Cobscook Bay Fishermen’s Association

Meeting Minutes, September 9, 2004, 7:00 PM

Lubec Consolidated School, Lubec, Me

Attendance: Members John Cox, Harry Shain, Harry Shain Jr, Leo Murray, Tom Pottle, Steven Tinker. Non-members Dana Cox, Will Hopkins, and Heidi Leighton. Invited guests Mary Bassett and Dale Mitchell, Passamaquoddy Tribe at Sipayik

Harry Shain chaired the meeting; Heidi Leighton took notes.

LNG

Mary Bassett and Dale Mitchell were invited to present information to the Association on the pros and cons of the proposed LNG terminal at Pleasant Point. Mary Bassett presented a statement against LNG while Dale Mitchell made a statement in favor of LNG. A question and answer discussion period took place after the statements were presented.

Dale Mitchell

The referendum vote held in August does not mean LNG is a “done deal” at Pleasant Point. The yes vote simply means the Tribe will continue the process of siting a LNG facility. Issues that still have to be dealt with include permitting, safety, and environmental impact statement.

In early June the Tribe began looking at feasible sites where there would be enough water to build a LNG facility. Environmental and safety concerns began to be considered which led to a visit to a LNG facility in Lake Charles, Louisiana. At this site the following things were noted:

· The channel which tankers navigate to the facility is only 400’ wide in places.

· There is a boat launch site within one mile of the facility.

· There were many species of fish being caught near the facility.

· The security zone around a tanker docked at the facility is only 50’. Boat traffic is allowed outside this 50’ zone while the tanker is docked.

· Security zones at this facility are greatly reduced from what is written in federal regulation.

Some environmental/safety information that has been gathered about LNG includes:

· LNG is a clean burning fuel, with very little or no particulate matter given off.

· LNG has no odor.

· LNG is lighter than water and quickly vaporizes forming a white cloud.

· Natural gas is not harmful to breath.

· Double hulled ships transport LNG. There has only been one accident with these kinds of ships in which a tanker grounded on a ledge.

· If LNG is spilled in water, it leaves no lasting residue unlike crude oil or other petroleum based fuels.

· If LNG is spilled on land, the effect would be the same as a hard frost with no lasting adverse problems.

· The ocean floor at Gleason’s Cove would be affected because of the pier/jetty that would have to be built.

· Some land in the Gleason Cove area would be developed and therefore its use changed from what it currently is used for.

Mary Bassett

Industrialization has had many negative effects on the community at Pleasant Point. Since the causeway was built there has been no lobster population in Half Moon Cove. Traditional fisheries such as pollack are no longer available. The state highway splits the community and has been the cause of several deaths.

Now LNG has been proposed and many people seem only to look at the financial considerations of it. The Maine governor is promoting it perhaps as a replacement for the failed casino project.

The referendum vote at Pleasant Point was rushed and not everyone who was eligible to vote got a chance to vote. The yes vote does not indicate overwhelming support for the project.

Who is Quoddy Bay LLC? It seems to be a company only on paper.

In terms of safety, there have been two recent explosions in LNG facilities worldwide.

People in favor of LNG facilities say they should be built in sparsely populated areas. Pleasant Point is not sparsely populated…most tribal members live here.

Tribal people are worried that they will lose access to the shore and the ability to harvest marine species. Elders are concerned about the light and noise of an LNG facility.

There is a special way of life in our area…LNG does not fit into our way of life, it will change our quality of life.

Another thing to consider is if Passamaquoddy Bay is the best choice for this project. Our tides and weather are very unpredictable.

We already have to deal with many health issues caused by environmental pollution. Maine has the highest rate of asthma in the country. Pleasant Point has high levels of radon and cancer. Do we want to add to these problems?

Questions and Answers:

Q. Where would the pier be located?

A. (Dale) Off Gleason Point, follows a line where there’s 40-50’ of water, towards Frost Island

Q. What are the physical requirements of an incoming ship?

A. (Dale) The ship needs 2-3 feet under keel as it enters the region. While it is docked it needs one foot under keel. The ships draft 35’ when loaded.

Q. Would fishermen who fish in that area be financially compensated for loss of fishing ground?

A. (Dale) There have been discussions with Quoddy Bay about this. The weir fishermen will probably get compensated. Don’t know for other fisheries.

Q. Who is Quoddy Bay LLC?

A. (Dale) There are four partners: Jim Mitchell, Stuart Pritchet, and Don Smith are three of them. Don Smith is from Smith Cogeneration which is a company that builds cogeneration facilities that work with LNG.

Q. LLC is a Limited Liability Corporation. In such corporations there are often shareholders who must bear the burden of responsibility if someone is harmed. How will people get compensated if they are harmed by this facility?

A. (Dale) Still too early to say. The possibility of tribal members being able to buy shares in the company has been discussed. Lots of things have been discussed but nothing has been decided.

Q. Is there a natural gas company associated with this proposal?

A. (Dale) Quoddy Bay is currently in negotiations with gas companies.

Q. How can we reconcile Coast Guard security zone mandates with what was observed in Louisiana?

A. (Dale) Different areas have different security needs. [George LaPointe says “captain of the port” within the Coast Guard will make decisions on security zones.] What’s happening in Everett, Massachusetts is different than what’s happening in Lake Charles. The security zone in Lake Charles was adjusted and reduced after LNG had been brought in and they could see how it affected boaters.

Q. Regasification of LNG…One way is to use seawater to warm up the LNG and discharge the seawater back into the Bay at temperatures up to 10 degrees colder than they were. Will the Tribe have any say in which regasification process is used?

A. (Dale) This could be part of the negotiation. What has been discussed is off-loading LNG to shore and using a vaporizer in the regasification process. You don’t have to use water to regasify LNG.

Q. Would a 10 degree colder water discharge be acceptable to you [directed to Dale]?

A. (Dale) No, probably not. I have a commitment to the health of the Bay. We are only at the beginning of a long process. Part of the process is finding out the answers to these questions.

Q. Will there be another facility other than the pipeline?

A. (Dale) There will be a jetty, a pipeline to tanks onshore, two tanks on shore, and a pipeline from Pleasant Point to Woodland (25-40 miles long).

Q. Would you see a 2 mile/1 mile/500 feet security zone as a problem [directed to Dale]?

A. (Dale) Yes.

Q. How do we get answers before the Tribe builds the facility?

A. (Dale) There will be informational meetings and public hearings with principals such as FERC, Coast Guard, etc. There has to be a public process.

Q. What was the difference between Lake Charles and Pleasant Point?

A. (Dale) In Lake Charles a state highway runs right by the facility, there are homes within a quarter mile of it. The facility is much larger than what is being proposed here. Their facility covers 118 acres. The facility at Pleasant Point would allow more through-put on many fewer acres.

Q. It looks like the project will impact Canadians in terms of passage and areas covered by the security zones. What is their response to this project?

A. (Dale) I don’t know.

Q. What is the primary use of natural gas?

A. (Dale) It fuels power generating plants. It is cleaner power, it burns cleaner that coal or petroleum products. Coal fired power plants in the Midwest have caused a lot of environmental problems in our area including fish advisories. LNG is a small step toward getting away from our dependence on coal power.

Q. What are the benefits of LNG? Benefits to who?

A. (Dale) There is not much going on economically in this area right now. There will be 1200 people needed during the two year construction of the facility. Any new people that come in to fill positions will need to rent or buy homes. There will be other trickle down effects to stores and businesses from this employment. The money made by the Tribe on this project will allow the Tribe to provide other economic opportunities, to build new businesses which will employ more people.

Other questions were asked but not answered including:

· Why do they want to build LNG terminals in rural areas?

· Is there any information about this project available in writing?

· Will the pipeline go through the Moosehorn National Wildlife Refuge?

· How safe is this really?