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Governor rejects offshore gas project
By Aurelio Rojas - Bee Capitol Bureau
Published 2:48 pm PDT Friday, May 18, 2007
Gov. Arnold Schwarzenegger on Friday rejected a proposed liquefied natural gas terminal off the coast of Southern California, citing environmental threats posed by the $800 million project.
"Any LNG import facility must meet the strict environmental standards California demands to continue to improve our air quality, protect our coast, and preserve our marine environment," the governor said in a statement.
But Schwarzenegger said the proposed project by BHP Billiton LNG International Inc. "fails to meet that test."
The governor's decision effectively kills the project because his approval was needed for the federal government to issue the permits to build the facility.
The California Coastal Commission, which is charged with regulating coastal development, previously determined the project did not meet existing coastal laws.
And the State Lands Commission refused to grant a lease for pipelines essential to the project.
Schwarzenegger's approval would have allowed BHP to pursue legal options to attempt to resuscitate the project.
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