FERC denies permits for Pacific Connector pipeline, Jordan Cove LNG terminal

Cover page of order denying permits for the Pacific Connector pipeline and the Jordan Cove Liquefied Natural Gas terminal in Oregon.

COOS BAY, Ore. - The Federal Energy Regulatory Commission declined Friday to issue permits for the construction of the Jordan Cove Liquefied Natural Gas terminal on the North Spit.

FERC also turned down permits for the construction of the Pacific Connector pipeline across southern Oregon to the terminal.

"We find the generalized allegations of need proffered by Pacific Connector do not outweigh the potential for adverse impact on landowners and communities," the agency said in an order issued March 11, 2016. "We find that without a pipeline connecting it to a source of gas to be liquefied and exported, the proposed Jordan Cove LNG Terminal can provide no benefit to the public to counterbalance any of the impacts which would be associated with its construction."

According to the order denying the permits, Pacific Connector had only secured 3 percent of the necessary easements through private property to build the pipeline as of November 2015.

Of the 630 landowners involved, 54 weighed in on the application.

"The landowners contend that the pipeline will have negative economic

impacts, such as land devaluation, loss of tax revenue, and economic harm to business operations (e.g., oyster and timber harvesting and farming)," the order reads. "While we cannot predict the outcome of the eventual negotiations, it currently appears that at least some portion of the necessary property rights will need to be obtained through the exercise of eminent domain."

The commission noted that Pacific Connector had not yet secured any customers to demonstrate demand for the pipeline.

Citing rules and precedents, the order says the commission could not find that the public benefit presented by pipeline "outweigh the potential for adverse impact on landowners and communities."

"The Commission's issuance of a certificate would allow Pacific Connector to proceed with eminent domain proceedings in what we find to be the absence of a demonstrated need for the pipeline," the order reads. "Because the record does not support a finding that the public benefits of the Pacific Connector Pipeline outweigh the adverse effects on landowners, we deny Pacific Connector's request for certificate authority to construct and operate its project, as well as the related blanket construction and transportation certificate applications."

The commission did leave the door open for the project.

"Our actions here are without prejudice to Jordan Cove and/or Pacific Connector submitting a new application to construct and/or operate LNG export facilities or natural gas transportation facilities should the companies show a market need for these services in the future," the order reads.

RELATED | Read the FERC order denying permits for Pacific Connect and Jordan Cove

This is a developing story. This story will be updated

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