CONTACT:

Linda Krop, EDC - 805.963-1622
Alicia Finigan, EDC - 805-963-1622
Susan Jordan, CCPN - 805-637-3037

Coast Guard to Suspend Review of Cabrillo Port Liquefied
Natural Gas Project. Deficient Environmental Information Provided by BHP Billiton Prompts Suspension

Santa Barbara/Ventura, CA - The United States Coast Guard and the Maritime Administration (MARAD) has announced that it will suspend the regulatory timeline governing the licensing process for the Cabrillo Port Liquefied Natural Gas Port proposed offshore of Oxnard. The Coast Guard pointed to deficiencies in the information provided by the applicant, BHP Billiton, as the basis for the suspension. Many of the deficiencies identified by the Coast Guard and MARAD were identified by the Environmental Defense Center (EDC) on behalf of the California Coastal Protection Network (CCPN) in an 80 page comment letter submitted in late December and in comments submitted by other environmental and community groups and individuals concerned with the project.

In December, EDC, on behalf of the Statewide LNG Environmental Stakeholder Working Group, representing over 25 local, state, and national environmental groups, Congresswoman Lois Capps and Assemblymember Pedro Nava submitted letters requesting the suspension due to significant concern for the lack of environmental and public safety information contained in the Draft Environmental Impact Statement/Report. EDC and CCPN then submitted detailed written comments to the lead agencies on December 20, 2004, citing to a number of significant biological and safety impacts that would result from this project. These comments can be provided upon request.

In response to these comments, the Coast Guard and MARAD are requiring the applicant to provide additional information related to several impact areas, including: fishing, biology, geology, maritime traffic, air quality, the proximity of gas pipeline to schools, public safety, noise, water quality, and the possibility of collisions between LNG carriers and other vessels.

"We are pleased with the Coast Guard's decision because it recognizes the severity of the environmental impacts resulting from the Cabrillo Port LNG project. This is the first facility of its kind ever built in the world and requires the highest level of environmental scrutiny," commented EDC's Chief Counsel, Linda Krop.

However, the EDC and CCPN also noted that the Coast Guard's request for additional information still fails to address missing information identified by several experts. For instance, a number of LNG safety experts observed that the applicant utilized improper methodologies to model LNG spills and explosions. "When using the correct methodologies approved by the Federal Energy Regulatory Commission, the safety zone is actually four times the size of that calculated by the applicant and interferes with the shipping lanes," noted EDC staff attorney, Alicia Finigan. Additionally, impacts to marine mammals from significant noise generated by the project has not been adequately analyzed or mitigated.

Most importantly, the availability of project alternatives, such as energy conservation and renewable sources of energy, that would provide the same benefits as LNG without any of the dangerous impacts, has yet to be afforded serious consideration.

Susan Jordan, director of the California Coastal Protection Network, and a co-host of the Statewide LNG Environmental Stakeholder Working Group, said that she was gratified that the Coast Guard and MARAD had called for the suspension. "This BHP Billiton floating LNG terminal was on the federal Deepwater Port Act fast track. There is absolutely no excuse for rushing through an untested project design and a decision that will affect CA's energy policy for decades to come without first subjecting it to the highest level of environmental review. California should not be pushed into buying a guinea pig in the LNG poke," she said.