NE Hub Partners L.P. has asked FERC to deny a partial stayrequest of Penn Fuel Gas Inc. that, if granted, would prevent itfrom starting construction on a major underground storage projectin northern Pennsylvania.

This is the latest in a long-simmering dispute that has pittedNE Hub Partners against North Penn Gas, a wholly owned subsidiaryof Penn Fuel, and CNG Transmission, which are opposed to theproject since it would be located directly beneath their existingstorage facilities – the Tioga Storage Complex. The joint ownershave argued all along that their facilities would be “irreparably”damaged if NE Hub were permitted to drill through it in order toleach the two salt caverns where it plans to store up to 5-6 Bcf ofgas.

Despite the protestations, the Commission gave NE Hub Partnersthe go-ahead to build the underground storage project last April.Since then, however, CNG Transmission and Penn Fuel/North Penn Gashave mounted a “vigorous campaign” to prevent construction, saidDavid Hooker, chief operating officer of NE Hub Partners.

In the filing at FERC, NE Hub Partners called Penn Fuel’srequest for a partial stay of the April order “frivolous,” addingthat it was the company’s “latest attempt to derail” NE Hub’s TiogaStorage Project [CP96-53-003]. “The harms alleged by Penn Fuel areentirely speculative, and Penn Fuel offers absolutely no proof thatthe alleged harms will occur with any degree of certainty.”

Susan Parker

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