The Butler Area Sewer Authority and a Butler Township company came to an agreement Tuesday on an expansion project for that company.

Representatives of The Linde Group asked BASA to dedicate 22 equivalent dwelling units of sewage, or EDUs, for an expansion of its gas production facilities on AK Steel's property in Butler.

Fred Kotar, Linde's project manager, and Kevin LaPlant, the AK Steel plant's operation manger, said Linde makes oxygen, nitrogen and argon for AK Steel.

As the steel company completes several multimillion dollar upgrades at the Butler Works, Linde needs to grow with those AK Steel upgrades.

The need for additional wastewater capacity, Kotar said, stems from the fact that Linde's production and storage processes require a great deal of water to make and cool the gases.

Mike Hnath, BASA's solicitor, said the BASA board would not reserve a number of EDUs for Linde or anyone else.

However, the two sides agreed that Linde could buy the permit for the expanded capacity to guarantee the EDUs.

The cost is $101,000 with an 18 month deadline to begin construction. Hnath said Linde plans to begin building in June 2010.

If Linde's project should change or be canceled, the company could request a refund.

John Schon, a BASA engineer, said the authority has been given approval by the state Department of Environmental Protection to sell any EDU permits that expire or have been returned.

AK Steel could not be reached for comment.

In other business, BASA has been awarded a $500,000 state Department of Community and Economic Development H2O Grant for special projects.

Hnath said the authority is looking to use that money to offset the costs of the Alton and Bessemer streets sewer repairs done earlier this year in Lyndora and for other uses.