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

The fundamentals

海角吃瓜网淭he 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,海角吃瓜网� said Gilbert.

海角吃瓜网淓xpanding 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海角吃瓜网檚 portfolio.

海角吃瓜网淧roduced 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海角吃瓜网檝e had RNG flowing into our system since early August.

海角吃瓜网淚n addition, Vermont Gas is working to expand the availability of cleaner natural gas for commercial vehicles. Transportation is Vermont海角吃瓜网檚 largest source of greenhouse gases and natural gas can help cut emissions,海角吃瓜网� 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. 海角吃瓜网淲e did not adequately anticipate the national surge in labour and material costs for pipeline construction,海角吃瓜网� said Gilbert. 海角吃瓜网淩oute changes to accommodate residents and other stakeholders, and enhanced project oversight (including additional construction managers and inspectors), also contributed to the increase.海角吃瓜网�

海角吃瓜网淲aiting 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.

海角吃瓜网淣onetheless, 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 海角吃瓜网� the average household converting from propane could still save about US$ 2000 per year 海角吃瓜网� 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,海角吃瓜网� 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. 海角吃瓜网淚n fact, we adjusted over 70% of the route to honour community and landowner input,海角吃瓜网� said Gilbert.

海角吃瓜网淲e 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.

海角吃瓜网淰ermont 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.

海角吃瓜网淎pproximately 10% 海角吃瓜网� about 20 landowners out of 221海角吃瓜网� 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.

海角吃瓜网淏oth options exemplify our desire to do everything possible to satisfy landowners 海角吃瓜网� and avoid full eminent domain proceedings 海角吃瓜网� while keeping this important infrastructure project moving forward. Since 2001, we海角吃瓜网檝e installed over 250 miles of pipeline and never had to participate in eminent domain. We want to avoid it whenever possible,海角吃瓜网� continued Gilbert.

Transitioning to a cleaner energy future

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

Adapted from press release by

Read the article online at: /business-news/12092014/addison-rutland-natural-gas-project-update-809/