News
ENLARGE
U.S. Rep. Peter DeFazio has introduced legislation that would prohibit a company from using eminent domain to obtain right of way for a natural gas pipeline through Douglas County.
H.R. 3913, introduced Tuesday, could be an obstacle to building a 234-mile pipeline to bring liquefied natural gas to an export terminal in Coos Bay.
DeFazio, D-Springfield, said the pipeline would increase corporate profits at the expense of driving up domestic energy costs. The pipeline would not provide a public benefit, he said.
“The Constitution is quite clear: The government can only authorize the use of eminent domain if the action serves the public,” DeFazio said in a written statement.
“Landowners should not be forced to give up their property so private companies and foreign manufacturers can ship low-cost natural gas overseas and spike energy prices here at home,” he said.
For nine years, the Jordan Cove Energy Project touted a pipeline between Malin, southeast of Klamath Falls, to Coos Bay as a way to import natural gas and increase domestic supplies.
The pipeline also holds out the potential to create jobs and increase the tax base for hard-pressed Southern Oregon counties.
Jordan Cove announced in September it wanted to instead export natural gas from the Plains because of changes in the market for natural gas.
Clarks Branch rancher Bill Gow said Wednesday he was pleased to learn about DeFazio's proposal. The cattle rancher owns about 2,000 acres on which developers want to place about a mile of pipeline.
“I think it's a great day for landowners trying to hold onto their land,” he said. “This is America. We should have a choice over what happens to our property.”
Officials with Williams Companies, one of the partners in the project, said Wednesday they were reviewing DeFazio's bill.
A company spokeswoman, Michele Swaner, said the 1930s' Natural Gas Act authorized using eminent domain to claim right of way for a pipeline.
She said the company would use eminent domain as a last resort if compensation can't be negotiated with landowners.
“The use of eminent domain occurs only after a pipeline has exhausted all other efforts to agree to a fair and equitable offer with a landowner for an easement,” she said.
The pipeline, dubbed the Pacific Connector Pipeline, would cross about 100 miles of private property, 40 miles of Bureau of Land Management land, and 30 miles of national forestland, along with land owned by the state, counties and tribes.
The pipeline would traverse Douglas, Coos, Klamath and Jackson counties. In Douglas County, the pipeline would cross Interstate 5 and the South Umpqua River north of Myrtle Creek.
Douglas County commissioners voted to oppose the project in 2007, but Commissioner Susan Morgan, who was not on the board then, has said recently the pipeline would benefit the county by creating construction jobs and increasing the tax base.
Efforts to reach Morgan today were unsuccessful.
Developers say an average of 1,400 people would be employed over two years while the pipeline was built. Once completed, the pipeline would create about 120 jobs, developers say.
The pipeline would pay an estimated $19 million a year in property taxes, with $13 million going to Coos County. Douglas, Jackson and Klamath counties would receive the rest, with $1 million as Douglas County's share for schools, fire protection and other government services.
The U.S. Department of Energy has approved the export proposal.
Permits to build the pipeline and a terminal at the Oregon International Port of Coos Bay must still be obtained from the Federal Energy Regulatory Commission.
DeFazio cited a Department of Energy analysis last month that concluded exporting natural gas could increase by nearly 11 percent to the cost of natural gas delivered to U.S. households and by 27 percent to industrial users. The study cautioned that higher natural gas prices would lead to more coal-burning plants to produce electricity.
H.R. 3913, introduced Tuesday, could be an obstacle to building a 234-mile pipeline to bring liquefied natural gas to an export terminal in Coos Bay.
DeFazio, D-Springfield, said the pipeline would increase corporate profits at the expense of driving up domestic energy costs. The pipeline would not provide a public benefit, he said.
“The Constitution is quite clear: The government can only authorize the use of eminent domain if the action serves the public,” DeFazio said in a written statement.
“Landowners should not be forced to give up their property so private companies and foreign manufacturers can ship low-cost natural gas overseas and spike energy prices here at home,” he said.
For nine years, the Jordan Cove Energy Project touted a pipeline between Malin, southeast of Klamath Falls, to Coos Bay as a way to import natural gas and increase domestic supplies.
The pipeline also holds out the potential to create jobs and increase the tax base for hard-pressed Southern Oregon counties.
Jordan Cove announced in September it wanted to instead export natural gas from the Plains because of changes in the market for natural gas.
Clarks Branch rancher Bill Gow said Wednesday he was pleased to learn about DeFazio's proposal. The cattle rancher owns about 2,000 acres on which developers want to place about a mile of pipeline.
“I think it's a great day for landowners trying to hold onto their land,” he said. “This is America. We should have a choice over what happens to our property.”
Officials with Williams Companies, one of the partners in the project, said Wednesday they were reviewing DeFazio's bill.
A company spokeswoman, Michele Swaner, said the 1930s' Natural Gas Act authorized using eminent domain to claim right of way for a pipeline.
She said the company would use eminent domain as a last resort if compensation can't be negotiated with landowners.
“The use of eminent domain occurs only after a pipeline has exhausted all other efforts to agree to a fair and equitable offer with a landowner for an easement,” she said.
The pipeline, dubbed the Pacific Connector Pipeline, would cross about 100 miles of private property, 40 miles of Bureau of Land Management land, and 30 miles of national forestland, along with land owned by the state, counties and tribes.
The pipeline would traverse Douglas, Coos, Klamath and Jackson counties. In Douglas County, the pipeline would cross Interstate 5 and the South Umpqua River north of Myrtle Creek.
Douglas County commissioners voted to oppose the project in 2007, but Commissioner Susan Morgan, who was not on the board then, has said recently the pipeline would benefit the county by creating construction jobs and increasing the tax base.
Efforts to reach Morgan today were unsuccessful.
Developers say an average of 1,400 people would be employed over two years while the pipeline was built. Once completed, the pipeline would create about 120 jobs, developers say.
The pipeline would pay an estimated $19 million a year in property taxes, with $13 million going to Coos County. Douglas, Jackson and Klamath counties would receive the rest, with $1 million as Douglas County's share for schools, fire protection and other government services.
The U.S. Department of Energy has approved the export proposal.
Permits to build the pipeline and a terminal at the Oregon International Port of Coos Bay must still be obtained from the Federal Energy Regulatory Commission.
DeFazio cited a Department of Energy analysis last month that concluded exporting natural gas could increase by nearly 11 percent to the cost of natural gas delivered to U.S. households and by 27 percent to industrial users. The study cautioned that higher natural gas prices would lead to more coal-burning plants to produce electricity.
• You can reach reporter John Sowell at 541-957-4209 or by email at jsowell@nrtoday.com.
