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Quoddy Bay withdraws request for state permits

October 27, 2008
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AUGUSTA, Maine—Quoddy Bay LNG has withdrawn its request for state permits to build a proposed liquefied natural gas terminal on the Passamaquoddy Indian reservation at Pleasant Point in eastern Maine.

The Oklahoma company notified the state this week following a decision by federal regulators to dismiss its application. Federal regulators said Quoddy Bay LNG failed to provide information needed to move forward with an engineering review and environmental assessment.

In a letter, Quoddy Bay President Donald Smith said the company still plans to pursue the project and resubmit its state applications.

"We expect to refile them in the near future, but are uncertain of the dates due to the world LNG supply and demand situation," he wrote.

Linda Cross Godfrey from Save Passamaquoddy Bay said Smith made a prudent decision given the changing economic climate that's reducing demand for fossil fuels.

Godfrey said two similar projects, Downeast LNG and Calais LNG, should withdraw their proposals as well because both face the same economic realities, along with environmental difficulties posed by the proposed location along Passamaquoddy Bay, an inlet of the Bay of Fundy.

Calais LNG's proposed LNG terminal would be built on the outskirts of Calais. Downeast LNG, which proposed its LNG terminal for Robbinston, withdrew its state applications last year, but still has permits pending before the Federal Energy Regulatory Commission.

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