counter Port of Coos Bay : MGx – Musings, Essays & Ballads

All Posts Tagged With: "Port of Coos Bay"

Something fishy with the Intl Port of Coos Bay and the Army Corp of Engineers

Previously, I wrote about the International Port of Coos Bay staff apparently advocating on behalf of Oregon Resources without benefit of commission approval or a public meeting. From the commissioner’s packet of November 19, 2009 I quoted the following and encouraged everyone to file a FOIA request with the Army Corp of Engineers when Dan Smith thanked Port Director, Jeff Bishop for helping them get their permits.

Upon a motion by Commissioner Scott (second by Commissioner Smith) the Board of Commissioners authorized staff to explore the record surrounding the Oregon Resources Project and come back to the Commission at a later date concerning advocacy.

During a January 28, 2010, SCDC meeting Dan Smith, COO of Oregon Resources is warning his investors may bail out if they can’t start driving pile at their processing plant by March 15. The Army Corp is telling them they will not have a permit in time to start work by this deadline. Miraculously, in February, Smith advises the commission they have a permit and that ORC’s attorney says without the help of Jeff Bishop it could not have been done. Commissioner Kronsteiner’s company, West Coast Contractors gets the contract to drive pile at the processing plant.

In April, I asked the commission when the decision had been made for the port to advocate on behalf of ORC as there is no evidence in the public records that staff requested permission during any public meeting. Bishop advised me staff never took it to the commission because all they did was make inquiries, they did not advocate.

As I requested of the readers of this blog, I filed a FOIA request with Army Corp.Today I received a response from Army Corp claiming there had been no communications with the port regarding Oregon Resources.

A follow up email to the FOIA officer, Janice Sorenson confirms …”Yes, a telephone log would be included in the phrase all communications.”

So either the Army Corp did a poor job of researching or the inquiries occurred in private and were not ethical or someone isn’t telling the truth. See for yourself in the video montage below beginning with Dan Smith on January 28, 2010 at the SCDC meeting, moving to the the February 18, 2010 port meeting where Smith thanks staff for talking to DEQ and gives credit to Bishop for the permit, to April 15, 2010 when Bishop confirms he spoke with Army Corp. You decide. For my part I have serious doubts about what went on here and emailed the FOIA office and Bishop to see if we can clear this up.

Maybe Arne Roblan should investigate this matter since he seems so concerned with public process at the moment.

More and more questions for Coos County leaders

Thank goodness citizens are taking notice of the sorry public money investment practices that seem to pervade Coos County. Someone is making money but it isn’t the taxpayer.

I have two questions, but first some background on why I have these questions.

The history of America is such that when people wanted to start a business they gathered the money and/or supporters, got the necessary permits and started their business.

Not so here in Coos County.

When Northwest Natural wanted to start their business here and lay their 12″ pipeline, the state legislature provided $4 million of our tax dollars ( 2 years before we knew of the project ). Then 2 years later our Commissioners convinced a majority of voters to place a $50+ Million bond against property owners for 20 years for the N.W. Natural project. Furthur the state legislators , under HB 3046, in 2007 forgave them their property taxes. The land owners whose property they took got no such consideration. To date I do not believe the tax payers have received any compensation and only minimal jobs.

When The Jordon Cove people wanted to start their LNG project our tax dollars, throuogh the Port of Coos Bay Commission, were used to obtain a contract with Weyerhaeuser. When they needed to exchange the wetlands on the site for another wetlands the Port of Coos Bay Commission, and the county Commissioners again came into play with legislation, and tax dollars.. They re-zoned Kentuck golf course.. Additionally, being in an enterprise zone they will be forgiven property taxes for 3 years.

Now Oregon Resources Corp., another foreign company, wants to do business with Weyerhaeuser in strip mining for chromite. Again our tax dollars are being used to make it possible. Our Commissioners plan on spending $1 Million+ of our tax dollars over 2+ years to re-do W. Beaver Hill Road so ORC can run their trucks 24/7 for 20+ years on a route presently called ‘scenic’. In 2009 the State and the county Commissioners forgave them their Corporate taxes for 10 years. They are also in an enterprise zone.

This seems to be only the tip of the iceberg.

My questions are: 1. How much money has the Northwest Natural 12″ pipeline netted to the citizens of Coos County & Oregon to date? 2. Are the county Commissioners going to again raise the citizens’ property taxes to the full extent under law or are they going to be considerate of our hard times and hold the line where it is??

Jaye Bell

Time to start hammering the questions but more importantly, demanding the answers. Some of our county commissioners, Kevin Stufflebean in particular, are not good at answering questions.

Coos County historically sells public resources on the cheap and is famous to boot

The recent submission to the AIA Sustainable Design Assessment Team (SDAT) spearheaded by South Coast Development Council (SCDC) rightly list the many features of the Coos Bay Area that set it apart from other coastal Oregon cities. The Int’l Port of Coos Bay is the closest deep water port to Asia and the only deep water port between Seattle and San Francisco. The Southwest Oregon Regional Airport is the only commercial airport on the Oregon Coast.

The Bay Area Hospital is a major medical facility and serves much of the coast. The award winning Bandon Dunes Golf Courses draw people into the area increasing the number of executive jet flights from 2 to over 5000 per year (I threw that last part in). Both employ hundreds of people.

The strategic benefits and the natural beauty and world famous golf course and the hunting and fishing and the farms and ranches are not what makes Coos County and the Coos Bay Area famous, unfortunately. Coos County is famous for being a plunderers playground and a text book example of what can go wrong when short term gains as promoted by groups like SCDC overshadow long term benefits. Al Sandine, in his book ‘Plundertown USA: Coos Bay Enters the Global Economy’ likens SCDC to the mill owners and job bosses holding sway over the dependent work force of the early 1900s. Sandine points out that to be a voting member of SCDC costs $10,000 eliminating the common worker as a participant in local development schemes.

David Cay Johnston devotes two full chapters to Coos County in his book ‘Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You With the Bill)’. SCDC receives taxpayer money from the local municipalities and the County but maintains a quasi-governmental/private status apparently enabling it to conduct closed meetings, if it wants to, further excluding the commoners from being ‘in the know’. SCDC, Friends of New and Sustainable Industry (FONSI) and most of the elected leaders in Coos County have presided over and continue to support the plunder of pubic resources and there is probably no more glaring present example than the $30M+ airport and as Johnston notes, a federal subsidy for corporate jet use…

Keiser (owner of Bandon Dunes) is not unique in benefiting from this subsidy…What makes Bandon Dunes distinctive is there is no other beneficiary for the use of the airport at Coos Bay. Commercial passenger traffic has been steady for years at about 100 passengers a day. And those corporate jets, except for maybe three per year, are drawn by the golf links Keiser owns…

Each time an executive takes the company jet to play at Bandon Dunes you pay part of the cost. And the airport improvements, done solely to benefit Bandon Dunes, are also paid for when you buy a commercial airplane ticket or an Oregon lottery ticket.

The total subsidies received just by Bandon Dunes exceed the value of the jobs produced. Given the tens of millions of dollars that have flowed in and through Coos County since I moved here in 2003, why is there nothing to show for it? Why are we hovering at 15% unemployment?

The SDAT intends to send

…multidisciplinary teams of professionals from across the country to provide a road map for communities seeking to improve their sustainability—as defined by a community’s ability to meet the needs of today without reducing the ability of future generations to meet their needs.[emphasis mine]

Coos County has a long and dirty history of enriching the few at the expense of future generations. The old growth timber was cut at rate greater than it could recover from leaving future generations no jobs and little to look forward to beyond pulp mills.

The same mindset that allowed Coos Bay to become dependent on one or two big corporate players for a resource extraction economy is still at work today. SCDC, FONSI, at least two of the three county commissioners and probably most of the professional board members at the local chambers of commerce, urban renewal groups and the Rotary clubs, etc… are maneuvering and lobbying to sell the farm, or in the case of ORC, mineral rights, and sell it on the cheap and the electorate have no one to blame but themselves. These same people presided over the gas pipeline fiasco and the late Ron Opitz, former director of SCDC came from NW Natural, now leasing the pipeline.

So why, with a thirty year record of dismal economic indicators and a 15% unemployment rate, do local leaders continue to make the same decisions? Why do they try and repeat the same failed business model, over and over again? Why do our local leaders allow Coos County to act as a funnel threw which taxpayer money flows straight into foreign corporate bank accounts?

If you read the leaked RNC power point mocking their own donors, prestige, power and fear are primary motivators for donating to the GOP (not that all members of the groups above are Republican). Maybe shucking and jiving with ORC and Jordan Cove and hobnobbing with Bandon Dunes offer some perceived prestige and power in the minds of these people. Enough they would throw caution to the wind and sacrifice the public trust?

Perhaps as Joe Bageant points out in his amazing book ‘Deer Hunting With Jesus’ we have elected people that are little more than functional illiterates and are just plain incapable of the type of critical thinking necessary to be wise stewards of public assets. The SDAT application clearly wasn’t written by a wide swath of the citizenry and reflects a very worm’s eye view of the reasons for Coos County’s ills.

Whatever the reason, Coos County has some elections coming up and needs to make some hard decisions or the continued depression of these last 30 years will likely only get worse.

County votes two to one in favor of flooding Kentuck Golf Course

Bob Main was the lone voice of dissent expressing valid concerns about washing toxic chemicals both from fertilizing the golf course and from a former methamphetamine lab being washed into the bay. Commissioners Whitty and Stufflebean were unconcerned about potential damage to the bay. The flooding is necessary for Jordan Cove to offset wetlands lost to the proposed LNG terminal.

The commissioners added three conditions to the project to limit costs to the county and damage to the environment, but the three-person vote was divided. Commissioner Bob Main voted no, in light of concerns he said he had about pollutants washing into the bay. Commissioners Nikki Whitty and Kevin Stufflebean voted yes.

Jody McCaffree recommended an oversight committee to avert a similar disaster as the Mas-Tec pipeline.

The port agreed that there should be a technical advisory committee, such as the one it already has, including leaders from the South Slough National Estuarine Research Reserve and Coos Watershed Association.

The applicant gets to be its own advisory committee. That will be like listening to foxes discuss how to guard the hen house.

Stufflebean assured everyone … “Regulatory agencies tend to pick on government entities more than private companies.”

It is anyone’s guess where that pearl of wisdom came from or what evidence there is to support that statement but meanwhile, Stufflebean is once again backpedaling on earlier statements made to the press about his bankruptcy. Today, a county citizen asked him why he hadn’t reported his personal contributions to his campaign that forced him into bankruptcy. Failure to report contributions is a clear violation of election laws.

His explanation was that there were non-reportable expenses such as gas and mileage to speaking events. So given the campaign cost less than $6,000 and Coos County is not that large it would seem that it didn’t take much to tip the financial scales for the commissioner. Now he has also blamed his wife’s job loss and his own, heretofore unconfirmed, claim of a $28,000 a year salary cut when he took on the commissioners seat.

Either way, Stufflebean doesn’t appear to have much of a handle on his personal finances and was irresponsible toward his debtors if he, indeed, did take a lower paying job. So why are we letting someone with such a track record of inconsistencies and poor judgment make decisions for the County?

LNG – National Insecurity

Many thanks to Pat Reid, for sharing this article written for The Sentinel this week, so I can offer it here. Pat has written very eloquently and professionally for our community before talking about ethanol and this week he turns his analytical skills to LNG.

On the energy front, this nation is at a crossroads. Do we continue to throw money at the fossil fuel industry (represented in large part by the API – American Petroleum Institute) or do we finally awaken to stand up against this fossil fuel lobby and the interests that they represent and just say NO. No to greater dependence on foreign sourced fossil fuels which only enrich the oil/gas corporations, undermines our national security and provides funding to our enemies. We the people need to start saying YES to renewable, domestically produced, and sustainable sources of energy that increase the wealth and stability of this country – allowing for an overall national way of life that models sound energy policy for the rest of the world to emulate. In my view, we must come to grips with the reality that there is only a relatively modest amount of fossil fuels left here on our own shores and begin in earnest to invest in & develop our own sources of RENEWABLE energy. Wind, solar and biofuels are viable right now and will only enhance the health of the economy, environment, and national security. The use of fossil fuels, especially supertanker shipped LNG, increasingly makes us less secure as we are forced to rely on countries that are ruled, in large part, by unfriendly dictators who despise countries with democratic forms of government. These dictatorships have and will continue to use a certain percentage of these petroleum/gas dollars to pose a threat to our national security.
LNG is 100% foreign sourced from many of the same volatile countries that provide much of the oil to satisfy our current addiction. We are setting ourselves up for an unhealthy dependence to yet another fossil fuel that undermines our overall security, adds to the global climate change problem, and does nothing to help wean us off our oil habit. LNG coming into Coos Bay, or any other U.S. port, is just a bad idea if looked at with any kind of long term perspective.
Our federal, state & local dollars would be much better spent by developing and establishing industries that harness the renewable power of the wind, the sun, biomass derived fuels (ethanol & biodiesel) and even the tremendous potential energy of wave/tidal action just off the coast. These energy sources would provide many good paying jobs that enable us to use our existing electrical grids and power our cars with very little modification needed. Every state in the union has the potential to harness at least two of these renewable sources of energy and do it reliably within 5 to 10 years. We must commit to stop throwing our money at fossil based fuels (especially those 100% foreign sourced) and demand an Apollo type program be launched that breaks this country free of our crippling dependence on dwindling supplies of fossil fuel and moves us toward renewable energy independence and greater national security.
Ten years from now, I am one who would like to see the goal of having at least 50% of our energy coming from wind, solar, advanced biofuels, and other sources of renewable energy. Tell your elected officials that you want this kind of future and urge them to work toward this goal. Remind them to say no to things like LNG that ultimately undermine our overall prosperity & security.

Some questions to the port director

Below follow some of the questions recently sent to Jeffrey Bishop, Executive Director of the Port of Coos Bay by Citizens for no LNG.

3) Thirty three LNG import terminals have been approved already in North America. Some of these terminals that have been built have been unable to get supply contracts. If Jordan Cove was to be approved by FERC and built but they were forced to shut down or never operate due to market conditions (i.e. they filed bankruptcy, dissolved, etc), who then would pay the payments on the tugs, the slip dock, the dredging of the access channel, the property, etc, since these are to be owned and/or controlled by the Port? (Emphasis mine)

4) I understood that even though APM terminal is not coming for a least 5 years and possibly not at all, we are still going to pursue the bay dredging project. This is at the request of APM? Do we have a signed agreement with APM terminals? Can I get a copy of this agreement? Who is paying for the proposed dredging?

5) I thought I heard you say that the dredging would also benefit Jordan Cove in that you could work harbor disruptions so that they would not be so impacting to other bay users. Correct?

6) I am still rather confused as to how the dredging project can go forward without the agreements in place that are required of the legislature before bonds are to be sold? I am also still rather confused as why the Port approved over a million dollars in September to begin working on the bay dredging project without these agreements in place first? Doesn’t this put our Port at an extreme liability?

It should be noted that of the 33 LNG terminals approved by FERC much of the land was acquired by eminent domain for both the terminal and the supporting pipeline from property owners. Eminent domain was used to secure property even in the terminals that have been moth balled… those people lost their property for nothing.

Port of Coos Bay commissioners meeting

Well, all hell appears to be breaking loose at the Port of Coos Bay as all the deals concocted appear to be falling apart. Between the railroad embargo, the integrated LNG slip dock ballast issue and the lack of any firm deals between Maersk, or Jordan Cove or anyone else, it is hard to understand how the Port operates at all. They did approve a 5% increase in docking fees at the Marina.

May take me a few days to absorb everything plus the information packets supplied to the commissioners are not readily available to the public. How the public is expected to contribute to decisions investing their tax dollars is hard to understand without adequate time to review paperwork and assess the merits of data presented. Nevertheless, several of us will dig in and see if we can make sense of the $1M already spent on dredging for a slip dock that has now been put on hold.