7.6.07

Board OKs eminent domain in Elkhorn
by Nancy Gaarder, Omaha World-Herald

The Metropolitan Utilities District board on Thursday authorized management's use of eminent domain in discussions with Aquila Inc. over the purchase of Aquila's Elkhorn assets.

Elkhorn has been receiving natural gas from Aquila, or, as it was previously named, Peoples Natural Gas, since 1931.

State law gives M.U.D. the right to distribute natural gas within the City of Omaha's boundaries. Now that Omaha has annexed Elkhorn, M.U.D. has the right to buy Aquila's affected assets.

The utilities have been in discussions since the annexation, said Dan Crouchley, senior vice president and general counsel for M.U.D.. Crouchley said it will take about six more months to conclude the sale.

Crouchley said the request by management for authority to use eminent domain is routine and does not reflect any difficulty in discussing terms with Aquila.

Alan Hersch, spokesman for Aquila, said discussions thus far have focused on defining which properties will be transferred and how to assure continued gas service to all customers.

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