Rhode Island AG Lynch Hails National Grid's Decision Not To Expand Existing LNG Facility At Fields

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2007-10-02 -- Rhode Island Attorney General Patrick C. Lynch hailed National Grid's announcement today that it has dropped its appeal of a Federal Energy Regulatory Commission (FERC) decision not to approve the company's plan to expand its LNG storage facility, located at Fields Point in Providence, into a full-scale marine terminal that would have been capable of receiving 50 large LNG tanker deliveries per year.

KeySpan Corporation appealed the FERC's denial to the US Court of Appeals in Washington, DC, in hopes of reversing it. An oral argument was scheduled to occur on the appeal later this month. In a transaction that closed on August 24, 2007, however, British-based National Grid purchased KeySpan, prompting Lynch to urge the company to withdraw the pending appeal.

"I applaud National Grid's decision to abandon plans to build an LNG terminal at Fields Point," Lynch said today. "The public safety issues surrounding this plan were always clear to me, and were confirmed by the experts I retained, including Richard A. Clarke, who prepared an extensive report detailing the perils of locating an LNG terminal in an urban area."

Lynch added, "I fully recognize the need to address our region's energy needs. I am confident that National Grid, which has a history as one of our state's most responsible corporate citizens, will continue to play a leading role as government, business, and other interested parties work together to find safe, efficient, environmentally responsible, and economical solutions to meeting those demands."

In early 2004, Lynch launched an aggressive effort both to investigate and raise public awareness about the KeySpan proposal as well as a separate plan by Hess Corporation to build a terminal in Fall River, MA. His efforts culminated in the release of a "threat and consequence assessment" prepared by counter-terrorism expert Richard A. Clarke. Over the past three and a half years, Lynch has repeatedly challenged the wisdom of siting LNG terminals in densely populated urban areas.

He renewed his call today, stating, "Although I commend National Grid for the sense of corporate citizenship that it is clearly showing with this important announcement, I recognize that there is more work to be done. Rhode Island is still threatened by Hess Corporation's unrelenting pursuit of an equally ill-advised terminal to be located in Fall River, and I will redouble my efforts to defeat it."

Source: Rhode Island Attorney General