Broadwater Energy and New York State have agreed on a two-month postponement of the Tuesday deadline for a state ruling on whether the proposed site of Broadwater's liquefied natural gas terminal in the middle of Long Island Sound is environmentally appropriate.

Broadwater senior vice president in charge of the gas terminal project, John Hritcko said through a spokeswoman that the state contacted him Wednesday asking for another 60 days and that Broadwater had agreed. "This is part of the review process and we expect to continue our dialogue," he said.

The Department of State confirmed that, saying the extension was "by mutual agrement...to allow for further discussion of what is a very complex proposal." Neither side would answer questions about specific reasons for the extension.

Rumors had been circulating for days that there would be a postponement of the long-awaited milestone in the four-year saga of the proposed liquefied natural gas processing plant.

Word of the postponement left Broadwater opponents fuming, contending that the administration of Gov. Eliot Spitzer pushed back the deadline simply to give Broadwater more time to sway public opinion to its side.

"Shell and Trans Canada are using their money, power and influence to push New York State into ignoring the public and acting as an agent for Shell," the group leading the Broadwater fight, Citizens Campaign for the Environment, said in a statement. The group said it submitted a Freedom of Information Law filing asking to see state agencies' documents related to Broadwater.

But a spokesman for Spitzer, Michael Whyland, said the state requested the extension simply for more time to study a complex issue. "We support the mutual decision...to take appropriate time for a dialog without the pressure of a looming deadline," he said.

For the project to go forward, the Federal Energy Regulatory Commission also must give its approval. A decision is expected fairly early this year. An environmental impact statement written by the commission's staff, which said the barge could be operated with minimal negative effects, suggests that the commission is leaning toward approval. Spitzer is to meet Monday in Albany, at his request, with the Citizens Campaign's executive director, Adrienne Esposito. Shell Oil Co. president John Hofmeister met with Spitzer last month for what the executive said was about 30 minutes. He said the governor gave no hint of what opinion had formed, if any, about the project. Those opposed to the project say Broadwater's current radio and TV campaign to garner public support is a result of that meeting.

A leading political opponent, Suffolk County Executive Steve Levy, has said repeatedly he will go to court if necessary to halt the project. Connecticut's state attorney general has made the same vow.

Opponents contend that the project poses too great an environmental risk to the Sound and a security risk to shorelines nine miles away to be worth its benefits.

Broadwater contends, and the energy commission staff agreed, that the environmental risk is low. The Coast Guard said separately it believes the security risk is low -- if the service is given additional resources to guard the terminal. And proponents say the region will need the additional energy. A consultants report released in July by the Long Island Power Authority said the billion cubic feet of additional gas from Broadwater will save New Yorkers $14.8 billion in natural gas and electricity costs between 2010, when the facility would begin operating, and 2020. The report did not promise rates lower than they are now, however -- only lower than what they would have been without Broadwater -- about 17 percent lower in the case of natural gas.

Broadwater opponents concede the need for more energy but believe a site in the Atlantic Ocean and further from land is preferable to Broadwater's mid-Sound site. In fact, ExxonMobil and private investor group each have proposed liquid natural gas terminals in the Atlantic -- east of New Jersey and south of Long Island, respectively. Shell's Hofmeister, though, said those locations are riskier from a safety standpoint because of storms.

Copyright (c) 2008, Newsday, Melville, N.Y. Distributed by McClatchy-Tribune Information Services.

Related Project
Broadwater Energy
Facility Type: LNG Owner: Broadwater Energy LLC (TransCanada and Shell)
Scope: New Construction Location: Long Island Sound, NY United States