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STEG in the News

  By G. Jeffrey Aaron
Star-Gazette

A second gas and oil field support company wants to build a facility at The Center in Horseheads industrial park.

Kayden Industries USA expects to begin construction of a 6,200-square-foot building next week. The floor plan includes office space and an area to service the centrifuges the company builds in Canada and that are used in local gas drilling operations.

The centrifuges separate solid materials from the fluids used in natural gas or oil drilling operations, said Kayden USA President Myles Lawrence. With the solids removed, the drilling fluids can be re-used and that can reduce the amount of water required for drilling purposes by about 70 percent.

The facility being planned in Horseheads is a service and repair shop. No chemicals will be stored on-site, Lawrence said.

The building's design includes a self-contained storm-water run-off system that can trap and hold any water, in the event it becomes necessary to rinse the equipment before servicing it.

"The water will then be pumped out and trucked to an approved waste facility," said Dan Williams, project manager for Edger Enterprises.

The Elmira Heights contractor is the general contractor for the $1.2 million project. The building project will take about five months to complete and will use both union and non-union construction workers.

On Thursday, the Chemung County Industrial Development Agency began the process that will likely result in Kayden receiving a 50 percent property tax abatement, a mortgage tax exemption and sales tax relief on the construction materials used during the project.

The incentives are the standard benefit package administered by the IDA, said George Miner, president of Southern Tier Economic Growth, and the arrangement calls for Kayden to own the building but lease it to the IDA which will then lease it back to Kayden.

Kayden operates out of a temporary office located at 2020 Lake Road in Elmira Heights. The company employs about 16 people now and projects that number to increase to 29 after its move to the new facility.