In a special session Thursday, Juab County commissioners signed the Interlocal Supplemental Cooperative Agreement with Juab Rural Development Agency agreeing to participate in the natural gas project in East Juab County.

A letter of agreement of understanding among the municipalities of Nephi, Levan and Mona and Juab County will accompany the supplemental cooperative agreement."Nephi City is the agent for the agency," said Golden Mangelson, project manager. This gives Nephi the right to sell gas to their own people and to sell gas off the main line. Nephi City will sell to customers around the borders of the city, explained Mangelson.

"Provision should be made in the document that future boards cannot alter the agreement so long as Juab County complies with all of its requirements," said Richard Brough, Juab County Commissioner.

Mangelson presented a flow chart demonstrating the funds generated on the sale of gas. The first monies, he said, will go to pay the operation and maintenance.

Priorities one and two then will be considered, he said. Priority one pays the debt service. "If there is not enough money to pay the debt service," said Mangelson, "dedicated funds will be used to pay the first priority."

However, a surplus is projected by the economic analysis on priority one, said Mangelson. Therefore, monies will flow to priority two - to be divided between the serving municipalities and the county.

"After the first three years, Nephi City should generate from $120,000 to $200,000 for services," said Mangelson.

Juab County with 150 participants, after three years, should generate between $23,000 and $25,0000.

The rate of excess after the three years is variable, said Mangelson.

The transmission system will cost $2,216,030, said Mangelson, Nephi's distribution system will cost $1,114,9000, Levan's distribution system should cost $172,970, and Mona's distribution system should be $179,200.

Other direct costs, including contingency, legal, engineering, rights-of-way, and feasibility should be approximately $973,650, bringing total costs to $4,656,750, said Mangelson.

"The distribution systems costs will be paid for 100 percent by the member for whom the system was constructed," said Mangelson. Each municipality will sell bonds to finance its share of the main line and its distribution system.