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Port Ordered to Renew Controversial Lease for Full Term The Port of Astoria must renew its disputed 30-year lease with the Oregon Department of State Lands, ruled a federal judge in March.
The Port had subleased the 92-acre spit to Oregon LNG at a price that was based on its use as a golf course—not as the site for an LNG import facility. The arrangement was investigated by the state attorney general’s office as part of an inquiry into allegations of misconduct by the former port director.
The investigation, concluded in February, found no evidence of improprieties in the lease arrangements. Additionally, Gov. Ted Kulongoski’s office recently declared the lease price “reasonable” for a piece of undeveloped land and noted that a 30-year extension would prompt a reappraisal.
While the investigation was ongoing, the Port had opted to renew the lease with the state for only two years, with an option to extend it to 30 years at the end of that period.
Because Oregon LNG’s sublease term was for 30 years, it filed suit against the Port for breach of contract.
Oregon LNG is in the process of obtaining various state, federal and local permits related to the project. The Port has until December 3 to decide whether to appeal this District Court judge’s ruling and take the case to the U.S. Ninth Circuit Court. |
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