SOUTH BURLINGTON, Vt. -
Vermont Gas struck an agreement to sell natural gas to International Paper Ticonderoga Mill.
It will require laying a new pipeline under Lake Champlain.
The companies say this deal is good for everyone, including the environment by cutting greenhouse gases.
"Very exciting, very positive project for us," say Donna Wadsworth, International Paper spokeswoman.
Wadsworth says by 2015 they hope to be fueling the plant with natural gas. Right now they use expensive oil.
"We anticipate that we'll see a significant reduction in our energy costs," says Wadsworth.
To get the natural gas to Ticonderoga will require laying a new pipe under Lake Champlain. Vermont Gas spokesman Steve Wark says they will use a process called horizontal directional boring.
"What we really like about this technique is that it has a minimal environmental impact. It doesn't disturb the lake bottom or any of the bodies of water that we cross under. It protects the pipe," says Wark.
Vermont Gas says this agreement will also benefit Vermonters by speeding up the plan to bring natural gas to Rutland.
That's because Vermont Gas says adding the mill will mean a longer, bigger pipeline than originally planned to go to Addison County. The mill says it will pay for the $70-million upgrade, not Vermont Gas ratepayers.
"This is a win for Vermont and New York," says Wark.
Lake Champlain International while they support projects like this, they want to make sure they are done with the lake environment in mind.
The project still needs permits from both states and the feds. Vermont Gas says it plans to start applying for them later this year.
