The pre-filing process is deemed the first step in obtaining the necessary permits to construct and operate the facilities. In accordance with precedent agreements previously executed for capacity on the EasternShore Energylink Expansion (E3) project, a third-party customer and Chesapeake’s own Delmarva natural gas distribution division are obligated to reimburse Eastern Shore Natural Gas (ESNG) for pre-certification costs.
John Schimkaitis, chairman of ESNG and CEO of Chesapeake Utilities, said: Projected completion costs have more than doubled and could increase further, and without a corresponding increase in customer commitments, the project is not economically viable.
As we draw close to the end of 2007 and position ourselves for 2008, the board felt the prudent thing to do was to withdraw the E3 project from the pre-filing process.
