WOMF for Astoria

In an earlier post I reported that a Federal Magistrate had reviewed and recommended rejection of objections made by the Port of Astoria to a lawsuit filed by Oregon LNG over the sublease it holds with the port over the Warrenton LNG terminal site . Magistrate John Jelderks has written two opinions and made one summary judgement in favor of OLNG's suit that would find the Port in breach of that agreement.

Those were recommendations made to the U.S. District Judge who would rule on the objections.

That ruling judge is Michael Mossman and he has now agreed with the magistrate in denying the early objections and issued an order. This is not the end of it but foreshadows the ultimate outcome I had predicted months ago. The Port doesn't have a leg to stand on.

In this order Judge Mossman finds that the State should not be party to the suit as the Port contended because the suit deals only with the sublease between the port and OLNG which is a separate agreement from that made by the Port with the Division of State Lands for the same property. While stating that in the big picture these two leases are obviously dependent on each other, for the purposes of ruling on this objection, Mossman takes a strict stance on the separate nature of the two agreements.

This approach in defining the arguement leads me to believe that when Judge Mossman comes to the consideration of connection between the State lease and the Port sublease he will see the Port in breach since OLNG signaled it's intent to enter into the 30 year sublease extension, paid the amount agreed and the Port cashed the check without being in a position to control the property it is leasing for the full term of the sublease.

Port Executive Director Jack Crider recently told our reporter Jeff Nelson that the Port does not believe that OLNG will be able to complete the permitting process in the two years the Port has agreed to extend the sublease with DSL because they have been unable to do that in the five years that have gone by. He says the commissioners are concerned that OLNG will fold and leave the Port responsible for 30 years of payments to DSL. To say this and to take the actions the Port has taken is a self fulfilling prophesy. Unless OLNG can show is has control of the property through the expected life expectancy of the plant it is unlikely FERC will grant a permit for it.

If I understand this why wouldn't a Judge understand this?

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