Environmental review of Gateway Pacific Terminal coal terminal delayed a year

Casper Star-Tribune ^ | 3/25/2015 | BENJAMIN STORROW

[thackney]

An environmental review of a proposed Washington coal port will be delayed until 2017, one year after the analysis was scheduled to be completed.

The delay comes after the project's developer, SSA Marine, submitted an updated plan for the Gateway Pacific Terminal to the U.S. Corps of Army Engineers.

SSA Marine acquired more land in the area of the proposed dock and reconfigured its site plan, said Bob Watters, a company executive. The move will reduce the project's overall footprint by 17 percent and its impact on wetlands by 49 percent, he said.

"From an environmental standpoint, we thought it was the right thing to do," Watters said. "We thought it made sense to take the delay."

The Bellingham, Washington port would ship up to 48 million tons of Powder River Basin coal to Asia each year. It is the largest of three proposed coal export terminals in the Pacific Northwest.

American coal companies view Gateway Pacific's construction as an opportunity to offset a decline in domestic demand brought about by cheap natural gas prices and more stringent air quality regulations. Peabody Energy and Cloud Peak Energy have secured agreements to ship coal from the port.

Weak coal prices have complicated that effort, though mining firms maintain robust Asian demand mean the ports are economically viable.

Rick Curtsinger, a Cloud Peak spokesman, said the delay does not alter the company's outlook for coal exports. The Gillette-based firm is increasing its exports from the Westshore Terminals in neighboring British Columbia from about 4 million tons last year to 6 million tons this year, he noted.

“These are viable, long-term projects to meet long-term, growing demand for coal from some of America’s most-important allies, including South Korea, Japan and Taiwan," Curtsinger said. "Cloud Peak Energy remains committed to serving our customers and further developing our logistics business, which includes exports.”

The project faces considerable opposition from environmentalists and local Native American tribes. The Lummi Nation recently asked the Army Corps halt its review of the port, saying it will cause irreparable damage to tribal fishing grounds.

The Army Corps review is one of two analyses required before construction can begin.

Washington and Whatcom County are conducting a joint environmental analysis, which has drawn fire from coal interests, who say its scope is unprecedented. That study will consider coal's contribution to global climate change, among other things.

The federal review is narrower and will focus on the terminal's impact on its surrounding environment. A draft environmental review is expected by March 2016 while a final report is expected sometime in the summer of 2017, said Matt Bennett of the U.S. Corps of Army Engineers.

Construction will likely take two years, with work expected to begin in late 2017 or 2018, said Watters, the SSA executive.