The Sidney herald., 1961-02-15
MDU PLANS =
CONTINUED FROM PAGE II

WIN LIN JILL nOM FAGE ~
100000 is included in the 1861
budget. Smith said that the plant
is ideally located with respect to
projected system load growth,
ample water supply and unlimited
supply of cheap fuel from the
strip mining operations of INDUS
wtnolly-owned subsidiary, Knife
River Coal Mining Company.
Smith stated that other major
electric additions in 1861 will in
clude approximately $85O,0O0 for
transmission loop lines to provide
more capacity and better service
Tor electric customers in the tt
Oga-Kenmare, N. D., and Poplar
Scobey, Mont, areas. MDU will
also construct numerous extern
slonS and additions to its distri-
button facilities to meet the steady
load growth in the 1913 commune
ties served by the company'S cleo
trio system.
Smith said that $7,450, 900 has
been allocated for betterments
and additions to the company's
natural gas system in 1861. The
principal gas department project,
costing about $4,624,0 900, will be
the construction of LOG miles OF
II" high pressure natural gas
transmission line from Minot to
Bismarck, N. D. This project will
make new deep gas reserves in
the Tioga area available to INDUS
natural gas system. LateralS will
De constructed to serve several
small communities located along
the line.
Smith stated that INDUS pipe
Line facilities from the Tioga area,
constructed prior TO 1855, are moi
adequate to handle the increased
production. In order to move TINS
gas TO market and to storage the
company has agreed 10 construct
a transmission pipe line from Mi
not to Bismarck. The new pipe
line will provide a complete loor
6or the main North Dakota sys-
tenn, thereby assuring an adequate
gas supply to gas customers thru
out western North Dakota and
ample transmission capacity tc
and from the company's storage
reservoir in the Baker field.
Smith said the company has
signed new contracts with Amera-
da Petroleum Corporation ano
Signal Oil and Gas Company fol
the purchase of an additional
supply of natural gas from the
Beaver Lodge-Tioga, N. D. pro-
ducing area. 1t is estimated tina
Amerada controls approximately
90 per cent OF the production from
this area, with the remainder be-
ing controlled by Signal Oil anc
Gas Company. The contracts COW
er intraState and interstate sale:
and replace the original agree
mentS made in 1855 which cover.
ed sales of firm and dump gas
llney provide that beginning Sep,
temoer /, 1861. or as soon there.
after as pipe line facilities arr
completed, the company can take
up to so million cubic feet of ma.
-aral gas daily. A report of RALPH
9. Davis Associates made as O
October 81, 1860 estimates tota
gas reserves available under thes,
new contracts of SAB billion GU
ic feet, an increase of 324 bill
ion cubic feet in total reserve
over reserves available under tn,
PREVIOUS contracts. Terms of tn
new agreements provided that tn
additional quantities of gas vii
De made available from deep no
rizons. This gas will be processe.
at the Signal Oil and Gas Com
pany plant at Tioga.
"Our natural gas constructio
program this year also include
Improvement of production an
\ transmission facilities as well g
numerous additions and extension
in the SO communities served b
Jur natural gas SYSTEM" Smit
aid, adding that approximate
100000 has been included in tt
1861 budget for general plar
facilities serving both electr
and gas operations.