Rep. Richard Pombo (R-CA), co-chair of the emergency task force on natural gas issues with Rep. Billy Tauzin (R-LA), last week asked the Government Accounting Office to conduct an inventory and report on all administration appeals and judicial litigation that are delaying critical energy exploration and production projects in the United States.

“This data will help Congress assess the economic impact of these suits, both on the energy market and on the consumer, as we continue to examine the roadblocks in getting energy supplies to market in America,” Pombo said in a statement issued at the task force’s first public meeting last Monday. The task force was formed by House Speaker J. Dennis Hastert (R-IL) earlier this month.

Despite the so called gas “emergency,” Federal Reserve Board Chairman Alan Greenspan said recently he didn’t think much could be done in the short-term to alleviate the supply crunch and high gas prices.

“I hope he’s not right,” said Tauzin, but he conceded that Greenspan could be on target. “We don’t know. We can’t promise that he’s wrong.” Still, he noted that shouldn’t stop the task force from trying to prove Greenspan wrong.

Tauzin said the task force was not out to set energy policy or to dictate solutions. Rather, it will outline the current natural gas market situation and recommend options to the House speaker, who then will make recommendations to Congress and the president. Some say stand-alone legislation could result, or something could be incorporated in the energy bill.

Task force member John E. Peterson (D-PA) recommended that Congress look at prioritizing gas supplies, especially gas used in power generation. “This needs to be put on the table,” said Peterson, regarding possibly limiting gas supplies to certain customers. About 24% of gas supplies currently are being used for electric generation, he said, indicating that he was not comfortable with the wide open door for gas being consumed within the power industry. “I think we need to be prioritizing.”

Tauzin said the task force was not going to pursue heavy-handed intervention into the energy market.

Time is short. “We have two months. I caution all members…that we are already running out of time,” said Tauzin. He asked the staffs of the House Energy and Commerce Committee and the House Resources Committee, whose members sit on the task force, to have the first half of a report ready to submit to the House speaker by the end of August. It should spell out the “state of things as they are” in the gas industry: the physical description of the supply situation; the problem spots in the gas market; where important fundamental events are taking place in the market; and a description of the natural gas policy that has shaped the market.

Tauzin wants the members of the task force to fully understand all of the options for short term market assistance, which will make up the second half of the report that will be due in late September. The task force also plans to hold meetings around the country. Field hearings will be scheduled by Reps. Joe Barton (R-TX) and Barbara Cubin (R-WY). Oklahoma City was mentioned as a potential location for at least one field hearing.

“This task force has more work than you ever asked for,” Tauzin said.

Pombo said he thought lifting the drilling moratoria was more a long-term issue, and would probably not be considered by the task force. But Tauzin said he believed that was an area “where we can contribute to the debate.” Little was made of the much ballyhooed solution of promoting imported liquefied natural gas (LNG). LNG apparently is viewed as more of a long-term solution. Other items likely to be discussed include increasing drilling access to public lands, approving nominees for FERC Commissioners and speeding up permitting for drilling.

“I don’t know yet where this task force will lead us,” said Tauzin. “It’s not that we as a country are out of gas. There’s an abundance of supplies, but there’s a government lock-down on places to drill.”

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