By TOM KANE

LAKE HUNTINGTON - A company that supplies natural gas to users throughout the country is looking for towns in Sullivan County to grant it franchises to serve residents.

Cochecton is the fourth town in the county to hear a presentation by Robert J. Oxford, the president of the company explaining how the franchise would work.

The company, called Penny Natural Gas, (which stands for Pennsylvania and NY) is a creation of the International Gas Service Company of Wheat Ridge, Colorado. The company has an agreement with Columbia Gas that runs a pipeline from Canada to New York City and passes through western Sullivan County. Currently, residents of the county have no access to natural gas but use propane gas in tanks that are supplied by a handful of local companies.

"Your town is a logical recipient of the gas service because it lies almost directly over the pipeline," Oxford said.

"Natural gas would be a tremendous asset to the county and town," said Cochecton Town Board member Larry Richardson.

The company was especially interested in talking to the Town of Cochecton because the new high school would be built in the town if residents approve it on June 22.

The presentation was an introduction to the idea of granting a franchise to the company.

"We will look this material over very carefully and get back to you," said Cochecton Supervisor Sal Indelicato.

Before a franchise is granted a public hearing would have to be held.

If the company receives a sufficient number of franchises and builds the line, it will hire about seven workers to run it, Oxford said.

Penny Gas Company, which is proposing a complete natural gas distribution system, has been in discussion with Sullivan County Planning Department since 1998.

The company is seeking franchises from eight towns and five villages besides Cochecton, including Delaware, Thompson, Fallsburg, Mamakating, Forestburgh, Bethel and Liberty. Villages that are being sought after are Monticello, Liberty, Wurtsboro, Woodbridge and possibly Jeffersonville, Oxford said.

New York State Electric and Gas is also seeking franchises from the towns of Thompson, Fallsburg and Liberty.

The New York State Public Service Commission would be the final judge as to which company would receive permission to provide gas.

Oxford claimed that natural gas would give homeowners and businesses considerable savings.

"We would charge 80 cents for a therm-which is the equivalent of 100,000 BTUs," Oxford said. He said that a gallon of oil that gives about 140,000 BTU costs $1.12. A gallon of propane giving 91,000 BTUs costs 72 cents, he said.

"It makes a lot of economic sense using natural gas," he said.

Towns granting a franchise would receive two percent of gross sales within the town, he said.

According to Alan Sorensen, Commissioner of Planning, one of the pre-requisites of economic development is the availability of a clean, economical and domestic energy source.

Penny Gas Co. has plans to provide natural gas to Wayne and Pike County as well.