Vermont Gas Systems says it will seek regulatory approval of the second phase of its plan for a natural gas pipeline in Addison County, to extend it further across Lake Champlain to the International Paper mill in New York state.
The company has sent notices to communities in Rutland and Addison counties.
Vermont Gas says the second phase will establish the infrastructure to bring natural gas to Rutland sooner at no additional cost to Vermonters by leveraging revenues from International Paper.
Environmentalists have raised concerns about the use of hydraulic fracturing to extract natural gas. While gas may be cleaner burning than oil, they say the process of extracting it threatens water quality and contributes to climate change.
Supporters say it will boost western Vermont's economy by providing low-cost energy.