Citing state rules requiring a proven need before issuing land leases, Oregon State Land Board members resolved, in essence, to challenge FERC authority on this State matter.

}

OREGON STATE LAND BOARD } In the matter of the federal siting

RESOLUTION } process for liquefied natural gas

} facilities

}

Whereas, the State Land Board has an interest in whether liquefied

natural gas (LNG) is an appropriate energy source for the citizens of Oregon; and

Whereas, the State Land Board has authority with regard to certain

agency actions that may affect the siting of LNG import terminal facilities and

associated pipelines; and

Whereas, there are three proposals to establish liquefied natural gas

import terminals and associated pipelines along Oregon’s coast and the

Columbia River and as many as four proposed natural gas pipelines that could

bring domestic natural gas from the Rockies to the Northwest; and

Whereas, given that no federal studies have been done, the only analysis

of the need for natural gas and the best way to supply it in Oregon has been a

recent study by the Oregon Department of Energy (ODE) that concludes that there

is presently little justification for the establishment of any LNG import terminals in

Oregon; and

Whereas, the ODE analysis has also concluded that the life-cycle impact

of greenhouse gas emissions of LNG import terminal facilities is greater than that

of emissions related to piped natural gas; and

Whereas, LNG proposals are causing considerable uncertainty for Oregon

residents who expect to be affected by the siting of LNG terminals and associated

pipelines in Oregon; and

Whereas, the federal regulatory process for approving LNG terminals

inadequately addresses the issues of need, supply and greenhouse gas

emissions; and

Whereas, the federal regulatory process has failed to properly address

the needs and issues of affected states through its practice of issuing conditional

federal approval before issues related to other state and federal permits have

been fully addressed; and

Whereas, Governor Kulongoski has repeatedly asked the federal

government to withhold approval of LNG import terminal facilities and associated

pipelines until issues related to state authorizations have been addressed; and

Whereas, Governor Kulongoski has requested the federal government

reconsider its approval of the Bradwood Landing LNG terminal and has

threatened to pursue judicial review on that matter, if necessary, now, therefore,

Be It Resolved, that the State Land Board supports:

1. Governor Kulongoski’s position that federal approval should not be granted

for LNG facilities in Oregon until a justification by the Federal Energy Regulatory

Commission (FERC) for the need for siting this energy source in Oregon has

been established, consistent with federal environmental laws.

2. Governor Kulongoski’s request that federal approval of any LNG import

terminal facility and associated pipelines in Oregon not be granted until that

action has been fully coordinated with state authorizations.

3. Governor Kulongoski’s direction to state agencies to implement state

requirements related to state review and authorizations to the fullest extent

to address concerns about the environmental, social and economic impact

of proposed LNG projects in Oregon.

4. Direction to the Department of State Lands to keep the State Land Board

informed about the permitting of LNG in Oregon and to use its best efforts to

ensure that the Department’s authorizations are consistent with the Governor’s

direction, in coordination with other state agency processes.

5. The adoption of federal legislation that eliminates the federal pre-emption

of state authority to make siting decisions concerning LNG import terminal

facilities and associated pipelines.

6. Future direction from the incoming presidential administration to FERC

that it adopt firm standards, consistent with the National Environmental

Policy Act and the Endangered Species Act (ESA) to require that a robust

needs and justification analysis be developed as part of the licensing process

and that full consultation with the federal agencies regarding impacts to

ESA-listed species occur before any federal approval is granted.

Adopted this ____ day of December 2008.

Theodore R. Kulongoski
Governor

Bill Bradbury
Secretary of State

Randall Edwards
State Treasurer