Vermont Gas says it will not proceed with phase two of its pipeline expansion project that would have carried natural gas from Middlebury to International Paper in Ticonderoga, N.Y. In a media release, Don Rendall, president and CEO of the company, cited a cost increase in the project and differences with IP. A review of the project, conducted by Vermont Gas at the request of the Public Service Board, found the cost of phase two would increase from $74.4 million to $105 million.