| Show m Gas companies leased this land his farm on the map designating block of and Indian that figured in the bidding Est is Wallace of Helping him Is Harvey Tribal Business Committee Lands leased are located between Randlett and in the potential natural gas Would be boost- k Mountain Fuel Company makes bid to build gas line into Uintah Basin field Mountain Fuel Supply company and Utah Natural Gas Company submitted a joint application Thursday to the Utah Public Service Commission seeking approval of their previously announced plans for piping newly developed gas supplies from the Uintah Basin to Mountain Fuel's market the two companies asked the Public Service Commission for approval of the following Construction by Mountain Fuel of a natural gaa 20 inches in from the Uintah Basin to a juncture with Utah Natural's present pipeline at Clear Carbon with costs and ownership to be shared equally by two PURCHASE by Mountain Fuel of a 50 percent interest in Utah Natural's pipeline extending from the Clear Creek gas field at and a percent interest in the tools and other equipment necessary to operate the Lease by Mountain Fuel of j Utah Natural's remaining 50 percent interest in the Clear Creek Orem pipeline as well as its undivided 50 percent interest in the proposed Uintah Basin Clear Creek A NEW gas purchase contract the two companies which will provide for the sale of Utah Natural's gas from the Clear Joe's Valley and Flat Canyon fields at the wells instead of sale and delivery at The companies said the con of the new Uintah Basin pipeline is necessary to bring in new gas supplies with which to meet increasing demands for gas service that are anticipated in the next five MOUNTAIN Fuel expects to serve an additional customers each year over the next five years and over the same period anticipates a 57 percent increase in the volume of gas it serves to interruptible industrial the application In the next five i this will result in an increase in the total average daily requirements for gas service of million cubic feet per Cost of the gas to be made available to Mountain Fuel by reason of the Uintah Basin pipeline will be lower than the cost of comparable supplies of gas obtainable from any other the application Included in the reserves dedicated to the new pipeline are reserves owned by Mountain Fuel and others the company has purchased recently various producers in the CONSTRUCTION of tho new pipeline would tend to stimulate related construction activity and exploration for additional gas supplies in the area and would contribute to the general prosperity and economic welfare of the the application None of the costs of constructor purchase prices was men-Sec GAS back page Gas line X Continued from In the at the time Mountain Fuel first proposed construction of the Uintah Basin pipeline the final cost of the pipeline- and its related facilities was estimated at by W. T. president of the FOB ITS 50 percent Interest in Utah Natural's Clear pipeline and related Mountain Fuel would pay an amount equal to 50 percent of the depreciated book cost value of the as of the first day of the month the property is Lease or rental payments would foe calculated each year to take into account variable such as taxes and the average dally flow of gas through the well as fixed charges such as The proposed lease between the companies is for a after which it could be reviewed from year to SINCE the proposed lease and operation of Utah Natural's facilities by Mountain Fuel would terminate the present gas purchase contract between the two new contract is being negotiated subject to Commission approval and The new contract would take into account Utah Natural's withdrawal as operator and would provide for Mountain Fuel to purchase at the well all gas produced by Utah Natural from the Clear Joe's Valley and Flat Canyon fields in central U-tah Natural delivered this gas to Mountain Fuel at Mountain Fuel proposes to finance its share of the Uintah Basin pipeline and the purchase of 50 per cent interest in the Clear Creek-Orem pipeline from cash on hand and bank the application Utah Natural would use proceeds from the sale of the 50 per cent interest in its pipeline along with cash on hand and bank loans to finance its share of the Uintah Basin The companies asked for a hearing on their application at the earliest practicable |
