Towns could see windfall from sale of gas system

Courtland, Leighton and Town Creek could end up with as much as $800,000 each if the proposed sale of the Lawrence Colbert Gas District goes through as planned.

Tony Burns, general manager of North Alabama Gas District, said each town has approved a purchase agreement that allows North Alabama Gas to purchase Lawrence Colbert Gas for an undisclosed amount.

Courtland, Leighton and Town Creek jointly own Lawrence Colbert Gas District, which serves about 1,200 customers.

Burns said the Northwest Alabama Gas District board of directors also approved the sale, which is expected to be effective Nov. 1.

"It was just a good fit - a good fit geographically, a good fit from a business standpoint," Burns said.

A portion of the money the towns will receive will come from the purchase of the system's assets, while the remainder will come from existing system bank accounts, he said.

Leighton Mayor Lawayne Harrison said he is not sure what the town will do with the money.

"We'll decide when we get it," Harrison said.

Councilwoman Teresa Lannaman said she would like to see the town eliminate some of its debt.

"We want to pay everybody off so we don't have to worry about where the money's coming from the next day," Lannaman said.

Burns said Lawrence Colbert Gas District customers will most likely see a decrease in their monthly gas bill.

"They will be paying the same rate as North Alabama Gas District customers," he said. "Our rates have historically been less."

Burns said customers will be notified once the sale has been completed.

Employees of the Lawrence Colbert system would become employees of the North Alabama Gas District.

"This will be a great deal for the ratepayers," said Troy Woodis, a member of the North Alabama Gas District board.

He said the purchase will also allow the North Alabama Gas District to expand farther east. The gas district serves about 16,500 customers in Colbert, Limestone and Madison counties, with authorization to serve residents of Lawrence and Morgan counties, as well, Burns said. The system is owned by the cities of Muscle Shoals and Madison.

"If everything continues as projected, we will assume operations on Nov. 1," Burns said.

Russ Corey can be reached at 740-5738 or russ.corey@TimesDaily.com.