Tribe approves Split Rock as new LNG site

A proposal to construct a liquefied natural gas (LNG) facility at Pleasant Point is still on the front burner, but now with a change of address. The Passamaquoddy Tribal Council signed an agreement on May 19 with Quoddy Bay LLC of Oklahoma to locate an LNG facility on Pleasant Point tribal land at Split Rock, which is located just off Route 190 near the causeway to Eastport. At the present time there is a small pier and trailer on the approximately 10-acre strip of land. The Split Rock site is considered sacred ground and has been used for native ceremonies for years. It has also been the site of the annual polar dip.

The new location will not require a vote or zoning approval by any surrounding town. The tribal council voted 4-3 to approve the location of an LNG facility at Split Rock. Voting in favor of the LNG land-lease agreement were tribal councillors Dale Mitchell, Thomas Lewey, Philip Farrell Jr. and Darren Paul. Opposing the land-lease agreement were councillors Hilda Lewis, Brian Altvater and Mark Altvater.

An earlier plan to construct a terminal facility near Gleason's Point on land the tribe acquired from Perry was defeated on March 28 by Perry voters. When the annexed land was purchased by the tribe from the town of Perry, an article in the town warrant authorizing the annexation also required a vote of approval from Perry voters if the land was to be used for commercial purposes.

Commenting on the signing of the lease agreement for the Split Rock site, Passamaquoddy Governor Melvin Francis called it an historic day for the Passamaquoddy people. "This project gives us the promise of jobs and economic self reliance that we've strived for, for so long." If the lease agreement is approved, the tribe will receive $8 million a year for the life of the facility.

Councillor Hilda Lewis said she tried to have the voting process stopped or at least postponed. Fifteen minutes before the May 19 meeting, the lease agreement containing an addendum was passed out. She says the 80-page document was presented at a prior council meeting, but she says Donald Smith, chief executive officer of Smith Cogeneration, "took it from us and said he was going to make some changes and shred it. We didn't have a chance to review it then or at this meeting."

Lewis then asked that the tribal council put a moratorium on the project so the document could be reviewed. "I felt it should be reviewed, and I made a motion that was seconded by Brian Altvater. It was voted down 4-3. In the meantime, Philip Farrell made a motion to sign the document. Before another vote was taken, we tried to have a discussion. Normally, another discussion would be allowed."

Commenting on attendance at the meeting, Lewis says there were approximately 40 tribal members present, eight to 10 supporting the lease agreement and about 30 opposing it. She describes those favoring the lease agreement as a vocal minority and the conduct of some of them as "shameful." Lewis claims Governor Francis tended to ignore those who were opposed to the project.

Lewis believes the tribal governor has sold the tribe out. She says the Donald Smith and his son Brian are the new "Indian agents" on the reservation.

A sacred place
For tribal member Gracie Davis, the leasing of Split Rock for an LNG facility is very upsetting. "It is a very sacred place to some of us. This is part of us." She recalls playing there as a child, and as an adult she has taken her grandchildren and other children there to be close to the spirits of their ancestors.

Davis has always loved to be near the beach. "When I have been having tough times, I go to the place to talk to the spirits and the creator." Davis has conducted many full moon ceremonies at the site. At other times she has gone there early in the morning and would smudge the whole rock. The rocks represent the spirit, she says, and she has seen the "little people," in which she and other Passamaquoddy believe, playing along the water and has seen beautiful visions in the sky. She plans to continue to visit Split Rock and continue her spiritual experiences until construction is started.

For Davis the council meeting was sad. "They sold us out. I am very disappointed with the tribal governor and some of the council. I cried when I came out of the meeting." She says another tribal member, Linda Lingley, who also attended the meeting, laughed at her when she cried. "My reply was you can laugh all you want because you don't have any traditional values."

A different technology
Donald Smith, who is also president of Quoddy Bay LLC, says a new technology will be used at the site at Split Rock. According to Smith, it will feature a half-mile-long pier where ships will off-load their cargo into pipes rather than tanks. The gas will be off-loaded into a regasification unit located on or near the pier. Following the regasification process, the gas will be piped to the Maritimes & Northeast gas pipeline that runs through Baileyville.

Donald Smith's son Brian, who serves as manager-developer for Quoddy Bay LLC, says the approximately 10-acre Split Rock site is not large enough for storage tanks to be located on the shore next to the pier. He adds, "If it is financially advantageous, storage tanks might be located elsewhere on the reservation or in nearby communities." According to Smith, there will be a small exclusion zone around the regasification structure, but nothing substantial C in the range of tens of feet.

The technology proposed for use at Split Rock would require the ships to remain at the Split Rock dock for up to six days instead of the 12 hours that Smith had said would be required at the Gleason's Cove pier. The ships will have an exclusion zone of 1,000 feet. The width of the channel between Pleasant Point and Deer Island is approximately 1.6 miles near Split Rock. With a half-mile pier and a 1,000-foot exclusion zone covering 0.7 of a mile (or more, including the width of the ship), there would still be approximately 0.9 of a mile open for other vessels to pass by.

Brian Smith does not describe the technology to be used at Split Rock as new. He says it is "a tried and true method." Brian Smith says the immediate next step is to get approval from the Bureau of Indian Affairs (BIA) on the actual contract. "We don't expect any hindrances, and following that we will begin all the engineering and environmental studies necessary on a state and federal level."

Tribal attorney Craig Francis says the permitting process will be a long one, but it is the first step in developing the facility. Francis notes that it is a bureaucratic process and "we will have to bide our time."

Project opponents have vowed to continue their fight and plans are under way to put legal challenges into motion. Francis does not believe the opponents have a credible case to stop the project. "I am optimistic that the tribe will prevail," he states.

Save Passamaquoddy Bay, a group opposed to the LNG project, a has presented a written request to the Eastport City Manager asking the manager and the city council to conduct a thorough investigation into the present plan to construct a facility at Split Rock. "This decision by Smith, and the land-lease agreement which the tribal government has approved, places Eastport in a position where much may be in jeopardy; specifically, transit of highway 190, danger and exclusion zone locations, potential business loss from interruption of traffic flow and loss of fishing territory, land valuation, health, safety and security. These issues warrant immediate exploration and complete understanding by city leaders, and all city residents."

With the signing of the land-lease agreement, the Quoddy Bay LLC proposal is the first terminal proposal accepted by a Maine community. Terminal proposals were rejected by the communities of Harpswell, Cumberland, Yarmouth and Gouldsboro.
Five LNG terminals are operating in the United States, and the Federal Energy Regulatory Commission is reviewing 17 LNG projects at this time.