Guinn reaches deal to keep gas, jet fuel supply pumping

Diana Sahagun

Monday, Jan. 22, 2001 | 10:54 a.m.

Gov. Kenny Guinn has struck a deal with California that will keep Southern Nevada's major supplier of gas and jet fuel pumping 24 hours a day, at least temporarily.

Guinn spoke with California Gov. Gray Davis several times last week about the gas and jet fuel shortage that the valleyValley was facing as a result of blackouts in California, Guinn spokesman Jack Finn said today.

During Stage 3 emergencies, electricity to the CALNEV Pipe Line was cut for 18 hours Wednesday and Thursday, shutting off the supply of gasoline and jet fuel to Southern Nevada. With the power gaps, there was a threat that the valley could run short.

Davis agreed to put the CALNEV Pipe Line on a list of receivers that cannot be interrupted if California is forced to cut back its power supply.

"(Guinn) explained the importance of that pipeline to McCarran (International Airport) as well as to the citizens of Nevada," Finn said.

Although Guinn had hoped the agreement would be permanent, Finn said he was not sure how long the waiver would be in effect. He added that Guinn has a warm relationship with Davis, and the two governors will continue conversations.

George Lowman, vice president of communications for CALNEV Pipe Line, said the letter he received from the California Energy Commission was for a six-day exemption from interruption, until Friday.

"The California Energy Commission has told us that even though it was only for six days, they will review that and it is their intention to try to help us extend that," he said.

With the pipelines pumping continuously, reserves have been built back up, and "clearly we have product of all types on hand and we are building inventories," Lowman said.

This morning, Lowman had not received inventory numbers on how much gas and fuel are in reserves in the valley.

Lisa Foster, spokeswoman for AAA of Nevada, said Las Vegas did not see an increase in gas prices over the weekend. Unleaded fuel is currently averaging $1.62 per gallon, down from $1.71 last month.

"In Nevada, gas prices have been steadily going down, starting from mid- to the end of October," she said. With the pipeline pumping, Lowman said, gasoline is the easiest to accumulate, because it comes through a 14-inch line. Jet fuel will take longer, because it travels through an 8-inch line.

McCarran representatives could not be reached this morning, but last week the airport began a contingency plan in which airplanes truck in extra fuel. The airport's six-day reserve supply had been depleted to three days by Friday.

The prospect of gas and fuel shortages was a wakeup call, showing how dependent the valley is on California and its electricity, Lowman said.

Long term, Lowman said, the company has to ensure that it has power coming into the pipeline and the cost is acceptable to the end users of the gas and fuel. Although he has looked at alternatives such as trucking in fuel, Lowman said, it is too expensive and less safe.