DNR grants firm permit for project on Lake Peigneur

“They shouldn’t even think about granting a permit, based on what’s going on in Assumption Parish and what we have going on in the lake.” Nara Crowley,   Save Lake Peigneur president

The state Department of Natural Resources has granted the first of three state permits for the proposed expansion of an underground natural gas storage operation in the salt dome under Lake Peigneur in Iberia Parish.

AGL Resources, of Atlanta, is proposing to scour out two new salt caverns for its Jefferson Island Storage & Hub facility, where two existing caverns have been used for gas storage since the 1990s.

The proposed expansion has drawn opposition from residents living around the lake, several public officials in the area and environmental groups.

“We are going to continue to fight until the end,” Save Lake Peigneur President Nara Crowley said Tuesday. “They shouldn’t even think about granting a permit, based on what’s going on in Assumption Parish and what we have going on in the lake.”

Crowley and other opponents repeatedly have raised the issue of the large sinkhole in Assumption Parish that is tied to a collapsed salt cavern, arguing state regulators should take a close look at any new salt cavern storage permits.

They also said unexplained bubbling has been documented at Lake Peigneur in recent years.

Strange bubbling had been reported in the Bayou Corne area before the sinkhole developed there.

As recently as last month, agents with DNR traveled to Lake Peigneur to investigate reports of long lines of bubbles on the lake’s surface but reached no conclusions on the cause.

The permit granted by DNR last week is for dredging work that needs to be done in order to bring equipment into Lake Peigneur for the expansion project.

AGL still needs two additional permits, one to scour out caverns in the salt dome and another to store natural gas in the new caverns.

The company cannot begin the dredging work needed to bring equipment into the lake until the other permits have been approved, according to permit approval documents mailed by DNR this week to interested parties.

Many of the comments made at a public hearing last month on the dredging permit focused on safety and environmental concerns related to the main cavern project. DNR officials stated in the permit approval documents that those questions will be addressed when the other two permits are considered.

Opponents of the dredging permit have raised concerns about how dredging could affect water quality at the scenic lake, but DNR officials responded that impacts are expected to be minimal.

AGL has maintained the company has done all the necessary research for a safe expansion of the gas storage facility and has pointed to a record of no problems since the initial two caverns began operating in the 1990s.

The proposed expansion of AGL’s Lake Peigneur operation has been on hold since 2006, when then-Gov. Kathleen Blanco called for an extensive environmental study of the project.

AGL responded with a lawsuit against the state, and the case ended with a settlement in 2009 that called for additional safeguards but not the environmental study.

State Sen. Fred Mills, R-Parks, unsuccessfully pushed legislation last year to require extensive environmental impact studies for some salt cavern storage projects and said he plans to re-urge the legislation in the upcoming session.

“I did have several legislators say we would like to look at this again, in light of Bayou Corne,” Mills said earlier this month.


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Comments (3)


1) Comment by zealer99 - 13/03/2013

I do not know the details so I am more than happy to express my uninformed opinion. Multiple permits are required by DNR because there are multiple areas of authority and separate sets of laws and regulations that apply to each. Each permit authority must work its own program and issue its own permit when the guidelines for their permit are applied. When they work through the process, if they do not have a legitimate reason for denying the issuance of a permit, they must issue the permit or the applicant would have an obvious court challenge and one legal "toe hold" moves the process into court where anything can happen. There is an administrative appeals function built into the process that allows an individual to challenge the issuance of a permit if they believe the permitting authority failed to applied the guidelines appropriately but there is a time limit. An individual can seek judicial relief if the administrative remedy is not unsuccessful. An agency cannot deny issuance of a permit because it sounds like a bad idea. But one of the remaining permits to be issued may have rules or laws that affect the project and that may be the case since those permits have not been issued.

2) Comment by conglo - 13/03/2013

In spite of the ongoing salt dome cavern sinkhole disaster in Assumption Parish In spite of the bubbling in Lake Peigneur – cause unknown In spite of the Lake Peigneur disaster of 1980 In spite that the Department of Natural Resources does not require an Environmental Impact Statement or a Seismic Study In spite of Jefferson Island Storage & Hub’s engineering company, TKE Engineering Co., engineer of Moss Bluff, TX natural gas salt dome caverns, completed in 2002 and having 2 explosions in 2004. In spite of JISH having the right to drill for and extract water as may be necessary, incidental, or desirable for the Permitted Purposes, including, without limitation, In spite of Eugene Owen, Director & Chairman of Utility Holdings Inc., Baton Rouge Water Company, etc. testifying at another meeting that contamination problems in Iberia Parish, wells had to be moved, costing millions. Increased withdrawal from the Chicot Aquifer by AGL Resources’ (JISH) proposed well-pumping would significantly accelerate the rate of potential contaminates, arsenic. In spite that the Lake Arthur Fault that runs alongside Lake Peigneur and continues through the Magnolia salt dome at Bayou Corne/Napoleonville. There was an earthquake 3/11/2013 magnitude 2.9 occurred, in the Gulf of Mexico. DNR/Coastal Management has issued the permit to start the expansion of the Jefferson Island Storage & Hub natural gas storage by dredging.

3) Comment by zealer99 - 13/03/2013

The information regarding which permits are required and which one was issued seems to be either a little hazy or incomplete.