Pipeline interest eyes southern Chenango
CORNING – A natural gas public utility has acquired franchises to service at least two businesses in neighboring Delaware County and has plans for future municipal and corporate agreements in southern Chenango.
The pipeline system, built by Leatherstocking Gas LLC, would be the first in over 50 years to deliver natural gas to the region. It would span about 15 miles and connect with both existing and planned natural gas wells, according to Corning Natural Gas President and Chief Executive Office Mike German. The Corning-based company recently partnered with Mirabito Holding Inc. of Binghamton to form Leatherstocking Gas.
An agreement to provide delivery to Sidney was accepted by the village board and is currently under New York’s Public Service Commission review. German said MeadWestvaco and Amphenol have expressed interest in acquiring the energy source, and plans include servicing Sidney’s schools, garages and other municipal buildings.
Public utilities use right-of-ways on the sides of roads, negotiate easements with landowners or invoke eminent domain when necessary to build infrastructure. Public hearings of Leatherstocking Gas LLC permits to franchise are set for June 8 in the Town of Coventry and June 14 in the Town of Bainbridge.
German said his company “would not rule out” providing delivery of natural gas to businesses in the Town of Greene or other areas in the future.
“With the price of oil and propane at a factor of two times higher than natural gas, municipalities and companies in the area are at such an enormous disadvantage without it,” he said. “With the shale gas phenomenon in Pennsylvania, Canada and the rest of the country, it puts tremendous pressure on local municipalities and companies that don’t have gas.”
Corning Natural Gas has connected gas wells in the Trenton Black River formation for delivery to customers, and recently expanded into eastern parts of New York, the executive said. Leatherstocking Gas LLC would initially access existing sandstone wells in the region, mostly through Norse Energy Inc.’s gathering lines.
Norse Energy Vice President Dennis Holbrook said Leatherstocking had approached the company about deliveries from its gathering lines.
“Clearly the presence of gas in the area will make people interested in the opportunities to do business. The cost of natural gas service is significantly less expensive than the usual alternatives like propane and a lot cleaner than burning wood or coal,” he said.
Norse has focused on the northern part of Chenango County, and is currently building a 3.5 mile gathering line from its Bradley Brook compressor station to the Dominion Transmission Pipeline in Town of Eaton, Madison County. The Dominion connection, Norse’s second, will allow the company to step up deliveries to a projected 24,000 mcf per day.
“We don’t have that capacity yet, but that’s the reason for building. We’ve picked a point (of connection) where we’d be convenient for both the Tennessee (another northern transmission pipeline) and Dominion in the future. If the shale drilling in New York opens up, then there’s an opportunity there to have both.”
Holbrook said the company is on target to drill 30 wells this year, mostly in the towns of Plymouth and Preston. He said the company is still reviewing the circumstances of a fatal heavy machinery accident that occurred at a drill site in Smyrna last month. He said precautions are being taken to safeguard from future accidents.
Chenango County’s consultant for economic development, Steven Palmatier, said the towns of Sherburne, Greene and Bainbridge are also talking to Norse about local development opportunities.
At a Chenango County Natural Gas Advisory Committee yesterday, Town of Plymouth Councilman Drew Piaschyk said energy companies are currently approaching landowners in a new round of leasing activity.
Town of Coventry Supervisor John Phelan could not be reached for comment. Local anti-drilling activist Kim Michels of Coventry wrote in an e-mail to the paper that she and other residents are concerned that oversight, regulation and maintenance of Leatherstocking’s pipeline would be left up to the municipality.
The pipeline system, built by Leatherstocking Gas LLC, would be the first in over 50 years to deliver natural gas to the region. It would span about 15 miles and connect with both existing and planned natural gas wells, according to Corning Natural Gas President and Chief Executive Office Mike German. The Corning-based company recently partnered with Mirabito Holding Inc. of Binghamton to form Leatherstocking Gas.
An agreement to provide delivery to Sidney was accepted by the village board and is currently under New York’s Public Service Commission review. German said MeadWestvaco and Amphenol have expressed interest in acquiring the energy source, and plans include servicing Sidney’s schools, garages and other municipal buildings.
Public utilities use right-of-ways on the sides of roads, negotiate easements with landowners or invoke eminent domain when necessary to build infrastructure. Public hearings of Leatherstocking Gas LLC permits to franchise are set for June 8 in the Town of Coventry and June 14 in the Town of Bainbridge.
German said his company “would not rule out” providing delivery of natural gas to businesses in the Town of Greene or other areas in the future.
“With the price of oil and propane at a factor of two times higher than natural gas, municipalities and companies in the area are at such an enormous disadvantage without it,” he said. “With the shale gas phenomenon in Pennsylvania, Canada and the rest of the country, it puts tremendous pressure on local municipalities and companies that don’t have gas.”
Corning Natural Gas has connected gas wells in the Trenton Black River formation for delivery to customers, and recently expanded into eastern parts of New York, the executive said. Leatherstocking Gas LLC would initially access existing sandstone wells in the region, mostly through Norse Energy Inc.’s gathering lines.
Norse Energy Vice President Dennis Holbrook said Leatherstocking had approached the company about deliveries from its gathering lines.
“Clearly the presence of gas in the area will make people interested in the opportunities to do business. The cost of natural gas service is significantly less expensive than the usual alternatives like propane and a lot cleaner than burning wood or coal,” he said.
Norse has focused on the northern part of Chenango County, and is currently building a 3.5 mile gathering line from its Bradley Brook compressor station to the Dominion Transmission Pipeline in Town of Eaton, Madison County. The Dominion connection, Norse’s second, will allow the company to step up deliveries to a projected 24,000 mcf per day.
“We don’t have that capacity yet, but that’s the reason for building. We’ve picked a point (of connection) where we’d be convenient for both the Tennessee (another northern transmission pipeline) and Dominion in the future. If the shale drilling in New York opens up, then there’s an opportunity there to have both.”
Holbrook said the company is on target to drill 30 wells this year, mostly in the towns of Plymouth and Preston. He said the company is still reviewing the circumstances of a fatal heavy machinery accident that occurred at a drill site in Smyrna last month. He said precautions are being taken to safeguard from future accidents.
Chenango County’s consultant for economic development, Steven Palmatier, said the towns of Sherburne, Greene and Bainbridge are also talking to Norse about local development opportunities.
At a Chenango County Natural Gas Advisory Committee yesterday, Town of Plymouth Councilman Drew Piaschyk said energy companies are currently approaching landowners in a new round of leasing activity.
Town of Coventry Supervisor John Phelan could not be reached for comment. Local anti-drilling activist Kim Michels of Coventry wrote in an e-mail to the paper that she and other residents are concerned that oversight, regulation and maintenance of Leatherstocking’s pipeline would be left up to the municipality.
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