Provision

An amendment by Rep. John Fleming (R-LA) seeking to strike a provision allowing federal regulation of hydraulic fracturing (hydrofracing) activities on federal lands fueled an extensive debate during mark-up of a broader bill by the House Natural Resources Committee.

Sen. Judd Gregg (R-NH) Tuesday called on the Senate to remove a provision in the financial regulatory reform bill that would require large financial institutions to spin off their lucrative derivatives desks.

Lawyers for commercial fishermen in southern Louisiana said they are “extremely concerned” about a provision in the Oil Spill Liability Trust Fund that limits BP’s liability responsibility to no more than $75 million for damages that may be claimed by companies, individuals and/or the government, aside from the costs of containing and cleaning up the massive spill.

Senate Democrats’ legislation overhauling the financial regulatory system is “good” as far as it goes (see Daily GPI, April 30), but it needs “stronger” language, including a provision to break up the big banks, said an official with National People’s Action (NPA).

Senate Democrats Tuesday blocked a Republican amendment that sought to make more federal onshore and offshore lands available to producers. At the same time both sides overwhelmingly passed (97-1) a Democratic amendment to temporarily suspend shipments of crude oil to the Strategic Petroleum Reserve (SPR) to ease gasoline prices.

Sen. Jeff Bingaman (D-NM), chairman of the Senate Energy and Natural Resources Committee, Monday blasted a provision in the Bush administration’s $25 billion budget request for the Department of Energy (DOE) in fiscal year (FY) 2009, which allocates zero dollars for oil and natural gas research and development (R&D). The DOE also proposes to repeal $50 million in guaranteed funding outside the regular budget for onshore natural gas exploration.

What’s already a common provision in globally based liquefied natural gas (LNG) contracts — flexible destination rights that allow shippers to reroute their cargoes to higher paying ports — within 10 years will be included in all LNG deals. Most of the contracts for the gas slated to go through Sempra Energy’s new North Baja California terminal that opens early next year in Mexico already have these so-called “economic dispatch” provisions. This development was part of what a panel told participants last Tuesday at the LDC Forum Rockies & West conference in Los Angeles.

What’s already a common provision in globally based liquefied natural gas (LNG) contracts — flexible destination rights — within 10 years will be included in all LNG deals, meaning shippers can at the last minute take cargoes to other ports offering higher prices at the time. Most of the contracts for the gas slated to go through Sempra Energy’s new North Baja California terminal that opens early next year in Mexico already had these so-called “economic dispatch” provisions.

Donald Burwell, an ex-El Paso Corp. natural gas trader, pleaded guilty Tuesday in U.S. District Court in Houston to violating a provision of the Commodity Exchange Act for his involvement in providing inaccurate trading information to industry publications. Burwell, whose trial was scheduled to begin March 6, agreed to cooperate with the government in similar cases.