Durham council considers natural gas
Contributing writer
Steve Moore of Marion appeared at the Durham City Council meeting Feb. 4, representing American Energies Gas Service, a subsidiary of American Energies Corporation. His company has purchased Mac County Gas, Inc. and acquired gas lines to 1 1/2 miles south of Durham. They are interested in extending lines into Durham and supplying residents and businesses with natural gas.
"Natural gas will run 20 to 30 per cent cheaper than propane over a long period of time, and it's more dependable," Moore asserted.
The company wanted permission to conduct a survey to determine whether there potentially are enough customers to make the venture profitable. If so, the city would be offered a franchise. The city would be paid for easements and would not have to invest any capital. The cost of laying lines and getting the system operating would be divided between the company and the gas customers.
"Because of the low interest rates we have now," said Moore, "the company could probably absorb at least 50% of the cost." The remainder would be funded by a monthly charge to customers over a five year period.
Moore's purpose at this meeting was to provide information and to answer any questions council members might have. American Energies expects to receive final approval from the Kansas Corporation Commission within the next month. They then will come back with a formal proposal.
There was considerable discussion in which Moore lauded the advantages of natural gas. According to him, electricity can be generated from natural gas for four to five cents per kilowatt. He also talked about future potential for hybrid systems.
"Is there any way you can give us an estimate of the cost per household?" asked Manuel Kuchda. "That's what people will want to know."
Moore passed around some general information about the cost of natural gas as compared to other sources of energy. He promised to provide more definite figures after establishing the number of expected customers and the cost of installing the system.
American Energies' sales pitch can probably be summarized in Moore's statement, "If we can produce the gas and sell it to our own customers through our own pipelines, that will be really efficient."
In other business, Marvin Rediker, water supervisor, reported that the system is running with no problems with 398,940 gallons pumped last month, down about 50,000 gallons from the two previous months. Verlin Sommerfeld said the meters showed under 250,000 gallons, and the council discussed the difference trying to account for the discrepancy. Sommerfeld will recheck records to see if there was a computer error.
Rediker reported filling the propane tank at the well at a cost of $1.06 per gallon. He said he had found it priced 16 cents cheaper at another source. There was some discussion of whether to change suppliers.
Mayor Glennon Crowther asked Sommerfeld, who handles billing for the water system, "Pete, you got any problems you can't handle?"
"No," said Sommerfeld, "I think I can handle them. I've got problems, yes. Five customers hadn't paid when I checked two days ago. I'll give them a couple more days before I send out letters. I'm not cutting anyone off this month."
Joyce Medley, city clerk and treasurer, presented a financial report for 2002. All funds ended the year with a larger balance than they started with. The general fund had a negative balance of $180.06 Jan. 1, 2002, and ended the year with a balance of $3,928.03. The water fund grew from $19,236.35 to $22,424.98. Beginning the year with $7,003.51 on deposit, the sewer fund ended the year with $10,073.61. Funds available at the end of 2002 included $36,426.62 in a checking account and $73,593.84 in certificates of deposit for a total of $110,020.46.
All bills approved for payment were for routine expenses.
