University of Virginia Library

NATURAL GAS CONTRACT

The Chancellor recounted the troubles the College had been experiencing with respect to
its heating plant. The College heating plant, since it is located on the West side of College
Avenue across from the College grounds, is in a residential section known as "College Heights."
Ever since the heating plant has been in operation, the College has been besieged with complaints
from the residents of this area because of the soot and fly ash from the heating plant. Two
years ago the College invested approximately $45,000 in the purchase of a fly ash collector and
ash handling equipment. The installation of this equipment has reduced the nuisance factor to
some extent, but it has not corrected the condition and the College is still receiving complaints
resulting from fly ash and soot damage caused by the heating plant. As a member of the community,
the College strongly feels an obligation to the residents of the community to eliminate this
nuisance factor if it is possible and practical to do so.

The College has been approached by the Natural Gas Service Company, which has a franchise
with the City of Fredericksburg. The company wishes to know if the College would be interested
in using natural gas if natural gas is brought to the Fredericksburg area. The rate proposed by
this company on an interrupted basis would cost the College for fuel approximately the same as
coal. The College has had two studies made comparing the cost of coal and the cost of gas at
the rate proposed by the company. These studies show that natural gas on an interrupted basis
would come within $200 of the cost of coal.

The College has also been having difficulty in the dining hall in obtaining sufficient gas
pressure from the City's manufactured gas for the preparation of food. The use of natural gas,
which is much cleaner, would provide many other advantages in the operation of the dining hall.
The Chancellor also pointed out that, in his opinion, the use of natural gas would permit the
College to eliminate one employee in the heating plant and reduce the expense further in connection
with the maintenance of a heating plant.

Some expense would be involved in converting the boilers in the central heating plant to
receive natural gas. It is estimated that this expense would be approximately $10,000, with the
initial cost to be borne by the gas company. The College would repay the gas company on a
monthly basis until the entire cost is amortized.

After discussion, the Board adopted the following resolution:

RESOLVED by the Board of Visitors of The Rector and Visitors of the University of Virginia
that Mary Washington College be and it is hereby authorized to enter into a contract or agreement
with the Natural Gas Service Company to supply the Central Heating Plant of the College
with natural gas on an interrupted basis for providing heat to various buildings.

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On motion the meeting was then adjourned.