San Juan County approves revised $4.13 million contract to extend natural gas to industrial park

San Juan County commissioners approved an amended contract with New Mexico Gas Company and a matching amendment with the New Mexico Economic Development Department to complete a gas line extension to the county industrial park. The county manager told commissioners the project’s estimated construction cost had risen from earlier figures and that parties negotiated a new total of about $4,137,350, inclusive of gross receipts tax. “$6,100,000 was the number that was provided to us,” the county manager said, describing the earlier estimate and the follow-up negotiations that reduced the county’s share of cost to roughly $4.13 million. Why it matters: the county is seeking to make the industrial park ready for a new tenant expected to begin a lease Sept. 1; the line is expected to serve the facility and provide an opportunity for up to about 200 nearby residences to connect to natural gas. The New Mexico Economic Development Department agreed to increase its contribution to $3,937,350 and the county manager described the county’s requested contribution as roughly $200,000 plus a $25,000 contingency for potential change orders. County staff and commissioners discussed timing and impacts. Contractors are reported ready to begin after Labor Day, with completion forecast between Thanksgiving and Dec. 17; county staff said the new tenant will ramp up operations and likely not need gas until late in the year. The county manager said, if needed, electric heaters could be used temporarily to heat parts of the building during construction of the line. Commissioners approved two separate items: an amended and restated special contract with New Mexico Gas Company to reflect the $4,137,350 contract amount, and the third amendment to the intergovernmental agreement with the New Mexico Economic Development Department to provide the additional grant funding. Both motions were approved by voice vote. The county manager noted the project route was chosen to minimize impacts on cultural sites and that the line would run near Highway 170 and County Road 1191 rather than along Highway 70. Staff said lateral service lines could be installed along the corridor to allow additional hookups in the future. No roll-call vote totals were provided at the meeting; actions were approved by majority voice vote. The county will finalize contract documents with New Mexico Gas Company and proceed with procurement and construction scheduling.