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January 14, 2004 RILEY OBJECTS TO LNG WITHOUT INDEPENDENT SAFETY STUDY MONTGOMERY – Gov. Bob Riley today sent letters to the Alabama State Port Authority and federal regulators informing them he objects to the sale of the Navy Homeport site in Mobile Bay and adjacent submerged lands to ExxonMobil for use as a liquefied natural gas facility until an independent safety study has been completed and evaluated. In late October, a divided Port Authority approved a $38 million land option with ExxonMobil for the Navy Homeport site, allowing the company to immediately begin seeking federal permits needed to build an LNG terminal along Mobile Bay. That agreement, which Riley opposes, is not contingent on any independent safety study. The LNG project also includes plans to utilize state-owned submerged lands adjacent to the Navy Homeport. Unlike the Navy Homeport, the submerged lands are not subject to the control of the Port Authority and require the Governor’s approval for transfer to the company. In the two letters issued today, Governor Riley stated he would not approve the transfer of the submerged lands until safety concerns are fully addressed. “Failing to conduct the independent safety study unacceptably diminishes our government’s ability to fully comprehend the possible threats and the potential consequences associated with the LNG facility,” Riley wrote in a letter to the Port Authority’s attorney. In a second letter the governor sent today to the Federal Energy Regulatory Commission, Riley requests that the agency perform “a study that considers the most credible worst case scenario. “This must include an in-depth, individualized, independent study that is site specific to the Mobile Bay area,” the letter continues. “Only in this way can FERC make an informed decision and can all parties concerned by apprised of the actual possible outcomes of an accident or terrorist attack.” Once a safety study is completed, Riley said he will task the director of Alabama’s Department of Homeland Security to evaluate it and advise him of any dangers posed by the proposed LNG site. Although he opposes the LNG facility without an independent safety study, Riley says he remains committed to economic development, job growth and capital investment in the Mobile area. The letters are below. January 14, 2004 Patrick Henry Wood, III, Chairman Federal Energy Regulatory Commission 888 First Street, North East Washington, DC 20426 Dear Chairman Wood: As Governor of the State of Alabama, it is my responsibility to ensure the safety and security of all the citizens of this State. Indeed, this must be the first priority of any government. As such, I feel no choice but to object to the issuance of necessary permits by the Federal Energy Regulatory Commission to ExxonMobil relating to the proposed construction of a liquified natural gas (“LNG”) facility in Mobile Bay without an adequate independent, individualized, site specific safety study first being completed and considered. My objections are set forth in greater detail in the accompanying attachment. In summary, however, I understand that ExxonMobil has not yet initiated formal proceedings for the permit process. It is my further understanding that once a permit request is received, FERC will have to determine what method to use to ensure that the issuance of such a permit will not compromise the safety of the people of Alabama. I request that FERC perform a study that considers the most credible worst case scenario. This must include an in-depth, individualized, independent study that is site specific to the Mobile Bay area. I also ask FERC to consider any input from the United States Coast Guard regarding its analysis of any potential threats posed by this facility or by the transport of LNG through Mobile Bay. Only in this way, can FERC make an informed decision and can all parties concerned be apprised of the actual possible outcomes of an accident or terrorist attack. This will provide the public with the information necessary to know and understand the possible danger zones surrounding the facility and provide me with critical information to calculate the necessary co-ordination of security and rescue response measures needed for such a facility. Without credible, reliable information, I cannot support the construction of such a facility in this State and I trust that FERC will not either.
Letter to Mr. Patrick Henry Wood, III January 14, 2004 Page Two Your co-operation in ensuring the greatest level of safety and protection for the citizens of Alabama will not go unnoticed. Please keep me informed of any and all developments that occur within your Commission concerning this matter, including the date ExxonMobil files its permit request, the dates of any public hearings scheduled, and the dates of publication and copies of any reports on this matter generated by your agency. Sincerely, Bob Riley Governor Attachment cc: Mr. Jim Walker, Director, Alabama Department of Homeland Security Members, Alabama Congressional Delegation Attachment: January 14, 2004 Will Givhan HAND ARENDALL 3000 AmSouth Bank Building 107 St. Francis Street Mobile, Alabama 36602 Dear Mr. Givhan: A government’s first priority must always be to protect the safety and security of its citizens. As Governor, I have the duty and responsibility to ensure that Alabama’s state government meets this obligation. By this letter, you are advised that I have always opposed the sale of the Navy Homeport site and adjacent submerged lands to ExxonMobil Corporation for use as a liquified natural gas (“LNG”) facility without there first being an individualized, independent, site specific safety study performed. Because the Port Authority declined to condition this sale on the completion of such a study, know that I will not consent to the sale of the submerged land nor issue the patent required for such a transfer to occur until an independent safety study has been completed and evaluated. Further, because the Port Authority did not place this condition on its contract with ExxonMobil, I do not have access to an important tool which would allow me to understand the potential threats and problems that could be created by this project and I am unable to fully assess the security needs of and risks to our State. Failing to conduct the independent safety study unacceptably diminishes our government’s ability to fully comprehend the possible threats and the potential consequences associated with the LNG facility. Section 33-1-18 of the Code of Alabama, states that before a sale of submerged land can be finalized, the Governor must concur in the sale and cause a patent to be issued bearing his signature. I am withholding my consent and my signature from the patent until such time as an adequate independent, individualized, site specific safety study has been conducted that will fully apprise me of the potential threats posed by both the LNG facility itself and by the transportation of LNG through Mobile Bay. Should such a study be completed, I will task Mr. Jim Walker, Director of the Department of Homeland Security, with evaluating it and advising me of the dangers posed and his Letter to Mr. Will Givhan January 14, 2004 Page Two reactions. Only then will I decide whether this is a project to which I can lend my support. I understand that ExxonMobil has not yet initiated the Federal Energy Regulatory Commission’s permit process, but that the process could begin soon. I am providing a copy of this letter to that agency and am asking that my concerns be made a part of the public record and be considered as they review ExxonMobil’s application. I am further stating my concerns with the fact that FERC currently does not have a frame-work for conducting safety studies. FERC is in the process of reviewing all the LNG safety reports to determine a method to utilize in conducting its safety study in this specific case. I am requesting that FERC conduct an independent, individualized, site specific safety study itself, so that they and I may fully evaluate all possible consequences associated with an LNG facility being located in Mobile Bay. I also call on the Port Authority to consult with the United States Coast Guard regarding potential threats and to include the Coast Guard’s analysis and recommendations in any calculations the Port Authority will make about whether to move forward with this project. I regret that these actions on my part have become necessary. I cannot and will not, however, compromise the security of our state or the safety of our people with unknown risks. I again ask the Port Authority to reconsider its decision to finalize this sale without first completing an individualized, independent, site specific safety study. Sincerely, Bob Riley Governor, State of Alabama cc: Mr. Jim Walker, Director, Alabama Department of Homeland Security Patrick Henry Wood, III, Chairman, Federal Energy Regulatory Commission Members, Alabama Congressional Delegation | |
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