To set the stage for what it hopes will lead to more natural gaspipelines between the Lone Star State and Mexico, the TexasRailroad Commission has been named the lead agency to coordinatepermit requirements for Texas/Mexico cross-border pipelineprojects. The TRC will be responsible for issuing permits andcoordinating other state agencies’ activities.

Besides its cross-border pipeline work, the TRC also has beencoordinating the electricity deregulation program, which kicks offwith a pilot program in June and goes statewide in January 2002.The TRC faces a day-long public hearing today that focuses on howthe deregulation process will affect consumers.

In the Texas-Mexico memorandum of understanding, TRC ChairmanMichael L. Williams said the state had to expand its “energyinfrastructure” with a bilateral agreement between Texas and Mexicoto “build natural gas pipelines more efficiently.”

Under the memorandum by Williams, the TRC will issue hydrostatictest water discharge permits, issue opinions to the U.S. Army Corpsof Engineers about federal Clean Water Act requirements and assumeresponsibility to review Corps’ navigability clearance for buildingpipelines that cross the border. Before the memorandum, pipelineoperators had to file applications with six Texas agencies.

“This is the first step in building a relationship between Texasand Mexico as it relates to energy development,” Williams said.

TRC’s announcement followed a meeting with Texas Gov. Rick Perryand the Mexican state of Tamaulipas Gov. Tomas Yarrington whereboth sides indicated their desire to increase cross-border trade.Perry has invited the governors of all 31 Mexican states to DallasMarch 7-8 for a summit on trade, transportation and energy.

Today, the TRC has invited Texans to comment on several natural gasissues including incentives for utilities to minimize the gas costspassed onto consumers and the impact of price fluctuations onindustries such as agriculture. An online comment form is available onTRC’s website atwww.rrc.state.tx.us.

©Copyright 2001 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.