GAS RESERVES

We have invested $188 million through our gas reserves program in the Jonah Field located in Wyoming as of June 30, 2017. Gas reserves are stated at cost, net of regulatory amortization, with the associated deferred tax benefits recorded as liabilities on the consolidated balance sheets. Our investment in gas reserves provides long-term price protection for utility customers through the original agreement with Encana Oil & Gas (USA) Inc. under which we invested $178 million and the amended agreement with Jonah Energy LLC under which an additional $10 million was invested.

The cost of gas, including a carrying cost for the rate base investment made under the original agreement, is included in our annual Oregon PGA filing, which allows us to recover these costs through customer rates. Our investment under the original agreement, less accumulated amortization and deferred taxes, earns a rate of return.

The volumes produced from the wells under the amended agreement with Jonah are included in our Oregon PGA at a fixed rate of $0.4725 per therm, which approximates the 10-year hedge rate plus financing costs at the inception of the investment.

The following table outlines our net gas reserves investment:



	June 30,				December 31,
In thousands	2017		2016		2016
Gas reserves, current	$	16,072	$	15,707	$	15,926
Gas reserves, non-current	171,464		171,834		171,610
Less: Accumulated amortization	79,444		63,548		71,426
Total gas reserves⁽¹⁾	108,092		123,993		116,110
Less: Deferred taxes on gas reserves	31,074		26,737		28,119
Net investment in gas reserves	$	77,018	$	97,256	$	87,991


⁽¹⁾	Our net investment in additional wells included in total gas reserves was $6.3 million, $7.3 million and $6.7 million at June 30, 2017 and 2016 and December 31, 2016, respectively.

Our investment is included in our consolidated balance sheets under gas reserves with our maximum loss exposure limited to our investment balance.