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July 28, 2008

Quoddy Bay suspends tribal payments

Quoddy Bay LNG, which wants to build a liquefied natural gas terminal in Washington County on Passamaquoddy tribal land, says it will temporarily suspend its payments to the tribe while federal and state permit reviews of its application are on hold.


Quoddy Bay so far has paid the tribe nearly $800,000 in quarterly payments of $46,875, according to the Bangor Daily News. Quoddy Bay President Donald Smith told the newspaper that the company is not obliged to make payments to the tribe until the federal Bureau of Indian Affairs has given its final approval to the project. So far, the bureau has indicated only that the tribe will allow Quoddy Bay to seek federal and state permits to build a terminal on tribal land.


Earlier this month, Quoddy Bay said it needed more time for the state permitting review process while it works out details of the proposed terminal and finalizes the route of the pipeline, the paper reported. This spring, the Federal Energy Regulatory Commission suspended its federal review of Quoddy Bay's proposal because of inadequate information.

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