BHP Billiton is quiet about its next move.
By Jonathan Friedman / Assistant Editor
Gov. Arnold Schwarzenegger last Friday announced his rejection of BHP Billiton’s proposal to anchor a 1,000-foot-long liquefied natural gas terminal 14 miles off the Malibu coast, effectively killing the project outside of the Australian energy and mining giant winning a court battle or an unlikely federal government intervention (which would be difficult since the current federal law states the governor’s rejection stops the project). While opponents of the proposal, known as Cabrillo Port, are jubilantly celebrating the governor’s decision, BHP Billiton is keeping quiet about what its next move will be.
The governor’s disapproval of the project came in the form of a letter to U.S. Maritime Administrator Sean T. Connaughton, a man who actually would have had final say about the project if it were to have survived state review. In the letter, Schwarzenegger wrote about his concerns about Cabrillo Port, but he did not oppose LNG as a substance.
“Liquefied natural gas can and must be an important addition to California’s energy portfolio,” Schwarzenegger wrote. “However, any LNG import facility must meet the strict environmental standards California demands to continue to improve our air quality, protect our coast and preserve our marine environment. The Cabrillo Port LNG project, as designed, fails to meet that test.”
His rejection follows last month’s 2-1 vote against the project by the State Lands Commission, and a 12-0 rejection by the California Coastal Commission. Even if the governor had favored the project, BHP Billiton would be facing hurdles to get those two decisions overturned.
Nevertheless, project opponents are considering Friday’s news to be a huge victory. “We are deeply gratified that Gov. Schwarzenegger has taken to heart the concerns of thousands of residents, numerous national, state and local organizations as well as elected officials, and vetoed the BHP Billiton LNG terminal post,” husband and wife celebrity environmentalist team Keely and Pierce Brosnan said in a statement released on Friday.
The Brosnans, who live in Malibu, have been vocal in their opposition to the project, speaking at rallies and attending both the state panel hearings last month.
Celebrity opposition has been a theme in this battle, mixed with resistance from the middle- to working-class residents of Oxnard. More than 1,000 people attended the State Lands Commission hearing in Oxnard in early April, nearly all of them being opposed to the project. Approximately 500 people came to the Coastal Commission session several days later, with not a single person speaking for the project who was not employed by BHP Billiton.
Council members Pamela Conley Ulich and Andy Stern have been the city government’s main voices against Cabrillo Port. Conley Ulich said in an interview on Tuesday, “I was very grateful and appreciative, and I felt like he did the right thing.”
She half-jokingly added, “I wrote a letter to him. I guess he listened to the letter.”
BHP Billiton essentially has two paths it can take now. It could continue with its pursuit for the project in its current form through litigation, or it could scrap its plan. This could either be followed by giving up entirely or developing a new project. The company is giving no clue as to which option it will choose.
“We need time to consider the comments made by the public and by the government officials, and we’re not in a position right now to talk about what further steps we might make,” said BHP Billiton spokesperson Patrick Cassidy.
He added, “We respect, but are disappointed with the governor’s decision to disapprove Cabrillo Port.”
There are three other companies currently in the process of trying to be the first to install an LNG terminal off the California coast. The projects are in various stages, but not as far along as Cabrillo Port was.