Constitution Pipeline, Leatherstocking Gas expand proposed gas pipeline

Source:Constitution Pipeline Company, LLC

Constitution Pipeline, Leatherstocking Gas expand proposed gas pipeline Constitution Pipeline Company, LLC and Leatherstocking Gas Company, LLC today announced plans to install four delivery taps along Constitution's proposed pipeline route to facilitate local natural gas service in southern New York and northern Pennsylvania as early as late 2015.

Leatherstocking is evaluating delivery point locations for local distribution of natural gas to homes and businesses in Delaware, Otsego and Susquehanna counties and one tap location that would provide service to the Amphenol Aerospace Plant in Sidney, N.Y. Last month, the Delaware County Industrial Development Agency awarded a grant of $750,000 for the construction of a natural gas pipeline from the proposed Constitution Pipeline to Amphenol Corporation's existing facility in Sidney, N.Y., as well as a new planned manufacturing facility.

Specific tap locations will be finalized once the pipeline route is confirmed, currently pending final federal regulatory approval.

"The Constitution Pipeline can create a backbone for Leatherstocking Gas Company to extend the development of local natural gas distribution franchises in rural communities along the pipeline route in northern Pennsylvania and southern New York," said Leatherstocking CEO Mike German. "We are excited about the possibilities for local service that this new pipeline infrastructure can provide."

Leatherstocking's vision encompasses development of local distribution systems to introduce natural gas service to locations within Broome, Chenango, Delaware, and Madison counties in New York and Susquehanna County in Pennsylvania that currently have no such service. Leatherstocking has franchise agreements in 10 municipalities within Delaware, Otsego, Chenango and Broome counties in New York. The New York State Public Service Commission must grant certificates of public convenience to Leatherstocking in the identified areas before distribution system development can begin.

"We believe working with Leatherstocking is a great opportunity to potentially provide gas service to communities along the pipeline route," said Constitution Pipeline Project Manager Matt Swift. "The members of these communities who do not have access to local natural gas service will greatly benefit from this affordable, U.S.-produced, cleaner energy resource."

Amphenol Aerospace, a division of Amphenol Corporation, is one of the largest manufacturers of interconnect products in the world for the military, commercial aerospace, and industrial markets. Amphenol's manufacturing operations were established in the Town of Sidney in 1925 and remain a major employer in the region.

"The accomplishment of affordable and clean energy is a key element in Amphenol's ability to compete in today's global economy," said Amphenol Vice President Gary Anderson.

The availability of local gas service from the proposed delivery taps represents one of many direct benefits presented by the Constitution Pipeline project. A study developed by a third-party research firm found that of the $683 million Constitution Pipeline would spend during the initial three-year planning and building process, approximately $166 million will directly benefit the five-county region of Susquehanna, Broome, Delaware, Otsego and Schoharie counties. Once operational, the pipeline's economic impact is anticipated to result in about $13 million in annual property tax revenue. Property taxes, which accrue to different levels of government in different proportions, are paid to school districts and local governments. Approximately 60 percent of taxes paid by this project will go to local school districts along the pipeline route.

The Constitution Pipeline project – which involves the construction of a 30-inch natural gas pipeline from Susquehanna County, Penn., to Schoharie County, N.Y. – is currently being reviewed by the Federal Energy Regulatory Commission (FERC). In February 2014 the FERC issued the draft Environmental Impact Statement for the proposed project, concluding that environmental impacts would be reduced to "less than significant levels" with the implementation of proposed mitigation measures by the company and FERC. A final Environmental Impact Statement is expected this summer. Construction on the pipeline is scheduled to begin as early as late 2014.

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