Molalla Pioneer

Not everything fits in the newspaper.


Plans coming down the pipeline

By Abby Sewell
Molalla Pioneer

Northwest Natural Gas and TransCanada Corporation announced on Monday that they have formalized a partnership to work towards building a new natural gas pipeline along a route that would run about a mile south of Molalla.

After studying the feasibility and customer interest in the project, the two companies finalized their agreement on Friday, forming a joint venture called Palomar Gas Transmission LLC to work towards construction of the pipeline. The proposal calls for assembly of a 110-mile, 36-inch-diameter pipeline that would connect TransCanada’s Gas Transmission Northwest pipeline in Central Oregon from a point near Madras to the Williams Northwest Pipeline's Molalla Gate Station on Barnards Road between Molalla and Canby.

Another 110-mile pipeline could run from the Molalla station to a new LNG station proposed for construction on the Columbia River near Astoria.

If both sections are built, the cost is estimated at $600 to $700 million. Palomar’s property taxes on the project are estimated at $8 million a year, to be allocated among all the affected counties.

But Palomar has yet to file a proposal with the Federal Energy Regulatory Commission , the agency responsible for conducting environmental assessments and regulating pipeline construction; and plans are not finalized, project manager Henry Morse said.

“Far from it,” he said. The planners have looked at existing maps and information about the terrain near the proposed route.

“We’ve talked to city planners and county planners and now we’re taking it to the next stage of putting the proposed route down on paper,” Morse said.

As far as the effects on Molalla, Morse said the line would be about a mile south of town located outside of any foreseeable urban growth boundary.

A competing company, Oregon LNG, submitted a preliminary filing with FERC, proposing a pipeline that would run along much the same route as the northern half of the Palomar line. Although FERC often suggests that companies competing for a pipeline route should join forces, a partnership between Palomar and Oregon LNG appears unlikely at this point.

“We had a conversation with Oregon LNG some time ago,” Morse said. “But we were unable to come to a commercial agreement with them.”

Ultimately, FERC has the authority to approve or deny both of the proposals.

Palomar representatives will make a public presentation of their plans on Tuesday, Aug. 21 from 5 to 8 p.m. at the Molalla Adult Community Center.

1 Responses to “Plans coming down the pipeline”

  1. # Blogger Buzzoff

    Does anybody have minutes from that meeting?

    I sure can't see why we should be willing to bear any of the risk that an LNG project DOES present with ZERO reward! Remember the PG&E folks from 'Erin Brockovich'? Well, these LNG industry types are cut from the same cloth!
    NO MOLALLA LNG!
    YOU RISK, THEY PROFIT!
     

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