Westlake against La. senator’s firm handling natural gas business

• By MICHELLE MILLHOLLON
• Capitol news bureau
• Published: Mar 20, 2008 - UPDATED: 12:05 a.m.

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A Calcasieu Parish town is questioning whether a state senator’s company is large enough to handle natural gas for big industries.
Westlake wants to withdraw from the Louisiana Municipal Gas Authority rather than do business with Sen. Robert Adley’s Pelican Gas Management.

Towns and other municipalities buy natural gas through the authority for residential customers and businesses. Pelican is the sole manager of the LMGA’s natural gas supply, earning $489,408 in 2006 for its work.

“We’re not mad at anybody,” Westlake City Councilwoman Lori Peterson told the LMGA Wednesday. “We want to leave.”

Peterson added that she and other city officials do not have a problem with Adley.

Jay Delafield, an attorney for the city, said the concern is that Westlake would be liable if something goes wrong in the supply of natural gas to a large industrial businesses.

The city wants to go with a big company instead of Pelican, which has three employees, Delafield said.

Adley, who has been a legislator for 20 years, is listed in state records as the president of Benton-based Pelican. His wife, Claudia, is listed as the company’s treasurer.

The LMGA’s government consultant, Gordon King, said Westlake’s concern is legitimate.

Towns could be liable if something goes wrong between the hub and the place where the natural gas ultimately is used, he said.
“It is potential bankruptcy type liability,” King said. 

The LMGA — a political entity created by the Legislature — delayed action on Westlake’s request to withdraw.

However, the organization did vote to renew a contract with Pelican despite earlier concerns about it not being competitively bid.

Instead of issuing requests for proposals — or giving public notice for bids to be submitted — the authority simply voted on whether to renew Pelican’s contract.

Outside the meeting, Denham Springs Mayor Jimmy Durbin said municipalities might be able to get a cheaper rate for customers by opening up the contract to other businesses.