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March 8, 2010

$1.1M natural gas fee draws ire

A proposed state fee on natural gas shipped through pipelines in Maine is drawing opposition from the Maritimes & Northeast Pipeline Co., the largest pipeline owner in the state.

Proposed by Gov. John Baldacci, the fee would apply to natural gas brought into the state by pipeline to help pay for cleanup of hazardous spills, as well as planning and training to handle pipeline leaks, according to Capitol News Service. The funds levied would also support planning for handling of liquefied natural gas that could come from proposed LNG terminals in the Down East region. The fee would equal no more than 2 cents per 5,000 cubic feet, would raise $1.1 million a year and be split between the Department of Environmental Protection and Maine Emergency Management Agency.

But Maritimes & Northeast lobbyist Jim Mitchell says the fee is unnecessary since natural gas is lighter than air. "The notion somehow that natural gas is a hazardous material and that there's a cleanup operation that is related to release of natural gas is simply false," he told the news service.

DEP Commissioner David Littell, however, argues that natural gas transporters should be required to pay fees similar to those levied against other energy sources like oil. Littell estimates the fee would raise yearly natural gas home heating bills by no more than a dime.

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