The contract will be between the fiscal court and Daughtery Petroleum and it said that if the county forms a utility district within the 10 years, the county would be able to buy gas from the company and sell it to county residents. In exchange, the county will allow the petroleum company to run its gas lines down a piece of property the county owns near the new industrial site on U.S. 119.
County officials can form a utility district within the 10 years and offer the service to county residents and extend the contract beyond 10 years. However, if a utility is not formed within the specified time frame, the agreement will end.
Some of the magistrates, along with the county attorney, wanted to know if Daughtery Petroleum would provide free gas to the industrial site.
According to company representative Debbie Dawley, it cannot provide free gas to anyone unless it is the mineral owners.
"If a utility is formed it will incur the cost of processing the gas, which means the utility will have to purchase and process it," said Harlan County engineer Leo Miller.
Dawley said the company could sell gas to the county as soon as a utility is formed and the gas lines are in place.
The company needed the right of way to the land to run gas lines out to U.S. 119 to be able to send gas up to the northeastern part of the United States.
In other business, the fiscal court:
n approved a bid from Worldwide Equipment to purchase two 2005 Kenworth dump trucks at $55,995 each.
n approved to get funding to clean up five illegal dump sites in District 2.
n accepted a grant for $35,000 to be used to help control erosion at the airport.
n approved paying the Harlan County Clerk's office a little over $5,000 for printing the 2004 property tax bills.
n heard from Pete Poynter about a sewer project at some apartments he's building at Tway.
n had the first reading of budget amendment to incorporate a recreational trails grant and an airport grant.
n heard from Miller that the bridge at Highsplint would cost $147,500 to construct, down from the first estimate of $217,000.