Lenoir County commissioners approve $435,000 for natural gas line project

Lenoir County taxpayers could end up paying some of the costs associated with building a new natural gas line for the U.S. 70 industrial park, which will initially be used to supply resources to Sanderson Farms when it opens for business next January.

The Lenoir County commissioners approved a resolution Monday to transfer $435,000 from the county’s general fund to its capital projects fund designated specifically for the natural gas line project.

Last month, the commissioners approved a contract with Cary-based M.A. Engineering Conultants to construct a 6-inch diameter line from the Masterbrand site at the N.C. 58 park to the U.S. 70 industrial park.

Officials said the project’s projected $3.4 million price tag would be funded through at least $2 million worth of grants available from Community Development Block Grant and N.C. Rural Development Center grant funds.

David Harris of RSM Harris Associates said Monday the rural development center has designated up to $1 million in grant funding for Lenoir County for the fiscal year.

“The rural center has basically approved your request,” Harris said.

Lenoir County Economic Development Director Mark Pope said the county’s $1 million grant request for Community Development Block Grant funds will also be accepted.

“The full applications are being done,” Pope said. “We will be awarded $2 million very shortly.”

Officials have said they are still uncertain about what the project’s final cost will be and have hinted that the project could come under the estimated $3.4 million price. Pope said the county will also seek $1.4 million from the Tobacco Trust Fund for the project.

“The trust fund doesn’t meet until May,” Pope said.

The county commissioners committed in February to help offset the project’s cost, if all of the requested grant funding wasn’t approved. It was also suggested that the city might help offset the project’s cost, if necessary.

About 300 workers are set to start building the 40,000 feet of pipe that will serve companies at the industrial park.

“I am very pleased with the engineering firm and the work they are doing right now,” Pope said. “It’s a good partnership.”

Local officials have scrambled to meet Sanderson’s natural gas requirements after learning that Piedmont’s previous claims that the company could meet all of Sanderson’s capacity needs were untrue.

According to Pope, Piedmont said in May 2008 that they could meet Sanderson’s requirements but nine months later informed him that their lines did not meet Sanderson’s natural gas capacity needs. The natural gas line project is scheduled to be completed this summer.

Chris Lavender can be reached at 252-559-1078 or clavender@freedomenc.com.

Lenoir County commissioners’ meeting highlights on Monday:

 Recognized Kinston High School’s basketball team for winning 2A state title

 Announced U.S. Census forms will be mailed this week to residents

 Discussed how to reduce county’s inmate health care costs responsiblities