NE Hub Opposes Stay of Storage Project
NE Hub Partners L.P. has asked FERC to deny a partial stay
request of Penn Fuel Gas Inc. that, if granted, would prevent it
from starting construction on a major underground storage project
in northern Pennsylvania.
This is the latest in a long-simmering dispute that has pitted
NE Hub Partners against North Penn Gas, a wholly owned subsidiary
of Penn Fuel, and CNG Transmission, which are opposed to the
project since it would be located directly beneath their existing
storage facilities - the Tioga Storage Complex. The joint owners
have argued all along that their facilities would be "irreparably"
damaged if NE Hub were permitted to drill through it in order to
leach the two salt caverns where it plans to store up to 5-6 Bcf of
Despite the protestations, the Commission gave NE Hub Partners
the go-ahead to build the underground storage project last April.
Since then, however, CNG Transmission and Penn Fuel/North Penn Gas
have mounted a "vigorous campaign" to prevent construction, said
David Hooker, chief operating officer of NE Hub Partners.
In the filing at FERC, NE Hub Partners called Penn Fuel's
request for a partial stay of the April order "frivolous," adding
that it was the company's "latest attempt to derail" NE Hub's Tioga
Storage Project [CP96-53-003]. "The harms alleged by Penn Fuel are
entirely speculative, and Penn Fuel offers absolutely no proof that
the alleged harms will occur with any degree of certainty."
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