With enough ‘ifs’ one can put Paris in a bottle- so goes an old French saying.
We think it might apply to West Wendover’s of making a fortune by becoming a supplier of natural gas.
While we don’t see a problem with the first IF as in IF the feasibility study out favorable to the purchase of Wendover Gas.
We have witnessed dozens of feasibility studies bought and paid for in Wendover and every single one came to the conclusion wanted. Very few were ever right but if the city paid us $18,000 to say sky was green, we would say it until the check cleared.
We do have a problem with the second IF, as in the IF city could run the gas company more efficiently.
While we have no doubt that that West Wendover could buy gas at a much lower rate than Wendover Gas, we do doubt the city could run it substantially cheaper. The wholesale price of gas is after all just one expense in the business. Any savings there could more than be offset just by employee salaries and benefits with a six figure paycheck for the new West Wendover Gas department and the municipal salary schedule for workers.
The cost of running the enterprise directly impacts the next big IF. IF the casinos will come on board. The casinos will buy from whomever charges less and it they can get propane cheaper they will.
Those two IF’s must work to lead to a third: IF West Wendover will build a natural gas pipeline some 20 to 30 miles north. It is a major under taking and one thing we can be sure of is that this project will have more little and big IF’s that one can shake a stick at before the first gallon of natural gas makes it to Wendover. IF it makes it.
We can guess at a few such as stumbling over an endangered species, an as yet undiscovered ancient cultural site, a private land owner who won’t give up his right of way. But there is very good chance there are many unknowns that are just unknowable.
The initial cost has been guessed at between $10 million and $20 million but we would be fools to bet either way in fact given the history of public projects in Wendover the odds are better than even it will cost a whole lot more.
Another big IF is the price of natural gas. Just as no one predicted it would fall so low who is to say it might rise again or that the cost of bringing it to Wendover would still make propane competitive and as experts in the industry have said with Wells Rural Electric extremely “cheap electricity” is another big IF.
We end with another IF.
If this whole project is such a guaranteed money maker why isn’t anyone in the industry doing it?
We have seen a lot of projects go and a lot of projects go in West Wendover without turning a shovel full of dirt in the last 20 years. Most have left without turning a shovel full of dirt and of the ones that did died on the vine.
According to the script developers come in make a presentation are loudly embraced by city officials and then something happens behind closed doors and poof no project, no new jobs, no nothing.
Reminds us of a friend of ours. He is rich, a business owner, never married. He has come close a lot but always something comes up. Finally we told him that perhaps he was being too picky. He asked why should he have to settle for anything less than perfection? We told him that was a great way to end up alone in his big empty house.
Compromise may be uncomfortable but it sure beats an empty house or a vacant lot, or a half finished building.
Make a deal with Newmont water working group.