Rules

The American Gas Association has added its voice to those whowould protect the pocketbooks of current customers and requiresponsors of new pipeline construction to bear the risk of theprojects.

Based on comments filed by trade associations last week, thenatural gas industry is split straight down the middle on most ofthe major initiatives in the notice of proposed rulemaking (NOPR)and notice of inquiry (NOI) – with the regulated pipelines and LDCssupporting proposals that would lighten FERC’s grip on pipelinetransportation, and non-regulated producers, marketers andmunicipal distributors concerned the measures could wreak havoc.

FERC tied up all the loose ends of the Maritimes &amp NortheastPipeline project in a draft order released last week, clearing theway for the pipeline to begin delivering about 350 MMcf/d of SableIsland gas to power plants, paper mills and new markets in Maineand other New England states this fall.

The Independent Petroleum Association of America (IPAA) praisedthe action of Interior Secretary Bruce Babbit in allowing marginaloil well operators producing on public lands to suspend operationsfor up to two years without losing their leases. The announcementcame Thursday on the heels of the release of an IPAA survey showinghistorically low oil prices have increased the number of shut-insand the industry unemployment rate.

The Independent Petroleum Association of America (IPAA) praisedthe action of Interior Secretary Bruce Babbit in allowing marginaloil well operators producing on public lands to suspend operationsfor up to two years without losing their leases. The announcementcame Thursday on the heels of the release of an IPAA survey showinghistorically low oil prices have increased the number of shut-insand the industry unemployment rate.

Southern Co. is seeking a Securities and Exchange Commissionwaiver of Public Utility Holding Company Act rules so it can doubleits already massive investment program in nonregulated powergeneration assets primarily in North America over the next fewyears.

Three of the four leading natural gas trade associations onFriday were said to be either definitely on board or “favorablyinclined” to jointly ask FERC for a second extension of thedeadline for industry comments on the major notice of proposedrulemaking (NOPR) and notice of inquiry (NOI) that were issued inJuly [RM98-10, RM98-12]. A source indicated there was a “50-50chance” that the lone association holdout would sign on too.

Just because your competitors are breaking the rules, doesn’tmean that you should be allowed to do so, FERC essentially told twoEnron affiliates last week when it denied their plea for a limitedwaiver of its capacity-release rule and the “shipper must havetitle” policy. The affiliates contend they sought the waiver sothey could compete with other suppliers that allegedly are ignoringthe title rule in order to evade paying certain taxes in New YorkState.

Four major gas associations last week urged FERC to reconsider”as soon as possible” an April rule requiring interstate pipelinesto conduct electronic communication using only electronic datainterchange (EDI) over the Internet by June 1, 1999.