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MONROE A new 43-mile natural gas pipeline, which has caused rancorous land negotiations in northern Union County, consternation in neighboring Cabarrus County and a pending N.C. Utilities Commission complaint, is about one-fifth done – and moving forward.
About three miles of the line is completed in Union County and six miles in Cabarrus and Iredell counties, said Pete Hovanec, a spokesman for the city of Monroe. The $24 million pipeline is expected to be completed by late this year or early 2010.
But plenty of people don't view that as good news.
Monroe is connecting to the Transcontinental Gas Pipeline (Transco) in Mooresville. The Transco pipeline runs from Texas to New York.
Monroe officials say that connection will give the town increased access and lead to lower rates for customers. The pipeline runs east from the Transco connection in Mooresville, through Midland in Cabarrus County and south along U.S. 601 in northern Union County and into Monroe.
Completed sections of the pipeline and workers putting in new pipe are visible along U.S. 601 in Union and into Cabarrus.
Cabarrus County Manager John Day made it clear last week that his county opposes the line.
“We oppose the pipeline except for (the town of) Midland, which has partnered with Monroe,” he said. “Monroe can't own property in Cabarrus County, so they needed a partner and they got Midland. Midland will get payments each year.”
“It was not our intention to hurt anybody's feelings or leave a bad taste in anyone's mouth,” Hovanec said.
Hovanec said Monroe is paying Midland $1.6 million up front, plus an ongoing fee based on the amount of natural gas that comes to Monroe.
He also said Monroe paid Mooresville $250,000 when the initial agreement was signed and will pay another $250,000 “once we are secure with the property acquisitions there.” Then, Monroe will pay Mooresville roughly $55,000 a year for right-of-way maintenance.
Mooresville's Assistant Town Manager Erskine Smith said last week the pipeline seemed to be progressing, but Monroe is overseeing the work.
Monroe provides gas services for 9,000 residential and 1,400 commercial and industrial customers, according to documents filled with the N.C. Utilities Commission.
The town has bought all the necessary easements in Union County for the pipeline. As of late last year, Monroe had spent more than $2.3 million. Hovanec said the property had been acquired by “negotiations or court action.”
The negotiations took place late last year, when land was purchased or condemned. That left some residents of Fairview in northern Union County upset because they believed the town didn't pay a fair price.
Hovanec said this week that Monroe customers could initially see about an $18 per year savings on their gas bills.
“True benefits will be realized when the debt is retired, and through the fact that the pipeline will allow Monroe to receive almost three times as much gas as it now gets.”
Monroe now gets gas through Piedmont Natural Gas. Don Mitchell, director of Monroe's Energy Services Department, said Monroe pays Piedmont $210,000 per month.
Piedmont has filed a complaint with the N.C. Utilities Commission saying the new pipeline violates an exclusive rights agreement. There has been no ruling.
Piedmont Natural gas has a contract with Monroe that runs through March 2010.
