As the last steel was welded on the trans-Alaska crude oil pipeline in 1976, Congress passed a law designed to prevent quality control problems with an expected trans-Alaska gas pipeline.
At the time, there were several proposals to build a long gas trunk line through Alaska and Canada and use Prudhoe Bay field's 10 tcf of gas to ease a shortage in the Lower 48.
The law established the independent Office of the Federal Inspector of the Alaska Natural Gas Transportation System to facilitate and oversee the gas line's construction.
Of course, the trunk line was never built, although two "prebuild" legs were laid in the U.S. and are now moving Canadian gas south. Prudhoe Bay gas reserves are still at Prudhoe Bay.
But the federal inspector's office is still in business.
SHRINKING BUDGET
In anticipation of construction, the inspector at first amassed a 200 person staff and a $20 million/year budget and did some work with the prebuild legs.
As prospects for the Alaskan gas pipeline languished, the Reagan administration halved the federal inspector's staff and budget several successive years until spending plateaued at about $250,000/year-bare bones by federal standards.
Because the Reagan administration could not erase a position established by law, it designated a series of Department of Energy officials to also wear the hat of federal inspector so they could sign an occasional document.
Most of the inspector's work seemed to be sending congressionally mandated quarterly reports to Capitol Hill, informing legislators there had been no progress in construction of the pipeline.
In November 1990 Michael Bayer was named to the position on what appeared to be a full time basis.
Rep. Phil Sharp, chairman of the House energy and power subcommittee, wrote Bayer and Energy Sec. James Watkins last fall asking why the U.S. needs a full time federal inspector with a staff of four and a budget of $250,000.
An aide to Sharp said, "There appears to be even less to do now than when it was a part time job with no staff."
In reply, Bayer promised to work with Sharp to eliminate unnecessary functions but detailed a series of legal complications to abolishing the office.
Watkins told Sharp an Alaskan gas line is unlikely to be built this decade and the office should be eliminated.
Sharp took Watkins' advice, not Bayer's, and his subcommittee amended its energy policy bill Oct. 31 to abolish the office and transfer the duties to the Federal Energy Regulatory Commission, which regulates gas pipelines.
The Senate's energy bill does not cover the issue.
BAYER'S TASKS
Bayer denies he is full time. He said he has performed management analyses studies for DOE, although he does not hold a DOE position.
He said his office administers 55 pages of rules in the Code of Federal Regulation, is working to lower tariffs on the prebuild legs, and is preparing a complicated review to guide federal policy choices regarding a gas trunk line.
Bayer argued it will cost just as much to perform the functions of his office if they are shifted to FERC.
Sharp, meanwhile, is willing to take that risk.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
