Local residents near the proposed US$400 million Long Beach LNG import plant are not too pleased with the idea, but which department gets to officiate is not certain.

The legal wrangle hit the fan when the California Public Utilities Commission (CPUC) questioned the legality of the Federal Energy Regulatory Commission's (FERC) jurisdiction over the plant. CPUC also argued it - and not plant owner Sound Energy Solutions - holds authority over the facility, the sale and the transportation of the LNG.

However, now CPUC president, Michael Peevey, has changed tack. In a letter to FERC chairman Pat Wood, Peevey maintains California's claim to authority over the facility but tones down the rhetoric. To this, Wood simply replied, "We're very interested in working with that commission yet we do have a statutory responsibility to administer programs for international imports of LNG. Stay tuned."

Of course, this coming together of warring foes means that residents near the plant, which will produce 700 million cubic feet per day of gas, will be up in arms over the safety issue. What is more, many Long Beach residents fear that FERC will not properly look after their interests in the light of the USA's need for gas.