PERRY (AP) – An Oklahoma-based company that wants to build an LNG terminal in Washington County agreed to pay the town $3.6 million a year for the next 25 years in exchange for agreeing to allow a storage tank farm.

The total package, which is worth $90 million to the town, will be considered by residents at their town meeting next month.

Quoddy Bay LLC wants to build a liquefied natural gas terminal at the Passamaquoddy Tribe’s Pleasant Point. From there, the gas would be transferred to storage tanks in Perry.

It is one of two LNG proposals in Washington County. Downeast LNG has proposed putting an LNG terminal in Robbinston. Both projects call for distribution of natural gas throughout New England via the Maritimes & Northeast pipeline.

There’s interest in building LNG terminals to bolster natural gas supplies. Currently, New England’s only LNG terminal is in Everett, Mass.

Under the terms of its proposal, Quoddy Bay would develop an emergency response plan and facility security plan as part of its Federal Energy Regulatory Commission licensing process, which is under way.

The $3.6 million annual payment to the town includes $300,000 to cover the costs of additional fire protection and public safety services from the town. Quoddy Bay also would pay for the cost of any new facilities, fire trucks, police protection or other equipment, said David Turner, chairman of the Board of Selectmen.

The developer agreed to make a one-time donation of $600,000 to the town to pay for school renovations and expansion and $400,000 for educational equipment, as well as annual payments of $100,000 to a scholarship fund. It also agreed to buy up local property for 150 percent of fair market value if the owners wish to sell.

The agreement calls for the town to establish a tax increment financing district. Without it, the town would lose an estimated $860,000 in state aid each year, local officials said.

Selectman Jeanne Guisinger, who is opposed to LNG, expressed frustration that the terms of the deal were announced after residents voted last week in favor of creating a special negotiating committee comprised of a cross-section of residents.

“It was an unmistakable show of support for community involvement in the process and a strong vote of no-confidence for the present approach,” she said.

AP-ES-02-06-07 1514EST