Sugar Creek Wind Farm agreement with Logan County modified to resolve pipeline issue

 

[December 21, 2018] 

At the Logan County Board meeting on Tuesday, December 18th, one focus of discussion was an amendment to one of the conditions at the Sugar Creek Wind Farm Project.

Board members present were Kevin Bateman, Dave Blankenship, Emily Davenport, Janet Estill, Bob Farmer, David Hepler, Steve Jenness, Gene Rohlfs, Chuck Ruben, Bob Sanders, Scott Schaffenacker and Annette Welch.

Guests included Scott Koziar and Stan Komperda of Apex Clean Energy.

At the December Planning and Zoning Committee meeting and again at the Logan County Board Workshop, board members heard from Koziar, and from Kyle Barry, an attorney for the wind farm project.

Koziar said his company has been working on a formal crossing agreement with Panhandle for four or five months and has not come to an agreement yet.

Barry said that during this time, Apex has sought to enter into a negotiation to enter into a crossing agreement with Panhandle. Panhandle does not have a problem with the crossing, but Panhandle’s problem is with wanting turbines to be set back at least 1,500 feet on each side of the pipeline.

Barry said the board previously approved a layout that complies with the setbacks. He said, “My position is that Panhandle does not have the right to tell the landowners, and the company and the board where to put the turbines given that the board has already approved it.”

Barry said the issue is that while the project has no problem agreeing to all the construction guidelines, Panhandle won’t officially agree to anything unless the project is willing to move the turbines, which is a problem because it would affect nine or ten turbines.
Barry said for most crossings, they have a “non-exclusive easement” and Panhandle cannot stop a landowner from crossing a pipeline. He said, “I think they see this as sort of a leverage point to try to use to move the turbines for whatever reason.”

Barry said the bottom line is that Panhandle is unwilling to sign a document saying they approve the crossings, which is what the condition says is needed.

After a brief update at the Board Workshop held Thursday, Dec, 13th, board member Chuck Ruben said it would be good to ask a representative from Panhandle come to Tuesday’s meeting and answer questions.

At Tuesday’s meeting, Planning and Zoning Chairman Scott Schaffenacker made a motion to amend condition 28 of the Sugar Creek approval to state that the applicant shall provide legal assurance to the county that they will adhere to the technical specifications and guidelines provided by the Panhandle Eastern for crossing of gas pipelines and shall provide a written statement at the conclusion of the project that the guidelines were adhered to during the construction process. In addition, Sugar Creek shall agree to reimbursement of costs incurred by Panhandle for work required by Panhandle in conjunction with the crossing construction as per Panhandle policy.

Sanders asked what would happen if Apex did not have an agreement with Panhandle. He had questions about the specifications.

Koziar said Apex has technical specifications from Panhandle.

Sanders said the board had been “burnt before” when there was a road use agreement, but problems with the roads at the HillTopper Wind Farm Project near Mount Pulaski. Sanders said he wants some way to enforce the guidelines and said it seemed like “signing a blank contract.”

Bateman said we are trying to get ahead of the process. He said in the other project, the road agreement was drug out so long the construction season was well underway, and they were in a hurry.

Bateman said by bringing the Panhandle issue forward now, the county would not be behind the eight-ball trying to get things permitted during construction seasons.

Ruben said Sanders could amend the motion to add a penalty for guidelines not being followed.

Sanders said his concern was that Apex adhere to the specifications.

Blankenship said there were no penalties exercised when there were issues at Mount Pulaski and said the board does not have the fortitude to do anything about possible issues.

Hepler said he imagines there are standards that must be followed by both parties and asked what level of oversight there would be.

Koziar said Panhandle would have a representative there as pouring and trenching is done, and Apex must follow design codes.

Bateman asked if Panhandle had responded to being asked to come to the meeting and Koziar said they had not.

Sanders asked if Panhandle still wants the setback changed.

Koziar said they do. He said Panhandle is using the underground crossing as a separate issue. There are no rights in Panhandle’s easement for setting it back. Panhandle wants the turbines near crossings three-fourths of a mile from their pipelines. Koziar said they have not run into that before.

Koziar said the ordinance asks them to stay 1.1 times the tip-point away from gas pipelines when setting turbines. He said that is the industry standard for utility infrastructure.

Ruben said the setbacks were set up in agreements with the landowners.

Sanders then asked whether Apex would change the setbacks. Sanders said he is worried about public safety if a pipeline breaks.

Logan County Emergency Management Agency Director Dan Fulscher said he has only seen two pipeline breaks during his many years with EMA.

After discussion, the board approved Schaffenacker’s motion that Sugar Creek would provide legal assurance to the county that they will adhere to the technical specifications and guidelines provided by the Panhandle Eastern for crossing of gas pipelines, provide a written statement at the conclusion of the project that the guidelines were adhered to during the construction process; and that Sugar Creek agrees to reimbursement of costs incurred by Panhandle for work required by Panhandle in conjunction with the crossing construction as per Panhandle policy.”

The vote was 11-1 with Bob Sanders voting no.

[Angela Reiners]