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Show 8iyjwftMliiir The Enterprise Review , September 29, 1976 Page 3b Mtn . Fuel Seeks to Salvage Assets of Uinta Pipeline Corp . Mountain Fuel Supply Company has asked the Utah Public Service Commission for permission to purchase the assets of the Uinta Pipeline Corporation in Uintah County. For a purchase price of S61,032 Mountain Fuel would acquire approximately 13.7 miles of pipeline, ranging from six to two inches in diameter, one 150 horsepower compressor, and all related gas purchase agreements and property rights. In its application Mountain Fuel told the PSC that Uinta had planned to abandon the pipeline. By purchasing the facilities Mountain Fuel will be able to bring approximately 3.4 billion cubic feet of natural gas to market that might have been lost if the line were abandoned by Uinta. Mountail Fuel plans to move the compressor to another location where it will be more useful, and will be able to salvage approximaely 6.5 miles of company-owne- d pipeline for use elsewhere, if the purchase is approved. The salvage value of the pipe, to be used elsewhere, exceeds the purchase price of the Uinta assets. This enables Mountain Fuel to acquire valuable pipe and a compressor at much less than it would otherwise have to pay. FREE PICKUP & DELIVERY Paper Banners Screen Process Graphic Design Magnetics & Decals Convention Signage Machine Showcards 2365 So. Main Industry Looks to Coal as Gas Supplies Dwindle by Alary1 McMillan Gaber Review Staff Reporter Customers Switch to Coal Mountain Fuel anticipates losing industrial customers to coal. Large users are required to have an alternate source of "That source is energy, Potter said. coal. And, now, gas and coal are usually almost equal in price. If we were to lose Kennecott as a customer, we would have to make up for that by adding other industrial users or byputting gas in storage, Potter continued. He explained in order to contract for gas. Mountain Fuel must guarantee a constant rate of consumption. Losing a large industrial consumer wrould mean either losing a supply contract, or as Mountain Fuel is presently preparing to do, storing d that gas for use. "We expect we will have to triple our present storage requirements to make up for the loss of industrial users to coal over the next ten years, Potter said. Depending on Mountain Fuels supply and its ability to finance further drilling, its capability to supply natural gas to incoming industrial users would vary from the pessimistic possibility of curtailing additions within ten years, to the most optimistic possibility of adding every user who applies. Kennccott Copper Corporation is considering a switch from natural gas to coal as its primary fuel source. According to Ken Kefauver, company spokesman, costs of gas and coal are currently close to a break-evepoint." If the costs of natural gas were to increase further, he said, it would likely result in our switching to coal. What Kefauver did not mention, and what most large energy users know, is that further price increases for natural gas are inevitable. Industrial gas prices have risen 151.1 percent since March, 1974. "We know of three more increases due between now and January. 1977, said Noel R. (Dick) Potter, director of rates and planning for Mountain Fuel Supply Company. The September Federal Power Comn mission ruling contained peak-perio- escalation clauses directing price increases of about eight cents per thousand cubic feet by January. And. Potter said, he anticipates two more increases from Canadian suppliers next year. The price of natural gas has been held at an artificially low' rate for the last 30 years, and now the Federal Power Commission is trying to compensate for it, Potter said. He agrees with an assessment made by the International Energy Agency that Americans wraste too much energy because Since our energy has been underpriced. in have last the three years, prices gone up, consumers have cut back on use substantially, Potter said. Drilling Costs Escalate We are finding we must drill deeper to find gas now than we did before, Potter and that costs much more explained, money. To drill twice as deep costs four times as much. He said presently Continued on page 6b ) Meat Controversy Impacts Utah Firm Continued from page lb a beef carcass and yield an extra 8 pounds of pork that w'ould normally be too expensive to scrape by hand. Mechanically processed meat has been used for years in bologna, hot dogs, canned stews, frozen pizzas and baby foods. In the commodities market, you can move mountains with it. K the commodities market, goes a long way, with cash leverage ratios unlike those of nearly any other investment. Good insight, provided by a commodities specialist, will maximize your profits, minimize your losses. Action? You'll find loads of it in commodities. Theyre dynamic, profitable, and exciting. If vou are unfamiliar with the commodities market, call or write us today. Well show you around. In U'P) CityState. signed a court injunction prohibiting mechanical detaining and criticized the USDA for its failure to study the possible harmful side effects of mechanical detaining before giving meat processors the to use the automated process. go-ahe- Groups Address . Name. Hl a little Nine consumer groups have filed actions against the USDA for allowing meat processors to use mechanical butchering, citing high calcium content and harmful bone particles found in the meat. Judge William Bryant the Phone pm USDAs jS1MADDAlTRADjl5GK0M S,33LSTJVlitin Specialists In Commodity Futures Nutrition Insti- tute,. Consumer Federation of America, Consumer National Consumer Congress, Virginia Citizens Consumer Council, Public Union, Members of Leading Commodity Exchanies against approval of filing mechanical deboning arc Community fETiiwsnrai ad Citizens Litigation Group, Ralph Nader, of the Health Research Group. Virginia Knower, of the Department of Health, Education and Welfare, and John Ruth, Attorney General for the state of Maryland. But Wesley Steffensen, general manager of Beehive, said any bone particles found in mechanically processed meat are too small to be harmful to consumers. He claims that all mechanically processed meat is filtered through a screen that holds back all solid particles larger than .0018 of an inch. Beehives mechanical process, machines involving costing several over $100,000 total, was invented by company president Ray McFarland. Together, he and Taylor built the first deboner by hand in 1968. Since then, the equipment has deboned over 200 million pounds of chicken and turkey a year, Taylor said, and if the USDA will give it a chance, he predicts it will become a popular and effective method of processing red meat. |