Sep. 6--Federal energy regulators have refused to reconsider their March approval of the proposed Broadwater Energy liquefied natural gas barge in Long Island Sound. But New York State's rejection of the project on April 10 still blocks it.

The Federal Energy Regulatory Commission rejected requests from state, county and town officials and environmentalists in New York and Connecticut for a rehearing on the grounds that the commission's environmental impact study was flawed and failed to consider alternatives to the barge to meet future needs for natural gas. The commission rejected both arguments and noted it had approved the project contingent on Broadwater's taking steps to mitigate impacts on the environment.

Project opponents were disappointed but not surprised by the commission's decision, posted on the FERC Web site Thursday night. "[The commission's] reopening this review process would be pointless since they would never admit they were wrong," said Adrienne Esposito, executive director of Long Island-based Citizens Campaign for the Environment.

Broadwater said, "We believe [the commission] did a thorough job in reviewing every aspect of our project and this decision underscores that fact."

New York's April decision blocks the project unless Broadwater can persuade the U.S. Department of Commerce to overrule the state or it takes the state to court and prevails.

Broadwater Energy hopes to have the 1,200-by-200-foot floating plant in operation in 2010, taking on super-cold liquefied natural gas from tankers, heating it to return it to a gaseous state and then shipping it west via a new 25-mile-long pipeline that would be laid on the Sound's floor.

A consultant's report for the Long Island Power Authority said the billion cubic feet of additional gas from Broadwater would save New Yorkers $14.8 billion in natural gas and electricity costs between 2010 and 2020. The report did not promise rates lower than they are now, but only lower than what they would be without Broadwater -- about 17 percent lower in the case of natural gas.

Opponents say the LNG plant would disrupt commercial and recreational fishing and, in essence, turn over a section of the Sound to a private company and exclude the general public.

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