Published: August 02, 2008 11:08 pm         

Storage plans spark natural gas fight

Steckman Ridge, a massive $250 million natural gas storage facility, mostly underground, is planned for 1,800 acres in pastoral Bedford County, but a group of neighbors is fighting it.

Those residents say the Texas-based corporate developer is acting like a “robber baron,” trampling on their ability to tap into the Marcellus Shale for their own natural gas wells and bullying them by trying to seize their land.

“A culture clash is unfolding between a small group of Internet-savvy, rural landowners and the feudal cultures of big government and big business,” property owner Michael Bernard said.

But the project’s corporate developers have a different view of the controversy: They say the project is vital to energy supplies in the Northeast – and that a few vocal residents simply want to be paid more money than their damages are worth.

“Despite more than a year of ongoing communication and discussion, outreach and negotiation, we’ve been unable to reach an agreement with a few landowners,” corporate spokeswoman Susan Waller said.

“We’re trying desperately to work with these people.”

Now, the Federal Energy Regulatory Commission, or FERC, which approved the project in June, is considering reopening the hearings in response to residents’ complaints. Also, federal court in Johnstown will hear property condemnation requests.

The stormy debate takes place in Clearville, about 20 miles east of Bedford.

Steckman Ridge is a joint venture of Spectra Energy of Texas and New Jersey Resources. It would use depleted natural gas fields for a storage facility on about 1,800 acres, with a buffer zone bringing the total project to 2,900 acres.

The project would store 12 billion cubic feet of natural gas to supply energy markets in the Northeast and Mid-Atlantic.

“Frankly, we believe that the need for natural gas storage is critical right now,” Waller said. “The storage cavern we acquired is empty now, and that’s where we got the 1,800 acres. For us not to use it would violate our commitment to the Northeast market.

“The residents who are fighting us on this used to be paid royalties, but all that gas was drawn down. That’s why this has turned into a compensation issue,” she said.

But residents such as Bernard and Sandra McDaniel argue that approving the Steckman Ridge project would deprive them of the ability to drill into the Marcellus Shale for their own natural gas wells.

The developers disagree, saying it’s not known whether Marcellus Shale is in sufficient formation at Steckman Ridge to make wells profitable.

Regulators don’t have a time frame for taking a second look at the Steckman Ridge project, spokeswoman Tamara Young Allen said.

“The case is still pending. We did receive a number of appeals for a rehearing, but FERC needs additional time to review these. There is no deadline for action,” she said.

U.S. Rep. Bill Shuster, R-Hollidaysburg, who represents Bedford County, is taking a hands-off approach, a staffer said.

“It’s an important project, but it is a private agreement between a business concern and residents, and the congressman generally does not enter into those things.”

Residents say they want more questions answered and more room for negotiations before they sign any agreements.

Developers say they want the same thing.

“We’re still working with landowners, and two are close to settling with us,” Waller said. “One wanted us to buy his whole property, and we did.”

No date is set for a federal court hearing on property condemnations, and FERC has no deadline to rule.



The players

The controversial Steckman Ridge project planned for Bedford County is like a boxing match between corporate giants and rural residents – with government in between.

In one corner: Texas-based Spectra Energy Corp. and New Jersey Resources are partnering to develop a huge natural gas storage facility in Bedford County to service the entire Northeast. They see the project as vital to the country’s energy needs.

In the other corner: A group of Bedford County property owners is fighting the project. They say they are not being offered enough money for their losses and that they will lose their rights to individually tap into the Marcellus Shale that holds promise for new sources of natural gas.

The referees: The Federal Energy Regulatory Commission approved the project on June 5 but is under pressure from residents to reopen the issue. Federal Court in Johnstown will hear a corporate request for control of nearby properties so construction can proceed.



Steckman Ridge

What: A proposed $250 million underground natural gas storage project.

Where: 1,800 acres in the Clearville area of Bedford County.

Why: Provides natural gas storage and Interconnects a Texas company’s natural gas transmission lines with the Northeast.

Size: Capacity of 12 billion cubic feet of gas in 23 depleted natural gas wells, plus a compressor station and more than 10 miles of pipeline.

Status: Approved by Federal Energy Regulatory Commission, but affected landowners want a new hearing. Corporate developers are making an eminent domain request.

     

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