ON THE WATERFRONT Fight still ahead on Providence LNG expansion BY IAN DONNIS

A federal commission’s recent finding against efforts to significantly increase the amount of liquefied natural gas moving through Providence seemed, on the face of it, like good news for opponents of KeySpan LNG LP’s expansion plan. In reality, though, the battle over the controversial proposal — which critics contend would pose an unacceptable safety risk for Rhode Island — is just beginning in earnest.

In a statement, issued after the Federal Energy Regulatory Commission concluded that KeySpan’s expanded LNG proposal would not comport with current safety standards, the company vowed to press ahead. "We believe we still have a strong case in favor of the project," says David J. Manning, executive vice president and chief environmental officer. "To say that we are not safe is simply wrong." Manning adds, "Our LNG facility in Providence has existed without incident for over 30 years, and that above all else is testament to our dedication."

Then again, the world has changed a lot since September 11, 2001, and critics point to how LNG-laden supertankers moving through Narragansett Bay to KeySpan’s storage facility at Fields Point would prove a tempting target for terrorists. An analysis by Sandia National Laboratories found that an intentional breach of the terminal would burn buildings in the immediate vicinity and spread second-degree burns in a broad radius encompassing Brown University, East Providence City Hall, Central High School, and other points (see "Can LNG expansion be stopped in RI?" News, April 29, 2005).

Although Attorney General Patrick C. Lynch has taken a lead role in trying to stop the expansion, filing lawsuits against KeySpan in state and federal court, some observers fear that Rhode Island is squandering its best opportunity to effectively challenge KeySpan. The City of Fall River shelled out $650,000 to hire a crack group of public policy lawyers in Washington, DC — the base of operations for the Federal Energy Regulatory Commission, which will decide the fate of proposals in Fall River and Providence. But in Rhode Island, only Bristol has allocated money — $25,000 — for the purpose of hiring the same team of Washington lawyers to pursue a full evidentiary hearing before FERC.

Speaking of the LNG expansion proposed in Providence, David Riley, co-chairman of the Friends of India Point Park, says, "This can have huge, lasting consequences, and you can’t tell me, as Richard Clark says, it’s [a terrorist strike] not likely to happen. "Various state and local officials have said the right words," about opposing the expansion, Riley adds, "but they haven’t gotten their act together to work together and we might lose because of that."

Lynch blames Governor Donald L. Carcieri, a LNG expansion proponent-turned-opponent, for harming efforts to oppose KeySpan, by using more than $100,000 in state funds to hire a law firm known for helping to establish LNG facilities. The AG, who vows to continue seeking funds from cities and towns to oppose KeySpan, says the governor’s action cut the willingness of communities to take part in the collective effort.

Jeff Neal, a spokesman for Carcieri, responds, "Nothing the governor is doing prevents the attorney general from taking whatever actions he feels are necessary to fight the two LNG projects. The governor believes that the attorney general’s office, and every city and town in Rhode Island, has the ability to decide for themselves the strategy they will pursue. That all said, I would point out that the strategy the governor has been pursuing with the law firm that his office has retained has to date been somewhat successful," because of FERC’s recent finding about the safety feasibility of the Providence expansion.

Still, when it comes to the fate of KeySpan’s hopes to expand in Providence, the tough sledding remains to be done.