Snag

The confirmation of former Iowa utility regulator John Norris to the Federal Energy Regulatory Commission (FERC) hit a snag in the Senate when a senator threatened to block a vote if the nomination was brought to the floor for a vote. Bill Wicker, a spokesman for the Senate Energy and Natural Resources Committee, declined to identify the senator who threatened to place a hold on the Norris nomination. “It has nothing to do with Norris personally,” but rather is directed at FERC policies, Wicker said. Officials from FERC and members of the senator’s staff “are trying to work things out…There are conversations going on,” Wicker said. The Senate energy panel voted out the nomination of Norris, currently chief of staff for Agriculture Secretary Tom Vilsack, earlier this month (see NGI, Oct. 12). If confirmed by the Senate, Norris will be one of three Democrats — the others being Chairman Jon Wellinghoff and Commissioner Suedeen Kelly — on the five-member FERC. Kelly has said she plans to leave FERC when her replacement is confirmed by the Senate, but the White House has not tapped anyone to fill her spot (see NGI, Sept. 28).

California’s complicated five-year transition to a cap-and-trade system for greenhouse gas (GHG) emissions recently hit a political snag that caused some environmental groups to question the motives of Gov. Arnold Schwarzengger’s administration. A political shakeup at the state agency charged with implementing the system surfaced July 2, but the governor’s team quickly rallied and at least one major environmental group on Friday reasserted its strong support for Schwarzenegger.

Although the proponents are downplaying it, U.S. Coast Guard and California officials last week stopped the regulatory clock on Australian resource giant BHP Billiton’s proposed Cabrillo offshore liquefied natural gas (LNG) terminal along the Southern California coast. Basic operational, public safety and shipping information on the $550 million, 800 MMcf/d project was requested before the environmental review process can be resumed.

It could be quite some time before FERC responds to San DiegoGas and Electric’s (SDG&E) emergency request seekingreinstatement of price caps on short-term capacity releases for gastransportation service to the California market.

Deep drilling in the southwest end of California’s central SanJoaquin Valley is awaiting more testing work to prove that backers’claims of substantial new oil and gas supplies below 15,000-footdepths are, in fact, commercially available.

Sonat’s proposed $82 million rate hike hit a snag last week, asFERC suspended any increase from occurring until March 1 and calledfor a hearing where opposition to the proposal can presentinformation.

Sonat’s proposed $82 million rate hike hit a major snag lastweek as FERC suspended any increase from occurring until March 1and called for a hearing where opposition to the proposal canpresent information.

Major gas producers and marketers last week said they hadserious concerns about the auction concept raised by FERC in itsnotice of proposed rulemaking on short-term transportationcapacity, with some saying it would pose a logistical nightmare,threatening the reliability of the system and the seamless flow ofnatural gas.