New York agency to hold conference on propane storage facility application

Based on extensive public interest regarding a proposed underground propane storage and distribution facility in Schuyler County, N.Y., the state’s Department of Environmental Conservation (DEC) will schedule a conference to determine if there are significant and substantive issues that require an adjudicatory hearing, DEC Commissioner Joe Martens announced.

Crestwood Midstream Partners LP (formerly known as Inergy Midstream LP) submitted an application to the DEC in 2009 to construct and operate the storage facility in salt caverns developed at the US Salt complex in Reading, N.Y. The facility has a capacity to hold 88 million gallons of propane. Propane industry leaders have intensified their support for the facility in the wake of last winter’s regional supply shortages and price spikes.

Participation in the issues conference would involve DEC staff, Crestwood and any individual or group that has filed a petition, claiming to be directly impacted by the project, according to a press release. An administrative law judge will determine the schedule for the conference in the near future, the release also noted.

DEC said the permit must demonstrate compliance with all legal requirements and that the proposed activity can be done safely in the state.

“We are disappointed that the Department of Environmental Conservation and the governor believe an issues conference is now warranted after almost five years in the permitting process,” Crestwood said in a prepared statement. “The review process has been extensive and thorough, and the department has confirmed it has all of the information required to make a decision later this year. This shovel-ready project has been designed to achieve the highest safety and environmental standards, will add significant tax base to local economies and will help local consumers avoid paying more than they should for propane supplies during the winter months.”