Police jury approves agreement with Atmos

Published 12:10 am Tuesday, May 13, 2014

VIDALIA — Amid concerns about the proposed shutdown of a natural gas pipeline, the Concordia Parish Police Jury approved Monday a 50-year franchise agreement with Atmos Energy.

Atmos spokeswoman Ann Hayward told the police jury at its meeting the company serves approximately 909 Concordia Parish customers, 836 of which are residential and 73 commercial.

The agreement basically outlines that the parish agrees to allow Atmos to provide gas service and work on its lines on parish roads and rights-of-way.

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Atmos agrees to repair any damage done to roads during routine work or repairs.

Juror Joe Parker Jr. asked Hayward what would happen to the service parish customers receive if American Midstream Partners abandons the Midla pipeline, which runs from Monroe to Baton Rouge through the Natchez-Vidalia area and is the only pipeline supplying natural gas to the area.

AMP recently filed a request with the Federal Energy Regulatory Commission (FERC) to abandon the pipeline.

The shutdown could mean no natural gas service to an area that includes Clayton, Ferriday, Vidalia, Natchez and Woodville, or significantly increased prices as the pipeline’s owners raise transmission fees.

Hayward told the jury she is confident FERC will give the request due diligence and added that representatives from Congress are working to ensure the pipeline is not abandoned.

Hayward said it is too early to know what would happen if the Midla pipeline is abandoned.

“Anything I would say would be pure speculation until FERC gets through with their investigative procedure,” she said. “We feel FERC will work through their process and do their due diligence so we can continue to supply gas to the area.”

The jury talked briefly about the term of the agreement.

The previous agreement with Atmos, which is expiring, was 50 years.

Hayward said Atmos is open to a shorter term, but the jury ultimately concluded it did not have a problem with a 50-year agreement.