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Local News

February 22, 2012

Proposed gas pipeline could run through Schoharie, Delaware

COOPERSTOWN -- Cabot Oil & Gas Corp., one of the companies involved in hydrofracking operations in Pennsylvania, announced Tuesday that it is teaming up with a second company to run a large-diameter natural gas pipeline through Schoharie and Delaware counties from Susquehanna County, Pa.

The so-called "Constitution Pipeline" was described as a high-pressure pipeline that would move gas from Cabot's Marcellus Shale drilling operations in Pennsylvania to the New England and New York marketplaces after interconnecting in Schoharie County with both the Iroquois Gas Transmission and Tennessee Gas pipelines.

"This pipeline is truly the next big step of our capacity expansion program ... that has historically been constrained from both a lack of reliable supply and pipeline infrastructure," Cabot's president and chief executive officer, Dan Dinges, said in a statement.

Officials in both Schoharie and Delaware counties said they were approached earlier this month by gas industry representatives who told them that a major new pipeline project was being planned. The project is expected to require the companies involved in the project to acquire easements from landowners, and some property may be taken over through eminent domain proceedings, officials said.

Schoharie Town Supervisor Gene Milone said he was concerned that some residents could be forced to surrender title of property through eminent domain to allow the pipeline to be installed. Citing a deadly propane line explosion in Schoharie County in 1990, he said he also has concerns with the safety of residents who would live near the new line.

"If something like this is put in place, it could make this region a magnet for hydrofracking," Milone said. Meanwhile, he said he wants to work with other local officials to press the pipeline developers to provide natural gas to Schoharie County residents in the towns on the pipeline route.

Schoharie County Attorney Michael West said gas industry representatives upset town officials by giving short notice that they were seeking easements from property owners along the planned route, which apparently ends in the town of Wright, where there is an existing natural gas pipeline.

Delaware and Schoharie county officials said the pipeline project would be entirely regulated by the Federal Energy Regulatory Commission. A FERC spokeswoman said the companies have not yet applied for permits for the project. Once they do, it will be scrutinized for potential environmental impacts, spokeswoman Tamara Young-Allen said.

The Energy Act of 2005, signed into law by former President George W. Bush, designates FERC as the lead agency for such projects, she said.

Delaware County Attorney Richard Spinney said local officials have yet to see the pipeline's precise route. But it could slice through Davenport, Meredith, Stamford and Franklin, he said.

Spinney said the pipeline could benefit the region if it were to supply gas directly to local businesses and residents. But he said he did not know if that's an option.

Cabot said it is joining forces with Williams Partners L.P., which will be a 75 percent owner of the pipeline and will operate it through its affiliates. Williams Partners holds interest in three major interstate natural gas pipelines, according to the company's website.

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