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June 19, 2008

R.I. AG, Fall River oppose extension for Weaver's Cove

Officials in Rhode Island and Massachusetts told federal regulators this afternoon that they oppose a five-year extension sought by the company that wants to build a liquefied natural gas terminal in Fall River, Mass.

With time running out, Weaver’s Cove Energy has asked federal regulators to extend its permit to build an LNG terminal by an additional five years.

The company is facing a July 2010 deadline to complete the project. In 2005, the Federal Energy Regulatory Commission gave Weaver’s Cove conditional permit to build the terminal. That permit was good for five years.

In the three years since that permit was issued, Weaver’s Cove has not begun any construction. It is still awaiting a number of approvals from various federal and state agencies before any work can begin.

Weaver’s Cove and Mill River Pipeline LLC, the company that would build the pipeline for the project, filed a joint request with FERC on Tuesday asking for an extension until Nov. 1, 2015.

-- Journal staff writer Timothy C. Barmann

“As the Commission may be aware, despite Weaver’s Cove’s and Mill River’s best efforts to obtain all the federal and state permits and approvals necessary to begin construction of the project, Weaver’s Cove and Mill River are still in the process of securing certain permits and approvals because of a series of unanticipated delays and decisions affecting the timely receipt of such permits and approvals,” the companies said in their two-page request.

“Weaver’s Cove and Mill River have worked diligently to obtain all federal and state permits and approvals related to the construction and operation of the project, but have experienced delays beyond their control.”

But Rhode Island Attorney General Patrick C. Lynch, and the city of Fall River, said the request is “wholly deficient, unsupported, and premature.”

In their nine-page response, submitted to FERC this afternoon, Lynch and the city said Weaver’s Cove has only satisfied one of the 77 environmental conditions it must meet before it is allow to construct the terminal.

They said that Weaver’s Cove failed to mention that the U.S. Coast Guard found that it would be too risky to allow LNG tankers to traverse parts of the Taunton River because of the closeness of the old and new Brightman Street bridges. Coast Guard approval is one of the conditions set by FERC that Weaver’s Cove must obtain.

That Coast Guard finding, Lynch and the city of Fall River argued, “is largely the reason for delays in issuing permits related to dredging and related activities, including the required dredging permit from the Army Corps of Engineers.”

Posted by Mike McKinney  at 5:49 PM | Permalink

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