The 1st Circuit Court of Appeals on Wednesday dismissed a lawsuit that challenged federal approval of a liquefied natural gas terminal on the Passamaquoddy Reservation in Maine.

Tribal leaders at Pleasant Point signed a contract with Quoddy Bay LNG to host the project. The Bureau of Indian Affairs approved the lease but a group of tribal members filed a lawsuit, raising environmental concerns.

A federal judge dismissed the case, saying the tribal members lacked standing. The 1st Circuit, in September 2007, revived the lawsuit and ordered another look.

Since then, the tribe cut ties with Quoddy Bay and the LNG terminal has faced delays with licensing the project. Meanwhile, the BIA said its approval of the lease never became "effective."

The judge dismissed the case again and said the tribal members failed to exhaust their administrative appeals within the BIA. The 1st Circuit agreed but also noted the shift in the BIA's position.

1st Circuit Decision:
Nulankeyutmonen Nkihtahkomikumon v. BIA (October 28, 2009)

Related Stories:
Passamaquoddy Tribe cuts ties with developer (6/18)
LNG firm cuts payments to Passamaquoddy Tribe (7/28)
Passamaquoddy LNG terminal lawsuit back in court (7/2)
Court revives Passamaquoddy lawsuit against BIA (9/17)