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LNG plant wins regulators' OK

Vote on Sparrows Point site rejects opinions of local officials, neighbors

By Mary Gail Hare , mary.gail.hare@baltsun.com|January 16, 2009

The federal agency that regulates energy approved a proposal yesterday to build a natural gas terminal on the site of the former Sparrows Point shipyard in eastern Baltimore County, rejecting nearly three years' worth of opposition from area elected officials and the project's would-be neighbors.

The Federal Energy Regulatory Commission acted on the proposal - which also includes construction of an 88-mile pipeline to Pennsylvania - despite calls from the U.S. Fish and Wildlife Service and Maryland's congressional delegation to postpone the vote. Organized labor groups support the project, which they say would generate hundreds of jobs.

The five-member panel voted 4-1 without discussion to approve the request from Virginia-based AES Corp. but added numerous conditions - 169 in all - to address environmental and safety concerns raised by federal and state agencies. Chairman Joseph T. Kelliher said he realized the decision would be unpopular but that it is "rooted in a voluminous record and based on sound science."


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Opponents maintain that the decision does not mean the end of the battle, and they vowed to continue to throw up legal roadblocks.

The Coast Guard will insist on rigorous security measures, they said. The Army Corps of Engineers said recently it will not issue AES a construction permit until all conditions are met. The U.S. Fish and Wildlife Service said the company must protect the habitats of endangered or threatened species, particularly the bog turtle and the Indiana bat.

"The match is not over," Baltimore County Executive James T. Smith Jr. said. "This decision is just the end of the first round."

Jon Wellinghoff, the FERC commissioner who dissented, said AES failed to demonstrate the need for the project and didn't adequately address adverse impacts on the environment.

"AES seems to have no specific plan to dispose of 300 million cubic yards of dredged materials," he said.

The decreased demand for foreign energy also influenced his decision. "We should first look to domestic supplies of natural gas," he said. "Why should LNG be shipped from the Mideast, when we can pump it from a well in Pennsylvania?"

Organized labor groups welcomed the approval of the $400 million project. John Cirri, president of the United Steelworkers Local 9477, said the terminal will protect jobs at Sparrows Point and create more employment. Ron Suneson, an agent for the Marine Engineers Beneficial Association, said the terminal was critical to keeping the Port of Baltimore competitive.

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