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LNG Tribal Letter
Pleasant Point Tribal Government
Attn: Governor Melvin Francis
P.O. Box
Perry, Maine 04667

Monday, October 18, 2004

Dear Governor Francis

        I am writing this letter to you at the request of the City Council and on behalf of the citizens of Eastport.  The letter is intended to create a new level of communications between the City and Tribal Council.  In particular it has been written to express the Council’s concern with the current proposal being negotiated between the tribal government and Quoddy Bay LLC.  

For more than two years there has been speculation in the City of Eastport about an LNG facility being located in Passamaquoddy Bay and the associated impact on the economy and ecology.  In this time period we have attempted to remain neutral, in the name of fairness, until the elements of an LNG facility were brought forward in a legitimate proposal upon which the people could make a rational decision.   We utilize this process not only with LNG but also with all potential economic development opportunities to spare unnecessary debate, battles and wounds on speculations about our futures.

Although this particular speculation concerns a site on tribal lands, it seems very evident that the City of Eastport, together with the many other communities which surround Passamaquoddy Bay, would be directly and strongly affected by such a facility and thus we are particularly distressed by the secrecy surrounding this proposal and by the failure of Quoddy Bay LLC and the tribe to consult with us in any meaningful way.

A few of these concerns range from analysis of the issues dealing with LNG that are site specific and elements necessary to address the FERC requirements;

·       Navigation through Head Harbor Passage and the passage between Deer Island Point and Eastport,
·       Coast Guard approval of the ability to safely navigate
·       the winds, fog, currents and tides, - berthing, mooring and anchorage,
·       geological and archeological review
·       buffer zones for shipping, boating and fishing
·       buffer zones for facilities - unloading and storage
·       Impact on local business such as lobstering, fishing, aqua-culture, tourism, etc.
·       Environmental and safety concerns
·       Number and location of tanks
·       Pipeline, right of ways, distance from pipeline
·       The Moosehorn Wildlife Preserve

Each of these questions when stated alone raises numerous other questions dealing with both the technical and financial feasibility of a site in the bay area.  We feel all of these questions should be responded to before one deals with a proposal for this area.  Why one may ask?  Simply put it is because after review of these concerns other potential developers chose to look elsewhere as this area was deemed neither technically or financially feasible for the location of an LNG storage facility.  We feel no less about this standard being applied by the tribal plan with Quoddy Bay LLC and encourage you to demand no less from them before you enter into a contract for exclusive rights to the powers you have as a sovereign nation.

Exclusivity should never be taken lightly and if LNG is such a great opportunity for the tribe and this area is as well suited as Quoddy Bay LLC makes it sound, then it may well be more advantageous to invite the many other companies looking at sites to bid for such exclusivity.  Far be it from us to pass judgment on our neighbors but the concept of selling out ones exclusive rights for an LNG terminal at this point seems to be a desire to sell out cheaply.

We are not alone in our concerns about Quoddy Bay LLC.  From their failure to be upfront with local communities to their apparent ties and potential conflicts at state level, to their local spokesperson James Mitchell, we believe something in this deals smells and it is not the additive to the odorless LNG we smell.

The misrepresentation by this company since the beginning of this process, nearly six months ago, along with the fact we have not heard a single word from them since has left us with no choice but to make known our feelings.  These are very deep rooted concerns with the current proposal, or lack thereof, and our lack of confidence in Quoddy Bay LLC.  Therefore we believe it is to be in the best interest of all for your tribal government to seriously discuss doing business with another company.
        
        Should you need further information, please feel free to contact me at my office in Eastport at 853-2300.

Sincerely,



George “Bud” Finch
Eastport City Manager

cc:     Governor Baldacci
        Senator Snowe
        Senator Collins
        Congressman Michaudmaineline