RAYE DECRIES CANADIAN DRIVE TO BLOCK ACCESS TO MAINE PORTS

For Immediate Release

Thursday, February 15, 2007

AUGUSTA, ME – State Senator Kevin L. Raye (R-Perry) has denounced the “unwarranted intrusion” of Canadian political leaders seeking to control U.S. access to Maine ports on Passamaquoddy Bay.

“The recent intrusion of Canadian Ambassador Michael Wilson into the Washington County LNG debate represents a serious challenge to U.S. sovereignty,” said Raye, referencing a Feb. 14^th letter Wilson sent to the Federal Energy Regulatory Commission (FERC) in response to pressure from Canadian political leaders and corporate interests.

“Their stated goal is to block any of the three LNG import facilities proposed in the willing host communities of Calais, Pleasant Point and Robbinston. But the implications are far greater,” Raye cautioned.

“Regardless of one’s views on LNG, every American should be concerned about the dangerous precedent it would establish for a foreign country to control access to our ports. The United States has a responsibility to reject this clear breach of international norms and stunning violation of U.S. rights of innocent passage,” said Raye.

“An examination of Canada’s position is revealing. While Canada purports to have concerns about the environmental and safety aspects of LNG on our side of the border, this claim rings hollow given that they have no similar qualms about aggressively pursuing development of LNG import facilities on their side of the border,” said Raye. He noted that, long before the Ambassador’s letter to FERC, the Canadian government gave its blessing to both the Canaport LNG facility in St. John, New Brunswick, and the Bear Head LNG facility in Point Tupper, Nova Scotia.

“Given Canada’s strong support for LNG in the Maritimes, their subsequent objections to U.S. projects give the appearance of being rooted in an effort to stifle competition with Canadian LNG interests,” said Raye.

The Washington County senator said he is particularly troubled by the influence brought to bear by the powerful Irving Group of Companies. “As the owner of every English-language daily newspaper in New Brunswick, the Irving Group has enormous influence in shaping public opinion in the province. At the same time, another arm of the Irving corporate family is building their very own Canaport LNG terminal in St. John,” Raye noted.

Senator Raye called attention to the fact that, shortly after Stephen Harper’s election as Canada’s Prime Minister, one Irving-owned newspaper, the St. John-based Telegraph Journal, called on him to assert Canada’s “sovereignty” over access to Passamaquoddy Bay.

“The fact is, even as Irving proceeds full steam ahead with its LNG facility, the Canadian corporate giant used its position to pressure its government to secure their investment by acting to block development of competing U.S. facilities,” Raye said. “The resulting salvo from Ottawa is another in a long line of unfair Canadian trade practices that have damaged Maine’s economy over the years.”

“Those of us who live on the American side of Passamaquoddy Bay recall Canada’s utter disregard for concerns raised by U.S. border communities on issues such as the nearby Point Lepreau nuclear power plant, and the controversial quarry and crushed stone operation at Bayside on the Canadian side of the bay,” said Raye. “So it is noteworthy, if ironic, that Canada now seeks to impose its will to block economic development in Maine.”

Raye is unconvinced by Canada’s claims regarding Head Harbor passage. “While Canadian interests argue that Head Harbor passage and Passamaquoddy Bay pose navigational difficulties, this assessment appears to be selective at best. For example, the Canadian government has no objection to ships carrying dangerous cargoes such as ammonium nitrate and dynamite routinely entering the bay and sailing past Maine and New Brunswick communities enroute to Bayside,” said Raye. In 1995, just 4800 pounds of ammonium nitrate destroyed the Murrah Federal Building in Oklahoma City.

“Canadian opponents have also voiced concern about the size of LNG tankers, typically about 930 feet in length, with a draft of 38 feet. So I was surprised to learn from local pilots that vessels as long as 859 feet, with a draft of up to 42 feet have entered Head Harbor passage enroute to Eastport more than 150 times. It is also my understanding that the gravel ship Alice Oldendorff, with a loaded draft of 40 feet, and vessels in excess of 750 feet in length regularly traverse Passamaquoddy Bay enroute to Bayside,” Raye stated.

Raye pointed out that the Canadian government does not even require a pilot – let alone a licensed pilot – to accompany ships through Head Harbor. “Surely if Canada believed this to be a hazardous route to navigate, they would have imposed this basic requirement long ago,” he said.

Senator Raye said that, if Canada follows through on their threats of intervention, the U.S. government has a responsibility to ensure that such action is met with “immediate and commensurate consequences.”

“For example, it is my understanding that President Bush must grant permission for Canadian LNG interests to tap into the gas pipeline that runs through Maine. That authorization should be denied if Canada seeks to block U.S. ports. Similarly, there should be implications for the oil pipeline from Casco Bay to Montreal and for Canadian passage through U.S. waters on the west coast,” Raye said.

The Senator pointed out that, even as construction of the Canaport and Bear Head LNG projects is underway, the Washington County LNG proposals face a thorough process of scrutiny, hearings and evaluations to determine if they meet rigorous U.S. safety, environmental and other established standards required for approval by FERC.

“It is entirely appropriate to ensure that these standards are met before approval is granted. If one or more of the proposals clear the hurdles, the final determinant will be whether or not financing and market conditions warrant construction. These are all critical considerations in the process. But conflict-ridden of the Canadian government and their corporate allies should not be a factor,” said Raye.

“Each of the Washington County LNG proposals should rise or fall on its own merits, not on the unwarranted intrusion of Canada’s government and corporate power brokers” Raye concluded.

# # #