A Virginia State Corporation Commission hearing examiner hasrecommended that the planned merger between NUI Corp. and theVirginia Gas Co. include a condition that may affect the locationof an intrastate gas pipeline near Roanoke. The merger and proposedconditions require SCC approval and the commission must act byMarch 27.

Under terms of the proposed merger, NUI will acquire VGC and itsthree operating subsidiaries, Virginia Gas Distribution Co.,Virginia Gas Storage Co. and Virginia Gas Pipeline Co. Through itssubsidiaries, VGC markets, stores, distributes, gathers, exploresand produces natural gas, and the company has been extensivelyexpanding its capabilities throughout southwestern Virginia. Italso has constructed a 45-mile natural gas pipeline from Radford toRoanoke that the SCC approved in December 1999.

However, before approving the merger, the SCC must be satisfiedthat the transfer won’t jeopardize rates and service to Virginiacustomers. SCC Hearing Examiner Alexander F. Skirpan Jr. wants theproposed merger to include a condition that requires VGC toconsider locating its new pipeline within the right-of-way of anyexisting pipeline inside the SCC-approved 1,000-foot corridor.

“Special consideration for collocation should be made where anew easement would have a significant impact on a scenic orenvironmentally sensitive area, and where the easement crossesproperty with existing easements,” said Skirpan.

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