A former pipeline lobbyist has been tapped to steer the NaturalGas Supply Association (NGSA) back on course following the scandalin which its former president, Nicholas J. Bush, allegedly swindledit out of about $2.8 million.

J. Skip Horvath, who left the Interstate Natural Gas Associationof America in February after 16 years with the group, wasunanimously endorsed as NGSA’s new president by its board ofdirectors. He is expected to assume the position, which has beenvacant for almost four months, on Aug. 1.-after he liquidates hisVirginia-based consulting firm, OnEnergy.

Until then, Horvath said he doesn’t intend to turn a “blind eye”to the association, which represents major producers. “I will behelping out” in the interim so “I will [be able to] hit the groundrunning” in August, he told reporters during a press briefing atNGSA’s headquarters yesterday.

NGSA Chairman Richard J. Sharples said Horvath was selected froma pool of about 30 candidates because his “values” coincided withthose of the association’s. “The fact that we were able to getsomebody that is well rounded and well known in [Washington D.C.]was an…added benefit.” “He knows the issues…he knows thepolicymakers; he knows the folks on the Hill. I think he bringstremendous credibility to our association.”

One veteran industry observer commented NGSA had made a goodchoice. “Skip is intelligent, knows the industry well and hasalways been accessible and willing to discuss the issues. He hascredibility.”

Horvath conceded that at first he had “some skepticism” aboutwhether he would be able to make the transition from a pipelineassociation to a producer association, but that quickly vanished.Given his 20 years experience in the gas industry, “getting my mindaround different positions is not a stretch,” he said. Also, “youhave to remember that the association is an industry [unto]itself…If you can run one, you can run another. And that’s theset of skills I’m bringing over [to NGSA], not policy positions.”

He said he accepted the position because he was “tremendouslyimpressed” with the NGSA board’s “resolve to remain strong, toremain an organization that speaks…for major natural gasproducers” in spite of problems created by the alleged fraudactivity of its former president. “I would not have taken this jobhad I thought there was even a reasonable chance that they might beabsorbed elsewhere, or go away…They are around for the long haul,and I’m around here with them,” he noted.

Horvath admitted his new job won’t be easy thanks to the legacyleft behind by Bush, who now faces criminal mail fraud and taxevasion charges and is the target of an NGSA civil lawsuit torecover the stolen funds. “There’s no doubt this is a challenge-tolook at the association, assess it in light of what happened andmove forward…There’s some baggage to it that I have to beconscious of all the time. But the point is we are moving forward.There won’t be much looking behind once I get on board.”

One of Horvath’s tasks will be improving the effectiveness ofNGSA’s lobbying activities on Capitol Hill and at FERC, whichSharples conceded has been somewhat undermined in the wake ofBush’s alleged fraud.

Horvath spoke of plans for a “new NGSA” under his leadership.”Like any great shift, [this] will come gradually…I can tell youthat there is an openness at the NGSA…board to re-think the waythey do things in Washington, the way they do things in theindustry,” he told reporters. He couldn’t say what the new NGSAwould look like down the road, but it will have three themes: 1)collaborative-the producer group will reach out to other gasassociations and industry sectors “in a way we haven’t done before,to try to build a [few] more bridges and work together on theissues;” 2) a greater focus on public policy to enable regulatorsto do their job better; and 3) will place the decision-makingauthority with respect to NGSA policy in the hands of businesspeople rather than regulatory attorneys. Horvath, in effect, wantsto call a truce to the “warfare” between industry associations. “Ihold that as a goal. Whether I achieve it or not remains to beseen.”

Sharples, too, had an optimistic outlook for the association.”This may come as a surprise to you, but in my 15 years with NGSA Ibelieve the association is the strongest today it’s ever been.There’s unqualified support [from] our members that NGSA is theirvoice on natural gas market issues.” And although NGSA is in themidst of a lawsuit to recover millions that were embezzled from thegroup, he said it’s in good shape financially. “Actually, we’restronger financially than we’ve been in a number of years. We havegreat support from our members in terms of the dues base. They’reall paid up.”

All questions concerning NGSA’s civil lawsuit against Bush wereoff-limits to reporters. “This issue is a legal matter, and itneeds to run its legal course,” Sharples said. He noted, however,that NGSA has enacted some changes to its internal controls toprevent a recurrence of fraud,

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