As it ended its annual conference in San Antonio last week, theInterstate Oil and Gas Compact Commission emerged with an agendacalling for new tax and public policy incentives to increasenatural gas production in the United States. The 30-stateorganization re-issued its call for a national energy policy andurged Congress to give tax breaks to exploration and developmentcompanies.

Gov. Tony Knowles of Alaska, who begins his second term as chairof the IOGCC, said the incoming president should focus nationalattention on the country’s increased demand for natural gas. Healso urged the new leader to follow the lead of Congress, where heexpects a stepped-up effort to enact legislation that will openclosed land to more E&P activities.

The Democratic governor, who has long pushed for opening up aportion of the Arctic National Wildlife Refuge (ANWR) to oil andgas exploration, said he wants to work with the new administrationand Congress to pass legislation that would responsibly develop aportion of the refuge’s hydrocarbon resources. ANWR’s coastal plainoil reserves are estimated to be between 6 billion and 16 billionbbl, which would be nearly 40% of the total U.S. petroleum demandfor the coming decade.

Knowles suggested allowing exploration on what he called a”small” 1.5 million-acre tract of the ANWR – about the size ofIndiana. He also wants to open up another area to E&P locatednear the ANWR, Point Thompson, which has estimated gas reserves ofbetween 5 Tcf and 6 Tcf. “Without exploration, we will notsucceed,” he said.

At the conclusion of its two-day meeting, the IOGCC passed aresolution asking Congress and the new president to renew theirfocus on increasing natural gas supplies, and also called onlegislators to develop a national energy policy. The IOGCC supportsmore access to public lands and wants to eliminate “unnecessary andduplicative regulations.” The resolution noted that technologicaladvances have allowed industry to cost-effectively produce naturalgas and still protect the environment.

Members of the IOGCC, who represent the governors of the 30states that produce most of the oil and natural gas in the country,also plan to begin an outreach campaign. IOGCC wants to improve itsimage, especially to groups who oppose E&P activities, andplans to begin an education campaign to help the public understandthe need to develop more energy supplies.

Carolyn Davis, Houston

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