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Century Signs Off On $1.4 Million Loan To Repair Gas Leak
April 11, 2012
The Town of Century took a major step forward Tuesday toward eliminating a natural gas leak somewhere under Highway 29.
About 6,515 feet of 4-inch steel natural gas line was buried beneath the southbound lanes of Highway 29 when the road was widened. Now, 45 years since the almost 1.25 mile long pipe was put into the ground, the town believes the steel is corroding and leaking somewhere between West Highway 4 and McCurdy Street.
In a special meeting Tuesday, the town council approved a $1.401 million USDA Rural Development loan to cover the cost of replacing the pipe.
Dale Long, the town’s engineer, said the design phase of the project will take a few weeks and work could begin by summer on the project. A new 4-inch pipe will be placed on the west side of Highway 29, while a new 2-inch pipe will be installed on the east side of the highway, eliminating the need to install pipes under the road to service natural gas customers.
The $1.401 million loan will be repayable at $64,348 per year, based upon a 3.375 percent interest rate over 40 years. The loan will be repaid from the town’s gas department, which currently has sufficient revenues to meet the obligation. In the event that gas department’s revenues should be insufficient to repay the loan, the town will be required by the federal government to raise natural gas rates for residents and businesses.
The USDA will have first lien on all Century Gas Department revenues during the life of the loan. The town must maintain a reserve fund to meet the payment schedule and must agree to make payments by automatic debit from a bank account.
The council voted unanimously Tuesday to permit the mayor to sign the loan documents and establish separate bank accounts for the reserve and construction loan funds.
The leak has not gotten any worse in the year since it was publicly revealed, and routine checks are performed to monitor the situation, according to Mayor Freddie McCall.
Pictured: Century Mayor Freddie McCall signs documents Tuesday morning for a $1.401 million USDA Rural Development loan to repair a leaky natural gas line under Highway 29. NorthEscambia.com photo, click to enlarge.
Comments
3 Responses to “Century Signs Off On $1.4 Million Loan To Repair Gas Leak”
The problem with an inserted plastic pipe is that the existing lines are serving users. That would cut out the leak but also the purpose of the line in the first place.
Again, an abandoned line doesn’t have to be dug up, probably will to some extent but it isn’t necessary.
David for natural gas cars
What gets me is that they have fixed the road …….. Now we might have to tear it up???? come on folks why wait this long?
Phillips Petroleum developed a system back in the 70s, that inserts plastic pipe, through the inside diameter of the corroded metal pipes..
I am sure Century has consulted the best minds in the business.