Gas Suppliers: Distributor’s Non-Payment Responsible For Pawnee Co. Gas Shortage

Until Thursday evening, the town of Hallett in Pawnee County had been without gas for three days. The head of Keystone Gas, the sole supplier in the area blames the problems on a lack of supply, but the gas suppliers themselves say that isn't entirely true.

The gas suppliers are shifting the blame from frozen wells to frozen payments. They said it’s a problem that started two years ago but came to a head in Hallett this week.

Related Story: State Steps In To Help Pawnee County Communities Facing Gas Shortage

Brenda Smith, who lives in Hallett, said she and her husband were cold for three days.

"It wasn't fun, it was cold and I was mad," Smith said.

The state brought in several gas tankers Wednesday night as a solution, but gas suppliers like Eddie Rongey, the president of Dexxon Inc., said that doesn't fix the underlying problem.

"This is a long-term problem for them, it just happened to come to a head because the weather was so bad for so long here. Whenever it’s this cold for this long and you’ve got any kind of issue in the pipeline supply, it’s gonna show up," Rongey said. "There's gas available there. You just have to pay the operators to get that gas."

Dee Dee Tucker also runs several wells in the area that supply the area around Jennings and Hallett.

"It's not asking a lot to be paid for your product," Tucker said.

They're among more than a dozen operators that stopped selling gas to the Keystone Gas company because they say Keystone stopped paying them nearly two years ago.

"We had sold them I believe 26 million cubic feet of gas that they never paid for," Rongey said.

Tucker said it got so bad, she had to shut down some of her wells.

"It takes money to keep your equipment up, it takes money to pay the electric bills it takes that equipment to run. So when you don't get paid you can't keep your equipment in operating condition," Tucker said.

Rongey took the company to court after he said Keystone didn't pay for 16 months.

"They owe us over $60,000. He [Sellers] blamed the price of gas, natural gas was cheap, but that's life in business, We can't just keep putting gas in the line for free," Rongey said.

Rick Sellers, the president of Keystone Gas said the lack of payments is tied to the low price of gas. He said the price got so low, he started losing money himself. He said he couldn't afford to pay operators and suppliers. He hopes as prices start to return to normal, he can start paying again.

In the meantime, Keystone Gas remains the sole supplier for Hallett and Jennings.