Homer gas pipeline inching forward

State prepares easement for small distribution line as Homer and Kachemak City move ahead on proposals for funding citywide grids

Eric Lidji

For Petroleum News

In an early small step toward bringing natural gas to the Homer area, the state is preparing an easement for a small distribution line heading south from Anchor Point.

The Division of Mining, Land and Water is taking comments on an application from Enstar Natural Gas Co. for two small easements through state land in the region.

The easements would serve an 8-inch high-density polyethylene pipeline running some 1,116 feet. The small line would eventually connect to a trunk line into Homer.

The state is taking comments through Jan. 21.

As Enstar works to connect Homer and neighboring Kachemak City to the Southcentral regional gas transmission grid, the two cities are studying how to fund the distribution grids required to deliver gas from the main line to individual homes and businesses.

In July, Homer initiated a citywide Natural Gas Special Assessment District to finance the estimated $12.1 million build out. If approved, the district would cost each property owner as much as $3,283 over 10 years. The city sent out notices about the proposed district in November and is taking objections from property owners through Jan. 25. If at least 50 percent of property owners object, the city cannot move forward with the project.

A few weeks before the deadline, on Jan. 10, Enstar is holding a public meeting at Homer High School to answer general questions about natural gas expansion and conversion. And the city of Homer is holding public hearings on the district on Jan. 14 and Jan. 28.

In Kachemak City, a small coastal community to the east of Homer — and only about one tenth of the size of its larger neighbor — officials are looking into forming a local investor group to finance its distribution system. As currently envisioned, the group would require a $50,000 investment and would pay an estimated 5 percent interest rate.

The goal would be to raise $600,000 to add to the $400,000 the city is able to put toward the estimated $1 million project. The city wants to find between 12 and 14 investors, and already has eight lined up, Kachemak City Mayor Phil Morris told the Homer Tribune.