Sky-high natural gas and oil prices are leading to a rush of new drilling rigs in Utah and to a record year in the production sales values of "extractive industries."

By the end of 2005, Utah is expected to see the total sales value for oil, gas, minerals and coal reach $6.3 billion, a 50 percent increase from $4.2 billion in 2004, and the largest amount in the 40 years the state has been tracking the number, according to John Baza, director for the Utah Division of Oil, Gas and Mining.

The figures encompass the sales value of produced crude oil, natural gas, minerals, coal and metals.

"It's the biggest number I've seen, and I've been working in Utah now since about 1984," Baza said. "As product is produced and purchased in the state, people are paying taxes on that. Revenue streams and livelihoods are dependent on those kinds of numbers. There are people who are receiving income because they are working on those projects."

Baza said the state approved 1,600 applications for well permits in 2005, up from about 1,100 in 2004.

In a statement released Wednesday, Gov. Jon M. Huntsman Jr. attributed much of the excess revenue in the state's budget to "recent robust activity in the extractive industries."

Huntsman said the collection of severance taxes and mineral lease monies far exceeded estimates, assisting efforts to fund education and transportation.

And with the monthly average wage of mining jobs in Utah at $4,609, according to the mining division, the industry is a significant economic engine of growth for the state.

"These jobs are safer, higher-paying and offer steady employment," Huntsman said. "Mining brings greatly needed, positive economic development to our more rural areas of the state."

Though production sales values for 2006 will depend on a number of economic factors, including the pricing of commodities, Baza said that he would not be surprised to see the number reach $7 billion. He said most of the increase would take place in the oil and gas industries.

Baza also said there is potential for growth in the oil shale, tar sands and uranium industries, which could further boost the figures for coming years.

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E-mail: danderton@desnews.com