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Show Tuesday jesygaBWt July 16, 2002 lllthYfear-No.5- Price, Utah 7 Cities host Community Daze, IB 500 UarjPWMiH!Miw KBS3Z3GQSSSS Coal bed methane plays key role in Utah natural gas supply, reserve During the last 10years,natu-ra- l gas recovered finom deep coal beds at locations across Castle Vfclley has become a significant part of Utahs supply and re The United States Energy Information Administration reports that coal bed gas made up approximately 35 percent of Utahs 4.5 trillion cubic feet (Ef) of proven natural gas reserves in 2000, points out the latest publication released by the Utah Geological Survey. Once regarded primarily as a safety hazard in underground mining operations, coal bed methane has transformed into a major source of natural gas not only for Utah, but at locations throughout the U.S. The improved understanding of coal bed gas was fostered by government funded research and tax credits during the 1970s and 1980s, continues the geological survey. The government incentives CEU helped petroleum companies de- velop techniques to recover the unconventional natural gas re-- counted for more than 28 percent ofUtah's natural gas production in 2001. Last years Perron methane production represents nearly a 15i percent increase when compared to 2000 levels. hi 200 the Ferron formation accounted for 25.6 percent of all natural gas produced statewide. Petroleum company development plans discussed in two recently released environmental impact statements indicate that foe Ferron trend could have 800 to 900 gas wells in production within the next five years, points out the geologic survey. The development projects At the end of last year, will probably double the amount Anadarko, Marathon, Phillips of gas currently produced. and Tfcxaco operated more than Originally the coal bed meth-t- e wells were projected to have 490 wells producing coal bed gas from die Ferron strata, indicates a productive life of 20 years and source. Exploration for coal bed gas started in the early 1980s. However, the first sic production of coal bed methane began in 1991 The earliest exploration effort tested the natural gas resources of coals in parts of two locations near Price- - the Blackhawk and the Ferron Sandstone formations, explains the state geological survey office. The Ferron Sandstone has become the major coal bed gas producing area in Utah. 1 v 'i V1' J . 't . - - t i . , "HU Monday afternoon accident sends motorist to hospital foe latest information released by average recoverable gas reserves of one to four Bcf, pointed out foe Utah Geological Survey. The Utah Divfeion of CM, Gas the latest data compiled by the and Mining reports that the wells . state geological survey agency. on the Ferron formation ac- (Continued on page BA) van was westbound when the vehicle reportedly crossed the canter line .ran off the highway and flipped near the Units from Wellington, East mad to the old coal load-oCarbon and the UHP responded to the scene. Utah Higtiway Patrol Trooper Chris Parkins checks the van involved in mishap Monday afternoon near Sunny- side Junction. TheU.S.6 accident sent a Salt Lake man to Casdeview Hospital with apparent head injuries. The ut weathers latest round of statewide budget reductions By RICHARD SHAW Staff reporter When the Utah Legislature met about budget cuts last week, all state agencies expected the worst But the final results could have been considerably worse for several state agencies, particu-forty for College of Eastern Utah. CEU managed to weather foe situation because of the unique situation the college has been placed in. CELTs enrollment is growing, but revenues in the state are down. It is the same scenario many of the public schools along the Wbsatch Front are facing. In addition, CEU has to pay bade a deficit incurred by a prior administration. The factors are like a vise pushing sideways and down on the college. We are fortunate that state government, particularly those in higher education, understand our dilemma, pointed out Brad King last Friday. King currently occupies the District 69 seat in the Utah House of Representatives and serves as CELTs vice president for institutional advancement-auxiliaries. The cuts that CEU would have to normally absorb after last weeks session are being absorbed by the rest of the higher educations institutions in the state, continued the college vice president They agreed to do that as long as we paid $60,000 of our debt off during the next six months. That means some small adjustments to budgets, but nothing like it could have been had we had to absorb the cuts as well aspayonfoeshortfalL The total cuts approved last week amounted to about $73 million. The figure registered particularly if the economy considerably higher than the $47.5 million recommended by the governor. Utah lawmakers had originally proposed starting with an overall budget reduction of $102 doesnt improve. Most legislators realize that, if the financial situation fails to improve, Utah lawmakers will have to take drastic actions regarding the budget when they meet in January 2003. Basically it boils down to three options. Cut state budgets even deeper, increase taxes or a combination of measures. According to the results of an informal poll on the Sun Advocates web site last week, readers who responded favored, by a large percentage, making more cuts over increasing taxes. On Monday morning, the poll showed 46 percent of respondents wanted to see larger cuts in state budgets while only 22 percent felt that a tax increase was the answer. However, 32 percent felt that both options should be exercised to balance the budget. The problem is that many people dont consider education a state agency. But in terms of million. Even with the lower cuts, state agencies face substantial reduc- tions to budgets and anticipate havirf&fb eliminate an estimated 220 positions to handle the lower funding levels. Developing budgets for the state is a difficult process, par- ticularly when revenues are down. And the states revenues are down significantly from what was projected. Projections are important in state government The regular Utah Legislature approves the budget for the following year based cm projections of what revenues will be for the state. In the event the actual rev- enues foil to meet the projections, the lawmakers convene at a special session in the spring to adjust thebudget based on real num-be- both public and higher education they are," pointed out King. In fact, even some education employees are surprised when they begin to think of themselves as state employees. Many do not consider themselves such, but they are, continued the Utah n. That is the financial position the state currently faces. And if the economy doesnt improve in the next six months, the picture could be much bleaker next January when Utahs governing body meets during the 2003 regular legislative session. But for now, the holes in the states financial boat have been plugged. We were able to use some one time money to plug some of the holes, explained King. But if things dont get better by January, there will be few choices to solve the problems that we would have." The one time revenues King referred to involved a number of sources, particularly money re- - representative and CEU vice president For the most part, the large budget cuts that took place last year affected almost every agency in the state. Another reduction Construction on ttw Reeves building at CEU continues despite state budget woes. College of Eastern Utah was spared targe budget cuts last week, but the economic future of the state will determine what will happen next year. ceived from the tobacco settle- ment reserves and from the road funds. However, the state cer- cannot continue to count on similar funds, Utah law- For the makers must develop perma-tainl- y nent solutions to the problem. long-ter- m, would ultimately cut much closer to the bone and the public could expect some major decreases in services or programs if it happens. The second alternative, increasing taxes, could come in many ways. When most people think of hikes, they usually think of state income tax increase. But there are other taxes that could be changed as well as loopholes that may be eliminated to increase revenues. For instance, the gas tax could be increased so that the road funds could be more directly funded by user fees. Right now, a great deal of the money for roads comes out of the states general fund father than coming directly from the present motor fuel tax. Increasing the gas taxwould ease some of the financial burden faced by the state. Another example of a change that could come is the elimination of many exemptions rather than a direct tax increase. When state taxes are reviewed, it turns out that Utah could bring in $400 million more a year by eliminating many of the existing exemptions. Example range from the state exempting ski resorts from paying sales tax on power to operate resorts to no sales tax being paid on tickets for high school or college athletic events. Other examples include among the dozens granted over the years include no sales tax on vending machines, no sales tax on items purchased by churches and the fact that newspaper and magazine subscriptions are tax exempt But according to King, Utah lawmakers are not talking about ' tax changes right now. Obviously, the matter is an unpopular issue and it is an election year. . The problem with cutting state services is a two-edgsword, indicated King. When people get laid off; they stop providing state services and begin using them. All the services t when someone becomes! (Continued on i ed Castle Valley region, 27 counties issued federal agriculture disaster designation Castle Valley farmers and ranchers who sustained losses due to drought, grasshopper or Mormon cricket infestation, frost, hail and high winds are eligible to apply for I & low-intere- st w federal emergency loans. United States Department of 'V Agriculture Secretary Ann Vene- ignation for all 29 Utah counties ft I Mud bog provides unique playground for local youngsters The mul bog created for the races rtthefairpwinds last Saturday night attracts the attention of several adven- - low-intere- turtiusyoUnestBrThechildrBn decidedtoputttwuntqiie, but imiddy plammind to good use foOowriiv the racesL , 7QOR COPvT -- - - JulyL The USDA reviewed reports frorp Utah Farm Service Agency and determined the counties sustained sufficient losses towarrant foe designation. This designation make all farm operators in primaiy counties eligible to be considered for emergency loans from FSA, provided eligibility requirements are met, said Veneman. FSA will consider st iUU each loan application on its own merits, taking into account the extent of loses, security available, and repayment ability According to foe governors office ofplarming and budget, foe direct economic impacts to Utah farmers and ranchers is estimated at $167 million dollars, resulting in foe loss of 2,700 jobs. The broader financial impact on economic multiplier businesses servicing or benefiting from agriculture enterprises in the counties extends the loss to more than $400 million. I encourage all Utah farmers ami rancherswho have been impacted by this years drought,' insect infestation or other natural disaster to contact their local FSA representative, said state agriculture commissioner Gary Peterson. H -v 1 1 W The federal emergency disaster loans are available to Castle Milley ranchers and farmers who have suffered a qualifying physical or production loss of at least 30 percent in essential enterprise. The loan limit is up to 100 percent of actual production or physical loss. ; The current interest rate on the federal disaster loans is3.75 percent Maximum indebtedness un-der the program is $500,000. Local FSA officers can provide affected farmers and ranchers with additional information. But Carbon and Emery residents must apply for disaster loans before March 3. Carbon and Emery farmers or ranchers may contact the local ' FSA office at 435 . 381-230- 0. V V T 1 - I . |