OAKLAND — The Town Council is moving forward with Kennebec Valley Gas Company, which seeks to build a 60-mile main natural gas pipeline through Oakland and other central Maine communities.

Mark Isaacson, one of three principals of Kennebec Valley Gas Company, gave a presentation to the Town Council on Wednesday night.

Isaacson, Richard Silkman and Anthony Buxton formed KVGC in 2010. Their goal is to form a gas utility that will be delivering natural gas in 2013.

Natural gas, said Isaacson, is much cheaper than oil because of discoveries of large reserves in the eastern United States.

KVGC is working with the Kennebec Valley Council of Governments to negotiate tax increment financing agreements in 11 of 12 towns in which the company wants to place the pipeline.

Isaacson said the city of Augusta is close to completing its maps and TIF agreement with the company. Once the language and mapping are complete, Isaacson said they may be used as templates for other communities. The Augusta City Council has yet to vote on the proposal, however, the Council discussed the TIG last month and will probably vote on the TIF at its meeting next Thursday.

The TIF proposal presented to Oakland stipulates that for the first 10 years the pipeline is operational, 80 percent of property tax revenues would be returned to the gas company and 20 percent would go to the town.

In years 11-15, 60 percent of the tax revenue would be returned to Kennebec Valley Gas Company and 40 percent would go to the town. The main natural gas pipeline through Oakland would be 6.4 miles in length.

Isaacson said the gas company seeks to approve all TIF agreements by the end of this year and secure commitments from key customers — Huhtamaki, SAPPI and Madison Paper — as well as several secondary users, including Colby College and the state of Maine, from the Richmond area to Madison.

Once the company gets the necessary permits, Isaacson construction would be completed in 2012 and 2013. He said residential and commercial users along the route could expect to reduce their energy costs by 30 to 40 percent.

He said he will return to Oakland to make a presentation to the public, per request of the council.

In other action Wednesday, the council approved Police Chief Mike Tracy’s request to attend the 10-week FBI National Academy in Quantico, Va., this spring. The FBI will pay for Tracy’s classes, room and board and mileage. Tracy said Capt. Rick Stubbert will handle Tracy’s administrative duties.

The council also renewed the liquor license at WCC Restaurant at Waterville Country Club.

Beth Staples — 861-9252

[email protected]