State regulators Friday postponed review of the second phase of the Vermont Gas pipeline extension through Addison County until next year.
The Vermont Public Service Board cited its decision to revisit the certificate of public good granted for Phase I of the project and Vermont Gas’ need for a federal waiver before beginning the second phase as reasons for the delay. The board had expected to begin technical hearings on Phase II in October. Those hearings won’t begin until January.
The PSB is waiting for the company to receive a federal regulatory waiver before it can decide whether to approve the interstate natural gas pipeline from Middlebury to a paper mill in Ticonderoga, New York.
The board is also deciding whether to reevaluate the company’s permit for Phase I, a 41-mile pipeline from Chittenden County south to Middlebury following a 40 percent increase in the estimated cost to build the pipeline. The first phase of the pipeline extension is necessary to supply gas to the second phase.
The company has started construction on the first phase of the pipeline and plans to serve gas to Middlebury by August 2015. The company has not settled easement agreements with about 20 landowners along the pipeline route. Vermont Gas invoked eminent domain to condemn four properties this month.
Vermont Gas on Sept. 9 filed a permit application with New York regulators for a section of the pipeline that would connect to the International Paper mill. This application is needed before the Federal Energy Regulatory Commission can decide whether to approve a waiver for the company. Vermont Gas said this week it expects a decision from federal regulators in 90 days.
A Vermont Gas attorney said Wednesday the company does not know if it would build the pipeline if it cannot connect to the paper mill in New York. International Paper would pay for the bulk of the Phase II project.
Sandy Levine, a senior attorney for the Conservation Law Foundation, an environmental law firm that opposes the pipeline, said regulators acknowledged there is uncertainty with the Vermont Gas permits.
“Why should the board move forward with its proceeding until there is more certainly about the outcome of these other proceedings?” she said.
Steve Wark, director of communications for Vermont Gas, said in an email it is too soon to determine if the delayed review, will impact the Phase 2 costs. The project will bring natural gas to International Paper, and Wark said the pipeline — which passes through Cornwall and Shoreham — will serve 170 other people. Phase 1 will supply gas to 4,000 people. Phase 3 would provide fuel to 13,000.
Some of the costs associated with the pipeline could be impacted by the board’s decision, he said.
Editor’s note: This story was updated with a response from Steve Wark of Vermont Gas at 7:45 p.m. Sept. 21.
