Former Deputy Energy Secretary Elizabeth Moler and Washingtonattorney Katherine B. Edwards have made the list of candidatesbeing considered by the Natural Gas Supply Association (NGSA) tosucceed former President Nicholas J. Bush, who departed last monthamid allegations that he defrauded the trade group out of more than$2.4 million, sources say.

Moler, who is now a partner in the Washington law firm of Vinsonand Elkins, also has been chair and a commissioner at the FederalEnergy Regulatory Commission (FERC), while Edwards is known for herrepresentation at FERC of major natural gas producers, such asExxon, Shell and BP Amoco. Also being eyed for the NGSA post are a”couple” of other unidentified former FERC commissioners, anotherWashington attorney and “what I call recycled oil and gasexecutives,” which include mid- to high-level producer executiveswho have lost their jobs due to mergers or for other reasons, saida source who requested anonymity.

“I’m not saying necessarily that [any of] these people will takethe job. All I can say is they’re on the list,” he stressed.

Most agree that snaring either Moler or Edwards, both of whomhave solid reputations in Washington, would go a long way towardhelping to restore NGSA’s name, which was significantly tarnishedwhen it was discovered in late January that Bush allegedly had usedan elaborate consulting scheme to bilk the association out ofmillions of dollars over a 12-year period. NGSA filed a civillawsuit in D.C. Superior Court last month seeking recovery of $2.43million in missing funds, plus $5 million in punitive damages.

“…[I]n my mind I think there’s one very clear choice of whoshould have the job”-Edwards-because of her strong ties to theproducer community, the source noted. She’s the “very obviousperson,” he said, adding “I know [she’s] on the list.” Edwards”tends to make the other candidates seem somewhat more pale” bycomparison. Asked if she was contacted by NGSA and/or wasconsidering the position, Edwards would only say “no comment.” Sheis a partner is the law firm of Grammer, Kissel, Robbins, Skancke& Edwards.

As for Moler, “I get the impression that [NGSA’s] members wouldvery much like to have her come on board. But to tell you thetruth, I think she has better prospects elsewhere,” the source toldNGI. He acknowledged Moler is considered an unlikely candidate fora producer-advocacy position. But “in terms of what she did at theCommission while she was chair, [NGSA was] very much in agreementwith” her. Like Edwards, Moler gave a “no comment” yesterday.

“I don’t know if Moler has been contacted [by NGSA], whethershe’s turned down the job or if she’s giving it some thought,” thesource noted. Veteran Washington insiders don’t believe becomingthe next head of NGSA is on Moler’s radarscope. Rather, a morelikely scenario has her setting her sights on becoming the nextenergy secretary if the Democrats should win in 2000.

It was not clear who actually was at the top of theassociation’s list of candidates. “Some Houston people,” the sourcesaid, already “have turned it down” because they didn’t want tomove to Washington. John Sharp, NGSA’s vice president of federaland state affairs and general counsel, has been in charge of theday-to-day operations of the association since Bush’s departure,but he reportedly isn’t being considered as a successor.

While the selection committee pores over the candidates, mostagree on one thing-that NGSA “needs to pick a leader and it needsto do it soon.”

Meanwhile, the U.S. Attorney’s Office in Washington D.C. iscontinuing an investigation that could culminate in the filing ofcriminal charges against Bush. “I think that they [criminalcharges] will probably come eventually,” but prosecutors first “mayneed resolution of other issues, such as how much the associationis actually able to recover” of its missing funds, the sourcenoted. That issue is expected to be resolved in NGSA’s civil actionagainst Bush.

Likewise, he believes the Internal Revenue Service (IRS) is”sitting on the sidelines sort of waiting to get a final appraisal”of what amount, if any, of the missing funds will be returned tothe association before deciding whether to take action. If none ofthe funds are recovered, “I would expect that the IRS will thenbring criminal charges,” the source said. On the other hand, Bushconceivably could escape tax liability if he’s able to pay back themoney he’s accused of embezzling from NGSA, he noted.

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