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Show Expanded Exploration Purpose of New Mtn. Fuel Subsidiary Mountain Fuel Supply Company has formed a new, subsidiary, wholly-owne- d Wexpro Company, in order to expand its exploration activities. On Jan. 1, 1977, Mountain Fuel intends to transfer to the new subsidiary all wells, leases, nonutility lands and related facilities and interests, according to B.Z. Kastler, Mountain Fuel president. The main purpose for establishing Wexpro is to expand our exploration and Kastler drilling program, said. Because Wexpro will be able to raise funds of its own for this purpose, the establishment of Wexpro is discovered and developed by Wexpro on lands and interests transferred. Mountain Fuel also will have an option to acquire all natural gas discovered andor developed by Wexpro upon any of its interests in the Rocky Mountain states. Mountain Fuel has notified state regulatory authorities of its intention and the Utah Public Service Commission will hear the matter before the end of the year.' Redevelopment Eyes Three Blocks for Funding The Salt Lake City Redevelopment Agency is studying the possibility of adding three blocks to the present area serviced by tax-increme- nt funds. The three blocks include two between Third and Fourth South and Main and 2nd East, and the block bounded by State and 2nd East and 2nd and 3rd South. According to Mike Chitwood, agency director, the concept of adding the blocks was approved by members of the Downtown Council. The concept was generated by Mayor Wilsons recent announcement that he wishes the city would help develop the block just north of the Building. "The agency will be analyzing the City-Coun- ty structural conditions of the buildings, evaluating the physical condition of streets and sidewalks and gathering data about the economic condition of the area, Chitwood said. According to Ev Gray, manager of the Downtown Council, a group of five men, Richard Schubach of Standard Optical, Elliot Wolfe of Wolfes Sportsman's Headquarters, Howard Dunn of Zion Securities, Norman Jordan of Auerbachs and Walker Wallace of Wallace Associates approved the concept presented to them by Chitwood during a meeting held December 15. They agreed to study the idea further. expected to considerably broaden the exploration and drilling program, and make greater reserves of natural gas available to back up the company's service to its customers. Kastler emphasized that Wexpro will explore both in conjunction with Mountain Fuel and on its own. Kastler pointed out that many millions of dollars of increased rates collected by Mountain Fuel in the past 36 months have gone to pay higher prices to other producers and exploration companies, but have not added anything to either the earnings or exploration effort of Mountain Fuel. These increased costs were all mandated by the Federal government or the Canadian government. "This means companies we compete with ,for drilling rights are now in much stronger economic condition, and it is harder for us as a utility to compete, Kastler said. He also pointed out that drilling costs are increasing rapidly and markedly, and it is increasingly difficult for a public utility to obtain sufficient funds to carry out the necessary and much broader exploration effort. Wexpro will be engaged principally in the business of exploring for, developing, producing and marketing It hydrocarbon products. in exploramay also engage marand tion, development keting of other natural resources and energy. None of the properties to be transferred to Wexpro are utility properties, Kastler said. None have been paid for by customers, and except for four small oil wells, all are located outside of Utah. In return for the transferred properties. Mountain Fuel will receive capital stock of Wexpro. He said the agreement to be signed by Mountain . Fuel and Wexpro gives Mountain Fuel the option to acquire all new natural gas Total Recreation for $50 Per Month? Yes, for less than the yearly interest on one small boat, you can have access to 13 planes, four boats, Our snowmobiles, a motorhome, and more. multi-us- e recreational program offers all this for a membership fee of $250.00 and a minimum equipment rental fee of $50.00 per month. Special company rates are also available. e staff schedules And we handle it all. Our the use of and maintains all of our equipment. full-tim- Call or write us for more information. RECRE-AIR-IN- C 220 N. 2200 West 801 532-194- 0 |