Reforms

The Powder River Basin Resource Council filed pleadings in Wyoming district court in opposition to the governor’s rejection of reforms to the management of coalbed methane (CBM) discharge water last week. The citizens group said Gov. Dave Freudenthal’s move to block the “thoroughly debated citizen initiative” was “arbitrary, capricious and not in accordance with the law.”

Last week the Texas Railroad Commission (TRC) sent its recommendations for competition reforms in the midstream gas segment to the state’s governor and legislature. However, the proposed changes do not address the problems at hand, says one producer group.

Although pipelines and producers are often at odds on major issues before FERC, the groups are “steadfast in our mutual support for reforms” to promote the construction of interstate natural gas pipeline mainline expansions, certain storage facilities and takeaway facilities for liquefied natural gas (LNG) import terminals, top officials of the Interstate Natural Gas Association of America (INGAA) and the Natural Gas Supply Association (NGSA) said in a joint letter to FERC last Tuesday.

Although pipelines and producers are often at odds on major issues before FERC, the groups are “steadfast in our mutual support for reforms” to promote the construction of interstate natural gas pipeline mainline expansions, certain storage facilities and takeaway facilities for liquefied natural gas (LNG) import terminals, top officials of the Interstate Natural Gas Association of America (INGAA) and the Natural Gas Supply Association (NGSA) said in a joint letter to FERC Tuesday.

FERC on Thursday issued a final rule that reforms the agency’s pricing policies to jump-start the development and construction of new underground natural gas storage facilities in the United States.

FERC’s December initiative proposing reforms of the agency’s market-power test to promote the construction of more natural gas storage sites goes beyond what Congress intended when it adopted additional storage incentives as part of the Energy Policy Act of 2005 (EPAct), the Natural Gas Supply Association (NGSA) told FERC Monday.

The General Accountability Office (GAO), the research and investigative arm of the Congress, has issued a report finding that actions by the FERC, CFTC and the Congress have resulted in reforms to privately published natural gas price indices to the point that industry stakeholders “in general, are reasonably confident in the short-term prices now reported by trade publications and the improved quality of overall information.”

Voluntary price reporting reforms undertaken by the energy companies and industry publishers in recent months have renewed confidence in the system, a member of the Commodity Future Trading Commission (CFTC) said in Houston Thursday. However, Commissioner Sharon Brown-Hruska warned that Congress still could pass legislation requiring government regulation of price reporting.

Voluntary price reporting reforms undertaken by the energy companies and industry publishers in recent months have renewed confidence in the system, a member of the Commodity Future Trading Commission (CFTC) said in Houston Thursday. However, Commissioner Sharon Brown-Hruska warned that Congress still could pass legislation requiring government regulation of price reporting.