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Show The National Enterprise, December 8, 1976 Page nine Another--Th- e One or Way TMs was ounce Be Must Paid Piper a tamcMoad For 15 years, the Clear Air Solid Waste Disposal System has been reducing garbage volume by 90, converting it to a valuable energy resource, and doing it more efficiently than any other system on the market today. Continued from page three was reluctant to approve last years SoCal arrangement: The Prudhoe Bay gas producers are attempting to circumvent Federal Power Commission regulations by, in effect, offering the gas to the highest bidder in an auction in which the sellers are few and the buyers desperate." Several months later, the FPC itself voted to end the advanced payments program, on the grounds that the program had failed to meet its expressed goal of spurring increased gas exploration and development. Critics of the advanced payments approach argued that oil and gas firms are generally in a better financial position than the hard pressed utilities to borrow money for Furthermore, development. in the case of the arrangement, SoCal would probably have had to pay taxes on revenues raised for the purpose of financing the SoCal-ARC- There will never be a shortage of garbage, only a shortage of space to put it. As this problem becomes increasingly acute. Clear Air. Inc. will continue to pioneer the most efficient systems of solid waste disposal and materials recovery recycling with energy generation in the bargain. EPA standards? We exceed them all. Clear Air. Inc. ...meeting the needs of the future. Deff S7CmIAm. Boffalo, N.Y. 1421 A W dr, Dag. r.O. Bos Ofldm. Utah 111 A P.O. Boa H 442 W Bartlett lit MISS m .1 i . Going public is tough. Keeping your seat is even tougher. y Going public can be a great opportunity for growth (stock can often facilitate acquisitions) . . . but its not much consolation if youre left on the outside looking in. We can make your company public and keep you in control. No need to w'orry about months of delays, either. We move quickly and precisely. Talk to us before you give your company aw ay to a board of directors. You built it; you should keep it. mnritir Corpnrafam 747 E. South Temple Salt Lake Citv, Utah 84103 (Chatham j (801) v u r 531-023- 6 Contact Richard L. Chatham, President Salt Lake City (801) 531-623- J .1 r! "i 6 natural monopoly a monopoly created because competition would raise the prices consumers pay." To protect the consumer from undue O unlike the ARCO loan situation if the oil firm had borrowed the money directly. In unregulated industries such t. artificially low' government regulated price than sellers can profitably provide. Shortages result and demand is therefore stimulated. In the monopoly power, and to insure a reasonable" electriend, gas purchasers find some city rate, regulatory authorilegal way (albeit reluctantly) ties have been established in of avoiding price regulation, most localities to pass judgepaying the higher price that ment upon requested rate gas suppliers require to provide adequate supplies. In the increases. Those authorities, how- end, natural gas might well be ever, face an insuperable produced in about the same problem: the determination of quantities and the consumers a correct price. At picsent situation may be the same there is no way to determine as would have been the case if exactly what the competive the government, had never price of monopoly-produce- d attempted to regulate the price of gas. goods would be. A utility's provision of In any case, when regulators set a price too low. interest payments to a proconsumers compete with one ducer is one means of paying another in ways besides price more than the regulated price when bidding up the price is for gas in order to ensure Innot permissible. In economic sufficient gas supplies. jargon. Dew calls this non- deed, the FPC decision to price competition. Similarly, abolish the advanced payment the producer's behavior, as he program may have been less allocates the product accord- important than more recent ing to other than price criteria, Commission decisions to ine crease price. The movement rationamounts to ing. Dew concludes that the toward prices high enough to two practices raise the actual equate demand and supply, cost of the good above the though, will be long and regulated price, and also, tortuous, complicated of when the price is too low, course, by the difficulties of reduce the quantity of the dealing with a natural monopoly. good available. Hence: people want to non-pric- contracts are Senator John Tunney pointed out, Its like asking a purchaser of furniture to pay five or ten years in advance of So, getting the furniture." view of in this Dew, says harsh criticism, we may well ask how such roundabout financing devices had come to seem so necessary." They became necessary, simply because government controlled interstate gas supplies have been historically too low and the reason they became regulated in the first place is because they are an essential commodity of a regulated monopoly (which is another story). Utilities, Dew points out, however, are regulated in part because of the very structure of the industry. It is cheaper to provide customers with gas from a single source in a given geographical region, rather than duplicate facilities and lose the advantages of econIn other omies of scale. words, the utility industry provides a classic case of non-existen- buy more and more gas at an Thomas R. Tuttle has been appointed a director and secretary of XRG, Inc. OTC . an energy company specializing in the development of gas and oil properties. Currently president of Potlatch Capital Corporation. an investment bankingventure capital firm based in Bellevue, Wash., Tuttle plans to retain tfiat He also serves on various boards of position. directors, among them: Lang & Company. Seattle: Automix Keyboards Inc., Resmonds, Wash.; and Brothers Four International, Seattle. The new XRG director is a member of the San Francisco Society of Security Analysts, Seattle Society of Financial Analysts, and the Financial Analysts Federation. Energy Reserves North Sea Test Produced Rate Non-Commerci- al WICHITA. Kansas Energy Reserves Group (OTC 1.68, 1.81) announced that the third well drilled on Block 212 in the United Kingdom Sector of the North Sea tested oil at less than commercial rates from a one not productive in their first two wells. The latest test was located approximately 1.6 miles from the first well drilled on the Block, which flowed oil at the rate of 5.540 barrels of oil per day, and 2.2 miles from the second well, which flowed gas at the rate of 18.5 million cubic feet with 1,900 barrels of condensate per day. Additional drilling will be required to determine the commercial significance of Block 212. Zapata Exploration Company is operator for the group of companies which holds the exploration license. Energy Reserves Group, through a 93 interest in owned subsidiary, holds a 25 Block 212. In 1974, ERG entered into a financing agreement with The Superior Oil Company wherein Superior will pay all the costs and expenses associated with ERGs (Zapcx) 212. In return, Superior of the will receive 90 and ERG 10 production attributable to ERGs 25 interest in Block interest until, Superior recovers its expenditures plus interest. After that, revenues and expenses will be shared equally by the two companies. |