Lots Of TLC For LNG Company w/o Experience, But With Neil Bush As Cochair

[hatrack]

QUINTANA ISLAND, Texas — "When President Bush came into office in 2001, it was a boom time for the energy industry. And one of the many boats lifted was that of a small Texas company in which the president's brother played an important role. Among other initiatives, the new president had promised to make it easier for companies to build coastal facilities to store liquefied natural gas imported from around the world.

That sent developers in South Texas scrambling to lock up property for the facilities. One firm looking for a foothold was Crest Investment Co. The firm had no experience running an LNG processing facility, but it did have a highly recognizable name: Crest's co-chairman was the president's brother, Neil.

One site that generated particular interest was Quintana Island, near Freeport in the Texas gulf. The long, narrow island is home to the town of Quintana, population 40; a bird sanctuary, miles of beach and a brand-new bridge connecting it to the mainland. Most importantly, it is near a deep-water channel that makes it cargo-ship accessible. The right to grant a lease to develop an LNG facility on the island fell to the Brazos River Harbor Navigation District, which went through procedural gymnastics to accommodate Crest.

Although there is no evidence that Neil Bush traded on his connection to the White House or that the president intervened, the harbor commission was so receptive to the Crest proposal that it quickly and quietly offered the firm an exclusive lease without soliciting other proposals. The deal was approved even though ExxonMobil Pipeline Co., under a 1998 agreement, owned the right of first refusal on part of the property — and even though commission officials knew that another firm was interested in a nearly identical project on the same property. There were challenges to the deal from both of those parties, but the differences were resolved — in part by forming a new partnership with Crest — and the project is moving forward. It will be the first LNG terminal in Texas and one of only a handful in the nation."

EDIT

http://www.latimes.com/news/printedition/asection/la-na-quintana29oct29,1,6517192.story?coll=la-news-a_section