(June 3, 2005) -- So what will happen if the City Council votes on Tuesday June 7 to terminate a 2003 Memorandum of Understanding between LB City Hall (via LB's Dept. of Energy) and Mitsubishi subsidiary Sound Energy Solutions, which seeks to build and operate an 80+ million gallon Liquefied Natural Gas (LNG) facility in the Port of LB?
LBReport.com asked Jeff Adler, representing SES, for the company's view:
[begin Mr. Adler's response]
If the City Council tells city management to end the City's Memorandum of Understanding with SES, it really won't change anything by itself.
As is well known, the Council can't order the Port to take a particular action because the Port is governed by the Board of Harbor Commissioners. SES has a separate MOU with the Port and that will continue.
Would a Council vote to end the city's MOU be positive for the project? No. Would it be something that stops the project? No.
The facts about what this project will mean for LB, what its actual impacts will be, will be in the Environmental Impact Report and it's expected soon in the coming months. The responsible action is to get the facts first instead of acting before having the facts and taking an action that really won't affect anything.
SES supports state and local authority and we've pledged to seek approval from state and local agencies within their established areas.
Every LNG plant now operating in the United States has been approved by the Federal Energy Regulatory Commission (FERC). In filing our application with FERC, SES followed the procedure applied to every other LNG facility now operating in the U.S. And thus far, no court has directed otherwise.