Federal grant gives Shannon, Lee County gas expansion the green light
Mar. 8—SHANNON — More than $400,000 in federal money will allow the city of Shannon to expand its natural gas service south past the city limits.
Phase 1 of the project will add more than 140 households in the Pine Grove community. Later phases will reach out further into southwest Lee County and even into Monroe and Chickasaw counties.
The initial funding will come from a $429,000 Community Development Block Grant. Because the project will serve low to middle income residents, many of them elderly and on fixed incomes, the city will not be required to provide matching funds.
Shannon Mayor Ronnie Hallmark said the project, and the grant money that will fund it, means a lot to the residents of Shannon and Lee County.
"We're doing this as a service to the community," Hallmark said. "If it hadn't been for Rep. (Rickey) Thompson pushing so hard this time around, I don't think we would have gotten the money."
Officials said the new gas lines could save residents as much as 50% on their heating bills, compared to electric or propane.
"We are grateful for this opportunity and grateful to see volunteers and elected officials looking out for the elderly," said Monroe County Supervisor Hosea Bogan. "When you are on a fixed income, the money can only go so far."
With funding in place, Shannon will begin the process of bidding by advertising the construction project to lay lines along county roads 130, 506, 630 and 643. A separate bid will deal with repairing a leak in the old gas main going over Chiwappa Creek south of town.
Hallmark feels the city could begin turning dirt on the project and start laying lines within a few months. He hopes to be able to start hooking up houses in late summer or early fall.
The city has been eying the expansion for four years — since it took possession of an old gas line that runs from Brewer south to Pine Grove. But the small town didn't have the capital to start a major project. After trying for years to secure funding through grants, the Shannon delegation finally succeeded this year.
"This is an awesome day," Thompson said. "There was a lot of going out and knocking on doors to get to this point."
To show the need for the service, volunteers had to canvass the area multiple times to get enough signatures. And each time funding was denied, officials had to start the surveying process all over again.
"I want to thank the community for coming back and sticking with us," said volunteer Steve Hersey. "Sometimes we had to go back to a house two or three times. It was frustrating for them, because they had already signed (the previous petition) and it didn't go through."
The surveys identified 141 households who wanted natural gas in the first phase area. There are additional houses in the same area who could sign up for natural gas once the lines are laid. That additional income would help the city, but would not speed up the next three phases of the project. Like this phase, the city will have to wait for federal funding to become available to continue the expansion.
"This will eventually touch three different counties," Thompson said. "This is something that will be transformational, providing these rural areas with the infrastructure to support development."
Since the city will be providing utilities to customers more than a mile outside the city limits, the gas prices must be approved by the Public Service Commission.
