Court rules for N.J. in LNG facility plan
Corzine has right to veto industrial island proposal
The U.S. District Court for the District of Columbia upheld the U.S. Maritime Administration's designation of New Jersey as an "adjacent coastal state" in the review process for a proposal by the Atlantic Sea Island Group (ASIG) to build a 116-acre man-made island for an industrial complex off the coast of New Jersey and New York.

The island facility would serve to offload, store and process imported liquefied natural gas (LNG), a foreign fossil fuel.

"We thank all the elected officials and citizens who wrote letters to ensure that our voice would be heard," said Cindy Zipf, executive director of Clean Ocean Action (COA). "The judge ruled that New Jersey's livelihoods are at risk and that we deserve the right to vote.

"Now let's get to work to make sure that our voices are heard loud and clear: LNG is bad for our wallets, our independence and our ocean,'" she added.

The court ruled based on the facts presented in the record, specifically that the proposed port's location would interfere with the Port of New Jersey and prime recreational and commercial fishing areas protected under the state's federally approved coastal environment, according to a COA press release.

Also cited was the impact to water quality in New Jersey's waters from construction or spills due to predominant current, wave, and wind directions, according to the release.

The ruling sets the stage for veto action from both Gov. Jon S. Corzine and the governor of New York. New York had already received adjacent coastal state status. Under the Deepwater Port Act, governors of adjacent coastal states have the authority to veto proposed deepwater port projects, such as the "Safe Harbor Energy" proposal by ASIG.

Corzine has the right to review and approve, approve with conditions, or disapprove the application, and each state is granted the opportunity for at least one public hearing on the project, according to the release.

In the ruling, the District Court upheld the U.S. Maritime Administration's (MARAD) authority to designate adjacent coastal states, and found that Maritime Administrator Sean Connaughton's decision in February 2008 upholding New Jersey's adjacent coastal state status was proper and supported by the facts on record.

In November 2007, Connaughton ruled that New Jersey was an adjacent coastal state because it would be subject to risks "equal to or greater than" New York. While no legal provision allowed it, ASIG had appealed MARAD's November 2007 original decision that designated New Jersey an adjacent coast state to the MARAD agency itself. The ASIG lost that appeal and then filed suit in the federal court.

"We take this victory with a grain of salt, as Governor Corzine just recently flip-flopped and came out in support of LNG in his Energy Master Plan," said David Byer, the COA Water Policy attorney. "When Corzine requested adjacent coastal state status in 2007, he wrote a detailed letter explaining the 'risk to New Jersey's coastal environment,' including to the state's 'robust commercial and recreational fisheries that are vital to the State's economy, as well as to the history and character of New Jersey's coastal environment'.

"Now, Corzine's plan opens the Jersey Shore to exploitation by foreign energy profiteers," Byer said.

The sole authority to issue a license for the project is the U.S. Maritime Administration. Prior to a license being issued, the Deepwater Port Act requires that the Secretary of Transportation must consult with "the adjacent coastal state(s) and other federal agencies to ensure such a license is in the national interest." According to law, "the Secretary shall not issue a license without the approval of the Governor of each adjacent coastal state."

The man-made island facility, called Safe Harbor Energy, is planned for 19 miles off the coast of New Jersey and 13 miles off the coast of New York. This same area is home to endangered species and is prime fishing grounds. A largescale, man-made, open-ocean island has never been constructed, and ASIG has no experience in offshore development or with LNG, according to the COA press release.

In September 2007, Corzine sent a letter requesting adjacent coastal state status, which was followed by letters from U.S. Sen. Frank Lautenberg (D-NJ) and U.S. Representative Frank Pallone Jr. (D-6th District) supporting the governor's request. Representatives of conservation, environmental, fishing, and surfing organizations raised alarm about the project and prompted action by officials and residents. Many letters from organizations and citizens were sent to the agencies supporting New Jersey's role.