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June 18, 2009

LNG developer challenges tribe vote

By Mainebiz News Staff

The owner of an Oklahoma company that wants to build a liquefied natural gas terminal on Passamaquoddy Bay disputes the legitimacy of a vote of the Passamaquoddy Tribe to terminate its land lease contract with his firm.

Donald Smith, president of Quoddy Bay LNG, said he received a letter earlier this week from the Passamaquoddy Tribal governor informing him that the council voted to end its relationship with the company, according to the Bangor Daily News.

A tribe councilor told the newspaper that the ground lease between the tribe and Quoddy Bay had expired and that the contract allowed either side to opt out. Smith said he doesn't think the tribe has legal grounds to terminate the contract, citing an agreement reached with the Bureau of Indian affairs over the process for the project that stemmed from a 2005 lawsuit.

Smith, who has spent about $16 million on the project so far and is seeking financial partners, said he would ask the tribe to fulfill its legal obligations, according to the Daily News.

 

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