Protecting the Coastal Zone from Liquefied Natural Gas In the Delaware River

The Center’s arguments have prevailed in at least temporarily halting British Petroleum’s bid to build a massive Liquefied Natural Gas (LNG) transfer and gasification facility in Logan Township, New Jersey. The facility involves major on-shore facilities and an off-shore docking facility for LNG supertankers in the Delaware River.  LNG has significant explosive potential in the event of accident and the proposed project has many residents in the tri-state area nervous.  

In October 2004, MAELC intervened on behalf of Sierra Club in proceedings before the Federal Energy Regulatory Commission (FERC).  In January 2005, MAELC prepared a legal memorandum detailing how the docking facility was a bulk product transfer facility prohibited under Delaware’s Coastal Zone Act (CZA). Both the Sierra Club and MAELC submitted that memo to the Secretary of DNREC in opposition to BP’s Request for a Status Decision under the CZA. On February 3, 2005, the Secretary agreed with MAELC’s analysis and ruled the docking facility prohibited under the CZA. During BP’s appeal of the Secretary’s decision, the state’s Coastal Zone Industrial Control Board (CZIB) specifically cited and thanked MAELC for its legal analysis and requested that MAELC provide public comment to assist the CZIB in its decision. In addition, DNREC’s attorneys utilized the Center’s arguments in the defense of the Secretary’s decision before the CZIB. On March 31, 2005, the CZIB voted 6-0 to uphold the decision to deny BP the right to proceed.

This matter remains active before the FERC, and Congress may step in to override state laws such as the CZA in order to promote numerous new LNG facilities around the nation.