Port of Astoria Votes to Settle Sublease Dispute

A unanimous vote by the Port of Astoria Commission agreed to settle a lawsuit with Oregon LNG over its disputed sublease of land on the Skipanon Peninsula.

The Oregon Department of State Lands approved the Port’s request to renew the lease with the state for 30 years, in accordance with the terms of its sublease agreement with Oregon LNG. The state has agreed to excuse the Port from paying rent on the land in the case that Oregon LNG backs out of its sublease.

Commissioners approved signing off on the deal with the condition that they be protected from being held personally responsible for any violations of the agreement.

Earlier this year, a federal judge found the Port in breach of contract for failing to renew its pass-through lease with the state in accordance with the terms laid out in its sublease agreement with Oregon LNG. The Port has been negotiating a settlement agreement with the company to avoid paying damages in the case, which initially threatened to include fines for commissioners.

Among the settlement details is a request by Oregon LNG that the Port sell a 5-acre parcel of land near the Warrenton sawmill.

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