History
HISTORY – “Serving You Yesterday”
HARVEST THE FLAME (Federation of Gas Coops)
This book gives the early history of bringing gas service to Alberta and how this set the stage for the County of Vermilion River No. 24 to bring natural gas to your home today even if you live in a remote rural area.
1973/75 – there was a significant effort made to create a Coop in County of Vermilion River No. 24 – Peter Johnson, also known as Judge Johnson, took the lead for local farmers who wanted to pursue this approach to supply gas to the residents – this effort failed because they could not reach the required 66.66% signup of contracts by County residents.
1975/76 – interested residents approached the County of Vermilion River No. 24 and asked that they pursue this service so the council approached the Alberta Department of Utilities & Telephones to take over the franchise area as a municipal gas server. Once the province gave their approval, the Coop Board turned over with all their records, in a large cardboard box, to the County of Vermilion River No. 24. Once again the elusive goal of 66.66% signed contract was not reached and the County of Vermilion River No. 24 returned the contract deposits. The Council of the day, Manager Dave Stewart, Sec-Treasurer Reg Kay, and secretary Lynda George initiated this first attempt to provide gas to our residents.
1976/78 – the Council of the County of Vermilion River No. 24 regrouped and reevaluated their strategy for the contract north of Highway 16, who had previously not been sufficiently interested in this project.
Strategy – “Sign up” meetings were organized and Art Nicholson (Gas Chairman), Lorreen Stewart ( Dave Stewart’s wife), Judy Bouchard (Paul Bourchard’s wife) John Scott (Sec-Treasurer) meet potential customers in the halls at Vermilion, Clandonald, Dewberry, McLaughlin and Paradise Valley so that people could get information from their councilor and to “sign” a contract. Later Marvin Horpestead, Jim Tait, Ted Wheat, and Duane Lindquist would even go out to homes to obtain a contract.
Cost? The deposit to sign up was $400 for rural and $200 for urban contracts – the balance was debentured through the County of Vermilion River No. 24 or covered by a very significant Provincial Grant ranging from $2100 to the $3000 thus this costly system was provided at a reasonable amount to the consumer even though long distances were involved in the rural settings.
Originally in 1979/81- the rate was $2.00 for MCG including $1.00 for debenture debt – later council determined that $1.25 was needed for debt repayment
MOTION 27.12.78 - DECEMBER 18, 1978
Moved by Mr. Nicholson that the County of Vermilion River No. 24 establish a Natural Gas Utility Service to be effective immediately and that every effort be made to complete the administrative details of the program at an early date in order that construction could commence as soon as possible in 1979. CARRIED
Shops
The operation set up initially at the old municipal shop in Kitscoty, where a senior citizen home is today, then for a short time out of “Archie’s Garage” in Kitscoty while a shop north of Kitscoty was completed.
Administration:
Behind the scenes Laurie Headon and Lynda George keep the paper work in order so that the grant and debenture money kept coming in so the projects could be financed. Contracts and easements had to be signed to keep ahead of the crews as they worked their way across the ratepayers’ fields.
Crew & Equipment:
Dave Stewart and other key staff involved have vivid memories of the hectic activity to build and outfit a whole crew, up to 50 at the peak, and operation right from scratch without even a screwdriver at the start so it was quite an accomplishment to meet the ambitious goal to get started in 1979 as per council direction.
Those involved recall that they felt like pioneers with everyone gaining experience as they went and “what an experience it was”. One problem arose with fusions of smaller ¾ “ plastic lines which caused “quite a stir in the pipe community” as a solution was sought and this lead to a decision to use socket fusion only, which is still adhered to today. The crew had more excitement learning to handle fusion and explosives to install aluminum pipe. Construction was done in phases – with pipe plowed spring through fall and in winter staff kept busy signing contracts and easements for the next season’s work.
Dedicated staff devoted long hours during construction with the workdays typically 6:00 am to 9:00 pm. – the original crew included Dave Stewart, Ken Helboe, Wayne Paul, Dwayne Lindquist, Jean Chenard & Cecil Conroe) – their families remember those days and recount the months were they didn’t see them except to sleep or eat - this sacrifice by the families is also acknowledged.
CONSTRUCTION MILESTONES:
Thursday March 6, 1980 saw the “first flare off of natural gas in the County of Vermilion River No. 24” – the local newspaper reported on this ceremony attended by Larry Shaben, Minister of Utilities and Telephone who did the official lighting of the natural gas Tap A near Blackfoot at NW12-50-2-W4.
1981- Second was Tap D North which served the Cloverview subdivision north of Vermilion. Then Tap B South (now Tap 20) was completed to serve Rivercourse, McLaughlin, and Paradise Valley, south of Kitscoty & South of Kenilworth Lake.
1982 - Tap C (now Tap 30) served and area south of Vermilion and east of Hwy 41 to Battle River. Also in 1982 Tap A (Tap 10) North of Lloydminster was completed. Then they moved onto Tap A North (Tap 10) which served east of Hwy 897 and south of Township Road 512
1983 – Tap B (20) North and served Marwayne, Tulliby Lake, towards Islay (east of Hwy 893).
1984 – Tap 40 was added to serve Dewberry, Clandonald and east of Hwy 41 and North of Vermilion (west of Hwy 893). Tap 50 served south of the North Sk River and east of Hwy 41.
Portions of the projects that were especially monumental were the crossing of the North Saskatchewan and Vermilion Rivers.
The challenge was meet and 2500 miles of pipe was plowed in the first five years and this brought an end to the major urban & rural construction in the County of Vermilion River No. 24
NEW CHALLENGES
In the early days several Coops went bankrupt because they had installed lines but no gas was being burned to pay for their debentures, which now totaled $3,072,586, and this was a huge concern for council and Dave Stewart, Utility Manager who recommended a multi-faceted solution to this problem:
• implement a Conversion Crew to get appliances in barns / shops / greenhouses / garages etc converted and burning fuel
• implement a Conversion Crews to convert furnaces, water heaters, boilers, grain dryers in order to have customers burning gas so revenue was realized to pay debenture payments
• implement 4 crews initially, which were later reduced to 3 Secondary Crews to run secondary lines from the meters to barns / shops / grain dryers / greenhouses / garages etc. so residents paid for this service and then benefited from the lower rate for gas than they had paid for propane.
This innovative approach was a major contribution to our success story.
Debt:
By August 1983 the County of Vermilion River No. 24 had assumed $3,072,586 in debt on behalf of its customers for this massive system. 1991 was a Historical date when the County celebrated paying off their last debentures early and could service DEBT FREE.
SUCCESSES & “SERVING YOU TODAY”:
It is satisfying to look back over the last 25 years & see what has been accomplished through diligent effort & foresight. If we are to continue to successfully deal with global market, deregulation and rising / fluctuating prices we need those same qualities of vision, initiative & a desire to serve. The trust put in us by our customers motivates us to continue to look for ways to tackle these issues and is essential to ongoing success.
The industrial construction and customer base is one main reason our Gas Utility is unique from other utility system. This extra facet of operations brings stability to the utility along with additional revenue for maintenance and operation while providing the oil industrial customers a very affordable commodity. We appreciate these customers who are a big part of our success story.
“SERVING YOU TOMORROW”
We continue to be confident that your municipal gas utility is the best “choice” you have already made.
Benefits of our municipal system versus other options:
1. Local dedicated staff who are your neighbors & take pride in their system
2. It is your not for profit operation that does not pay corporate tax and benefits from municipal support
3. County Landowners also contributed to their neighbors by giving land easements at a token cost of $1.00.
4. Unique benefits from construction &industrial activity that helps support operating costs and keep rates one of the lowest in Alberta
5. It is more environmentally friendly than coal / wood and other courses
6. It is still more economical at this time when compared to electricity, fuel oil or propane
7. You have a listening ear and a voice through your local councilor
We are convinced that we have a safe / reliable system due to vigilant maintenance and by never compromising our high standards for a profit and gives us confidence that we will continue to be a success. We progressively consider new ways to take advantage of opportunities like capturing “vent” gas, introducing compressors and new pipeline partnerships at strategic places. Be assured customers that we will continue to overcome challenges that present themselves to keep the integrity of the system and our service.
Deregulation has been introduced because people said they wanted “choice” This was a serious decision as once a path has been taken often, as in this case, we cannot turn around & go back even when the results we see are not desirable.
Examined in this light we are sure you will agree that your publicly owned utility is the best “choice” that has already been made.
MILESTONES
• December 1978 a Council motion was made to again pursue signing up contracts in the franchise area.
• February 6, 1979 Contract #1 signed – Richard Haydu @ SW 24-46-2-W4
• March 6, 1980 Tap A (10) – Flare Ceremony
• March 1980 First customer Ranger Farms (Cliff Ranger) was served with gas – the rate was $2.00 per MCF which included the $1.00 for debt payment
• December 1991 the debenture debt was paid early and we were DEBT FREE
• December 2001 the Federation of Gas Coops Ltd. awarded us with the “Award of Merit” for demonstrating performance in achieving an exceptional Operation and Maintenance Standard
• December 2003 Dave Stewart, Gas Utility Manager was nominated and received an Honorary Life Time Membership for his dedication as an exemplary Gas Manager
• January 1, 2004 Dale Swyripa took over for Dave Stewart who retired as Gas Utility Manager
History details not in summary:
We are proud of our track record which show we have been able to deliver gas service at one of the lowest rates in Alberta because of good fiscal management, effective management
In recent years the rates have escalated however the County of Vermilion River No. 24 have this well maintained system in place that is debt free and the provincial government has implemented rebate protection for Alberta residents to address this. The County of Vermilion River No. 24 has also rebated in 2003 a $.75 cent rebate to residential customers for on all gas consumed in 2002.