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APPROVED 10/13/2014 OC Board of Adjustment – 8/27/2014 Page 17 of 64 Matt Rhoads: They currently have agreements to provide natural gas that already exceed the supply so 1 there is an immediate demand and need for this gas right now but I think what they are saying it is 2 designed to satisfy that immediate need but also provide for future growth so we are not back here in 3 front of you guys in 10 or 15 years. 4 Jeff Schmitt: So if you didn’t put this in and the existing volume was not able to handle the existing 5 demand, what happens to the new construction, both commercial and residential, what is utilized to 6 provide their heating/cooling, would it be electric. What happens? 7 Andrew Moore: It would have to be some other alternate source. 8 Jeff Schmitt: What is an alternate source? 9 Andrew Moore: Electric, propane. 10 Matt Rhoads: PSNC would be in a lot of trouble with the Utilities Commission at that point because they 11 are obligated by statue and regulation to provide an adequate supply of gas for the customers in their 12 service territory so if they were to end up in a situation where they could not meet the demand for the 13 gas, that would be a major issue. They are obligated by statute to have an adequate supply. 14 Jeff Schmitt: In other words, looking at it in another way, the State statute and the Regulatory 15 Commission is dictating that you have to have this available for future use. You have no choice in this 16 matter? 17 Matt Rhoads: They have to ensure an adequate supply. If PSNC were to only meet the current demand 18 and let’s say a, and I’m making this up, I don’t know if ….. Let’s say a 10 inch line today would fit that 19 immediate demand, then I think they would be in compliance but they would have to come back in to 20 meet future demand in 10 years and put another line and at some point the Utilities Commission is going 21 to look at that when they looking at rate structure and things like that. Future planning is obviously, 22 installing one 16 inch is cheaper than installing two 10 inch at different times. 23 Jeff Schmitt: Trying to get a perspective so the audience and the Board has an understanding of why 24 this is being done in a broader context. Mr. Rhoads, you objected to the Board even hearing this case 25 tonight and I understand that. Has any other county in this state ask you to have a, or demanded of you, 26 for a special use permit to be issued? 27 Matt Rhoads: Are you guys aware of any? 28 Andrew Moore: We have been required to have special use permit for above ground facilities wher e we 29 have a regulator station or a valve station, something like that. There are no other counties that require 30 us to have a special use permit for an underground pipeline. 31 Jeff Schmitt: It might be said that this County is going above and beyond what any place else in to 32 ensure that if a pipeline is put in that the safety issues, requirements of it and everything is done in the 33 most safe manner as possibly can be seen. 34 Matt Rhoads: My objection to that was under the rule of preemption that that the State and Federal 35 governments and the regulatory bodies have so completed the regulated the safety issue that is not in 36 the purview of the County to apply any stricter safety requirements that those state and federal structures 37 do and that is just a legal principle called preemption that if the feds and the state are telling us how to do 38 it … and really if you read the statues for the Utilities Commission, one of the reasons to having the 39 Utilities Commission is to make sure that things are uniformly done across the state and to me that again 40 is a preemption because if every county had its own requirements for different safety standards and 41 depths and where you could and couldn’t go, it would be impossible for a utility to really operate across 42 the state. 43