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 them in order toleach the two salt caverns where it plans to store 5-6 Bcf of gas.

Despite the protestations, the Commission gave NE Hub Partnersthe go-ahead to build the underground storage project last April[CP96-53]. Since then, however, CNG Transmission and PennFuel/North Penn Gas have mounted a “vigorous campaign” to preventconstruction, said David Hooker, chief operating officer of NE HubPartners.

In the filing at FERC last week, NE Hub Partners called PennFuel’s request for a partial stay of the April order “frivolous,”adding that it was the company’s “latest attempt to derail” NEHub’s project. “The harms alleged by Penn Fuel are entirelyspeculative.”

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