[V]ermont Gas Systems is again seeking to use eminent domain to force landowners to sell property rights.
The company filed to begin eminent domain proceedings against two Monkton landowners Monday. The 41-mile, $154 million pipeline from Colchester to Middlebury will pass through about 221 properties, of which 31 are without right-of-way agreements, according to the company.
Don Rendall, CEO of Vermont Gas Systems, said the company was unable to contact the two landowners by phone, letter or email.
“We simply haven’t had any conversations with them at all,” Rendall said. “I’m confident that our team has gone above and beyond to make a good faith effort to engage the landowners.”
The company first invoked the use of eminent domain in September. Gov. Peter Shumlin’s office later sent a letter to Vermont Gas on Nov. 28 asking the company to suspend condemnation proceedings until March 2.
Rendall, who came to Vermont Gas in November before officially taking over as CEO in January, announced in December that the company would suspend its pursuit of eminent domain. The company said it wanted to reach agreements with landowners through a mediation process and has since spent $7,000 on mediation.
“We’ve made enormous progress,” Rendall said.
Eighty-five percent of property owners along the route have signed right-of-way agreements with the company, and 10 percent are currently in “constructive” negotiations with Vermont Gas through a third-party mediator, the company said. Since November, 37 landowners have signed easement agreements.
Vermont Gas recently offered 35 landowners a $2,500 stipend to assist with costs associated with negotiation or mediation, and 33 accepted the offer.
Rendall said the company does not plan to reroute the pipeline.
“A significant change in the routing of the project would potentially involve going through a revised permitting processes that would not only add potential costs but potential delay,” he said.
The company has completed 5 miles of the project since it first received a state permit in December 2013. The company has spent $60.8 million on the pipeline, which includes about $8 million in costs for the abandoned phase 2 project, according to the company’s February quarterly report. The company plans to complete the initial project by the end of 2016.
Efforts to contact the landowners Monday were unsuccessful.
