SULLIVAN, N.H. (MyKeeneNow) The long-debated plan to expand a gravel pit operation from northern Keene into Sullivan has been paused, at least for now. Jaffrey-based G2 Holdings, LLC has withdrawn its application before the Sullivan Zoning Board, effectively halting the portion of the project that would have crossed the town line, board representatives confirmed.

The withdrawal comes just over a week after Sullivan resident Jim Manley filed a lawsuit against the city of Keene, seeking to overturn the Keene Planning Board’s conditional approval of the company’s expansion. The court case adds another layer to a conflict that has spanned both municipalities for much of the past year.

G2’s proposal, first introduced in late 2024, called for a 13-year expansion covering roughly 325 acres—about 200 of them in Sullivan. The company sought to extend excavation northward from its existing Route 9 operation up Nims Hill, with long-term plans to move beyond Keene’s borders.

In Keene, planners granted conditional approval last month after months of debate and several continuances. Their 7–1 decision required G2 to replant cleared areas, coordinate with the N.H. Department of Transportation on traffic, monitor vibrations from blasting, and maintain $5 million in liability coverage.

But approval in Sullivan was never guaranteed. Because the town’s single zoning district does not allow commercial excavation, G2 needed a special exception to continue its work there—and had also sought retroactive approval for material it had already removed. Members of the zoning board had discussed splitting the request to separately address remediation of the unpermitted work, but both portions of the application have now been withdrawn.

Manley, who owns property abutting the site, has been one of the most persistent critics of the project. He and dozens of neighbors have voiced concerns about noise, dust, property damage, and what they describe as a threat to the character of the rural area. Some residents near G2’s other pits in Keene and Gilsum have also alleged well and foundation damage linked to blasting, claims the company disputes.

The Sullivan resident’s opposition intensified after Keene’s September vote. He first petitioned the Planning Board for a rehearing, arguing that its decision ignored traffic discrepancies, environmental risks, and conflicting data about groundwater. The board, chaired that evening by Vice Chair Roberta Mastrogiovanni in the absence of Chair Harold Farrington, unanimously rejected his request during a brief 40-minute session that did not include public comment.

Manley then turned to the courts. His Oct. 6 appeal in Cheshire County Superior Court contends that the Planning Board acted “illegally or unreasonably” under state law and Keene’s land-use code. The city has not yet filed a response, and a scheduling conference is set for Nov. 4.

For G2 Holdings, the path forward remains uncertain. Any further action on the Keene side depends on the outcome of Manley’s lawsuit and the company’s ability to satisfy the city’s lengthy list of permit conditions.