FERC on Thursday granted Islander East Pipeline Co. LLC and Algonguin Gas Transmission Co. their requested on-year extension to complete construction of their companion pipeline projects, given the numerous snags that Islander East has faced in its quest to obtain state permits for its Connecticut-to-Long Island natural gas pipeline (see Daily GPI, July 19).

The related facilities, which were approved by FERC in September 2002, were supposed to be completed and in service by next month. But due to the inability of Islander East to receive environmental and construction permits from Connecticut, the Federal Energy Regulatory Commission has allowed Islander East and Algonquin to push back the deadline to Sept. 19, 2005.

Islander East, which is jointly sponsored by Duke Energy and KeySpan, currently is awaiting a decision from Superior Court in New Britain, CT. The pipeline company in June petitioned the court to force Connecticut environmental regulators to issue a water quality permit that would clear the way for the construction of the 50-mile, 24-inch diameter natural gas line (see Daily GPI, June 22). The Connecticut Department of Environmental Protection (DEP) denied Islander East’s request for a Section 401 water quality permit in February.

The legal action was the latest volley in an ongoing battle between Islander East and the state of Connecticut over the proposed pipeline that would supply natural gas to the Connecticut, Long Island and New York City areas.

The state of Connecticut initially tried to halt the Islander East pipeline project by claiming it was inconsistent with its Coastal Zone Management Act (CZMA) statute, which gives the states the right to block projects deemed detrimental to their coastal areas. But Commerce Secretary Donald Evans in May overruled the state’s decision (see Daily GPI, May 7). The state now is withholding the water quality permit to prevent construction of the pipeline.

Connecticut Attorney General Richard Blumenthal said earlier that he would oppose the pipeline’s request to Superior Court.

The $180 million pipeline project, if built, initially would deliver 285,000 Dth/d of natural gas from New Haven, CT, across Long Island Sound to Suffolk County (Long Island) near Yaphank, NY, with a lateral to be constructed to Calverton, NY Additionally, Algonquin, a subsidiary of Duke Energy, would loop about 13.7 miles of existing pipeline in Connecticut and add a new compressor station in Cheshire, CT. As a result of these upgrades in Connecticut, Algonquin will interconnect with Islander East. Approximately 90% of the Islander East pipeline land route would be located along existing corridors.

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