Lebanon — Two companies proposing to build natural gas distribution facilities in Lebanon have asked the Public Utilities Commission to hold off a review of their projects because of ongoing talks between them.

Attorneys representing Liberty Utilities and Valley Green Natural Gas submitted motions to postpone a decision on their proposals until at least Sept. 2, since the two sides are “engaged in discussions that may result in a proposal to resolve” competing requests for natural gas distribution rights.

Liberty Utilities submitted its letter on Friday, and Valley Green followed on Monday.

“We asked for the delay because we are in talks with Valley Green now,” said John Shore, a spokesman for Liberty Utilities, via email.

“We hope that the two companies can work out an agreement that would be best for the two companies and/or the potential customers in Lebanon and Hanover,” he said.

The city, meanwhile, has objected to the motions for a stay.

Lebanon officials would rather see a decision on the existing proposals before a new one is brought forth.

“Liberty Utilities has not provided the city with any information regarding the nature of the resolution under discussion,” Zoning Administrator Tim Corwin wrote in a letter to the commission. “Therefore, it is impossible to evaluate how, whether and if the city’s interests will be affected by a stay of the current proceedings.”

The letter went on to ask that commissioners make a decision on the competing proposals using testimony and merits presented as part of the ongoing hearing process.

Only then, Corwin wrote, should the companies be able to request a new review.

“We just don’t want to be in a position where the PUC makes a determination (on a proposal) made jointly by Liberty Utilities and Valley Green before we have a chance to review it and comment,” Corwin said on Tuesday. “(The objection) is made out of caution and also recognizing that we have made substantial staff time and investments based on the proposals that were made.”

Valley Green filed its request for a natural gas franchise in May 2015. It’s president, Jay Campion, intends to use part of his 182-acre Etna Road property to construct a depot.

Natural gas would be trucked to the site from Pennsylvania’s Marcellus Shale formation and used to fuel local businesses.

Liberty Utilities filed a competing application with the PUC two months later, and has similar plans for a gas depot at the former Moulton Concrete plant on Route 12A.

Both proposals were heard by commissioners this spring and are awaiting a final decision.

Throughout the process, Corwin represented the city and attended multiple days of hearings with Fire Chief Chris Christopoulos.

He said on Tuesday that any revised proposals submitted to the PUC need to restart the process and deserve a full hearing.

It’s unlikely the commission would grant both companies a natural gas franchise in a market like the Upper Valley, Clifton Below, a city councilor and former PUC commissioner, said.

Though unless there’s a good reason not to, he said, the PUC usually grants stays to allow companies to reach a settlement.

“Typically, the commission favors settlements, or favors parties that are connecting each other’s positions,” Below said.

Meanwhile, both the timing of the PUC’s deliberations and last week’s filings have surprised city officials.

Corwin said state officials once indicated a decision on the franchise rights could be made in July, and there’s been talks of the companies discussing a settlement for months.

State regulators and attorneys at the New Hampshire Office of Consumer Advocate knew of the settlement talks before motions were filed.

In June, a draft motion by a Liberty Utilities attorney almost identical to the a motion filed last week was circulated.

At the time, Liberty Utilities declined to comment on the matter, and Campion downplayed the notion the two companies were in talk to merge projects.

On Wednesday, Campion declined to discuss the project, as did Shore, the Liberty Utilities spokesman.

Objections to the companies’ motions can be made up to 10 days after they were filed, said Alexander Speidel, a staff attorney with the Public Utilities Commission, in an email.

Both Liberty Utilities and Valley Green can also file responses.

So far, the city and interveners Ariel Arwen, Rep. Susan Almy and Stephen Wood have not assented to the companies’ request.

Speidel said the commission will then deliberate on the motions and objections before issuing a ruling on whether to stay its initial decision.

He doesn’t know when the commissioners plan to act, however.

Tim Camerato can be reached at tcamerato@vnews.com or 603-727-3223.