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 Regional Gas Utilization Initiative


The SEDA-COG Natural Gas Cooperative, Inc.

Although Pennsylvania is one of the largest natural gas producing areas in the world, many areas of the state have not had ready access to this resource for heating and power generation. This situation is especially evident in central Pennsylvania, where lack of existing natural gas delivery infrastructure and cost of providing potential service has constrained economic development and consumer access to cost-effective energy options.

To address this need, the nonprofit SEDA-COG Natural Gas Cooperative, Inc. was formed as a 501(c)(12) corporation on June 9, 2016, through the sponsorship and participation of Centre, Clinton, and Mifflin Counties, along with the SEDA-Council of Governments, which serves eleven counties in central Pennsylvania. The Cooperative is headquartered in Lewisburg, PA. For more information about the Cooperative and its mission and functions, access the Cooperative’s Web page here, and download the one-page overview sheet here.

The SEDA-COG Natural Gas Cooperative, Inc. (“the Cooperative”) is requesting responses from potential Consultant Contractors with professional qualifications related to planning, design, development, implementation, maintenance, and operation of natural gas projects that utilize a “virtual pipeline” solution.  Virtual pipeline delivery systems involve delivery of compressed natural gas (CNG) or liquefied natural gas (LNG) by vehicle to areas not connected to any hardline natural gas delivery pipeline, thus forming isolated “gas islands” that can receive financial and environmental benefits from using natural gas.  The Cooperative envisions receiving assistance in developing potential projects that may involve single, larger customers; multiple customers connected via limited, standalone pipeline delivery networks; and/or route-based delivery systems to individuals or groups of geographically-dispersed customers.

Statements of qualifications will be accepted until 4:00 p.m., Eastern Standard Time, Monday, February 12th, 2018.  Responses shall include a listing of standard personnel rates and any desired narrative and required references.  Please note that 10 potential project support services areas are included in this RFQ, but responses may be submitted for selected areas only if desired. 

The complete Request for Qualifications document can be downloaded HERE.
Answers to questions about the RFQ can be downloaded HERE.

Regional Gas Utilization Initiative Study and Gas Utilization Targeted Investment Area Process Model

Between 2014 and 2016, SEDA-COG completed two studies to identify key targeted investment areas for establishment or expansion of natural gas service in its 11 member counties. These projects:

  • Evaluated the feasibility of providing increased access to natural gas utility service;
  • Examined and recommended options for establishing a decision-making body tasked with evaluating and constructing potential projects; and
  • Identified potential funding mechanisms for implementing investments.

The projects yielded two main results:

  • Identification of targeted investment areas – Identification of concentrations of potential users, and evaluation and prioritization of these areas for potential provision of gas service.
  • Identification of supporting legal administrative structures - Recommendations for funding the formation and operation of a multi‐county entity to administer and/or operate new natural gas service. This action resulted in the establishment of the SEDA-COG Natural Gas Cooperative, Inc., in 2016.

The 2017 final project report documents, which cover Columbia, Juniata, Lycoming, Montour, Northumberland, Perry, Snyder, and Union Counties, are available in PDF format for download:

Final Project Report (8 mb)

Executive Summary (1.9 mb)

The 2016 final project report documents, which cover Centre, Clinton, and Mifflin Counties, are available in PDF format for download:

Final Project Report (11.5 mb)

Final Project Report (reduced graphics resolution - 5.6 mb)

Executive Summary (1.9 mb)

As part of the 2016 study, SEDA-COG also contracted for a “Natural Gas Utility Line Extension Law Investigation” report by a utility law consultant. This report evaluated the feasibility of forming an organizational entity to support procurement of funding and administration of operations for new natural gas services. The final report and its appendices are available below:

Final Natural Gas Utility Line Extension Law Investigation Report (900 kb)

Appendix A - Gap Analysis (368 kb)

Appendix B1 – Responses to Questions in SEDA-COG June 2, 2014 Request for Proposals (Part 1) (8.79 mb)

Appendix B2 – Responses to Questions in SEDA-COG June 2, 2014 Request for Proposals (Part 2) (7.62 mb)

Appendix B3 – Responses to Questions in SEDA-COG June 2, 2014 Request for Proposals (Part 3) (2.43 mb)

Appendix C – Summaries of Interviews (508 kb)

Appendix D – Local Government Commission Analysis of the Changes to the Borough Code in House Bill 1719 (463 kb)

Appendix E – Application of Gasco Distribution Systems, Inc., for Approval of the Transfer of its Claysville Division’s Assets, PA PUC Docket No. A-120002F2001; Commission Order September 29, 2006, and Commission Order on Reconsideration December 5, 2006 (2.68 mb)

Appendix F – Application of Gasco Distribution Systems, Inc., for Approval of the Transfer of its Kane Division’s Assets, PA PUC Docket No. A-120002F2000; Commission Order March 22, 2007  (1.39 mb)

Appendix G – Application of Sergeant Gas Company for Commission Approval of the Transfer of its Distribution System Assets to Utility Pipeline Ltd. and immediately thereafter to Knox Energy Cooperative Association, Inc. and for the Abandonment of all Pennsylvania Regulated Service by Sergeant Gas Company, with the Immediate Commencement of Service by Knox Energy Cooperative Association, Inc., PA PUC Docket No. A-2011-2239524; ALJ Initial Decision August 24, 2011 and Commission Order Adopting Initial Decision September 22, 2011 (1.51 mb)

Appendix H – PUC Chapter 56, Subchapter E. Regulations: Termination of Service (52 Pa. Code §§ 56.321-56.361); and 66 Pa.C.S. § 1406 (Termination of Utility Service) (2.15 mb)

Appendix I – Cooperative Corporation Law of 1988 (15 Pa.C.S. § 7101, et seq.) (1.03 mb)

Appendix J – Requirements for Exemption under I.R.C. 501(c)(12), General Survey of I.R.C. 501(c)(12) Cooperatives, Internal Revenue Service, 2002 EO CPE, pages 177-179  (397 kb)

Appendix K – Knox Energy Cooperative Association, Inc. organizational and management documents (4.84 mb)

Appendix L – Keystone Cooperative Association, Inc. organizational and management documents (2.43 mb)

Appendix M – Reporter’s Guide to Pennsylvania Local Government, Third Class Cities (215 kb)

Appendix N – Economic Development Financing Law, 73 P.S. § 371, et seq.) (2.55 mb)

Appendix O – DCED Pennsylvania Economic Development Financing Authority Bond Financing Program Guidelines (1.77 mb)

Appendix P – USDA Rural Development Business and Industry Guaranteed Loan Program materials (555 kb)

Appendix Q – Pennsylvania Banking and Securities Commission, Cooperative Business Associations Exemption (10 Pa. Code § 203.188) (158 kb)

Appendix R – Keystone Cooperative Association; Petition for a Declaratory Order, PA PUC Docket No. P-00991710; Commission Order August 12, 1999 (523 kb)

Pennsylvania’s shale gas resources are providing new long-term opportunities for supporting the state’s economic growth and energy needs.  Natural gas is increasingly being utilized as a source of environmentally cleaner power for industries, businesses, and residences.  Better delivery systems are needed to make natural gas available, and can be provided through expansion of existing infrastructure. 

 

 

 

 RGUI Project

PROJECT GOALS

  • Investigate creation of a municipal authority, cooperative, corporation or other body for facilitating and expanding natural gas utility service.
  • Identify opportunities for providing gas utility service to existing industrial sites/parks and residential areas.
  • Identify at least one potential demonstration project in each of three counties. 

PROJECT LOCATION
Centre, Clinton, and Mifflin Counties in Pennsylvania

PROJECT SPONSOR
U.S. Economic Development Administration

FOR MORE INFORMATION
Contact:
Don Kiel
Senior Principal Program Analyst
SEDA-COG
(570) 524-4491
dkiel@seda-cog.org