Newspaper Page Text
Qctob«r
k MESSAGE TO THE
I PEOPLE OF COVINGTON
I ON THE NATURAL GAS SITUATION
I Since there are so many misunderstandings concerning Covington's not having natural gat service and since City Officials have failed to make any def
fl inite statement for publication on the matter, we would like to bring you up to date on the situation. To give you something definite for the record and to
I set you straight as to Mid-Georgia Natural Gas Company's attitude in regard to Covington, here is a brief outline of the history of our efforts to bring na-
I tural gas to Covington and o statement of our position,
Bm ' * * , * •
*
* sw MrwStom Ar. CW
WHAT WE HAVE DONE
In 1949 when other cities along Transcontinental's pipeline
were investigating the possibilities of natural gas for their res
idents, the City of Covington took no action. Members of the
Covington City Council said that under no circumstances were
they interested in the City building a natural gas system. At
that time, we, operating as Newton County Gas Company, re--
ceived from the City Council a franchise- giving us the right to
build and operate a natural gas system in Covington.
Upon obtaining this franchise, we retained the services of
the leading natural gas engineering companies in the country.
This company came into Covington and did a complete study
and survey of the natural gas potential. They assembled this
information in a detailed report and designed a complete dis
tribution system to serve the city. Plans for this system have
been kept up to date and are available for immediate use if
permission to proceed is granted.
Next, we intervened before the Federal Power Commission
Washington. Engineers, attorneys and financial consultants
represented our company before that body, and after exten
sive hearings on the matter, the Power Commission approved
our proposed system and allocated a supply of natural gas for
us to distribute in this area. Two of the major points consider
ed and concurred in by the Commission were the fact that our
plan was probably the only way for residents of this area to
gain access to gas immediately and that our proposals were in
the public convenience and necessity.
After being awarded a supply of natural gas, we devoted full
time to getting ready to build the system. Since the Korean
War had started by this time- getting the necessary material
for construction was no small task. For many months we work
ed on obtaining steel pipe and other items and by early Spring
of this year, we had on hand all the steel pipe, meters, regu
lators and other material necessary to build a distribution sys-
tem. .... ,
In order to finance a portion of the expense of building the
systems proposed by our company, we offered prospective in
vestors an opportunity to purchase company bonds, a common
procedure practiced by virtually every utility company.
When they found out about our proposed operation, several
insurance companies expressed an interest in it. One com
pany went so far as to retain a firm of investigating engineers
to study and make recommendations on our operation. This
firm came to Covington and investigated our company struc
ture financial condition and proposed activity from every
angle It was the opinion of this disinterested and unbiased
firm of engineers that the operation was logical and well-plan
ned and that it wuold be a good investment for its client.
As o result we received from the insurance company a letter
of intent to purchase bonds in amounts adequate to finance
aos distribution systems in Covington. Porterdale, Oxford,
Conyers and Milstead as soon as the city councils gave us per
mission to proceed. *
z
Sincerely YnurtSf
♦
r
mid-georgia natural gas company
THI COTINSTOM KIWI
WHAY THE CITY COUNCIF
HAS DONE
We ask you to remember that we had been working all along
with the idea that the City of Covington was still not interested
in going into the gas business, for we had received no other in
dication.
This Spring when we had taken every step necessary—when
we had a system completely designed, a supply of natural gas,
the necessary material on hand, adequate financing and per
mission from the Federal Power Commission to go ahead, the
City Council reversed its previous position and said that they
were now interested in investigating the possibilities of a muni
cipally-owned system. After we had spent three years and
nearly forty thousand dollars doing the work that is necerary
preliminary to building a natural gas system and after we had
done everything in our power to bring natural gas to the resi
dents of Covington, the City Council said in effect, "That's too
bad, but we've thought it over, and we're going to see about
bringing natural gos in ourselves—SOMEDAY."
THE EFFECT OF THE COUNCILS
ACTION
Although one of the excuses given for not giving Mid-Geor
gia permission to proceed was doubt in some people's minds
that we could produce, the company has completed and has in
operation systems in Conyers and Milstead. We will begin
work on the Porterdale system in the near future.
The people who live m Conyers and Milstead are enjoying
the economy, efficiency, convenience, dependability and clean
liness of natural gas-advantages the people of Covington could
be taking advantage of but for the City Council's refusel to al
low Mid-Georgia Natural Gas Company to proceed to build a
system here,
OUR POSITION IN THE MATTER
What Mid-Georgia wants fully understood is this: We have
been ready for several months to provide natural gas service to
the people of Covington,
If the city council had allowed uetoao ahead when we tried
last Spring, you could be using natural gas now. As it is, our
hands are tied. We cannot serve you until the council gives its
permission. We want to distribute natural gas in Covington,
and we are prepared to do so.
ALargMt Oemimge Ady Wisely K The Sestet
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