Archive for Sunday, January 7, 2001

Gas prices higher even at the source

January 7, 2001


— Residents in this southwest Kansas town expected to pay bargain prices for natural gas this winter because the city owns two gas wells and is located near one of the oldest gas fields in the Midwest.

But residents were wrong.

"We're sitting right on top of the supply, and it still costs," Ulysses City Administrator Bill Powers said last week. "We hear a lot of rumbling and grumbling."

Much like the rest of the nation, gas bills in Ulysses, which sits near the massive Hugoton gas field, have almost doubled since last year, Powers said.

In November 1999, Ulysses consumers paid 38 cents per 100 cubic feet. This month's price was 64 cents.

Ulysses sells its gas to Greeley Gas of Kansas, which also is the city's supplier. The gas travels from the ground in Ulysses to a processing plant where it is cleaned and dried. From there it goes to transmission and distribution.

Greeley Gas is the supplier for the city of Eudora.

Although gas prices have gone up, Greeley Gas has not made more money since the jump, company spokesman Jim Bartling said, as the company has not increased its gas production.

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