Apr. 15--PORT ARTHUR -- Concerns over pollution and hiring local labor at proposed liquefied natural gas facilities has one elected official rethinking his support of the terminal.

Despite earlier testimonials of support for the Golden Pass LNG facility slated for Sabine Pass, Port Arthur Mayor Oscar Ortiz said he wouldn't support disannexing more than 900 acres for the ExxonMobil facility unless concerns over pollution and local labor are resolved.

Ortiz said he wants to make sure Port Arthur residents are hired to work on the facility and the potential pollution from another LNG plant -- Cheniere Energy's Sabine Pass LNG facility in Cameron Parish, La. won't effect later development in the city.

The Cheniere facility has been permitted to release up to 557 tons per year of nitrogen oxides, one of the chemicals that creates ozone and smog.

That is about 11 times more than the 48 tons per year the ExxonMobil plant has been permitted for, and the Sempra Energy facility in Port Arthur is permitted for about 50 tons per year.

"I won't support it unless Louisiana is going to work with us and make it work on both sides," Ortiz said at city council meeting Tuesday during a public hearing City officials have negotiated an in lieu of tax agreement with ExxonMobil Corp. for $8 million during 10 years.

Ortiz said that he was supportive of the liquefied natural gas terminals until he heard about the potential pollution hurting local development.

"They would continue to make their money. We're punished and they're not," Ortiz said by phone Wednesday.

Jefferson County is considered out of compliance with the Clean Air Act for ozone pollution and has until 2007 to be in compliance.

If the area is compliant and then pollution from the new facilities throws it back out of compliance, the rules could be stricter, said Bob Dickinson, transportation and environmental resources director at the South East Texas Regional Planning Commission.

Those stricter controls could include moratoriums on building projects, including roads and shopping centers.

"We would be selling ourselves short," Ortiz said of the city's in lieu of tax agreement if the area projects are halted.

Ortiz said past industrial projects in the southern part of the county have left Port Arthur workers without jobs.

ExxonMobil officials are planning to hire locally for the more than 600 jobs during the three-year construction of the terminal, said ExxonMobil spokesman Bob Davis by phone from his Houston office.

Davis said company officials are planning to start building this summer after a final construction permit is granted by the Federal Energy Regulatory Commission.

The Golden Pass LNG terminal is expected to open by mid-2008, Davis said.

Also, ExxonMobil is planning to offset its permitted 48 tons of emissions by buying environmental credits, which include helping other facilities reduce emissions through more efficient equipment, Davis said.

Dickinson said he is looking for funding for the estimated $60,000 cost of the pollution study, which would include modeling different wind scenarios.

Area leaders have been in contact with Cheniere officials about the air pollution issues and are hoping to work out a solution, Jefferson County Judge Carl Griffith said by phone.

"They have been very up front and willing to talk about it," Griffith said of the Cheniere officials, adding that the liquefied natural gas facilities will help create new jobs here.

Others on the Port Arthur City Council were not convinced stopping the ExxonMobil facility is best for the area.

Councilman Martin Flood said that Cheniere facility has already broken ground and will be built regardless of the council's release of the land for the ExxonMobil facility.

"We can't penalize our people for that," Flood asked Tuesday.

"The council has committed itself to supporting this project. The honor of the council is at stake," Councilman Tom Henderson said at the meeting of a resolution the councilmembers passed in May 2004.

The council is scheduled to act on disannexing the 909-acres at its April 26 meeting.

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