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Show 1 B-10 Wed/Thurs/Fri, March 19-21,2008 The Park Record Pipelines promise to even gas costs Texas is the country's biggest aJ supplies and lop off price spikes in other regions, especially the producer of gas, but there's no AP Business Writer East, but at the expense of Rocky shortage in the West. Beside working gas fields and known supplies, SALT LAKE CITY (AP) - In Mountain states. the Rocky Mountains, the energy "We have felt the impact," said the Rocky Mountains alone contain crisis has mostly been a crisis for Mark Stutz, a spokesman for more than 200 trillion cubic feet of natural gas producers and a boon Colorado's Xcel Energy, which has probable natural gas reserves - a for consumers. been forced to raise rates by 36 per- 10-year supply for whole nation, Last fall, gas suppliers compet- cenfthis heating season and blames said John Curtis, a geologist who ing to stuff excess production into the new Rockies Express pipeline runs the Potential Gas Agency at the Colorado School of Mines. constrained pipeline systems drove for the competition. spot prices to a laughably low 5 "The concern is that we are For decades that gas sold for cents for 1,000 cubic feet of gas. going to be paying prices that are cheap. Now, suppliers are giddy at That's the equivalent of a nickel to more analogous to what we're see- the prospects of higher profits. heat a typical house for two winter ing in the Midwest or California," Largely because of the new days. he said. That could mean a dou- pipelines, Questar, among other Rocky Mountain produc"A lot of producers diders, is planning to hold n't think it was funny," said Porter Bennett, president The concern is that we are going to_ and chief executive for By PAUL FOY PRESEASON SALE! We feature the mountain west's largest selection of quality patio furniture. Pre-season savings on barbecues, swings, gliders, rockers, tables & chairs, umbrellas, replacement cushions and much, much more. [_- - - • _ -*• I .i • IT HAPPENS ONLY ONCE A YEAR! - ZZ, -~=$ HURRY'. FINAL 3 DAYS! "We Know The Way You Love To Live Inside-Out" www.leisurelivinginc.com 2208 So. 900 E. In Sugarhouse energy analysts Bentek t)Q paying pHCeS that are more analogous MONSTAT ioam-6pm 4.ft7-^2RQ ^ ° * *-»^-«-»^< to the Rockies Express in Energy LLC "They were December. actually paying somebody to what we're seeing in the Midwest or "We're off to a to take it." Storing gas or good start," Rattie told turning off wells isn't California." investors in a conference always practical. call Feb. 13 on the compa-Mark Stutz, Yet for consumers ny's performance. Xcel Energy "Rockies prices should be across much of the West, where natural gas historimuch higher this year." cally has been cheap and Not every gas plentiful, the party is almost over, bling of rates, though analysts see driller is convinced. and it may have ended with that more moderate, gradual increases. 'i'm personally very skeptical final discount splurge. The first of a Even now, relatively low prices about getting in the Rockies for gas handful of major new pipelines persist in the Rocky Mountains production, because I he market is originating in the Rocky Mountains because gas production is soaring so volatile and weak at limes," said is starting to siphon away the boun- with the price of oil, and new Sidney J. Jansma Jr., president and ty, promising lower prices for other pipelines can quickly get leased to chief executive of Grand Rapids, regions. capacity, leaving some competition Mich.-based Wolverine Gas & Oil Corp., which is producing 10 per"If you don't care about the rest among producers. of the country, it's not such a good A survey by The Associated cent of Utah's crude oil after makthing." Bennett said in Golden, Press found that households across ing a wildcat discover)' in 2004. Colo. 'lWe kind of get screwed in the Rocky Mountains buying natu"I'd rather work somewhere' the deal." ral gas from major utilities pay as else. I've got a big project I'm workGas suppliers say this equation little as $6.36 a decatherm, a heat ing in Ohio where I'm going to get works both ways - if they can't value roughly equal to 1,000 cubic the return I need producing natural maximize profits, fewer companies feet of gas, depending on the quali- gas," said Jansma. He started would bother drilling for natural ty drilling in Ohio on Feb. 21. gas in the West, which could lead to Consumers generally are In other parts of the continent, shortages and higher prices. They notably Georgia and South buffered from the highs and lows of say gas production will continue to Carolina, natural gas can top $25 a market prices for natural gas, but soar, keeping prices around here decatherm. Hawaii has the coun- their regulated rates follow general under control. try's highest average prices at more trends. The new pipelines will take the than $34, according to the U.S. In Utah, which has the lowest Rockies' landlocked supply to Energy Information average natural gas prices outside major markets in California, the Administration. " Alaska, the major utility Questar Phoenix area and flood the Arizona has some of the West's Corp. delivers gas for $8.17 a Midwest, where it can free up other highest prices for natural gas, but decatherm, plus taxes. supplies for the gas-starved the doubling up of a pipeline from Questar's Utah customers have Northeast. northwestern New Mexico will special protection from price hikes. The so-called big dog of these moderate higher-cost gas from Under a court ruling 32 years ago, new pipelines - the 1,678-mile Texas, said Libby Howell, a spokes- Questar was forced to sell gas from Rockies Express from Meeker, woman for Arizona's major suppli- its Wyoming fields at no more than Colo., to Clarington, Ohio, - is er, Southwest Gas. It charges winter the cost of production to its Utah largely built and partly operational. rates of $15.15 a decatherm. • ratepayers, who helped pay for the It's the biggest pipeline project in As long as gas production con- drilling. Utah consumers get 40 perthe continental U.S. in the past tinues to ramp up in the Rocky cent of their heating gas through quarter-century, said Joe Hollier, a Mountains, producers argue, local this arrangement, which will continspokesman for builder Kinder prices should stay under control. ue to buffer them from market Morgan Energy Partners. And the outlook for gas produc- upswings. Nearing full capacity, the tion is strong, says Keith Rattie, "The ratepayers totally won," Rockies Express will move 1.6 bil- chairman and chief executive of said Daniel Berman, a Salt Lake lion cubic feet of natural gas a day Salt Lake City-based Questar City attorney who handled the case. - a third more gas than the daily Corp., a gas driller and utility that Associated Press writers Sandy consumption of Denver and other has been beefing up its own Shore in Denver. Todd Dvorak in cities along Colorado's Rocky pipeline systems in parts of Boise, Kathleen Hennessey in Las Mountain Front. Colorado, Utah and Wyoming and Vegas, Bob Christie in Phoenix, Besides making more money for has huge reserves of gas. Mead Gruver in Cheyenne, Wyo., gas suppliers here, analysts say the "The producers are drilling and Shannon Dininny in Yakima, new pipelines will even out nation- away," he said. Wash., contributed to this storv. $2,500 for community service Commemorating its 25th anniversary this year, SelectHealth seeking to honor 25 individuals or Stay home this Saturday morning.; isgroups throughout Utah with the We'll bring the newspaper to you. \ Select 25 award for encouraging healthy behaviors or giving outstanding community service. Each of the 25 winners will The Park Record. Now with home delivery\ receive $2,500 to further their causes as part of the Select 25 award. Those interested may apply or nominate others by April 11 by visiting www.selecthealth.org/select25. "We're excited to celebrate our anniversary by honoring some of the wonderful people in our state working to improve our lives and our communities," said Sid Paulson, SelectHealth president and CEO. "We appreciate our role in the community and we expect to continue to help our members stay healthy and access the highest quality of healthcare." A selection committee comprised of business leaders, community members, and SelectHealth representatives will review nominaj ^^^£Mg UP HERE, THE HIGHLIGHT OF THE DAY DOESN'T ALWAYS INVOLVE SKIING. Offering Deer Valley's awardwinning cuisine in a contemporary, lodge setting. Open daily during the winter season with sit-down service for lunch, aprcs ski and dinner from 11:30 a.m. - 9 p.m. Fine wines and liquors served. Free parking.available. dcervalley.com/royalstrect (435)645-6724 : : ; ; , - . ; ^ ' ^ ' 1 &" ': I tions and name the Select 25 recipients. Program information also is available at Zions Bank locations. Smith s Food and Drug pharmacies, and Intermountain Healthcare facilities throughout the state. Select 25 recipients will be invited to an awards luncheon on May 27 in Salt Lake City. More information and applications are available online at www.selecthealth.org/select25. Submitted by Megan Kelly of SelectHealth. |