Decision on Hoquiam shorelines permit for potash facility extended through June

As BHP and the Quinault Indian Nation continue talks regarding the global mining company’s bid to build a potash shipping and receiving facility at the Port of Grays Harbor, the City of Hoquiam’s shoreline permit for the facility remains on hold as another extension has been granted by the hearing examiner.

According to Hoquiam City Administrator Brian Shay, the tribe and BHP are working on details regarding the Quinaults’ tribal treaty rights.

“The most recent deadline was a the end of March for BHP and the Quinault Indian Nation to submit (materials) to the hearing examiner,” said Shay. The tribe was scheduled to vote on its recommendation to the hearing examiner at its March meeting, which was canceled and has been rescheduled for late May. BHP and the tribe asked the hearing examiner for another extension through the end of June, which was granted.

Shay said the shoreline permit with the city “is in a holding pattern,” but said BHP continues to work on obtaining other federal permits needed for in-water work and putting together a binding site plan for the Terminal 3 facility.

“The current crisis has not stopped the project,” said Shay. “Everything is still moving foward and hopefully there is more information to come.”

Ward 5 Councilwoman Brenda Carlstrom asked Shay at the April 13 City Council meeting why the negotiations with the tribe are taking place and about the nature of the extensions.

“Ultimately, the tribe felt that in addition to (environmental) mitigation that needed to be done for the permits, they needed to look at impacts to tribal treaty rights outside the city regulations,” said Shay. “”So BHP is working on them with a plan to address treaty rights independently, but at the same time.”

Working with the tribe and coming to an agreement ahead of the hearing examiner lessens the chances of a potential lawsuit that could further delay the project.

The initial public hearing on the Hoquiam shoreline permit was held in late October and drew a full house to City Council chambers. Since then, the tribe and BHP have been asking for, and getting, extensions to submit comments and information about the project to hearing examiner Gary McLean.

McLean is tasked with making the decision regarding the environmental permits needed for the project. The city had issued a mitigated determination of non-significance on BHP’s permit application, meaning some mitigation would be required to offset environmental impacts. BHP has said it will perform more than 20 mitigation efforts for the project.

Shay said previously the shorelines permit includes a shorelines conditional use and a shorelines variance, so the state Department of Ecology will have the ultimate authority to approve or deny the permit. If McLean issues a recommendation to approve the permit with conditions, the Department of Ecology would likely have its final decision within about 30 days.

The facility would receive potash — a potassium-based product used to make fertilizer — by rail and ship it to overseas markets. BHP has said the facility would cost about $400 million to build and provide about 40-50 jobs.