CALAIS, Maine — Developers behind the proposed Calais Liquefied Natural Gas project have asked state regulators for an extension until mid-January of their site application deadline.
This extension bid — the fifth requested by the company this year — was prompted by the company’s failure to renew its option on 330 acres of Red Beach property, where it wants to locate the LNG facility.
Calais LNG has had an option on the land for five years and has renewed it several times before, company spokesman Ian Emery said this week, but because the company is currently being sold, funding is an issue.
Earlier this year, the Maine Board of Environmental Protection granted additional time to Calais LNG to find new financial partners for the project, which has been estimated to cost up to $1 billion. Calais LNG originally had told state regulators that it would withdraw its application by Aug. 11 if the company could not line up a new investor to replace a Goldman Sachs affiliate that was opting out of the project.
But the company requested an additional one-month extension in August and another extension in September, citing delays in the negotiating process.
Then, in a letter dated Nov. 17, Red Beach property owners Stephen Carothers and Gail Roberts notified the BEP that Calais LNG had failed to renew an option on their land that expired Aug. 31.
In turn, BEP chairwoman Susan Lessard sent a letter on Nov. 19 to Calais LNG’s attorney David Van Slyke of Portland pointing out that it appeared the firm no longer had any rights to the land it wanted to develop.
Lessard wrote that state regulations require “an applicant must maintain sufficient title, right or interest throughout the entire application processing period.”
In her letter, Lessard asked Calais LNG to indicate whether it wanted to seek another time extension or withdraw its application.
Van Slyke replied in writing Tuesday, “Calais LNG does not intend to withdraw its applications at this time.” He told Lessard that CLNG is attempting to renegotiate a less expensive deal with Carothers and Roberts. No dollar figure was provided.
Van Slyke also explained that the project is in the final stages of transitioning majority ownership from GS Power Holdings LLC to a new managing member. Van Slyke did not name the possible new owner.
Once that ownership is secured and funding is in place, the property rights will be secured, Van Slyke wrote.
“Calais LNG has expended more than $20 million on this project to date,” Van Slyke said, “and [the state Department of Environmental Protection] and BEP have also expended significant resources reviewing this effort.”
Van Slyke also recognized that intervenors both for and against the project have spent time and money on the process.
“Withdrawal or dismissal of the applications at this point would waste the significant efforts made to get the proceeding to this point, efforts that would need to be duplicated once Calais LNG refiles the applications,” he said.
BEP analyst Cynthia Bertocci said Wednesday that Lessard has given all intervenors and interested parties until the end of the day, Monday, Dec. 6, to comment on the extension if they wish. Bertocci said Lessard would then meet with the board’s attorney to determine if the extension request needs to come before the full board or if Lessard can make a decision herself regarding additional time.