Gov. Matt Mead says he and state lawmakers are watching slack natural gas prices with concern as they consider how to craft the state budget for the coming 2-year funding cycle. Mead in December proposed a $3.4 billion state funds budget based on state revenue projections that called for natural gas to average $4 per thousand cubic feet this year. Mead was forced to cut his spending recommendations by over $100 million after analysts cut their projected average gas price to $3.25 per thousand cubic feet in January. Gas is currently trading at around $2.70 per thousand cubic feet at the Opal Hub in western Wyoming. Mead noted that the Legislature's Joint Appropriations Committee recently recommended setting aside $150 million from state reserves in case gas revenues fall below projections.
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