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April 28, 2010

Quoddy Bay LNG loses land lease

Quoddy Bay LNG's stalled proposal for a liquefied natural gas terminal at Pleasant Point in Down East Maine has hit another setback.

The federal Bureau of Indian Affairs has canceled the developer's lease of Passamaquoddy Tribe-owned land where it wanted to build its proposed LNG terminal, according to the Bangor Daily News. The tribe's council in 2009 voted to opt out of the land contract after it expired, but Donald Smith, president of Quoddy Bay LNG, challenged the tribe's legal authority to end it. The Bureau of Indian Affairs told Smith it was canceling the contract after Smith failed to give the agency reasons why the contract should be continued. Smith told the paper he believed he had properly responded to the BIA. The BIA first approved a land lease for the tribe-owned land in 2005, and Smith said he plans to ask the agency to reconsider the cancellation.

Quoddy Bay LNG in 2008 withdrew its state permit application for the terminal, after the Federal Energy Regulatory Commission dismissed its application. Since then, the company has been sued by two Massachusetts firms for nonpayment of environmental and engineering services provided.

Go to the article from the Bangor Daily News >>

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