Wyoming Factories Want State Gas At Discount

Published online: Jun 28, 2004
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Wyoming state officials are negotiating a contract to provide natural gas at a discount to Wyoming sugarbeet growers and processors. Wyoming Sugar Company and other processors said the high price of natural gas for future delivery is threatening to close down their plants. They are proposing that the state sell natural gas it owns to the plants at a flat rate for the first five years of a 10-to-15 years. The plant would repay the difference between the flat rate and an index price to be paid beginning with the sixth year and thereafter. The state land office proposed a 12-year contract at a flat rate of $3.50 per million BTUs. Wyoming gas prices have been averaging more than $4 in this fiscal year. The state obtains natural gas from the federal royalties owned in Wyoming.