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Show .ENTERPRISE at accuser MFS points finger We maintain 9lG" t&V ' s . Sl I - s; V I in: selected,,.,,.. I ',.: 5 vA1.-- ' r !K,, ''"W V'vw. A.', ' V .; , ,r:7.- , v !.S ' ... U 4 'S ?'. t)TemitiesS:l '' - j, S' jf ', ' .' -- ' - 'C . - , ,;: V-- .... ' '.; 'U:'.''-.;- .,7, :'; y.-- ' ;;. .' W s ' 7-;,- . ' J.: Z ' ' ..' Vx- & Member Intermountain Stock Exchange 80Wwt Broadway SaK Lake CNy, Utah M10I (01)363-677- 26S0 Washington Bhrd. Ogden, Utah 84401 (801)621-266- 4 1 ' J J . : ...V.; V .Tv'v; y- our NASDAQ symbol is OLIE To an accusation that it concealed evidence, Mountain Fuel Supply Co. has responded with a charge that its ac- cuser did the misleading. MFS response came in an answer to a motion by the Committee of Consumer Services to reopen a hearing into the validity of property transfers and division of revenues with its wholly-owne- d exploration subsidiary, WEXPRO. The committee charged that Fuel Mountain de- liberately withheld requested information on production of various liquid hydrocarbons from its wells in the Brady Unit in southwest Wyoming. The utilitys response, signed by attorneys Robert S. Campbell, Gregory B. Monson, and R.G. Groussman, maintains that statistical summaries of well production vere indeed provided. The committee had attached to its motion copies of documents filed by Champlin Petroleum Co., the unit operator, with the Wyoming Oil and Gas Conservation Commission which allegedly contained the information requested by both the Division of Public Utilities and PSC commissioner Kenneth Rigtrup. broke down documents production in The 15 terms of condensate, gasoline, butane, propane, kerosene, other, and sulphur. The contention was that MFS knew of these filings and deliberately did not reveal them. Hie utility in its answer countered that the Committees attachment ivas an attempt to color and confuse the issue, partly because it failed to also attach the Operators Monthly Report of Wells, also filed in Wyoming, which the Division has had for some time. Those reports break production down in terms of Liquid oil, water and gas. hydrocarbon production is reflected in the oil category, as it is required to be reported un- der U.S. Geological Survey regulations. The company response also noted that designation of certain wells as gas wells on some of the Champlin reports was unremarkable because the particular report form only dealt with natural gas liquids. Other wells on the same forms are designated as oil. MFS also raised a number of procedural objections including lack of the timeliness and that the motion to reopen the WEXPRO case was based on a request for information made in the utility's rate increase, a separate proceeding. The data on what has been classified as gas or oil and how much of each kind of hydrocarbon has been produced was important because much of the contention between MFS and its adversaries centers on what revenues should go to WEXPRO, earnings on which all go to ratepayers or arc used internally, and which to Mountain Fuel to be used in determining consumer rates once shareholders get their legally allowed rate of return on investment. The WEXPRO debate has taken up the majority of time spent in considering an MFS rate increase request since last spring. The PSC recently approved the transfer of assets to WEXPRO and an exploration agreement in which both companies put up $3.1 MFS will get gas million. discovered, WEXPRO will get oil, and separated hydrocarbons will be split in a manner yet to be determined. The rate case is still continuing. MSR says MARAD in default MARAD Exploration Corp., Tulsa, Okla., last week defaulted on a $414,260 advance royalty payment stipulated in a sublease contract with Mountain States resources. The contract covers 11,500 acres of coal leases held by MSR in Sevier County, Utah. MARAD has 10 days to cure the default, according to Ray Alvretchson, MSR president. Albretchson said Mountain States has the right, should the default not be cured, to exercise remedies including the right to terminate the agreements, retain all sums already paid by MARAD and demand reconveyance of the subleased properties to MSR. A The agreement between Mountain States and the privately held MARAD calls for minimum payment about $15 million in advance royalties over a period of 20 years. MARAD has paid MSR $414,260 in the last year and has already expended an undisclosed sum in exploratory costs, Albretchson explained. The executive said independent surveys of the acreage under lease indicate as much as 100 million tons of recoverable high volatile coal reserves. Albretchson said the company wouldnt have any further comment on the situation until after the ten day grace period expires. GREATElTHEiMOOD EORlTHElHOUDAYS for selection and friends with carefree moments family. Largest in the Mountain West, including Mananita. Driftwood. Pine Cone. Silver Birch. Oak and other styles. Sizes IS" to (Hi wide. Ideal for gifts! Truetolife gas logs create great holiday atmosphere COMFORT AND CONVENIENCE 1 of REPLACES f (sHreTUulmf Headquarteri |