Captain Patrick Gerrity United States Coast Guard Sector Portland USCG Role in LNG Projects Captain Patrick Gerrity Captain of the Port United States Coast Guard Sector Portland Good evening ladies and Gentlemen. My name is Captain Patrick Gerrity and I am the Captain of the Port for Sector Portland. I am here to discuss the USCG role in assessing the proposed LNG project by Oregon LNG at the East Skipanon Penninsula. I am well aware that this is a sensitive issue that has the possibility of impacting your community, to that end, I won’t spend time discussing the multitude of CG missions or any of our other responsibilities during this presentation. I would like to discuss my Area of Responsibility, the USCG’s authority, responsibilities, and the guidance we use as an assisting cooperating agency to the Federal Energy Regulatory Commission, or the FERC, for this proposed project. It is important that everyone understands, and I will key on this through out my presentation, as a cooperating agency, the USCG is serving as the subject matter experts for maritime safety and security. The USCG is just one agency that will have input into this transparent process. I have no opinion on LNG or this proposal, but rather my job is to ensure that the waterways are safe and secure. It is my goal tonight to ensure that you walk away having an understanding of the CG’s role in this process and how you can let your concerns be known on this proposed LNG project.

The shaded area in green is my AOR The shaded area in green is my AOR. My job is ensure the safety and security of the navigable waterways throughout Oregon, southern Washington and Idaho. To that end, I work closely with the CO (Capt Peter Troedsson) of Air station Astoria and the brave men and women of Station Cape Disappointment to protect life at sea and enforce federal laws. This proposed LNG facility is within my AOR and will impact the waterways I am responsible for which is why we are here to discuss and hear your concerns with this proposed facility and how it may impact your neighborhoods, livelihoods, families, and the abundant natural resources.

USCG Authority Sector Portland Authority Captain of the Port Federal Maritime Security Coordinator The Coast Guard is not the Energy Experts Safety & Security Experts Title 33 CFR, Part 127 Title 33 CFR, Part 105 www.gpoaccess.gov/cfr As the Captain of the Port and Federal Maritime Security Coordinator it is my job to manage the navigable waterways and ensure that they are safe and secure for all users. We are not the energy experts. For this proposed project I must ensure that this facility would meet the safety and security requirements the CG enforces set forth in two key regulations, 33CFR127 and 33CFR105. These regulations are available to the public and can be accessed at the website on the slide.

USCG Responsibilities Cooperating agency to the FERC. Assess the suitability of the waterway for the proposed LNG facility. Provide recommendation to the FERC. As a cooperating agency to the FERC, the CG will assess the proposed LNG marine operations focusing on the safety and security of the waterways. If this waterway is not suitable and or if there are not reasonable measures to protect and address any safety and security concerns it is our job to advise the FERC. The FERC is the final authorizing agency for the siting and construction of proposed LNG facilities. The CG will review and validate a WSA submitted by the applicant from a security and safety standpoint using a transparent process as outlined in Navigation and Vessel Inspection Circular (NVIC) 05-05. I will explain more on NVIC 05-05 in a moment. The WSA for this proposed project will cover the entire transit of LNG ship from entrance into COTP zone all the way to docking, transfers, and then departure out of the COTP zone. Based upon our review of the WSA we will provide a Waterways suitability report to the FERC. When making this recommendation, the CG is considering navigational safety, waterways management risks factors and port security risk factors to adequately evaluate suitability for LNG vessel traffic and a facility.

Policy Guidance Navigation and Vessel Inspection Circular (NVIC) 05-05 Guidance on Assessing the Suitability of Waterway for Liquified Natural Gas Marine Traffic. http://www.uscg.mil/hq/g-m/nvic/index00.htm#2005 In addition to the regulations that I previously mentioned Navigation and Vessel Inspection Circular (NVIC) 05-05,or NVIC, is the primary guidance to assess the suitability of the proposed LNG facility on the east Skipanon peninsula. This circular provides detailed guidance to all involved parties on how both safety and security risks should be identified, analyzed, and mitigated when assessing the suitability of a waterway. It establishes responsibilities, timelines and the processes. It provides detailed guidance on how both safety and security risks should be identified, analyzed, and mitigated when assessing the suitability of a waterway. This is my playbook for the entire process. You can download this publication from the website on this slide along with the checklist that my staff will be using to analyze this project.

Process Applicant prepares Waterway Suitability Assessment (WSA) COTP reviews/validates WSA (using AMSC, HSC, etc) COTP provides FERC with Report on Waterway Suitability; for inclusion in FERC’s EIS FERC issues EIS, then its Final Order Coast Guard adopts FERC EIS (or requires supplemental) COTP issues Letter of Recommendation (LOR) Here is a quick rundown of the NVIC 05-05 process: The NVIC requires the Applicant to prepare Waterway Suitability Assessment (WSA) in consultation with stakeholders. The Coast Guard reviews and validates a WSA, using the Area Maritime Security and the Harbor Safety Committees or ad hoc work groups drawn from those entities. This is the key point where other federal, State, and local entities participate in the assessment. The Coast Guard provides FERC with a separate Report on Waterway Suitability; ( which is based on the validated WSA) for inclusion in FERC’s EIS. Sensitive issues such as security threats, vulnerabilities and mitigation factors may not be publicly releasable and will provided in separate report to the FERC. The FERC will issue a EIS, incorporating the CG Safety Security Report and input. A short time after the release of the final EIS, FERC will issue its Final Order approving or denying the application. The Order is usually full of operating limitations and measures to mitigate the safety, security, and environmental impacts. It also includes an Emergency Response Plan requirement. Based upon all the information, the Coast Guard issues a Letter of Recommendation (LOR); favorable or unfavorable with terms and conditions. Whatever the result we will let everyone know.

USCG Concerns Is the proposed facility on the East Skipanon Peninsula suitable for Warrenton, Oregon. Safety Security Bottom line: The USCG’s will make an unbiased recommendation regarding the suitability of this proposed project on the East Skipanon Peninsula. We will make this decision upon final review of all information that is required to be submitted focusing on maritime security & safety, factoring in the impact on traditional users of the Columbia River, public comments, and a WSA. We will work diligently to identify & minimize safety & security risks. If we cannot do that, we will advise against the project.

What you can do Comments Reference Docket No. PF07-10-000 Voice at this public meeting Web: http://www.ferc.gov Mail: Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First St. N.E, Room 1A Washington, D.C. 20426 Reference Docket No. PF07-10-000 We take your comments seriously and the more specific and detailed your comments are the more thoroughly we can address and analyze them. Please take the time and make them orally today or submit them in writing. Thank you for your time this evening. It is my pleasure to be able to serve each and everyone of you to ensure the safety and security of the maritime community.