Pipeline hearings reconvene

Hearing involves pipeline from Hutchinson

to Trimont

By KURT NESBITT

Journal Staff Writer

ST. PAUL -- Hutchinson's pipeline proposal moved forward Monday morning, but not without hang-ups.

A hearing before an administrative law judge convened Monday in St. Paul.

The purpose of the hearings is to allow Judge Kenneth A. Nickolai the opportunity to hear testimony from witnesses who either support the Hutchinson plan or support Northern Natural Gas, a Omaha,Neb.-based company that currently has a monopoly over the natural gas supply for much of southwestern Minnesota.

The proposal, which if given approval by the state, would run 89 miles of natural gas pipeline from Hutchinson south to Trimont, was supposed to have gone before a state court in June. However, it was delayed when the attorney for the Hutchinson Utilities Commission, the chief benefactor and supporter of the plan, introduced new information at the hearing instead of submitting it with the rest of the evidence.

The plan received support from city councils in Hutchinson and New Ulm. But in order to break ground and lay pipe, proponents of the project must go through the State of Minnesota.

Officials from Hutchinson Utilities, under examination from their attorney, Bruce E. Hanson of Minneapolis, reiterated their earlier statements about the city's need for its own pipeline.

Clarence Kadrmas, general manager of Hutchinson Utilities, said the project is necessary because the Hutchinson area has experienced terrific growth in population in the last five years. The project is necessary in order to maintain both gas and electrical services to Hutchinson, Kadrmas said.

Kadrmas and John C. Webster, manager of HUC's natural gas division, explained that natural gas does have some weather-related issues, but it is also used in industrial ways for companies that use heat as part of their manufacturing processes.

Kadrmas and Webster also talked about "SOL days" when the system is over its supply limit and forces certain contractors to go without natural gas or to receive a smaller amount that agreed upon. Both men testified that SOL days are increasing in Hutchinson.

During Webster's testimony, Eric Swanson, one of the two attorneys representing Northern Natural Gas, started in on HUC's witnesses. He objected to Webster's testimony, saying Webster was reading from a prepared statement.

Hanson replied, "We have no other testimony, your honor. We're just clarifying the question about SOL days."

Webster continued testifying that ratepayers in Hutchinson are paying maximum rates for both the capacity and transport of natural gas under the current agreement with Northern, which it has had in effect since 1963.

Dan Sonnek, utility engineer and interim director of the New Ulm Public Utilities Commission, testified briefly before the hearing recessed for lunch.

Sonnek said he was testifying to "lend support of the project, which includes certain portions of the application in this matter."

He answered similar questions on how New Ulm uses natural gas. The uses are quite similar to Hutchinson because natural gas is used in residential, commercial and industrial settings, for heating and for generating electricity.

Sonnek said New Ulm PUC has bought natural gas from Northern since the early 1940s, and also has limitations similar to the ones in Hutchinson. For those reasons, the New Ulm PUC and City Council endorsed a letter of intent supporting the pipeline project.

Hanson offered a copy of the letter as evidence. Sonnek said later that Hutchinson has driven the project mostly, while New Ulm has lent its support and has given input into the plans.

The biggest sticking point of the day came when Hanson and Patrick Spethman, manager of HUC's business division, were discussing a spreadsheet that Spethman had prepared Monday morning.

Swanson objected. Similar moves in June were what delayed the hearings until now, he argued, and allowing the same thing to happen twice would be unfair.

"At some point, this has to stop," he told Nickolai. "We're doing the commission a disservice, our clients a disservice, to allow any more new evidence. They were allowed to do it in the 11th hour, now in the 12th hour. This has to stop."

Reversing an earlier trend, Nickolai sustained Swanson's objection. Hanson indicated he had no more witnesses after Spethman stepped down from the stand.

The final day in the hearing starts today at 9 a.m. in St. Paul.