Rangely shifts to Rockies gas index; supervisor outlines pre‑purchase strategy to blunt price swings

Supervisor Kelly reported to the Rangely Town Council that, effective April 1, the Kern River (Opal) natural‑gas index was discontinued and the town has returned to the Northwest (NWP) Rockies index used historically. "As of April 1st of this year, the Kern River, Wyoming natural gas index was discontinued," Kelly said, explaining the market shift and its causes.

Kelly provided the council with the town’s pre‑purchased gas volumes for the October–April period and noted the town has flexibility to buy more if prices are favorable. Current contracted volumes include about 5,000 MMBtu for October, 10,000 for November, 20,000 for December, 20,000 for January, 15,000 for February, 5,000 for March and 5,000 for April; Kelly said the town could add to those volumes before October if market conditions warranted.

On contracts and price, Kelly said the most recent contract finished in April was at "644 per MMBTU" and the current contract for the listed amounts is at "536." Kelly framed buying strategy as a way to protect the public from price spikes while acknowledging volatility in the market and the town’s ability to adjust purchases through suppliers such as Summit.

Councilors asked about pipeline access and history: Kelly explained the town is connected to the Northwest Pipeline and that access to Henry Hub pricing is not available locally. She also reviewed past feasibility work related to regional pipeline and fiber proposals, cautioning that a previously proposed Rangely–Dinosaur line proved financially infeasible under earlier engineering estimates.

Kelly recommended a utilities meeting to provide more detailed background to newer council members and said staff can continue to check market quotes and make purchase recommendations to the council.