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In August 2004, representatives of Energy Projects Development LLC announced they would be seeking approval from state and federal regulators to construct and operate a liquefied natural gas (LNG) terminal – the Jordan Cove Energy Project – in Coos Bay and had secured an option on Roseburg Forest Products property on the North Spit.  The initial proposal was for a single marine berth and upland storage facility, but project representatives stated that market demand could provide expansion opportunities. 

During the latter part of 2005, Oregon International Port of Coos Bay officials initiated negotiations with the Weyerhaeuser Company to acquire its property on the North Spit and approached Jordan Cove with a proposal to relocate both the vessel berth and the upland facilities to a safer, more secure site on the Weyerhaeuser land.  The Port’s intent is to have a method to exercise some oversight of the facility and to maximize the economic benefit for the community. 

Significant investment by the Jordan Cove project in a marine waterway will provide leverage for the Port to develop new cargo facilities and revitalize marine commerce in the Coos Bay harbor. 

Project Status:  The Port and Jordan Cove have executed a sell/buy agreement through which Jordan Cove has an option to purchase approximately 147 acres of property for its upland facilities if it is successful in obtaining Federal Energy Regulatory Commission (FERC) approval for the project.  The Port will also execute a long-term lease with Jordan Cove for use of a single berth in the proposed waterway.

The FERC permitting process is currently underway and will continue through the fourth quarter of 2008 or the first quarter of 2009.  Until the FERC decision process is completed, Jordan Cove is paying the Port $120,000 per month as an option payment.  This option payment covers the interest and principal payments due on the property purchase financing during the option period.

The Port of Coos Bay and Jordan Cove have executed the 6 month extension from June 2008 on the sell/buy agreement to December 2008.  The option payment from Jordan Cove increases to $160,000 per month during this period.

The contract documents between the Oregon International Port of Coos Bay and Weyerhaeuser Company for the proposed purchase of Weyerhaeuser's North Spit industrial lands and the proposed property sale between the Port and Jordan Cove Energy Project are available for review at the following links:

www.portofcoosbay.com/deedoftrust.pdf
www.portofcoosbay.com/weycooption.pdf
www.portofcoosbay.com/jcoption.pdf
www.portofcoosbay.com/portresolution.pdf
www.portofcoosbay.com/memooption.pdf

Two attachments have been excluded from these links.  There two documents have been deemed confidential in that they are related to the determination of the market value of the property.