Natural Gas Board Minutes

The Humboldt Natural Gas Board met in regular session on Thursday, November 10^th, 2005. The meeting was called to order by Chairman Jim Jarding at 7:10 p.m. Members present were Ritchy Griepp and Harvey Shumaker. Member absent were Kira Schmeichel and Lynn Froke. Jeff McKinney was also present for Northwestern Energy.

The minutes of the of the October meeting were reviewed. A motion was made by Shumaker and seconded by Griepp to approve the minutes. The motion carried.

The financials for the month of October 2005 were reviewed. A motion was made by Griepp and seconded by Shumaker to approve the financials. The motion carried.

The rates paid for the October usage were $12.98 per dekatherm. Estimated rates for November usage are $12.18 plus $0.9023 transportation per dekatherm for a total of $13.0823 per dekatherm.

Locking in a percentage of gas for December 2005 to March 2006 was discussed. Jeff McKinney indicated that he did not get the 40 % lock in on Wednesday, November 9^th, at $10.00 because it went back up after a phone consensus of a majority of the board agreed to lock in. Jeff felt the rates would come down to $10.00 or less soon. After discussion a motion was made by Griepp and seconded by Shumaker to lock in 40% of the Natural Gas for December thru March if Natural Gas hits $10.00 or less. The motion carried.

Jeff discussed other items regarding the gas system and options.

The stick on calendars with the One Call Information and Emergency Numbers have been received. They will be sent out in the December utility bills.

Sample bills were obtained from MidAmerican Energy and Northwestern Energy to compare their rate to the City of Humboldt’s rates. The Cities rates are competitive with the two companies.

The Northwestern energy contract for the 2006 Annual Service was submitted for review. The annual fee did not increase from the 2005 and will be $15,913.50. The cost of instillations did not change either and will be $504.00 per service. A motion was made by Shumaker and seconded by Griepp to approve the contract for 2006. The motion carried.

With no further business, a motion was made by Griepp and seconded by Shumaker to adjourn the meeting at 8.15 p.m. The motion carried.

ATTEST: KRISTIE ELLIS

FINANCE OFFICER