Richard Hyde of AGL Resources says being a “neighbor” is important for his company.

Hyde, senior director of governmental affairs for AGL, spoke to the New Iberia Kiwanis Club at its luncheon meeting Thursday. His topic was the expansion of AGL’s Jefferson Island Storage and Hub facility at Lake Peigneur, which Hyde said will create about 69 construction jobs and three to five more permanent jobs.

This expansion, which involves the drilling of two new storage caverns, has prompted concern from Lake Peigneur-area residents and is being debated in the Louisiana Legislature. In the expansion process, fresh water from the Chicot Aquifer will be used to dissolve salt away, resulting in newly created underground space in which to install the natural gas storage caverns.

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Hyde addressed a number of the issue’s specific concerns Thursday.

He shared his frustration about the bubbling and foaming that has been reported on Lake Peigneur, citing the opinions of both private consultants and state regulatory agencies.

“I can’t tell you what the cause is, but it is not coming from our facility,” Hyde said.

He also downplayed concerns about the Jan. 29 release of natural gas that took place following a power outage at the facility and disturbed a number of residents.

He was critical of a bill introduced into the Louisiana Legislature by state Sen. Troy Hebert, D-Jeanerette. This bill, tailored specifically for Iberia Parish, limits the amount of water AGL can remove from the Chicot Aquifer for its JISH expansion.

The bill is waiting to be assigned to a committee in the House of Representatives for consideration.

“This bill denies public right to their due process,” Hyde said.

He also dismissed comparisons between AGL’s activities and those of Texaco, whose drilling efforts in the Lake Peigneur area caused a salt mine to flood and damaged much of the surrounding area Nov. 21, 1980.

“There is absolutely no correlation between our two processes,” Hyde said.

In that incident, a rig drilling for oil struck a open mine shaft, causing water to flood the mine. Hyde said AGL will be drilling into solid salt, dissolving a bit at a time to form an almost pear-shaped cavern.