City of Fulton reaches loan agreement after natural gas price increase caused by frozen wells in February

FULTON, Mo. (KMIZ)

The Fulton City Council approved a $3.4 million dollar loan agreement with the Missouri Department of Natural Resources.

This is to finance a large hike in gas prices after an increase in rates from February 10th through the 20th of this year.

The Fulton mayor said in February the city has had to pay extremely high rates for natural gas from their providers in Oklahoma and Texas because of frozen gas wells

The frozen gas well created a shortage of available natural gas in the Mid-West, leading to an increase of as much as 100 times the typical purchase price.

The agreement was approved last night.

ABC 17 News reached out to Fulton's mayor who says hopefully the city never needs it, but it will be there if necessary.