IPAA WON'T SUE TO BLOCK IROQUOIS GAS PIPELINE PROJECT

The Independent Petroleum Association of America will not sue to block construction of the Iroquois Gas Transmission System. The Federal Energy Regulatory Commission recently gave Iroquois a permit to lay a $582.6 million, 575.9 MMcfd pipeline from near Waddington, N.Y., through New York State and Connecticut to Long Island (OGJ, Nov. 19, p. 40). Independent producers had fought the project because, they said, it gave an unfair advantage to Canadian gas supplies because of differences in

Dec. 31, 1990

2 min read

The Independent Petroleum Association of America will not sue to block construction of the Iroquois Gas Transmission System.

The Federal Energy Regulatory Commission recently gave Iroquois a permit to lay a $582.6 million, 575.9 MMcfd pipeline from near Waddington, N.Y., through New York State and Connecticut to Long Island (OGJ, Nov. 19, p. 40).

Independent producers had fought the project because, they said, it gave an unfair advantage to Canadian gas supplies because of differences in Canadian and U.S. pipeline rate structures (OGJ, May 21, p. 29).

Paul Hilliard, IPAA chairman, said, "After careful consideration of the options available, IPAA has decided to pursue its objectives on pipeline rate reform in the broader forum of Congress and the FERC public conference set for Jan. 8.

"We are very encouraged by the Department of Energy's plan to include pipeline rate design reform in its National Energy Strategy and by its proposed international conference between Canada and the U.S. We are also encouraged by legislative proposals on pipeline rate design.

"By pursuing our objectives within the administrative and legislative process, IPAA has asserted its commitment to obtain a level playing field between U.S. and Canadian pipeline rate designs, an action indispensable to the economic survival of U.S. independent gas producers.

"We view FERC's decision to proceed with pipeline rate reform as a very positive development and an opportunity to make our case for a competitive gas market for all North American producers, without the constraints put upon us by the limited scope of review applied to individual pipeline projects.

"We believe time and events will prove us correct in economic and policy arguments pressed by IPAA in natural gas import cases and will accordingly direct our energy and attention to the larger forums that FERC and DOE have scheduled on these matters.

"Our primary objective is to preserve and enhance the economic viability of independent domestic natural gas producers. A fair deal for domestic producers will be pursued unrelentingly," he said.