Winter Storm Uri, occurring in February 2021, caused approximately $195 billion dollars in damage and expense nationwide and is the costliest winter storm on record. Uri caused extreme energy purchase costs, along with extraordinary costs for municipal natural gas utility systems, and exposed significant risks in many cities and towns’ energy purchase contracts, transportation, and storage agreements.
In response, OMAG and other municipal partners such as the Oklahoma Municipal League (OML) have worked on options to improve natural gas utility management and operations. One solution is creating a coalition of municipal natural gas utility systems within Oklahoma. OMAG has partnered with several consultants, including legal and energy purchasing veterans at the University of Tulsa, in building a framework to construct a coalition of natural gas utilities within our state.
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Interlocal agreements allow local government agencies to stretch budget dollars, work with other entities to accomplish common goals, and combine resources to acquire items they are unable to afford on their own.
Examples of Interlocals Across the Nation…
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Equipment Shares
An equipment pool interlocal agreement allows each city to list its equipment with an hourly cost (with or without providing an operator). A system has been developed for cooperating cities to be able to rent the equipment needed from other cities that already have the equipment (and trained personnel)
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GPS/GIS Technology
Working through an interlocal agreement, Springville, Spanish Fork, Payson, Salem, and Santaquin are utilizing GPS/GIS technology and services. This agreement was initiated in 1997 to reduce the cost of implementing this vital technology. In 2001, they were able to provide this service for only $36/hour, whereas an independent consultant would have charged $120/hour.
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Gaining Affordable Bids
Springville, Mapleton, Spanish Fork, Salem, Elk Ridge, Payson, Santaquin, Genola, and Goshen utilized an interlocal agreement to save money in chip seal operations. The cost to bid chip spreading before the agreement was $1.05/cubic yard. With the agreement, the cost was $0.64/cubic yard, a savings of 39 percent.
Watch the videos below to learn more about the purpose of the Municipal Natural Gas Coalition
Explore the Oklahoma Municipal Natural Gas Coalition (OMNGC) network, represented by over 40 municipalities across the state. This map highlights communities providing reliable and efficient municipal natural gas services to more than 105,000 Oklahomans. Supporting residential, commercial, hospital, and nursing home needs, OMNGC plays a critical role in delivering energy solutions that fuel local economies and ensure community well-being. From Hooker in the west to Stilwell in the east, OMNGC's commitment to energy security and sustainable infrastructure drives a brighter future for Oklahoma.