High-Ranking Schwarzenegger Official Joins Staff of LNG Company

BY HANS LAETZ

A second high-ranking official in the administration of Gov. Arnold Schwarzenegger has joined the staff of one of the companies seeking to build three offshore Liquefied Natural Gas terminals in Southern California ocean waters.

Joe Desmond, former chairman of the California Energy Commission, has been hired by NorthernStar energy, the company that seeks to convert an unused oil drilling platform off Oxnard into an LNG terminal.

Until a few weeks ago, Desmond was the governor’s key advisor on energy matters in general and offshore LNG terminals in particular. The Energy Commission has been promoting LNG imports as an important step in diversifying California’s energy supply.

“Joe Desmond is a nationally recognized energy policy expert, and his presence will immediately enhance our management team,” said William “Si” Garrett, CEO of NorthernStar Natural Gas.

Desmond had also served temporarily as Undersecretary of Energy Affairs at the California Resources Agency, but could never gain confirmation from legislators, who felt he was too close to regulated businesses.

Last year, the Energy Commission’s chief LNG official resigned from public service and went to work for Tidelands Oil & Gas. David Maul is now a consultant for this small Texas company, which says it will build a floating LNG terminal somewhere in Santa Monica Bay or the San Pedro channel.

There are a total of five LNG terminals planned or proposed for the immediate area, including BHP Billiton’s for 13.8 miles off Malibu’s north end, the Woodside undersea terminal proposed for 22 miles south of Point Dume, and the Mitsubishi plant proposed for the Port of Long Beach.

The governor will have final veto power over the plans, and may have to decide on BHPB’s proposed Cabrillo Port next spring.

Two other close Schwarzenegger advisors, Mike Murphy and George Keiffer, work for law firms or lobbying companies that have received million-dollar contracts related to the building of LNG terminals in California.

The ramifications of the impact of government regulators entering the employ of those they formerly regulated is hotly debated in public policy circles.