AGL, SOL still at odds?

ERATH — AGL Resources representatives hoped residents would leave an open forum last night with a better understanding about the company’s expansion plans and overall track record at Lake Peigneur.

But after more than an hour of answering more than 40 questions posed by Save Lake Peigneur members, Lake Peigneur residents and others opposed to AGL’s natural gas cavern expansion project still believe AGL remains “evasive” about their intentions.

A recent operating agreement reached between the state and Jefferson Island Storage and Hub, AGL’s subsidiary, will allow the company to apply for permits to build two additional natural gas storage caverns under Lake Peigneur if approved by the state Mineral Board.

“We hope you come out of this knowing that AGL Resources is full of integrity,” said Jefferson Island Storage and Hub and Pivotal Energy President Dana Grams. “Even though we don’t agree, our heart is in the right place.”

The question-and-answer session of the forum allowed a panel of AGL representatives to directly address the dozens of pre-submitted questions from Save Lake Peigneur members.

Former KLFY TV 10 anchor Maria Placer served as moderator. Video cameras were barred from the question-and-answer session, but were allowed in the Erath City Park Community Center during the one-on-one information session.

Grams told the crowd that being a good neighbor involves “focusing on commonality instead of differences,” adding that a good neighbor also constitutes giving back to the community as the company has with monetary donations, fire trucks, school equipment purchases and other items it has provided for the area.

When asked, the company would not commit to storing only natural gas in the caverns, as the operating agreement allows for the storage of other resources including carbon dioxide and oil.

Grams said his company chose Jefferson Island because of the high-quality salt in the domes, and also because of the location’s potential for expansion. Company representatives said they could not promise that no additional caverns would be built after this project.

“It’s very difficult to answer what we’ll do in the future,” Gram said. “Natural gas is the energy of the future. We think we provide a valuable service to the oil and gas industry.”

When asked about the operating agreement, Grams said it is the first of its kind in Louisiana because of legislation passed in 2008 that allows for such an agreement.

New Iberia resident Geri Frederick said AGL representatives were spotted in Baton Rouge with the same lawmaker who authored the operating agreement bill, implying that the law was created specifically for the company.

“If you are a good neighbor, why not do like other companies and create the caverns in the Gulf?” Frederick said. “I think it’s cheaper for you.”

The panel addressed several questions about its plans to draw 3 million gallons a day from the Chicot Aquifer, as well as about 2.5 million gallons a day from deeper parts of the aquifer that do not provide drinking water.

Tim Gibson with AGL said the 3 million gallons being drawn for two years is only 1 to 2 percent of the total daily water usage from the aquifer. Gibson also said AGL was the only company to ever restrict its groundwater use voluntarily.

“Once we’re finished (with cavern building), we’re done with the water,” Grams said. “If there are problems, we share those with everyone who uses that water. It’s not just AGL being the bad guys.”

Save Lake Peigneur’s lawyer Julie DesOrmeaux Rosenzweig, however, said those statements do not completely answer the concerns being raised.

“AGL noted that it was the only company that has ever restricted its groundwater use voluntarily,” Rosenzweig said after the meeting. “It failed to note that no other company has ever proposed to draw as much water from the Chicot Aquifer in Iberia Parish, either.”

AGL declined to answer questions about the net profits of Jefferson Island Storage and Hub, but said AGL’s earnings are public record with the SEC.

The company also declined to reveal how much the company owes in property taxes to Iberia Parish or how much the company pays in local taxes to municipalities and parishes. Jefferson Island Storage and Hub has been appealing its assessment for about three years.

Several residents asked about liability insurance for lake residents in the case of an accident, and also inquired about the risk for accidents like the Texaco salt mine accident that drained the lake in the 1980s.

“We’re not going to have an accident,” Grams said.

“Hypothetical questions are not fair. People are dedicating their whole career to making sure that doesn’t happen.”

Save Lake Peigneur Vice President Nara Crowley said after the meeting that she commends the company for its attempts to address some of the group’s concerns, but still thought the company offered “spin” on some of the issues.

“We got some definitive answers, and we’re grateful for that,” Crowley said.

“But they were still evasive on many answers. There are still no guarantees on them not having an accident.”