MORGANTOWN – Hope Gas and Quantum Pleasants reignited their dispute this week over Hope’s fuel supply to the former Pleasants Power Plant and the adjacent new Quantum Reform plant that will use the herbal fuel to produce hydrogen for electric power production in what which Quantum calls the old factory.
The matter is being referred to the State Civil Service Commission.
Background of the case
In the past, the former plant was operated through Harbor Energy under a lease from owner ETEM Remediation Two. Energy Harbor, Quantum said in its filing, purchased herbal fuel from Hope for initial use at the coal plant.
Quantum purchased ETEM and its call from Omnis Pleasants, which owns the plant and remains a visitor to Hope.
But Hope doesn’t have enough fuel to meet Quantum Reformer’s needs, and Quantum is in talks with Texas-based Icon New Energy Pipeline, which plans to build a new pipeline to serve the site.
State Law: The Direct Use of Natural Gas Act, known as the Unregulated Bypass Act: A facility that has never been a visitor to a natural gas application, subject to certain criteria, to obtain fuel service from any utility without review or authorization from the PSC. . The law requires the parties to provide a statement of intent to the application that offers fuel service in the domain (Hope, in this case).
Hope said the assignment was illegal because the factory is a longtime visitor to Hope and, other than being verbally informed of the assignment, Hope did not get the call to receive the required letter.
Hope has requested a declaration from the PSC that the plant is an existing visitor to Hope and that the plan is not eligible for exemption under the Unregulated Bypass Act, and that the parties will have to comply with the required notice before attempting to use the statute or start getting rentals and construction.
Quantum asked that the PSC dismiss the petition.
New arguments
Hope presented its update first, followed by Quantum’s reaction on Thursday.
Hope said it will not fuel Quantum Reformer until late 2025, when Quantum needs it, but said it needs time to prepare an application, if necessary, to build additional facilities to service the new plant. And Quantum rejected a proposal from Hope without offering constructive feedback on modifying its proposal.
Hope says Quantum Reformer will not be a new visitor but, as it is owned by Quantum Pleasants, an existing visitor. “The plant is simply expanding to facilitate another way of producing herbal gas. “
Hope claims that Quantum has made conflicting statements about its conversations with Icon. First of all, Quantum and Icon have not closed a deal, so Quantum has made its plans known. However, Quantum claims that Hope’s proposal would not be competitive, without figures to back up that claim.
And, Hope said, the law applies only to natural gas produced in West Virginia. Icon will work with the Rover pipeline in Taylor County, which is an interstate pipeline, so the fuel likely won’t come from the state.
Hope reiterated his fear that wasting Quantum as a visitor would increase fees for visitors.
Quantum argued Thursday that the Quantum Reformer is a new $1 billion investment that will use plant fuel for a new business process and not as fuel for the old plant. It is eligible for unregulated bypass status.
Quantum Reformer will produce hydrogen (for the old plant), as well as graphite and graphene, natural gas. The old factory will no longer want gas.
Quantum argued that if Hope was successful, it could jeopardize the development of brownfields in the long term. “If an app has traditionally served a visitor on a parcel of land and the historic facility is no longer in operation or even potentially exists (demolished), Hope says it has the sole authority to service anything that can be built on that land. If this argument is followed, then the law on the direct use of herbal fuel followed by the legislator means nothing.
Quantum also argued that because Quantum Reformer is an existing customer, it is legally obligated to certify Hope when it plans to transfer to Icon.
And all the fuel Icon will use to ship will come from the Sherwood Lateral River, which is made up of 100 percent West Virginia fuel.
Email: dbeard@dominionpost. com
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