BY JEFF CHUDZINSKINorth Country This Week

MASSENA -- The town of Massena now has comprehensive regulations for crypto mining operations after years of research, debates and review.

Town board members signed off on the regulations during the Sept. 19 board meeting, bringing an end to a six-year process that began after early operations utilized sea boxes to house their servers.

Following the discovery, town officials put a moratorium in place that was continually extended in three to six month intervals.

Officials signaled earlier this year that the regulations were nearing completion, with just a few tweaks possible before final approval was given.

The news also comes as welcome relief to one operation, North Country Colocation Services, as they seek to expand operations in the industrial zone.

NCCS has operated out of the former Alcoa East facility for years, but an expansion project was placed on hold as the moratorium was continually extended.

NCCS CEO David Fogel raised his concerns with town officials earlier this year, saying the moratorium proved worrisome for investors who were unsure if they wanted to commit $100 million to the project with regulations still in limbo.

At a previous town board meeting, Fogel said the planned expansion by NCCS would be no different than if Alcoa had sought to expand operations.

“There’s all these extra regulations being imposed on us for expanding that wouldn’t apply to other businesses. And, by the way, shouldn’t apply to our business because they don’t fit what we do. I think they do fit what the small operators do,” Fogel said at the time.

Fogel said the regulations, as originally planned, were to address operators "on the side of the road" that cause a nuisance to people "because they're unsightly, make noise and are probably unsafe."

Though the regulations would grandfather in the existing operation, the expansion project would not be included, Fogel said.

"The problem is the wording to maybe five words, ‘but any expansion thereof shall be subject to these regulations.’ That's all we're asking to be resolved," he said.

Fogel said once that language is clarified, he can move forward and get a deal done with investors who would help finance the planned expansion.

"We simply want clarification of the language so that we can confidently move forward with our expansion project and to tell our investors that we can do this," he told board members.

Following his address to the board and over three dozen attendees, town officials began work to clarify the language of the regulations as it relates to expansion projects and industrial zones.

A review by the county planning board followed in June "out of an abundance of caution," according to Town Attorney Eric Gustafson.

Gustafson told town board members it was not a prerequisite to adopting the regulations, however "out of an abundance of caution" he wanted the County Planning Board to review the proposed regulations before the town adopts them.

"This would be the first time anyone has adopted regulations for such operations, so we want to be extra certain that everything is ready before we move forward," he said.

The review came back this summer, with only minor changes suggested. Gustafson suggested board members adopt a few suggestions to tighten up the regulations but also recommended disregarding others he felt were not necessary.

With the regulations now complete, it appears NCCS will finally be able to move forward with the project, creating numerous construction jobs.

Fogel previously said that once the project is complete NCCS will likely be able to double the number of full-time employees, bringing the total to 180-200 total.

The comprehensive regulations will now ensure that seabed containers cannot be utilized as a structure to house the computers used for crypto mining, while also dictating what areas of the town such operations can be established, such as industrial zones.

As part of the regulations, officials also set standards for noise pollution and other factors that may impact residential areas nearby, as well as standards to mitigate negative impacts on the natural environment.