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Show I Mountain Fuel Co. To Buy Gas From Agricultural Assn. Mountain Fuel Supply Co. has contracted to purchase natural gas production of DeKalb Agricultural Agri-cultural Association, Inc., in Uintah county and together with Utah Natural Gas Co. plans to construct a 94 mile pipeline to transport the new gas supply to its primary market area. As a part of this transaction the company proposes to purchase pur-chase a 50 per cent interest in Utah Natural Gas Co. and then operate all the facilities the two firms would jointly own. W. T. Nightingale, president of Mountain Fuel Supply Co., in announcing details of the plans said the arrangements should as- I sure present customers of the company of an additional supply of relatively low cost gas for the foreseeable future. He pointed out that the construction con-struction of the proposed pipeline pipe-line and the plans Mountain Fuel has to purchase an interest in Utah Natural Gas are subject to the approval of the Utah Public Service Commission. An application appli-cation seeking this approval will soon be made. The proposed 94 mile pipeline would be 20 inches in diameter and capable of transporting 100,-000,000 100,-000,000 cubic feet of gas a day. He estimated its cost and cost of related production and transmission trans-mission facilities at . over $10,-000,000. $10,-000,000. Route of the pipeline would be from a point within the production pro-duction area several miles east of the Green River westward to a connection with the present Utah Natural Gas Co. pipeline at Clear Cleek in northwestern 45,000 acres, where a successful wildcat gas well was recently drilled. The company has since filed location for the drilling of a second well. "The need for new gas supplies sup-plies is always present in growing grow-ing areas such as we serve. We are particularly pleased in being able to acquire a new supply of gas in our own state and to provide pro-vide the means by which we can transport this supply to market areas. "The arrangements we have made should assure our customers custo-mers of a continued supply of relatively low cost gas for the foreseeable future." Carbon County. Since the pipeline would be in near proximity to some communities commu-nities along its route, the company com-pany proposes to distribute gas to these communities to the extent ex-tent that such service may be economically feasible. The Utah Natural Gas Co. pipe line, which originates, at Clear Creek gas producing field, runs northward and connects with the Mountain Fuel Supply Co. distribution dis-tribution system east of Orem. Reserves from the Clear Creek field have been depleted more rapidly than was originally anticipated an-ticipated when Mountain Fuel began purchasing gas from this source in 1953. Thus the present pipeline from this field has the capacity to carry more gas and its useful life will be greatly extended because of the proposed new line from Uintah county. Extent of the reserves in De-Kalb's De-Kalb's two gas acreage units, Ute Trail and Uintah, is not fully known, but appears to be substantial. sub-stantial. The two units comprise approximately 120,000 acres and are located adjacent to each other 30 miles south of Vernal. Immediately west of the DeKalb De-Kalb units, Mountain Fuel has its Island unit, comprising some |