Addison Rutland natural gas project update

Don Gilbert, President and CEO of Vermont Gas, has released a statement providing an update on the Addison Rutland natural gas project.

The fundamentals

“The Addison Rutland natural gas project provides an opportunity to innovate in ways that multiply the economic and environmental benefits of natural gas beyond the core advantages of cutting heating bills by 40 to 50% and reducing greenhouse gas emissions for thousands of Vermonters,” said Gilbert.

“Expanding natural gas service helps Vermont meet its long-term energy goals. As part of our work, for example, we are expanding energy efficiency programmes and adding innovations like locally produced renewable natural gas (RNG) to the state’s portfolio.

“Produced naturally from decomposing organic materials like manure, RNG reduces carbon emissions by more than 90% and decreases phosphorous runoff into waterways like Lake Champlain. RNG can also turn waste into a cash crop for farmers. As part of a short-term pilot project, we’ve had RNG flowing into our system since early August.

“In addition, Vermont Gas is working to expand the availability of cleaner natural gas for commercial vehicles. Transportation is Vermont’s largest source of greenhouse gases and natural gas can help cut emissions,” continued Gilbert.

Budget update

Since the budget for Phase 1 of the project was presented, costs increased by US$ 35.6 million to US$ 121.6 million. “We did not adequately anticipate the national surge in labour and material costs for pipeline construction,” said Gilbert. “Route changes to accommodate residents and other stakeholders, and enhanced project oversight (including additional construction managers and inspectors), also contributed to the increase.”

“Waiting until we had an exact number to update customers, regulators and the public was also a mistake for which we accept responsibility. We have updated our budgeting and management processes accordingly.

“Nonetheless, natural gas remains far more affordable than other fuels. The first phase of the project, for example, will deliver US$ 150 million in energy savings to Addison County – the average household converting from propane could still save about US$ 2000 per year – while reducing greenhouse gas emissions by 300 000 t and increasing access to weatherisation and energy efficiency services. The regional economic and environmental advantages increase enormously when the second and third phases of the project are included,” Gilbert noted.

Landowner relations

Vermont Gas uses a transparent route finding process to minimise impacts, and a significant portion of the project route follows existing transportation and utility corridors. “In fact, we adjusted over 70% of the route to honour community and landowner input,” said Gilbert.

“We have worked closely with landowners on those portions of the route that are on private property to reach agreements (easements) for temporary construction access and ongoing use of the land for the underground pipe. The negotiation process itself includes multiple personal contacts with every landowner over many months as well as written, electronic and verbal communications. Communications are documented for the purpose of clearly demonstrating to regulators all efforts to reach agreement. Our easement offers are typically much higher than court-awarded compensation.

“Vermont Gas has currently reached agreements with about 70% of landowners along the corridor permitted by state regulators, representing about 70% of the linear distance. Productive negotiations are ongoing with another 20% of landowners.

“Approximately 10% – about 20 landowners out of 221– along the corridor may not reach agreements. We are optimistic that a new, neutral mediation process with these landowners will result in agreements and avoid full eminent domain proceedings.

“Both options exemplify our desire to do everything possible to satisfy landowners – and avoid full eminent domain proceedings – while keeping this important infrastructure project moving forward. Since 2001, we’ve installed over 250 miles of pipeline and never had to participate in eminent domain. We want to avoid it whenever possible,” continued Gilbert.

Transitioning to a cleaner energy future

“As we move forward with the Addison Rutland natural gas project, it’s important to remember that natural gas is safe, cleaner – and about half the cost – of the propane or oil currently used by most Vermonters. It’s also a meaningful step toward a more affordable and environmentally responsible energy future,” Gilbert concluded.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/12092014/addison-rutland-natural-gas-project-update-809/