Jackson County could see $2 million annually in tax revenue from project - By Damian Mann - Mail Tribune - June 18, 2006

The proposed pipeline from Coos Bay to Malin could satisfy Jackson County's growing thirst for natural gas, officials say, as well as provide a boon to the Southern Oregon economy.
By 2012, Avista Utilities expects it will need more natural gas to keep up with demand locally.
"We've added thousands of new customers in just the past few years," said Kris Ransom, manager of industrial markets in Oregon for Avista.
As a result, Avista is contemplating tapping into the new pipeline near Trail, Ransom said. "If it's built it could potentially be another supply for this region."
Cost to connect the new pipeline to an existing Avista transmission line in Eagle Point would be about $7 million in today's dollars, she said.
The pipeline is estimated to generate $7 million in annual taxes for the four counties it will traverse. Jackson County would receive about $2 million.
The project could benefit homeowners who depend on natural gas for heat because more sources could translate into more stable pricing, said Ransom.
She said this area receives gas from pipelines that run from Roseburg and Klamath Falls. Gas in these pipelines flows from Canada and two areas in the Rocky Mountains.
The Coos Bay line would bring gas from around the world, benefitting not only Jackson County but the western states.
"This will be a new source of gas for the Pacific Northwest," said Ron Fox, executive director of Southern Oregon Regional Economic Development Inc. "The more sources to supply natural gas to the West Coast, the more competitive the price should be for homeowners, businesses and the community."
Demand for natural gas may increase as technology advances, Fox said. Fuel cells powered by natural gas could provide electricity or power automobiles.
"At a point in the future, fuel cells will be an important component in overall consumption of natural gas," said Fox.
Natural gas is also used as a fuel source in several electric generating stations in Oregon, which "is as far from proven natural gas resources in the U.S. as just about anywhere," he said.
For Coos Bay, a proposed $500 million plant to convert liquid natural gas back into its gaseous state would generate up to 800 jobs during construction and require about 30 to 50 workers for ongoing operations, said Jeffrey Bishop, executive director for the Oregon International Port of Coos Bay.
Bishop said the project could help kick-start a port that has been in the doldrums since the 1980s, when the timber industry all but died out. Back then, more than 300 ships would pull into the port annually, compared to 45 now.
If the natural gas plant is built, an additional 80 vessels would use the port, said Bishop. The terminal also would bring in ancillary jobs, including firemen, tug boat operators, Coast Guard officials, longshoremen and others, said Bishop.
The port has had interest from other industries, amounting to about $2.5 billion of "tire-kickers," said Bishop.
One of the companies, Tokuyama Corp. of Japan, is considering building a $500 million factory to make raw materials for solar panels, although the deal could be in jeopardy because news of Tokuyama's interest was leaked despite confidentiality agreements signed by state officials. Bishop wouldn't discuss the Tokuyama project, which was reported Friday in the Oregonian.
Jackson County Commissioner C.W. Smith, who attended an open house Thursday on the gas pipeline project in Shady Cove, said the pipeline "will have a tremendous and beneficial impact for not only Coos Bay but the entire region."
Reach reporter Damian Mann at 776-4476 or dmann@mailtribune.com.
A 30-day public comment period is expected to begin within a few weeks on the proposed natural gas pipeline project between Coos Bay and Malin in southwestern Oregon.
The Federal Energy Regulatory Commission will first issue a notice of intent about the developer's plans to build the project, said Shannon Dunn, FERC's assistant manager for the proposal.
The notice will be sent to landowners affected as well as the media, she said.
Public meetings also will be held, she said, and comments will be accepted after the formal 30-day period has elapsed.
A 45-day comment period will begin after the draft environmental impact statement is released in 2007, and additional public meetings are planned.
"After that, we will address all the comments and make changes, and issue the final EIS," she said.
For more information on the proposed gas pipeline, visit www.pacificconnectorgp.com/. For information on the FERC procedure, check out