Residents of three Juab County towns can give a lot of credit to an organization they may never have heard of for the prospect of having natural gas piped to their homes.
The creation of the Juab Rural Development Agency was an important step in the process of bringing natural gas to east Juab County as well governing gas transmission and distribution.A month after becoming a legal entity in December, each of the communities involved passed a resolution agreeing to participation in the organization and signed an organization contract.
"The agency has the authority to act for the joint interests of all of the members," said Don Eyre Jr., Juab County attorney. Each of the communities in the county and Juab County commissioners have signed resolutions and have appointed two members to the board.
Each of the communities - Levan, Mona, and Nephi - and Juab County have one voting member and one regular member on the board. Those members, acting as the governing board, will make the policy and carry on the business of the organization.
Annually, the agency will appoint officers. The members of the organization, said Golden Mangelson, natural gas project director, have agreed to form the association for the purpose of constructing and operating a natural gas system to serve the needs of the business, industry and residents of their communities.
Eyre said the resolution would allow any member to withdraw from the agency upon payment of all outstanding obligations pertaining to the agency and upon unanimous approval of the members.
"This agency is much like the organization of Utah Municipal Power Agency," explained Mangelson.
The agency will govern the transmission and distribution system of natural gas to each of the entities involved in the organization, said Mangelson.
The transmission system will be planned, engineered and constructed by one of the members selected by the board and with policy input from the board. The same member will operate and maintain the transmission system following its construction.
Planning, engineering and construction will be paid for by each member with Nephi paying 54 percent, Juab County paying 28 percent, Mona paying 9 percent and Levan paying 9 percent.
Operation an maintainence of the system will be shared by the members prorated on the basis of gas transported with policy input from the board.
As part of the resolution, Nephi will sell bonds to cover the costs of the system allocated to the city and Juab County. Juab County and Nephi will enter a separate agreement for payment of the county share.
Levan and Mona will sell bonds to pay for the costs of their own parts of the project.