When they were created in the 1950s, the five state natural gas authorities, by law, were supposed to deliver the profits to the municipalities they served.
They have?
Two yes. Clinton Newberry has distributed $ 9.4 million over the past 10 years, equally divided between the cities of Clinton and Newberry. (The authority’s contribution represents 7% of Clinton’s city budget.) Fort Hill has disbursed more than $ 3.6 million in the past three years.
But three others – Chester, Lancaster and York – have not sent anything to the municipalities in their jurisdiction in recent years. During the previous three fiscal years, Chester had about $ 1.1 million in net profits, Lancaster $ 7.1 million and York $ 33.7 million, the records show.
In a statement, Paul Dillingham, a lawyer for the three officials, said the three had no “surplus” funds and had set aside money to pay current and future debts and expansion projects. Surplus revenue, he said, “would be a good problem to worry about, but your question assumes a circumstance that doesn’t exist and really couldn’t exist in the foreseeable future.”
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The Clinton Newberry Natural Gas Authority has spent more than $ 230,000 on out-of-town retreats over five years. Closer to home, the agency’s board and staff also enjoyed meals after their regular meetings.
Over the past three years, taxpayers have paid the bill of more than $ 30,000 for these meals, with more than $ 23,000 spent at local restaurants, including Cabana Café ($ 17,844), Blue Ocean ($ 4,022) and more than $ 2,150 at Figaro, show the records. In a note, the agency said that eating at local restaurants helps the local economy.
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Clinton Newberry’s senior staff, including its former general manager, Stan Bryson, and board members also enjoyed regular meals on other occasions. Records show that they have charged the agency more than $ 12,700 at local restaurants since 2015. Bryson, who recently retired, had a salary of $ 182,999.
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Clinton Newberry’s board members were not the only ones who got discounts on appliances by buying them through the regulating agencies.
Chester gas director Richard Hall purchased an Empire gas heater for $ 1,035 in 2019, listing the address of one of his investment properties, shows a receipt.
York gas council member Michael Drummond received a $ 247.50 installation discount in 2019 for a water heater, and council colleague Ellen Weir earned a $ 1,276 discount for installing a water heater. Rinnai tankless water heater in October.
Because of a loophole in state ethics laws, board members appointed by the governor of these officials do not have to report these benefits to the Ethics Committee as elected officials do.
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In 2019, the Lancaster County Natural Gas Authority disbursed $ 2,247 on a 20-gauge Miroku shotgun as a retirement gift for one of the executives. A spokesman said the retiring general manager has 23 years of experience. “This was a small amount to pay to show appreciation for a job well done.”
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At the York County Natural Gas Authority, its chief executive, James Sprouse, used the agency’s credit card for car washes, approximately every two or three weeks, totaling $ 447 in two years. A spokesman said the authority requires that all of the company’s vehicles be maintained, including appearance. Sprouse’s vehicle is a 2019 Chevy Silverado 1500. According to its latest state ethics file, Sprouse has won more than $ 250,000.
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The board and staff of the three gas authorities in Chester, Lancaster and York charged tens of thousands of dollars for travel and conferences to another government agency, the Patriots Energy Group, further obscuring agency spending images.
The three authorities created this fourth public entity in 2003, hoping to increase their overall purchasing power and reduce costs.
But a look at the Patriots Energy Group’s spending records shows that it also served as a money funnel for board and team travel.
For example, during a 2018 conference in Portland, Oregon, a Lancaster gas authority executive used a Patriots Energy Group credit card to charge $ 613 in one day across three vineyards.
The Patriots Energy Group later charged the Lancaster gas authority for these and another $ 27,000 other charges associated with the Portland conference.
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Officials from the authorities played a lot of golf, both locally and outside the state, charging taxpayers for their trips to the links. For example, during a winter trip to Panama City, Florida, in 2019, receipts appear. Fort Hill CEO Ken Porter has played three consecutive mornings: twice at Camp Creek Golf Club and once at Shark’s Tooth Golf Club. Each time, $ 117 was placed on the agency’s credit card.
Porter explained: “I played golf with other gas executives, where we discussed industry trends, the services offered by other gas suppliers and the authority’s desire to meet the needs of industrial customers by starting a gas transportation program.”
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The state’s Freedom of Information Act requires public agencies to publish agendas and keep minutes of all meetings, whether actions are taken or not.
In 2019, Chester’s board held a retreat at the Omni Grove Park Inn in Asheville, accumulating more than $ 31,000 in expenses. The agency’s lawyer, Paul Dillingham, said the agency notified the public as needed. The Post and the Courier asked about the minutes.
Dillingham ended up providing a copy, but had incorrect dates, scheduling the meeting in 2020, not 2019.
Faced with the error, Dillingham acknowledged that the minutes were wrong and that it had been drafted recently to show that the board had taken no action.
– Compiled by Tony Bartelme