Wine And Gas Battle It Out In Northern US

Dec 11, 2014

(OilPrice) - Wine and gas tend not to mix.

In upstate New York, a midstream oil and gas company is running into stiff local opposition for its plans to build natural gas infrastructure. Crestwood, a Texas-based company, has proposed plans to build natural gas storage facilities on Seneca Lake, a picturesque site in the heart of New York’s wine country.

Crestwood already owns several natural gas storage facilities in New York, storing natural gas and natural gas liquids produced from the Marcellus Shale.

Crestwood has proposed an additional site near the town of Watkin’s Glen on Seneca Lake. It would consist of millions of gallons of liquid petroleum gas (LPG), such as butane and propane, stored in old salt caverns. The company, through its subsidiary Arlington Gas Storage, also wants to expand existing natural gas storage from 1.5 to 2.0 billion cubic feet (bcf). It could potentially expand the site to handle up to 10 bcf. Crestwood’s plan is to turn Seneca Lake into a natural gas storage and transportation hub servicing the northeast

But the company is encountering strong opposition from local communities who have resorted to civil disobedience to stop construction. About 92 people have thus far been arrested for blockading Crestwood’s facility. Among them is Phil Davis, a co-owner of Damiani Wine Cellars, a vineyard on Seneca Lake. “The statement's got to be made. It's intolerable what they're proposing. It takes a lot to make me boil over, but I'm boiling over now,” Lou Damiani, the other co-owner told Wine Spectator. Several of Damiani’s employees have also been arrested.


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