Mountain Fuel officials have asked Juab officials to grant them a franchise to build a pipeline from the Kern River pipeline to serve Millard and Beaver counties and to provide natural gas service to Ash Grove Cement Co. in Juab County.
Juab County commissioners refused to make a hasty decision and asked representatives of Mountain Fuel to return to the County Commission on Monday.Doyce L. Coates, manager of district operations, and Wayne M. Saltzgiver, manger of retail operations, asked commissioners for a 50- year non-exclusive franchise. Coates and Saltzgiver said they were aware of Juab County's involvement in the natural gas system undertaken by Nephi, Levan and Mona and didn't see that as a problem.
The two said Mountain Fuel seeks an ordinance granting it the right to build a pipeline and provide gas service. The company is willing to comply with county building codes but would like an ordinance signed immediately.
The company would contract with individual customers, and public hearings are not required, Saltzgiver said. "Not another single entity has had a public hearing," he said.
Randy Freston, Juab County engineer, and County Attorney Don Eyre Jr. advised the commission to use caution before granting Mountain Fuel's request.
"I don't perceive any problem in allowing Mountain Fuel to build a pipeline from Kern River to serve Millard and Beaver counties, but I do see a problem with granting a franchise," said Eyre.
Coates said the company plans to deliver natural gas to Millard customers by September 1992.
Commissioner Joseph Bernini suggested the commission wait to consider the ordinance and the length of the franchise.
"If we adopt a 50-year franchise we'll have to live with it for 50 years," said Eyre.
Commissioners will wait for Eyre and Freston to study the proposal and make futher recommendations.
Commissioners were cautious about the agreements they signed with the Juab gas company, said Golden Mangelson, director of the Juab Rural Development Agency natural gas transmission system project. "I would like to see you treat them the same way you treated me," he said, "and give them the same kinds of restrictions.
"You didn't grant us a franchise," said Mangelson. "If you wouldn't grant your own people a franchise then you surely shouldn't grant a franchise to those outside the county."
Commissioners granted the Juab Rural Development Agency an easement to lay pipe in the county. Any addition to the project will require the gas development agency to meet with the county on a case-by-case basis.
East Juab has solicited natural gas service since the 1940s. For many years the county commission and city councils in the area asked Mountain Fuel officials to provide service to Nephi, but the company refused.
At a meeting before the Public Service Commission, Mountain Fuel representatives said they would be willing to supply gas to Nephi from the Fountain Green line but would not supply Levan, Mona or county residents unless extra funding could be raised from the county or from those communities to pay for the service.
Mountain Fuel officials told Nephi Mayor Robert Steele it could not supply natural gas for the same price as Sanpete paid.
Projected rates for the Juab agency are less expensive than rates Mountain Fuel charges in Sanpete County.