Letter

DEPARTMENT 0F THE ARMY
NEW ENGLAND DlSTRICT, CORPS OF ENGINEERS
696 Virginia Road
CONCORD, MASSACHUSETTS 01742-2751

16 April 1999
Regulatory Branch
CENAE-CO-R-199900010

Douglas G. Cerretani
Senior Environmental Specialist
New York State Electric & Gas Corporation
Corporate Drive, Kirkwood Ind. Park
PO Box 5224
Binghamton, NY 13902-5224

Dear Mr. Cerretani:

This is in response to your proposed construction of a natural gas pipeline from Bennington to Rutland, VT. The project will connect with Iroquois Natural gas pipeline in Bennington. As a part of the project, Vermont Energy Park Holdings proposes to construct a power plant in Bennington and another in Rutland. The project will also involve the future construction of distribution lines. For purposes of permitting the project under Section 404 of the Clean Water Act, we consider your proposed pipelines and and energy park holdings power plants as part of the same project.

We have determined from the information you provided that the basic project purpose of this project is to provide a safe and efficient flow of natural gas between Bennington and Rutland, Vermont and associated distribution lines and generation facilities

We will use this "basic project purpose" in determining compliance with the 404 (b) (1) guidelines.

Sincerely,
William P. Lawless, P.E.
Chief, Regulatory branch
Construction-Operations Division