Drilling down, but gas still driving development

BY STACI WILSON

Although natural gas drilling activity has diminished in the county, interest in utilizing the resource for other ventures continues.

The Diaz Manufacturing expansion project near Montrose was hinging not only on access to natural gas but also to a proposed water line project.

At the Susquehanna County Economic Development Board meeting on March 24, Progress Authority executive director Anthony Ventello said engineering firms from both Pennsylvania American Water Company and Leatherstocking Gas Company were working together. He added that PennDOT permits will also be needed before project details are finalized.

According to Ventello, there is currently about $2 million in available funding, including $446,000 grant from the Dept. of Community and Economic Development announced in March, to bring infrastructure down the Route 29 corridor, south of Montrose. Other funding for the project has come from ACT 13 funds and Pennsylvania American Water.

The county also paid $50,000 to allow PAWC to begin the permitting and engineering process with PennDOT.

Leatherstocking has committed to covering the cost of installing the natural gas distribution line, Ventello reported.

The waterline extension and natural gas projects will not only service the proposed manufacturing facility, but also the county jail and recycling center on Ellsworth Drive in Bridgewater Twp.

Diaz Manufacturing plans to build a 25,000-square-foot expansion to its existing manufacturing facility and construct a nearby 50,000-square-foot building for warehousing.

The company has committed to investing $7.5 million in the expansion project and the creation of 20 new, full-time jobs and the retention of 80 existing positions over the next three years, according to a release issued by DCED in March.

In addition to waterline and gas distribution project, several other companies have expressed an interest in the natural gas resource available in the county.

Ventello said there has been interest of establishing a reverse LNG project in the Lenox area. The gas to liquids company is looking to distribute throughout the region and the site selection team is putting together a list of available sites. Another potential project – called Project Pentagon – is looking to locate on the I-81 corridor. That, too, would convert natural gas to LNG and truck the product to the New England area.

Natural gas has also served to stabilize the agriculture industry in the county, Ventello said, with beef and soybean production on the way up.

And there has been some interest from companies looking to establish an egg-producing operation in the area. Possible sites are being looked into for the company.

The county is also looking to entice gun manufacturers fleeing gun-unfriendly states to the area with the development of a targeted promotional campaign that is still in development.

Commissioner Alan Hall said the county would also like to target ammunition manufacturers.

The industry, Hall said, could utilize technical background of area residents.