LIMESTONE, Maine — The right to use a 200-mile-long pipeline that extends from the Mack Point port facility in Searsport to the former Loring Air Force Base in Limestone soon may be transferred to Gas Natural Inc., the parent company of Bangor Natural Gas.
The pipeline and the real estate right of way corridor through which it passes had been leased by Loring BioEnergy, but that company failed to make its lease payments to its mortgage holder, United States Power Fund, according to Jacob Manheimer, an attorney for Loring BioEnergy. Loring had pledged the lease as collateral for its loan from United States Power Fund, and when it failed to make the payments the company foreclosed on the lease.
The corridor right of way easements are owned by Loring Development Authority, a non-profit group formed after the base closed in the early 1990s.
On June 4, a public auction was held for the lease. Gas Natural Inc. was the lone bidder, offering $4.5 million for the lease, which provides access to the pipeline and associated equipment.
Gas Natural Inc. owns several natural gas utilities, including Bangor Natural Gas. Jerry Livengood of Bangor Natural Gas said the Ohio-based parent company will reveal its plans for the pipeline in about a month.
Though the company made a formal bid, a negotiation process typically follows in such foreclosures, he said.
“We’ve had a dialogue” with the owner, Livengood said Monday, but the lease has not formally been transferred.
The pipeline was built by the Department of Defense in the early 1950s at the height of the Cold War to supply jet aircraft with fuel. The jet fuel was taken by ship to the port facility at Mack Point in Searsport, then pumped through the 6-inch-diameter pipe north to the base.
Loring BioEnergy, the leaseholder in default, wanted to build a co-generation power facility, producing electricity and steam or heat that could be used by a food or wood processor. The company planned to have its power plant, to be located at the former base, supplied by natural gas pumped through the pipeline.
The pipeline was decommissioned in 1994 and filled with nitrogen to inhibit corrosion.
Such established corridors are considered valuable because the cost of developing new ones is so prohibitive. Whether for a road or a power line, securing rights of way over private property would have to come through negotiations with countless owners or through eminent domain seizures that could be challenged, dragging out the process.
Corridors such as the one that holds the Searsport to Limestone pipeline could be used for electric transmission lines, natural gas pipes, data lines or even a railroad.
Its About Time
Let’s get that LPG storage tank built quick!!
LNG is the way to go for American Energy Independence
Would help if you could understand the article. This is Natural Gas company.
The proposed Searsport tank is LPG. Two different fuels.
It great to hear such brilliant commentaries from the BDN commenter elites though.
Please re read the article, the company is buying the right of way, not an active pipeline. A 6″ liquid fuel pipeline is not viable as an LNG pipeline. Gas Natural Inc. is making an investment in future pipeline needs, and will be able to install any pipeline they wish, as they have secured the ROW.
Oh my. An American Energy Company bought something in Maine. That is a switch. Usually Maine is owned and operated by foreign energy companies.
This sounds like a great development ! Maine should welcome this with great expectations. Putting a piece of the states abandoned infrastructure back into service. This is a step to get natural gas embedded into the state and progress toward self reliance for energy use. This could be a great step in using a US resource, putting people to work, and creating a reliable energy resource. – This is a main line, it could grow many branches.
Natural Gas is a fast growing US resource. …. http://ourgreenfuelfuture.blogspot.com/
Why not its still intact and the line is still cleared in most areas Im sure some enviro nut group will hire a lawyer
Just a reminder property owners that own the land for which the pipe line crosses ( property owner”s) still own and control their land . The pipe line co. only has a lease to cross it, maintain it and the rights to use it. By law they have to ask the land owners to cross it and maintain it when they do cross it.
With this transfer it doesn’t mean others have a right to use it for snowmobile or a ATV track without land owners permission .
Using an existing resource for current and future use always makes good sense, and the writing is on the wall that natural gas is answer to our energy independence! I have personally lived cl0se to the pipeline, and I honestly can’t think of anything more environmentally friendly. Great idea!!
We need a pipe-line to Congress our biggest gas reserve.