Paperwork Problem Holds Up Repair Of Leaking Gas Line Under Highway 29

May 23, 2012

A paperwork problem has caused the Town of Century to start over in the final steps of 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 April 10, the town council approved a $1.401 million USDA Rural Development loan to cover the cost of replacing the pipe.

But, according to town officials, the town received the wrong form from the USDA, and, as a result advertised the meetings incorrectly. So now the town must once again hold various public meetings leading up to signing loan documentation.

Dale Long, the town’s engineer, said the process will create a minor delay in the actual repair process.

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.

Once the process is complete, 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 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 April 10 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

6 Responses to “Paperwork Problem Holds Up Repair Of Leaking Gas Line Under Highway 29”

  1. David Huie Green on May 23rd, 2012 5:47 pm

    REGARDING:
    “according to town officials, the town received the wrong form from the USDA, ”

    Please consider that the more of your life you place in the hands of the government, the more of your life the government can do this to.

    David considering how to contribute to fireworks with natural gas leak

  2. jeeperman on May 23rd, 2012 2:27 pm

    $1.401 million………….
    $500k for eggineering.
    $500k for permitting.
    $401k for the fix.

  3. JM on May 23rd, 2012 1:06 pm

    What I don’t understand is the one and half million dollar price tag.
    Why not just go above the first place and dig over to the gas pipe and
    cut if off and route to the side of the highway. Then run it down the side
    of the road to where you would have to do the same manuver to reconnect,
    THUS cutting OUT the leaking area? I have done that a million times
    with pvc when my yard sprinklers were leaking under a side walk.
    You don’t have to tear up the whole road and there is no reason the pipe
    MUST run the whole way down under the HIGHWAY RIGHT?

  4. jeeperman on May 23rd, 2012 11:11 am

    So why not have that Gulf Breeze bonds company finance this?
    You know, the one where Century is in partnership with…………………….

  5. Ann Brooks on May 23rd, 2012 7:35 am

    It was the Century Chamber of Commerce, not the Town of Century, that did not have the funds to contribute to the firework show. The Town of Century and the Town of Flomaton are each contributing $2,500 to the firework show.

  6. just me on May 23rd, 2012 7:30 am

    OK How can Century pay for this million dollar project but can’t afford a $1,500 firework show? Some things don’t make much since and this is one of those things. If Century was to have activities for the community like a community fundraiser then we all can get things done that need to be done. Do what schools do and churches do when they need money. I SAY DO A COMMUNITY FUNDRAISER FOR CENTURY

Written by William Reynolds · Filed Under News