finding of misconduct, the concerns and frustrations the participants have expressed in their testimony are very genuine and have been captured in the record of this proceeding for the Commission’s consideration.”

Related Stories:

VIDEO: Protests, Frustration And Apologies At The Final Day Of FERC LNG Hearings

FERC LNG Hearing: Guns, Trespassing and Intimidation

Monica Vaughan of the Hey! NW Natural campaign says it was the biggest protest yet, saying she counted about 250 people. Eyeballing the size of the crowd, I think that was a pretty good estimate.

The protestors want NW Natural to drop plans for the Palomar Pipeline. While Palomar may no longer be connected to an LNG terminal, and may end up as a source for more domestic natural gas, these opponents say it still poses too much of risk to the environment.

So let’s start with some highlights of the protest, including a singalong by Portland’s Raging Grannies who found a perfect opportunity to take score some points over the oil spill in the Gulf of Mexico.

(Continue reading to see a statement by NW Natural)

www.youtube.com/watch?v=xznA0PqkfFU

One of the organizers, Olivia Schmidt of the Oregon Sierra Club, was invited into the annual meeting by a NW Natural shareholder. Schmidt describes what happened when she questioned utility officials about the Palomar project.

www.youtube.com/watch?v=9b7-qj-YfeU

Earlier, I called NW Natural to see if they’d talk to me on camera about Palomar and the protest. They turned down my request, but e-mailed me this statement.

We respect the rights of this group to voice an opinion. However, we disagree with their stance on the Palomar pipeline.

Today, all the major population areas of Oregon and Southwest Washington rely on one interstate pipeline built during the 1950s.

Five decades later, we’re looking at a growing population and the need for more natural gas to back-up wind and solar, and transition off coal – which is why we’ve proposed Palomar.

-NW Natural Gas

First, a quick recap.

Volunteers displaying the pipeline puppet at PSU's Saturday Market. Photo from Hey! NW Natural.

Anti-LNG groups in Oregon are holding what could be a huge rally this afternoon outside the annual shareholders meeting for NW Natural Gas. They want the utility to cancel plans for the Palomar pipeline. They see blocking Palomar as the key to stopping all LNG development in Northwest Oregon.

The meeting and rally are taking place at the Oregon Convention Center, 777 MLK Blvd. in Portland.

The rally starts at 1:00pm and runs until 4:00pm.

The new information includes this list of highlights:

• 1:30pm – Landowners who live along the proposed pipeline route will speak.
• 2:30pm – Former Secretary of State Bill Bradbury and State Representative Chuck Riley will speak.
• Organizers are also putting on something called Pipeline Puppet Theatre. It was explained to me, but I’m still not sure what will happen. I guess you’ll have to see it if you want to know what it’s all about.

Some of the flags that will be displayed at today's rally. Photo from Hey! NW Natural.

The Future of Palomar

The future of the Palomar pipeline became a big question after the demise of the Bradwood landing LNG project. Palomar was supposed to connect with Bradwood and carry the gas 220-miles through the Willamette Valley, the Mt. Hood National Forest and over the Cascades.

But with Bradwood out of the picture, NW Natural says it may build just half of the pipeline. This smaller route would run from Maupin to Molalla to bring in domestic supplies of natural gas from the Rocky Mountain states. It would still cross the Cascades and cut a 47-mile long path of clear cut through the Mt. Hood National Forest.

Another option might be changing the route of the western segment of Palomar. Instead of connecting to Bradwood, NW Natural may want to considering connecting it with the proposed Oregon LNG terminal that developers want to build along the Columbia River near Warrenton. Depending on how this scenario played out, it could make the Palomar pipeline even longer.

Either Way, Environmentalists Are Opposed

Should NW Natural go ahead with just the Maupin to Molalla segment, it’s in a stronger position because the purpose would be to bring in more domestic natural gas into the Willamette Valley. That’s politically safer than trying to import foreign LNG.

But environmental groups are against it because of the impact on the Mt. Hood National Forest. They say the plan threatens old growth areas, wildlife habitat and crosses some ecologically important rivers and streams.

Should NW Natural stick with plans to build a western segment for LNG supplies, then it renews conflicts with farmers, vineyard and orchard owners in the Willamette Valley. They’re worried about the environmental and safety impacts of the pipeline, as well as how it would limit their ability to grow certain crops.

LNG Protesters at a rally outside Portland City Hall. Photo by Dennis Newman.

If there was a social calendar for Oregon environmentalists, this might the biggest event of them all.

The annual meeting of shareholders for NW Natural takes place a week from today. It’s become an annual draw not just for investors, but also for Oregon’s anti-LNG movement. Last year’s rally was fairly serene. But two years ago some of the protesters chained themselves to the doors at the utility’s offices in downtown Portland.

(Note: Please continue reading to see the video: No Gas? No problem. How a Portland woman is fighting the Palomar Pipeline.)

While I can’t promise that much fun this year, there’s growing buzz about the protest on social media. There’s also information about the time and place on the front page of the Hey! NW Natural website.

NW Natural is targeted by anti-LNG forces for its involvement in the Palomar pipeline. Palomar was supposed to deliver LNG from the Bradwood Landing terminal, to the Willamette Valley and across the Cascades into Eastern Oregon. But with Bradwood Landing in bankruptcy -- it raises a whole new set of questions about what NW Natural will do next.

It could decide to go ahead with the Willamette Valley to Eastern Oregon half of the project. NW Natural likes this idea, saying it could use that segment to bring in domestic supplies of natural gas from the Rocky Mountain states. Politically speaking, that may be a smart move. Domestic natural gas doesn’t cause as much uproar as foreign supplied LNG.

Don’t expect environmentalists to roll over. That eastern segment of Palomar runs through the Mt. Hood National Forest, leaving a 40-something mile long path of clear cut. Portlanders’ love of Mt. Hood may be just the thing to see Palomar get killed.

Another option is keeping the western half of the pipeline. But instead of connecting it to Bradwood, find a way to meet up with the proposed Oregon LNG terminal in Warrenton. This is sure to infuriate farmers, vineyards, orchards and private forest owners who’ve been fighting all attempts to put LNG pipelines through Northwest Oregon.

Here’s what you need to know.

The NW Natural protest begins at 1:00pm, Thursday May 27, outside the Oregon Convention Center , 777 MLK Blvd., Portland. There’s also a carpool caravan departing Eugene at 10am. The gathering spot is at the corner of Agate & E 19th.

But of all the stories about LNG protesters, this is one that really intrigued me.

Kima Garrison of NE Portland has turned off natural gas at her house and is going without heat from her furnace. Mind you, she started it this spring when having a furnace isn’t quite so important as it will be next winter. But she’ll try keeping it off next winter, too.

She’s still getting electric hot water and can still cook on her electric stove. She’ll be the first to admit that shutting off the gas isn’t as difficult for her as it is for others.

Why is she doing this? Garrison got tired of writing “No LNG” statements on her natural gas bill and seeing no results. She thinks that if NW Natural notices a drop in business because of its support for Palomar, then maybe it will decide to pull out of the pipeline project. That, of course, depends on a lot of other people joining Garrison in her natural gas free lifestyle.

Here’s her story in her own words.

www.youtube.com/watch?v=IrtEep6qOa8

Now the Daily Astorian has digged a further into the bankruptcy records.  It reports that other debtors left hanging include the Stoel Rives law firm and Clatsop County. Even the Astoria Rotary Club may be out $190.

See Daily Astorian: Does Bradwood owe you money?

Anti-LNG protesters at a news conference earlier this month. Photo by Dennis Newman.

The day after the “big news”, Oregon’s anti-LNG coalition was confident and looking ahead to the next fight against LNG in Oregon.

“A great day for salmon”. “A huge victory for Oregon families”. This is how they described the news that work on the Bradwood Landing LNG project was being suspended, and that the company behind it was filing for bankruptcy.

The next logical target is the Palomar Pipeline. This is a highly controversial pipeline that has farmers up in arms, and environmentalists worried about the damage it could do to old growth trees and watersheds.

Palomar was supposed to connect with Bradwood and carry the gas 220-miles east to an interstate pipeline junction near Maupin. The proposed path takes it through some of Oregon’s prime farm land in the Willamette Valley, and leaves a 47-mile clear cut in the Mt. Hood National Forest.

NW Natural, one of Palomar’s developers, says the death of Bradwood doesn’t kill the entire project. It says they are looking at their options for the western end of the pipeline -- the part that would have connected to Bradwood. But the eastern side of Palomar is a different story.  NW Natural President and CEO Gregg Kantor says the eastern segment is now even more important, “as a way to bring additional domestic supplies from the Rocky Mountains and western Canada.”

But Amy Harwood of Bark says just dropping half of Palomar isn’t good enough. That eastern section is the one that runs past Mt. Hood. “We don’t want to see these corridors leave a permanent scar across our remaining old growth forest in Mt. Hood National Forest, across our wild rivers we spend on for good drinking water as well as quality fishing,” she says.

Harwood says anti-LNG forces will rally at the next annual meeting of NW Natural shareholders in Portland. That’s scheduled for May 27.

At today’s news conference were representatives of Columbia Riverkeeper, Bark, Oregon Citizens Against Pipelines and the Columbia River Intertribal Fish Commission.

I’ve edited three short videos from today’s event.

Video: The Future of LNG in Oregon

www.youtube.com/watch?v=IHH3GbdNga0

Video: NorthernStar Natural Gas Filing For Bankruptcy

www.youtube.com/watch?v=sgQwPDfZoqg

Video: What Killed Bradwood Landing

www.youtube.com/watch?v=WBmTmx6YrZg

Related Stories:

Bradwood LNG Developer Files For Bankruptcy
Environmentalists Savor ‘Tremendous Victory’ Over LNG
LNG Opponents Celebrate A Victory Over Bradwood Landing

In papers filed yesterday in Houston, the company says it’s unable to pay its debts and will liquidate under Chapter 7. Company spokesman Charles Deister wouldn’t comment when asked about the filing. He referred me to yesterday’s announcement that the company is suspending work on Bradwood Landing.

Julia Warren who works for the bankruptcy trustee has confirmed the filing.

NorthernStar Natural Gas Bankruptcy Filing

Notice of Bankruptcy Filing

Also, NW Natural said earlier today in a press release that NorthernStar “intends” to file for bankruptcy.

LNG Opponents are holding a 1pm news conference to talk about all this.

Northern Star Natural Gas won’t say the project is dead, it prefers to use the word “suspended”. But it seems clear that unless some LNG angel shows up with buckets of cash, Bradwood is a goner.

Which leads us to this question, what’s the future of the other LNG projects in Oregon?

Brett VandenHeuvel of Columbia Riverkeeper says, “It shows there is no place in Oregon for LNG.” While the developer of Bradwood blamed delays in getting permits, VandenHeuvel says the process is not at fault. “They all suffer from the same problems,” he says, “harming salmon habitat, destroying farm land and bringing in an unneeded source of dirty fuel.”

In Northwest Oregon, there are two LNG projects still standing.

A company called Oregon LNG wants to build a terminal on the Columbia River near Warrenton, and a 120-mile pipeline to deliver the gas. It’s running into strong opposition not just from environmentalists, but also from farmers who worry the pipeline will destroy their farms and their livelihoods. Oregon LNG is still waiting for federal approval.

Then there’s the Palomar Pipeline. Of the two, this one faces a more immediate problem. It was supposed to connect with Bradwood and carry the natural gas 220-miles to an interstate pipeline junction near Maupin. Like the Oregon LNG pipeline, it crosses prime farm land in the Willamette Valley. It also creates miles of clear cut through Mt. Hood National Forest. Olivia Schmidt has led the anti-LNG efforts for the Oregon Sierra Club. “I don’t see any way for Palomar to move ahead without Bradwood,” she says.

The third LNG project in Oregon is the Jordan Cove terminal in Coos Bay and the Pacific Connector Pipeline that crosses several southwest counties.

VandenHeuvel says the failure of Bradwood should send a signal to the remaining LNG proposals. “I’m hopeful the other LNG companies will recognize their projects aren’t viable either.”

“Oregonians are going to stand up for our natural resources, our livelihoods, our forests, our farms and our salmon.”

Two and a half years after winning federal approval, the Bradwood Landing LNG terminal is now on life support. The developer of Bradwood, Northern Star Natural Gas, says it’s suspending work on the project.

The surprising news came to us late Tuesday afternoon. In a press release the company says…

“The extended delays in the processing of state and federal permits for Bradwood Landing and the difficult investment environment have forced us to suspend development. In particular, the challenging regulatory environment gives investors pause, especially considering that Bradwood Landing would have such a positive impact on the Northwest’s economy and environment while supporting the region’s transition to renewable energy by providing a new source of reliable and affordable natural gas.”

-NorthernStar Natural Gas President Paul Soanes

The latest delay was a ruling two weeks ago by Oregon’s Land Use Board of Appeals. The board rejected Clatsop County permits for the project, saying the county made errors that appear to violate state planning laws.

Work on Bradwood Landing LNG began about six years ago. Northern Star Natural Gas proposed building an LNG import terminal along the Columbia River about 20 miles east of Astoria. Plans called for spending about $580 million, two large storing tanks, and a 38-mile pipeline to carry the gas to market.

The company says construction would have created 450 jobs, and 60 people would be needed to operate it. Clatsop County stood to take in $7.8 million in taxes and port fees every year.

But it was opposed by a large coalition of fishing and environmental groups who said the project would do too much damage to salmon habitat as well as commercial and recreational fishing on the Columbia River. The states of Oregon and Washington were also opposed. They along with the environmental coalition were fighting Bradwood Landing before the 9th Circuit Court of Appeals.