DeFazio bill aims to block LNG exports

2012-02-08T11:05:00Z 2015-06-15T13:37:15Z DeFazio bill aims to block LNG exportsBy Jessie Higgins, The World Coos Bay World
February 08, 2012 11:05 am  • 

A bill introduced Wednesday by U.S. Rep. Peter DeFazio appears aimed at blocking Jordan Cove Energy Partners’ proposed liquefied natural gas exporting facility in Coos Bay.

The bill would take away Pacific Connector Gas Pipeline’s right to use eminent domain to build its pipeline if that pipeline is used to export LNG.

Eminent domain “is an extraordinary power of government that should only be used in extreme circumstances,” DeFazio said. “I just don’t think a private, for-profit company should be able to take private property.”

As part of the Natural Gas Act of 2005, when a company receives final approval from the Federal Energy Regulatory Commission to build the pipeline, eminent domain is also granted.

DeFazio’s bill concludes with an amendment that prohibits FERC from authorizing LNG exports if the facility built a pipeline using eminent domain.

Jordan Cove’s proposed pipeline has been approved based on its application as an import facility. The company has since filed an application for a permit to export the gas.

Bill’s impact debated

DeFazio said the proposed pipeline has already hurt dozens of property owners, especially in Douglas County.

“They are at the point that they can’t refinance their houses because there is a threat that an energy pipeline will be routed through their property,” DeFazio said.

Bob Braddock, Jordan Cove’s project manager, said that even if the bill passes, it won’t jeopardize the project, because eminent domain is so rarely used.

“You can’t go out willy-nilly,” Braddock said. “You must demonstrate that all other reasonable options have been used.”

The purpose of eminent domain is to ensure projects that will benefit the nation as a whole cannot be stopped by one person who is unwilling to sell his or her land.

DeFazio’s bill has already been hailed by Jody McCaffree, executive director of Citizens Against LNG.

The congressman “has just made thousands of citizens, landowners and property rights advocates across Southern Oregon very happy, not to mention energy consumers and manufacturers across the U.S.,” McCaffree wrote in a news release. “We salute him for his efforts here. Nice to see one of our congressmen going to bat for ‘We the People’ and for looking out for our best interest.”

The bill requires that the company — Pacific Connector Gas Pipeline, in this case — would have to make an offer acceptable to the landowner, or the company must find another route.

When eminent domain is invoked, property owners and the company go to court to determine a fair value for the land. DeFazio asserts this process does not always ensure “just compensation.”

Merits (or not) of LNG

In his bill, DeFazio makes a case that exporting LNG is not in the country’s best interest. He cites a study conducted by the U.S. Department of Energy that shows LNG exports could raise the price of natural gas by almost 11 percent for households and 27 percent for industrial users.

Braddock said the numbers used in the study are outdated; the nation has already exceeded the study’s “most optimistic” gas production estimates, he said. The domestic price would not be affected to the extent the study suggests, he said. Although, natural gas prices could still go up if exported, he added.

“The Chinese are paying more for natural gas than Americans pay,” DeFazio said. “It only makes sense that if one is exporting an energy supply, it is going to drive up the price.”

Reporter Jessie Higgins can be reached at 541-269-1222, ext. 240, or jhiggins@theworldlink.com.

Copyright 2015 Coos Bay World. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(41) Comments

  1. Common Sense
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    Common Sense - February 23, 2012 10:23 am
    Exporting USA Gas is a SCAM because:

    1) NO Oregon state wide vote
    2) NO Benefit for ANY USA Citizen (Takes Land away & Increases future Gas prices)
    3) INCREASES USA's dependence on future energy needs from foreign countries
    4) LNG pipeline, Terminal & Shipping vessels pose HUGE safety risks

    Bottomline: This Exporting LNG SCAM shows ALL USA Citizens how Corrupt the USA/Oregon Government is (OWNED & RUN by BIG Business's Dictatorship$$$)! Whatever happened to power to the people...called VOTING!
  2. Sherman
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    Sherman - February 21, 2012 4:52 pm
    Dear CommonSense (aka Goofy), here's a riddle: You can buy a gallon of gas for $4.00. Or you can buy a gallon of bottled gas for $1.00. Now, the guy that sells the bottled gas starts to export and the global demand doubles the price to $2 per gallon. Now, do you stop buying bottled gas because the price has now doubled?

    I know...you're already grabbing your gas can and I'm getting a headache.
  3. conservativenotrepublican
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    conservativenotrepublican - February 21, 2012 6:02 am
    SVETUSA said: "DeFazio is one of the reasons that I have so much hatred towards the democratic party.All they care about is blocking job creations,making us dependent on foriegn goods,and screwing us on our taxes."

    This brainchild^^^ is an example of one of the reasons why I turned my back on the republican party.....
    they "hate", and that's dangerous......NAzi Germany dangerous.
    Time for a peoples revolution in the streets.
  4. everyman
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    everyman - February 20, 2012 12:32 pm
    You asked for it, common. 1. Risk; manageable. 2. Jobs; local or "brought in from dern outsiders", they will still live/work/pay taxes/spend locally. 3. Raising natural gas prices; so what? This is the way our free market economy works... let them jack up the prices, and then no one will buy thier product and they will fail. Funny how you are all "anti" gov when it suits you, but you want the feds you decry to come to your rescue and keep all those nasty big corps out of your town. 4. Everyman
  5. deceptions
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    deceptions - February 20, 2012 11:33 am
    keep crying the same old rhetoric common, it doesn't make it true.
  6. Common Sense
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    Common Sense - February 20, 2012 10:34 am
    Sherman (Aka Jon B)

    What part of the following didn't you understand:

    EVERYONE (USA Government-Energy Department, Oregon Leaders & even Con man Bob Braddock) admits Exporting USA Gas will increase prices for USA citizens, due to the FACT that it's going to be sold to Foreign Countries for OVER 2X, then increase USA domestic gas prices$$$ UP to match it in the future!

    Bottomline: Exporting USA Gas/LNG is a Anti-American SCAM$$$...where the RICH get RICHER$$$ & POOR get NO VOTE, price INCREASE!
  7. Sherman
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    Sherman - February 18, 2012 11:09 am
    Dear Common Sense, it takes about 8 gallons of gasoline to produce 1,000,000 BTUs of energy. According to Gasbuddy.com the average price for a gallon of gasoline in Oregon today is $3.63 per gallon. Consequently, it costs about $27.92 to produce 1 million BTUs of energy from gasoline, which means that gasoline is almost 6 times as expensive as natural gas on a per unit energy basis. And stop calling me "Jon" or I'm going to start calling you "Surely".
  8. Common Sense
    Report Abuse
    Common Sense - February 16, 2012 2:37 pm
    Everyman in the Pipe business$$$...

    Only thing you ever offer in here is...

    Sorry, but I couldn't remember anything of importance that you ever did say/offer as logical or intelligent, only complain about how someone uses CAPS in here...! Probably just likes to read/hear himself talk...

    Bottomline: Bob Braddock must really think Oregon & especially this area isn't to smart on how his shills respond to statements of FACT in here on his Exporting LNG SCAM at Jordon Cove in a Tsunami Zone!!!
  9. everyman
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    everyman - February 16, 2012 11:18 am
    Sorry... meant "comedian".
  10. everyman
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    everyman - February 16, 2012 11:17 am
    HAHAHAHAHAHAHAHA!! Oh, Common, you are quite the comdian, you know...

    Hey, reader, want to see something funny? Click on Common Sense's name in any of her posts, then read the dates on ALL of her recent posts...then do the same with mine, or anyone elses. Then YOU decide who is working overtime...

    Oh, Common... The more you scream, the more ridiculous your arguments prove to be.

    My name...is...EVERYMAN!!
  11. Common Sense
    Report Abuse
    Common Sense - February 15, 2012 12:24 pm
    WOW..Bob Braddock's paid off shills in here working over-time (Must be worried)...

    WEAK Deception...What part of the following didn't you understand:

    EVERYONE (USA Government-Energy Department, Oregon Leaders & even Con man Bob Braddock) admits Exporting USA Gas will increase prices for USA citizens, due to the FACT that it's going to be sold to Foreign Countries for OVER 2X, then increase USA domestic gas prices$$$ UP to match it in the future!

    Bottomline: Exporting USA Gas is a SCAM$$$
  12. deceptions
    Report Abuse
    deceptions - February 15, 2012 11:21 am
    common,

    thats just, like, your opinion man.

    There is no evidence to support your beliefs, its pure speculation done by alarmists and the uneducated alike.

    I'd recommend staring with a nice microecon (econ 201) class, it should help you out immensely.
  13. Common Sense
    Report Abuse
    Common Sense - February 14, 2012 1:46 pm
    Well Deception...

    Duh...Never said Supply & Demand couldn't be manipulated like nonrare items (Gold, Silver, Diamonds, etc), where Big business/rich just stock pile & release a little at a time to keep the inflated price UP vs the Demand!

    Bottomline: EVERYONE (USA Government & even Con man Bob Braddock) admits Exporting USA Gas will increase prices for USA citizens, due to the FACT that it's going to be sold to Foreign Countries for OVER 2X, then increase USA domestic gas prices$$ UP to match!
  14. everyman
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    everyman - February 13, 2012 3:57 pm
    So, Common, following your train of thought (no easy task, mind you), gasoline in the middle east should be incredibly expensive, right? After all, they are shipping off their supply. And demand is only increasing, right? Hmmm..not so much, huh. The REALITY is that they are STILL able to utilize the domestic gas at a reasonable price, while generating income through exporting most of it. Now, this is likely the point at which you call me names and scream in all caps. Everyman - everywhere!
  15. deceptions
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    deceptions - February 13, 2012 2:30 pm
    again common, too shortsighted.

    There is never a true shortage of oil on the market. We have supplies just in North Dakota oil fields that could last us over 2,000 years at current usage levels. Thats just ONE source.

    The price fluctuations at the pump and on your electric bill are a result of many variables. The least of which is finite supply & demand as you suggest.
  16. Common Sense
    Report Abuse
    Common Sense - February 13, 2012 1:47 pm
    Sherman (Aka Jon)...

    You must of had a senior moment, because I was talking about Gas/LNG on the open market & how Supply & Demand determines it's price! How if US Domestic gas is exported (Means Supply is reduced) & how exporting creates more demand, thus prices to the average USA gas user has to go UP (Even the USA Government says it will)!

    Bottomline: I hope Bob Braddock keeps his promise on rewarding you$$$, because Ole Bob has a history of saying one thing & then doing just the opposite!
  17. deceptions
    Report Abuse
    deceptions - February 13, 2012 9:49 am
    Common, I can tell you never took any economic classes because you are referencing a non existent class. Supply & demand of one product is just a small portion of economics. It has roots in micro and macro alike, but it is unfortunately just a miniscule portion of the equation.

    For gas exportation, you must weigh the conditions it creates beyond just its direct impact. It would take me about 9,000 words to briefely explain this in just a theoretical stance. Economics is complicated :/
  18. Sherman
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    Sherman - February 12, 2012 10:09 am
    Dear Common Sense: so, you believe that our cost of a Chevy truck goes up because GM exports? The cost of a Big Mac is higher here in Coos Bay because McDonald's is selling them in Beijing? And tell us once again: which economics school did you attend??
  19. bes
    Report Abuse
    bes - February 11, 2012 4:55 pm
    with all due respect to everyone's input, it's time people stood up to the big business exploitation that gives out a leg or a tail's worth of jobs and takes the rest of the beast for itself, making itself almighty and all powerful..OCCUPY YOUR MIND..lets' do something different for a change, create our own jobs, be innovative and stop depending on corporate welfare to employ us
  20. Common Sense
    Report Abuse
    Common Sense - February 11, 2012 8:54 am
    Deception & the few supporters...

    Simple stupid basic101 Supply & Demand lesson:

    *ALL* prices are determined by Supply & Demand factors, if Supply of an item decreases (as Exporting US Gas would do) & Demand stays the same or increases (as Exporting US Gas would create more Demand), then prices increase!

    Bottomline: Please take a Basic101 Supply & Demand economic course, to prevent ignorant statements about how the World economics works on how prices are determined on *ALL* goods & services!
  21. deceptions
    Report Abuse
    deceptions - February 10, 2012 3:32 pm
    common,

    flawed logic is flawed regardless of what you call it.

    Modern economics is much more complicated that your perception of supply and demand.

  22. Local Jerk
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    Local Jerk - February 10, 2012 12:48 pm
    All this bill does is make "eminent domain" not applicable which means the Gas company will pay thru the nose to property owners for either an easement or the property as a whole. Instead of bitching you should ne scrambling to purchase property in the "zone" and hold out for a stake in the shares. It's the American way. Stopping Big Oil and Gas is like trying to stop a freight train by standing in front of it. I know, reality sucks, learn from Weyco? GP? Menasha yet?
  23. Common Sense
    Report Abuse
    Common Sense - February 10, 2012 12:34 pm
    Sherman (Aka Jon)...

    Either you can't read, don't understand basic supply & demand economics or just trying to BS someone/anyone like Con man Bob Braddock does?

    Simple stupid logic:

    If the open market buys Gas at roughly OVER 2X (As it does now) above the USA Domestic price that US citizens pay now,

    Then price has to increase DRASTICALLY to US citizens due to supply & demand factors PERIOD!

    Bottomline: Exporting US Gas is a Anti-American SCAM (No Vote, Higher Prices, Land taker, etc etc)!
  24. IWanttoknow
    Report Abuse
    IWanttoknow - February 10, 2012 12:11 pm
    Bes, etal; When like minded, kinda like you get their wants forfilled, send me a post card and till me what it is like in the 'garden of eden' of the West. If you and your group are the only one's here; don't eat the apples, in fact don't eat anything because within your group someone will be offended! In order to help the Bobcats, Cougars, Bears, etc. offer a individual of your group to them because you will be in their diet! Of course you have to find ways to survive w/o foods made of Natur
  25. Sherman
    Report Abuse
    Sherman - February 10, 2012 10:51 am
    Dear Common Sense,

    Please reference your research points for that ridiculous conclusion that gas prices will rise as a result of exporting. (I can't find a single analyst report that supports your claim.) Besides, wouldn't it be good fun to actually EXPORT something from this country for a change? Ol' Pete had best begin to wonder who's going to pay for his fat pension and benefits if he and the governor keep killing jobs.
  26. SVETUSA
    Report Abuse
    SVETUSA - February 09, 2012 7:43 pm
    DeFazio is one of the reasons that I have so much hatred towards the democratic party.All they care about is blocking job creations,making us dependent on foriegn goods,and screwing us on our taxes.
  27. Sunny
    Report Abuse
    Sunny - February 09, 2012 7:38 pm
    coosbayite said: "Well, that is a lot of political posturing and nothing else. Does he really think he could get this bill passed? No, he knows better. However, it does sound good to the folks back home. As always, he has been there past two terms and needs to be replaced just like all the rest."
    Peter DeFazio was first elected to the U.S. Congress in 1986, he began his 8th term January, 2011. Yep, he needs to retire to his home in New Zealand.
  28. bes
    Report Abuse
    bes - February 09, 2012 6:48 pm
    a matter of national security? why then does the usa sell more weapons than any other country in the world? arm them , then go make a war with them to take natural resources in the name of democracy? what a shame, energy independence,right..WE WILL BE WITHOUT WAR AND ENERGY INDEPENDENT WHEN WE CREATE OUR OWN POWER AND STOP FIGHTING WITH OTHERS TO TAKE THEIR NATURAL RESOURCES..
    SIMPLE, just not enough $ in it for the big guys, pretty sick $ game
  29. everyman
    Report Abuse
    everyman - February 09, 2012 3:54 pm
    Once upon a time, there was a company. This company wanted to sell a natural resource to other countries. In doing so, it would employ people, utilize unused land and infrastructure, and help sustain the local community. And behold, the government moved heaven and earth to help this company fulfill it's purpose. But this was also 50 years ago..

    What, you thought I was talking about LNG? Nope...this is the timber industry, and the similarities are striking, if you look into them! I am Everyman!
  30. larryfbaker
    Report Abuse
    larryfbaker - February 09, 2012 2:54 pm
    Another growth possibility squashed, except for the growth industry of food stamps and thrift stores.Use the rail line to bring in the government cheese, not materials for self-reliance and job creation, is that it?
  31. Common Sense
    Report Abuse
    Common Sense - February 09, 2012 12:36 pm
    How silly Sherman (Aka Jon),

    This is about a private USA company profiting$$$ (Along with a Foreign company$$$) from Exporting USA Gas taking away roughly 100 foot section of land.

    vs

    US non profiting Utility company taking away roughly 10 feet section of land between adjacent properties.

    Bottomline: Exporting US Domestic gas/LNG takes away more land for a private US company to profit$$$ while US citizens gas bill drastically increases vs Utility company offering a service by choice!!!!

  32. Idavid
    Report Abuse
    Idavid - February 09, 2012 12:22 am
    it is the intent of the democrats to destroy the economy, and stop jobs in our nation unless it is at their demands. The need for eminent domain maybe necessary for this pipe line to be built, and is the law of the state not the law of the federal government. So Representative DeFazio is also trampling states rights. His bill would be an economic disaster for Oregon. The emanate domain justification is for our nations energy independence, as a condition of national security.
  33. bes
    Report Abuse
    bes - February 08, 2012 6:05 pm
    RIGHT ON PETE, GO GO GO..'BOUT TIME WE KEPT OUR RESOURCES AT HOME FOR OUR OWN..WE NEED TO STOP SELLING OUR TREES FOR A DIME ALSO..THESE CORPORATIONS DO NOTHING BUT SUCK OUR RESOURCES DRY, THIEVING THE PUBLIC FOR DECADES..IT NEEDS TO STOP SOMEWHERE, BIG BUSINESS HAS ROBBED US LONG ENOUGH, TIME FOR REGULAR FOLK TO STEP UP
  34. Citizen
    Report Abuse
    Citizen - February 08, 2012 5:46 pm
    DeFazio is a part of the wrong thinking our government does. Let's spend millions on the rail line, but block the pipe line? He's an idiot on the government dole. Please don't re-elect him. Thank you
  35. BANDONMAN
    Report Abuse
    BANDONMAN - February 08, 2012 2:40 pm
    Why is it that the Democrats seem so hell bent on not developing energy which is sited in North America unless it's wind or solar. Letting Canada sell their oil to China is CRAZY.
    We have huge reserves in Alaska and its off limits. China is drilling for oil off the Florida coast. Are we so afraid of developing our energy reserves that we will let other countries take it?
  36. GoodGrief
    Report Abuse
    GoodGrief - February 08, 2012 2:09 pm
    Go Pete! We don't need this bs anyway.
  37. Eastsider
    Report Abuse
    Eastsider - February 08, 2012 1:53 pm
    By chance this should succeed, it will result in higher gas costs for Americans while enriching a few capitalists and not much more. If electing one party or the other made a difference we wouldn't be in this mess.
  38. Sherman
    Report Abuse
    Sherman - February 08, 2012 1:04 pm
    DeFazio said. “I just don’t think a private, for-profit company should be able to take private property.”

    However, Mr. DeFazio strongly believes that it is OK for a public, non-profit (the government) to pillage everyone's private property (and incomes) with impunity.
  39. tsunami
    Report Abuse
    tsunami - February 08, 2012 1:03 pm
    the article states....."A bill introduced Wednesday by U.S. Rep. Peter DeFazio appears aimed at blocking Jordan Cove Engery Parners’ proposed liquefied natural gas exporting facility in Coos Bay."
    and the headlines state..."DeFazio bill aims to block LNG exports"
    but his aim is to stop emminent domain and the world paper is making up news and theories. they are adding their own hyperbole to the facts.

  40. coosbayite
    Report Abuse
    coosbayite - February 08, 2012 12:34 pm
    Well, that is a lot of political posturing and nothing else. Does he really think he could get this bill passed? No, he knows better. However, it does sound good to the folks back home. As always, he has been there past two terms and needs to be replaced just like all the rest.
  41. Opinions are like noses
    Report Abuse
    Opinions are like noses - February 08, 2012 11:46 am
    "A bill introduced Wednesday by U.S. Rep. Peter DeFazio appears aimed at blocking Jordan Cove Engery Parners’ proposed liquefied natural gas exporting facility in Coos Bay."
    What happened to the spell checker?
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