Ky. Rev. Stat. § 74.401
All other provisions of this chapter to the contrary notwithstanding, no water district created under this chapter shall establish a gas distribution system unless the primary source of the gas to be distributed is natural gas produced from within the territorial limits of the district or of a county in which the district is located. A gas distribution system so established may contract with a seller of gas for supplementing supplies of gas. Nothing in KRS 74.020, 74.120, 74.400, 74.401 and 74.408 shall be construed to enlarge any requirement under existing law relating to the furnishing of gas to a water district by any other supplier. However, nothing in this section shall prohibit the continued operation of a gas distribution system in operation pursuant to the provisions of this chapter prior to June 16, 1966.
KRS 74.401