By Myrna Trauntvein
Mona would like to be the entity providing natural gas to Houwelings Tomatoes west of the city but not annexed to it.
“I have contacted Eric Johnson, attorney, to look at the agreement that Seth Atkinson, Nephi City Administrator, sent to us,” said Bill Mills, Mayor.
Atkinson and Kyle Marchant, Nephi City Public Works Director, attended Mona City Council two weeks ago to discuss the need to run another gas line through Mona as part of a redundant gas line to serve county customers and all of the community customers of East Juab County.
The project will cost $2 million but is a bargain. It would cost close to $9 million to connect to the Kern River Pipeline approximately 12 miles west of Nephi.
Nephi is agent for the natural gas system.
While Atkinson and Marchant were at the meeting, Mills requested that he, and each member of the council, be given a copy of the agreement because, even though Nephi acts as agent over the Main Line Mona council members think Nephi should be able to provide a connection to the city that would allow Mona to contract with and deliver natural gas to Houwelings.
“I contacted him (Johnson) to look over the interlocal agreement because our attorney, Kasey Wright, is also the attorney for Nephi City and there would be a conflict of interest,” said Mills.
Eric T. Johnson, a Salt Lake City Attorney specializing in Municipal and Local Government Law, has agreed to look over the “Supplemental Interlocal Cooperative Agreement” dated April 1991 among Juab County, Nephi, Mona and Levan and the Juab Rural Development Agency, said Mills.
In the agreement it states that, as agent of the agency, Nephi will acquire and hold title to all real and personal property, facilities, pipelines, rights of way, easements and other assets necessary to establish, construct and operate the Main Line.
“The title to all such property and assets will be held by Nephi,” reads the document, “for the use and benefit of all municipal members of the agency.”
Nephi also agreed to construct and operate the Main Line and build the distribution system for each municipality, to negotiate, obtain and maintain a gas connection contract, and to maintain and administer the Main Line and perform necessary accounting functions.
The necessary contracts will be held by Nephi as agent for the agency for the use and benefit of the municipalities.
“When do we need to give Nephi City an answer?” asked Mike Stringer, city council member.
Mills said that the redundant gas line was still in the design stages and he thought there was time to have Johnson review the interlocal agreement and make recommendations.
“I didn’t see anything in the agreement that would keep us from providing natural gas to Houwelings,” said Mills.