VIDALIA — A bill that would require additional approval from the state before a company could abandon a gas pipeline in Louisiana is awaiting Gov. Bobby Jindal’s signature.

Senate Bill 525, introduced by Sen. Robert Adley, R-Benton, will be considered retroactively effective and will declare interstate pipelines in Louisiana to be considered intrastate pipelines if the Federal Energy Regulatory Commission (FERC) allows a pipeline to be abandoned.

Under the new law, pipeline abandonment within the state would have to go before the Public Service Commission before it can proceed, and if the pipeline is abandoned the pipeline operators would have to provide customers with an alternative way to get gas.

The bill was introduced this session in response to the proposal to abandon the Midla pipeline by its owners, who say it has outlived its useful life.

Some customers have contended the proposal is a pressure tactic intended to force them to pay higher rates for gas service.

The pipeline supplies the only gas service to several communities in central Louisiana and Southwest Mississippi, including Ferriday, Vidalia, Natchez and Woodville. Local government and economic development bodies have filed objections to the to the abandonment with FERC.

Vidalia Mayor Hyram Copeland said the passage of Adley’s bill was a good thing for communities served by the pipeline.

“This will really be an asset,” he said. “I think it is to our benefit that this bill passed.”

FERC has scheduled a conference Thursday and Friday for the stakeholders of the Midla pipeline to seek a possible resolution.

Midla’s lead counsel Peter Esposito said the company started outreach on the issue last May.

“Ultimately, dialogue gave way to spirited debate, negotiations broke down, and Midla started the formal abandonment process at FERC,” he said.   “With that process underway, we engaged in lengthy discussions with the director of FERC’s alternative dispute resolution division, which resulted in our deciding to deploy all necessary resources toward trying to achieve a negotiated settlement by the end of June.  We hope others will do the same.”

Copeland said he had considered attending the conference this week, but decided not to because Vidalia will have representation through the Louisiana Gas Authority.

“If we need to go to these meetings in the future, we will attend these meetings,” he said. “This issue is very essential to all our communities when we are looking at economic development or growth.

“If you remove that pipeline or natural gas source from our region, that puts us in a very serious situation with regard to energy or industry.”