In March 2011, Palomar Gas Transmission asked the Federal Energy Regulatory Commission to withdraw its application for a proposed natural gas pipeline in Oregon. At the same time, Palomar informed FERC that it intends to file another certificate application in the future.
This action was deemed the most appropriate and efficient way to deal with changed circumstances. One of Palomar's customers, Bradwood Landing LNG, filed for bankruptcy in 2010 which has eliminated the need to build the westernmost 100 miles of the proposed pipeline. Palomar is working with additional customers in the Northwest to understand their needs.
Additionally, Palomar reached an agreement with the Confederated Tribes of Warm Springs that shortens Palomar's length, avoids an aerial crossing of the Deschutes River and reduces Palomar's footprint in Mt. Hood National Forest.
Also, Palomar has been in discussions with Northwest Pipeline Company about a regional solution to getting additional supplies of natural gas into the Pacific Northwest that would provide an integrated solution involving both Palomar and Northwest Pipeline.
Finally, while the need for increased access to natural gas in the Pacific Northwest remains, the timing of when potential customers say they want the supply has been impacted by the recession.
Once Palomar gets commercial support for its pipeline proposal, it will file a certificate application with FERC.