County Economic Development Board offers pipeline support

BY STACI WILSON

Bluestone Gathering is planning to install a major pipeline in easternSusquehannaCountythat will connect to the Millennium Pipeline inSanford,N.Y.

Although the exact route has not yet been determined, Bluestone’s Mike Armiak told the Susquehanna County Economic Development Board the approximate 37-mile pipeline will run through Lenox, Harford,Jackson,New Milford,Jacksonand Harmony townships toNew York.

According to Armiak, negotiations with landowners for easements are currently underway in those areas.

At the July 28 economic development meeting, Armiak told the board the pipeline construction would be a “huge economic benefit toSusquehannaCounty.”

According to Armiak, preliminary numbers indicate the pipeline could have a $100 million economic impact on the area over a 10-year timeframe.

Armiak said about 300 construction workers would be employed while the main pipeline was being installed. That work is expected to take about one year.

For the five years after that, Armiak said, about 100 workers would be needed annually as gathering lines are constructed.

Not only will pipeline construction bring jobs, Armiak said. The project will also have a significant impact, not only for area hotels and restaurants, but also for local hardware and supply stores.

“We use local vendors if we know where they are,” Armiak said.

And he pointed out, property owners with gas wells can’t really be paid royalties until the gas is moved to market. “This offers a way to do that,” Armiak said.

Although not required to comply with Public Utility Commission rules and requirements, Bluestone Gathering is doing so, Armiak told the board.

As a pipeline company, Bluestone Gathering would be able to take natural gas from any producers. Currently, Southwestern Energy has contracted with Bluestone for gathering services.

He also said Bluestone is not a local distribution company, meaning they do not pipe natural gas to homes or businesses.

But Armiak said if a local distribution company expressed interest in doing that down the road, “We would be willing to work with them on that.”

Bluestone Gathering filed an application with the New York Public Utility Commission on July 27.

“We have to prove there is a need for the pipeline,” he told the board.

The Economic Development Board voted to send a letter of support for the Bluestone Gathering pipeline to the New York PUC.

The annual county economic development breakfast will be held Aug. 25 at theSummit, inNew Milfordat8 a.m.

Guest speakers include Tom Shepstone of Energy-in-Depth, and Harry Forbes from Gov. Tom Corbett’s office.

Energy-in-Depth is an advocacy group, funded by the natural gas industry.

Nicole Jacobs, of Energy-in-Depth, attended the board meeting and told the group she primarily works with landowner groups on negotiations and education.

She said the group’s purpose was to present a “balanced message” in the media.

“Five people opposed (to natural gas) at an event does not reflect the overall opinion of an area,” Jacobs said.

Energy-in-Depth covers a 10-county region in the northern tier ofPennsylvaniaand nine counties in the southern tier ofNew York.