FERC on March 20 issued conditional approvals to Broadwater Energy, a joint venture of Shell Oil and TransCanada Pipelines,  to site, construct, and operate a 1,215-foot-long LNG import terminal in Long Island Sound.  The commission also issued a certificate of public convenience and necessity to Broadwater Pipeline LLC, an affiliate of Broadwater Energy, to construct, own, and operate a 21.7-mile-long pipeline subsea lateral from the LNG terminal to he Iroquois gas transmission system  pipeline in Kings Park.

Both approvals were conditioned on a determination by the N.Y. secretary of state that the terminal would be consistent with New York's coastal management policies. Gov. David Paterson announced on April 10 that the N.Y. secretary of state had found Broadwater's proposed terminal inconsistent with state coastal policies.

The states of New York and Connecticut, as well as Suffolk County and four municipalities, subsequently asked FERC to reconsider its permit approvals after the New York secretary of commerce ruled on April 10 that the off-shore LNG storage and regasification terminal was inconsistent with New York's coastal management policy.

On Thursday, FERC said no.

What legal action the states, county and towns may pursue following FERC's denial was not immediately apparent.

Meanwhile, Broadwater Energy has appealed the N.Y. Department of State's consistency determination to the U.S. secretary of commerce, who has the authority to override the state's consistency ruling upon finding that the terminal is in the interest of national security. That appeal is pending before the U.S. commerce secretary. A ruling on that appeal is expected in early 2009, according to Ted Beuttler, a staff attorney in the commerce department's office of general counsel for ocean services.

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