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Port Commissioners Allow Process to Begin for Coal Terminals

AN AERIAL VIEW of the 1200-foot long dock at the Port Westward industrial park near Clatskanie shows the area where two coal export facilities are proposing to locate. The Kinder Morgan proposal would require the construction of a new dock and facilities on shore, while the Ambre Energy Pacific Transloading Morrow Project would use the existing dock and a fully-enclosed conveyor system to move the coal from barges to ocean-going ships. The lower photo shows a different kind of barge tied up at the Port Westward dock. 

                                                                                  Photos Courtesy of the Port of St. Helens

by Deborah Steele Hazen

After hearing presentations from two companies proposing to ship coal out of Port Westward, and about two hours of public testimony, both for and against, the Port of St. Helens board of commissioners voted Jan. 25 to allow the process to begin on both projects.

About 150 persons were in attendance at the meeting held at the Community Education Center in Clatskanie – a building the Port is in the process of acquiring from the Clatskanie School District.

After some brief reports, the session began with Kevin Jones, a spokesperson for Kinder Morgan, who gave a brief Power Point presentation stating that the company is proposing “to design, build and operate a state-of-the-art coal export terminal at the Port of St. Helens’ Port Westward Industrial Park” near Clatskanie

The proposed terminal is estimated to require $150 to $200 million in capital investment for construction and development, and “will incorporate ‘Best Control Technology’ that will minimize or eliminate environmental impact to air, land and water,” according to the presentation

The terminal would provide an estimated 80 full-time jobs to manage and operate the facility with an estimated annual payroll of $13.6 million per year with an average salary of over $90,000 per year, plus benefits. It would pay an estimated $3.7 million per year in property taxes, and the Port of St. Helens, which owns industrial property throughout the portions of Columbia County bordering the Columbia River, would  receive $2.5 to $5 million per year in a long term lease agreement.

The project would create over 150 construction jobs during an 18 to 30 month period, Jones said, and would focus on using local contractors and resources during construction and for facility maintenance.

Terminal construction and operations would be aligned with labor and supported by an International Longshore and Warehouse Union (ILWU) collective bargaining agreement.

According to the presentation, Kinder Morgan, which operates 185 terminals in North America, “has secured agreements with major U.S.-based coal producers to support the development of the terminal.”

More information about Kinder Morgan and its proposal for Port westward is available at www.portwestwardproject.com.

Representatives of Kinder Morgan told The Chief that they are in the very early stages of investigating the viability of the coal terminal proposal at Port Westward, but needed the go-ahead in the form of the motion passed by the Port commission before proceeding further with their plans.

The motion made by Commissioner Colleen DeShazer, seconded by Terry Luttrell following an executive session, was worded as follows: “to approve the Port of St. Helens enter into an agreement with Kinder Morgan Terminals for an option to lease property from the Port to operate a marine bulk faciity to start their due diligence process.”

Commissioner Chris Iverson and Port Commission President Robert Keyser joined DeShazer and Luttrell in voting in favor of the motion, while Commissioner Mike Avent voted against it.

Coal Trains Draw 

Concerns from Public

Kinder Morgan is working with Portland and Western Railroad which would bring the coal on trains to Port Westward.

Jim Irvin, of Portland and Western, said that the parent company of the short line between Portland and Astoria “now safely and efficiently handles millions of tons of coal and other bulk commodities every year.”

He said the railroad would be “working with communities along the line…We appreciate that they have various concerns…We’re committed to finding mutually satisfactory solutions.”

The issue of bringing coal on unit trains to Port West-

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ward, and especially through Columbia County brought a lot of fire from members of the public in attendance, including members of the environmentalist groups Columbia Riverkeeper, Sierra Club and Greenpeace, most of whom identified themselves as Portland or Hood River residents.

Several local residents also spoke against the proposal, expressing concern about the pollutants coal puts into the atmosphere, coal dust blowing from the coal trains and terminal into the surrounding area and the river, and the hazards of long coal trains traveling through the Columbia County communities of Rainier, Columbia City, St. Helens and Scappoose.

“I have great concerns over the Kinder Morgan project,” Sloan Nelson, a City of Rainier councilor and A Street business and property owner told the commission. He read a list of businesses, plus the Rainier Senior Center and homes that would be impacted by increased rail traffic.

Duncan MacKenzie of Rainier presented information that the typical Powder River coal unit train is 128 cars or approximately 7100 feet long. Predicated on the proposed terminal exporting 15 million metric tons per year, Morgan predicted that three inbound, and three outbound trains per day would pass along rail line between Portland and Port Westward.

Currently, MacKenzie testified, train speed through downtown Rainier is a maximum of 10 miles per hour. That would mean that under the best case scenario for a 7100 foot train, it would take the train about eight minutes to pass a given point.

“If there are three inbound trains a day, there would also need to be three outbound trains, or one every four hours,” MacKenzie stated in written testimony submitted to the commission. “Six total trains would result in total blockage of all crossings for approximately one half hour every day at 10 mph, approximately an hour at 5 mph.”

MacKenzie called for the Port to commission a traffic impact study from a registered professional.

Various proposals for improvement of the rail line, allowing for safer crossings and higher train speeds have been studied in the past, but a lack of commerce on the line has resulted in little being done to improve it.

Support Expressed

Approximately a quarter of those testifying at last week’s meeting spoke in favor of the project.

Representatives of the ILWU emphasized the need for good jobs in the community.

Taylor Kissinger, of Clatskanie, who has worked in the maritime industry for 40 years, spoke about Kinder Morgan’s record of safety, and the wages that the other proposal by Ambre Energy’s Pacific Transloading LLC would bring just in barge operation alone.

“I love the river and I love this community, but our children cannot afford to live in Clatskanie because there are no jobs here.”

“I’ve been in this community all my life,” said Earl Scott, a longshoreman. “My kids aren’t here – they had to follow jobs out of the community.” He added that “the government promoted the railroad for economic development of our communities.”

“I am very interested in following the vetting process of the two industrial developments surrounding the coal industry,” said Clatskanie Mayor Diane Pohl. “I have heard many dire opinions, but how exciting to be able to open our minds and see just what technology has done in this industry…The decision you make tonight simply allows the process of vetting and passing all the stringent regulations. It does not grant permission for these industries to site otherwise. These projects will have to go through agencies such as DEQ (Department of Environmental Quality), DSL (Department of State Lands), DLCD (Department of Land Conservation and Development), DOE (Department of Energy), EPA (Environmental Protection Agency, Corps of Engineers and many other agency hoops and proof of safety. This is only the first step in the process. Only after meeting or exceeding the myriad of environmental safety regulations will the projects be able to put a shovel in the ground.

“I hope the Port commissioners will feel comfortable in simply letting the process begin. How it ends is not up to you, but up to the regulatory agencies after many hearings, much research and untold months and years of proving the safety to both the environment and the community,” Pohl concluded. “This community is willing to wait and listen and learn.”

Less Opposition to 

Barging Proposal

While there were some in the audience who objected to any form of coal export, there was less opposition to Ambre Energy’s Pacific Transloading LLC proposal which would transport coal in covered barges from an entirely-enclosed facility at the Port of Morrow, where it would be trained from the Powder River basin of southeastern Montana and northeastern Wyoming

A spokesperson for the Port of Morrow, urged the Port of St. Helens commission to approve the proposal.

After the executive session, the Port commission voted unanimously to “approve entering into a terminal services agreement option with Ambre and Pacific Transloading LLC to operating a coal transloading facility at the existing dock at Port Westward.”

The action by the Port commission enables the company to proceed with plans for with what it calls its Morrow Pacific project. If it comes to fruition, the project would see the coal transloaded, with a $40 million state-of-the-art transloading barge, from the covered barges to Panamax ships using a completely enclosed conveyor system at the Port Westward dock. The coal would then be shipped to “U.S. trade allies in the Asia-Pacific market.”

An Ambre spokesperson told The Chief, those “allies” would be Japan, South Korea and Taiwan.

“We are gratified by the commissioners’ unanimous support for our project, which will bring an estimated 25 family-wage job to Columbia County, 25 family-wage jobs to Morrow County and 55 family-wage jobs in the transportation of coal for a total 105 local jobs overall,” said Clark Moseley, chief operating officer of Ambre Energy North America.

The company has pledged to make a 10-cents-per-ton contribution to kindergarten through 12th grade schools in each county. The $150 million project will also provide significant property tax and port fee revenues. Additionally, no special tax breaks were asked for, according to Moseley.

The company is also interested in working with companies in the region which are capable of building the barges.

“We are absolutely committed to meeting Oregon’s high standards and doing business the Oregon way, said Moseley. “Coal will be transported by energy-efficient, covered barges rather than rail from the Port of Morrow to Port Westward; there will be no visible coal piles at either the Port of St. Helens or Port of Morrow; and the project is designed to eliminate coal dust from the train unloading at the Port of Morrow to ship loading at the Port of St. Helens.”

Ambre initially expects to ship 3.5 metric tons annually, but full operational capacity could grow to 8 million metric tons per year.

For more information, visit www.MorrowPacific.com.

Columbia, Clatsop Unemployment Continues to Decline

Columbia County’s seasonally adjusted unemployment rate of 9.9 percent in December declined from the previous month’s 10.3 percent, and was lower than the year before at 11.8 percent.

The rate was higher than the statewide rate of 8.9 percent and the national rate of 8.5 percent.

Total employment dropped by 124 to 22,400 and the number of unemployed people rose by 159 to 2,407. Total employment this December was 623 more than one year before and there were 531 fewer people unemployed this year.

Seasonally adjusted nonfarm payroll employment dipped by 30 jobs in December to 9,570. Seasonally adjusted figures compare expected changes with actual changes. A loss of 100 jobs is normal for the month and the county’s payroll employment fell by 130. The private sector lost 110 jobs and governments shed 20.

Professional and business services cut 30 jobs and educational and health services trimmed 20. A variety of other industry had smaller losses. Local government shed 20 jobs. Retail trade added 30 jobs during the busy holiday season.

Total nonfarm employment in December was 140 more than one year before. Private sector employment increased by 220 and governments cut 80 jobs.

Many Columbia County residents commute elsewhere for work, so it is not uncommon for the total number of employed people residing in the county to change without a similar change in the number of payroll jobs located within the county.

Clatsop County Rate 

Dips to 7.8 Percent

Clatsop County’s seasonally adjusted unemployment rate was 7.8 percent in December, lower than the previous month’s 8.1 percent, and lower than the year before at 9.2 percent. It was lower than the statewide rate of 8.9 percent and the national rate of 8.5 percent.

Total employment in the county decreased by 177 from the previous month to 19,630. The estimated number of unemployed people rose by 122 to 1,735. The number of unemployed this December was 321 fewer than one year before and 619 more people were employed.

Seasonally adjusted nonfarm payroll employment rose by 230 in December to 17,150. Seasonally adjusted figures compare expected changes with actual changes. A loss of 260 jobs is normal for the month and the county shed 30 jobs. The private sector cut 30 jobs and governments were unchanged.

Food manufacturing added 160 jobs and leisure and hospitality cut 190 jobs.

Bonamici Wins Congressional Seat

Democrat Suzanne Bonamici will represent Oregon’s 1st Congressional District in Washington, D.C. as a result of the special election that ended Tuesday, Jan. 31.

In unofficial results available late Tuesday night, Bonamici was carrying the district by a 54.5 percent margin to Republican Rob Cornilles’ 38.8 percent.

Two third-party candidates, James Foster, Libertarian, and Steven Reynolds, Progressive, each drew about three percent of the vote.

Columbia County cast more votes for Cornilles than the district overall with a 49 to 41 percent margin for Bonamici. Clatsop County was almost identical to the margins in the entire district  which includes Columbia, Clatsop, Washington and Yamill counties as well as a portion of Multnomah County. Only Yamhill County favored Cornilles over Bonamici by 49 to 43 percent.

New Manager Named to Lead the Georgia-Pacific Wauna Mill

Steve Francoeur, vice president-manufacturing for Georgia-Pacific Corporation’s Halsey, Ore., operations, has been named vice president-manufacturing, Wauna operations, effective Feb. 6.

Francoeur takes the top position at the Wauna Mill,  located 10 miles west of Clatskanie, previously held by Mike Tompkins, who recently was named senior vice president – building products operations for Georgia-Pacific.

Francoeur is returning to his starting point with Georgia-Pacific. He joined the company in 1985 at the Wauna Mill. He also has worked at various roles with Georgia-Pacific in  Camas, Wash.; Old Town, Maine, and Green Bay, Wis.  He has been at the Halsey mill since 2005.

The new Wauna Mill manager has a bachelor’s degree in chemical engineering from the University of New Hampshire, a master’s degree in pulp and paper science from the Institute of Paper Chemistry and a master of business administration from the University of Maine.

Frank Walsh, operations manager-Wauna Mill, is relocating to the Georgia-Pacific Port Hudson mill to serve as operations manager for the communication papers division as well as other manufacturing responsibilities.

Walsh has worked at the Wauna Mill and resided in the Clatskanie community for 25 years. He has a bachelor’s degree and a master’s degree in chemical engineering from the University of Idaho.

Georgia-Pacific is a privately held, wholly-owned subsidiary of Koch Industries. In Oregon, Koch companies employ more than 2,200, and those jobs create more than 10,000 additional jobs. Oregon-based non-profit organizations have benefited from approximately $1.3 million in contributions from Georgia-Pacific and other Koch companies in the past five years, according to a company spokesperson.

Headquartered at Atlanta, Georgia-Pacific is one of the world’s leading manufacturers and marketers of building products, tissue, packaging, paper, cellulose and related chemicals.

The familiar consumer tissue brands of Georgia-Pacific Consumer Products LP include Quilted Northern®, Angel Soft®, Brawny®, Sparkle®, Soft ‘n Gentle®, Mardi Gras®, So-Dri® and Vanity Fair®. For more information, visit www.gp.com.

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