HARPSWELL (AP) – Harpswell residents are concerned that a proposed liquefied natural gas terminal will overwhelm the resources of this tiny oceanside town.

TransCanada and ConocoPhillips, two of the world’s leading energy companies, want to locate a $350 million LNG gas terminal and tank farm at the former Navy fuel depot on Harpswell Neck.

The project, named Fairwinds, would use about 70 acres of the 118-acre property, which was transferred to the town in October 2001 from the Navy.

During its three-year construction phase, Fairwinds would employ 900 workers. Once the terminal opens in 2009, the facility would have about 50 full-time employees.

LNG ships would arrive every four to nine days and would unload at a new dock and jetty that would extend 800 feet into Middle Bay. LNG would be stored on land in two containment tanks measuring 240 feet in diameter and 120 feet tall. LNG would be converted to natural gas and piped – through a new pipeline – to an existing natural gas pipeline west of Portland.

The facility would also feature a gas-fueled electrical generation facility to supply power for the project and a sea water desalination facility that would provide water for employees.

The company has tentatively agreed to pay the town about $8 million a year to lease the land.

Selectmen haven’t made any decisions on how to budget the money. Some townspeople said the funds should be used to reduce their property tax burden.

But agencies such as the Friends of Casco Bay have environmental concerns as well as worries about the impact on the fishing industry.

“Once you’re in Broad Sound, that’s rich lobster ground with a lot of gear,” said Joe Payne of Friends of Casco Bay.

Harpswell Neck Fire Chief Nelson Barter is worried that his tiny, all-volunteer fire department lacks adequate staffing and equipment to battle a fire at the terminal.

“Getting a full-time fire department in place may not be out of the question,” Barter said, referring to the possibility of having the companies pay for a full-time service. “I am not convinced that our current staff and equipment are up to the task.”

An LNG terminal in Maine would come under the jurisdiction of the Coast Guard’s Marine Safety Office in Portland. The Coast Guard escorts LNG vessels.

A special town meeting vote authorizing the town to lease the land to Fairwinds has been scheduled for Dec. 16.