WATCHING GOVERNMENT GAS GROUPS BENEFIT FROM COOPERATION

With Patrick Crow from Washington, D.C. Natural gas groups, long time rivals, are beginning to enjoy the benefits of cooperation. In 1992 the major U.S. gas associations established the Natural Gas Council to work on issues in their common interest (OGJ, Aug. 3, 1992, p. 25). Founders were AGA, Ingaa, NGSA, and IPAA.

Dec. 13, 1993

3 min read

Natural gas groups, long time rivals, are beginning to enjoy the benefits of cooperation.

In 1992 the major U.S. gas associations established the Natural Gas Council to work on issues in their common interest (OGJ, Aug. 3, 1992, p. 25). Founders were AGA, Ingaa, NGSA, and IPAA.

The council's goal is to actively promote expansion of natural gas markets without duplicating existing programs. Southern California Gas Co. Chairman Richard Farman, the outgoing council chairman, issued a report card last week as incoming chairman John Riordan, president and CEO of MidCon Corp., took over.

Farman said much of the Council's efforts have focused on convincing large volume customers and state regulators that gas supplies are reliable and can support a growing market.

He said it has "zeroed in on the window of opportunity" presented by Northeastern states' need to develop plans to limit nitrogen oxide emissions from industrial and electric power generating plants.

CUTTING EDGE COUNCIL

Farman added, "One of the hallmarks of the council has been a willingness to support efforts at the cutting edge of our industry, occasionally at the risk of appearing to get out ahead of some of our constituents.

"This type of action oriented, creative effort is exemplified by the current initiative aimed at forming a Gas Industry Standards Board (GISB)."

He explained that the Federal Energy Regulatory Commission, in implementing Order 636, asked the gas industry to help it resolve problems with electronic bulletin boards (EBB) providing information on gas pipelines via computer.

Farman said the EEB participants decided the gas industry needed a body to set and review standards for electronic data exchange and began using the council's EEB task force to serve as sounding board on technical questions and maintain momentum on the issue.

Farman said industry's EBB cooperation will remain under the Council's aegis for a while, but "once the important decisions on scope and organizational framework are achieved, this initiative will take flight under its own power" as the GISB.

The Council also worked against the Clinton administration's proposed BTU tax on fuels and lobbied for passage of the North American Free Trade Agreement.

He said Canadian and Mexican representatives have joined the council, and Canadians were motivated to create their own parallel group, the Canadian Gas Forum.

BTU TAX: COMING TOGETHER

On the BTU tax issue, he said the council "learned that the trade associations themselves are normally best suited to deal with matters of legislative give and take."

But he added, "if it weren't for the existence of the Council, I doubt that the different segments of the industry could have come together to the extent that they did.

"This was a situation where there was clearly the potential for an instinctive reversion to the old habit of looking out for the interests of one's segment without consideration of the possibility of mutual support."