University Daily Kansan, August 27, 1984 Page 7 KU is seeking new gas supplier By BRENDA STOCKMAN Staff Reporter The owner of gas company based in Tulsa, Okla., said Friday that his firm would be the new natural gas supplier to the University of Kansas, but KU and state officials said no agreement had been made. A 1983 Federal Energy Regulatory Commission code made it possible for KU to accept bids for gas on the open market, potentially saving the University hun'-eds of thousands of dollars. Petro-D Corp. of Tulsa submitted the lowest of the three bids received. Larry Sincannon, owner of Petro-D, said his firm would be the new supplier Kansas Public Service Co., the current supplier for KU and the supplier for the city of Lawrence, did not submit a bid. "We've not signed any contract with them (Petro-D) or any other firm," said Rodger Oroke, director of support services for facilities and operations at KU. "IF A BIDDER is unable to comply with all specifications, then the procedure would be to look at the next lowest, bidder," said Gerald Merryman, a state official with the division of purchases, who is helping KU officials analyze the bids. RU officials analyze the "Obviously, Pet-Do is the lowest bidder, so we must look at them first." Merrigan said. A final decision has not been made because University officials still are looking at data and reviewing the various bidders' capabilities of meeting peak consumption demands, he said. he Sacks Oroke said transportation of the gas was a significant problem KPS owns the pipeline that serves KU and is not willing to lease it to the University. "RATHER THAN TOTALLY lose us as a customer we were willing to pay for the use of the pipeline," Oroke said, but KPS was not interested. KU may have to build its own pipeline to hook up to a new supplier. The bid specifications give the bidders two options. The supplier either can deliver gas to the campus power plant or tie it into a KU-owned pipeline If the supplier chooses to use the pipeline option, University would be better off. within several feet of the KPS line. KU would be responsible for maintaining the line that would connect the power plant with one of four major pipelines that pass within five miles of Lawrence. Oroke said the new pipeline would cost about $250,000. If the University can purchase the natural gas for $2.90 per 1,000 cubic feet instead of the present $3.71 per mcf that KPS is charging, the savings in a year will "still be in excess of $400,000," according to Oroke. according to BASED ON THE University's estimate of using 500,000 mcf per year, the savings would be $405,000. The problems with transporting the gas have extended the decision-making process. "We're not sure of the time frame we're looking at now," Oweak said. "It's not so much the supplies as the transportation, obviously. Everyone has gas; it's getting it from their wells to our plant." KU began to shop for a natural gas supplier on the open market when the bid notice appeared on June 7 in the Kansas Register. The Federal Energy Regulatory Commission Order 31allows KU to take bids for natural Order 319 encourages schools and hospitals to negotiate directly with producers and suppliers. Previously, they had to use the local utility. gas for the first time PETROD HAD SUBMITTED the lowest bid by July 6, the last day bids could be received. The firm's bid was $2.39 per mcf, according to Sincannon. Two other firms submitted bids to the University. Bogina Petroleum Engineers of Lenexa bid $3.10 per mcf and Specified Energy Services Ltd of Bonner Springs bid $2.99 per mcf. The two firms also proposed an agreement in which they would work together to meet the University's needs. The new contract would supply KU with gas from Nov. 1, 1984, until Oct. 31, 1986. The contract could then be negotiated or renewed annually for eight years. Until the new agreement is reached, KU will continue to buy gas from KPS for the current market price. The highest price paid by the University was $5.17 per mcf in March 1983. Thunderstorms pound Midwest, Southwest By United Press International Lightning struck four people at the Minnesota State Fair yesterday as thunderstorms from the Midwest to the desert Southwest generated hail, heavy rain and winds to 85 mph. Oregon's dry spell was blamed for an increase in rattlesnake bites. Scattered showers brought some relief yesterday to corpus Corpus Christi, Texas, but not enough to end water rationing imposed Saturday when Lake Corpus Christi, the city's only water supply, shrank to 41 percent of capacity. Households with one or two residents and those who live in apartments, mobile homes and duplexes will be limited to 6,000 gallons of water a month. Businesses must reduce their water use by 25 percent from last year's levels. year's levels Winds up to 40 mph yesterday expanded a small, lightning- caused fire into a 12,000-acre blaze threatening ranch buildings and livestock in the Bull Mountains of central Montana. The fire began Friday night when a thunderstorm accompanied by high winds swept the entire state. Thunderstorms today were reported from New Mexico to Minnesota and over the Gulf Coast Storms yesterday swept across the desert Southwest. desert soils. Four people were injured yesterday when struck by lightning while attending the Minnesota State Fair in St. Paul. One was reported in serious condition today, one in stable condition, and two were treated and released. Minnesota storms knocked out power to at least 55,000 Minnesota areas residents and scattered hail across the state Winds Forces Failts and 75 mph at Campbell in west central Minnesota. Storms across the Dakotas generated hail that damaged crops near Hecla, S.D. 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