The City of Rockwood operates a natural gas system for approximately 2,600 residential and commercial customers who are served by the main city gas distribution gate. In addition, there are three industrial customers, IMCO, Horsehead, and Bayou Steel who purchase natural gas under a third party contract. These customers separately contract with Rockwood for transportation of the gas on the city distribution system for these gas purchases.
In 1996, Rockwood entered into an agreement with the City of Kingston (Exhibit 1) to provide natural gas service within the City of Kingston. The revenues and expenses of the Kingston portion of the project are included in the City of Rockwood Natural Gas Fund, with separate accounting records maintained for each system
