Monthly Archives: February 2010

Dan Gibson Congratulations Mary Jane McCartney on AGA’s Distinguished Service Award

I had the opportunity to go to AGA’s board of directors dinner the other night in the Mansfield Room at the Capitol. At this special dinner, AGA honored Mary Jane McCartney with its highest service award. It’s always a pleasure when we can recognize one of our outstanding members for all the hard work they do for our association and the industry. Mary Jane seemed to enjoy herself immensely. I’ve included a couple pictures and the transcript from Bob’s remarks introducing Mary Jane.

100216.aga .serviceaward.26 Congratulations Mary Jane McCartney on AGA’s Distinguished Service Award

Mary Jane McCartney and AGA Chairman Robert Skaggs

Remarks from AGA Chairman Robert Skaggs

I have the privilege this evening to recognize someone who has provided extraordinary service to our industry and our association with AGA’s Distinguished Service Award.

First, let me thank Niel Ellerbook of Vectren, who chaired the 2009 selection committee, and David McClanahan of CenterPoint Energy and Doug Yaeger of Laclede, who served on the award committee.  Gentlemen, thank you.

AGA’s Distinguished Service Award is the highest honor that any member of this association can receive, and our recipient is most deserving. This is the first time the award has been made to a female colleague – and it should come as no surprise that I am talking about Mary Jane McCartney, former senior vice president of Consolidated Edison Company of New York.

100216.aga .serviceaward.71 Congratulations Mary Jane McCartney on AGA’s Distinguished Service Award

David N. Parker, president and CEO of the American Gas Association and Mary Jane McCartney

Named one of the Most Influential Women in New York City Business by Crain’s New York Business in 2007, she was recognized as being responsible for gas delivery to 1.1 million homes and offices in New York City and Westchester, supervising a team of 1,000.   During her tenure natural gas usage increased 150 percent.   Mary Jane — Are you sure you want to remain retired?  I think some of us would like to see those numbers.

Crain’s further noted that in addition to the positive effect natural gas has had in helping Consolidated Edison of New York reduce CO2 emissions, Mary Jane shepherded innovations such as robotic gas-pipe sealers on New York City’s streets.

She was also recognized in 2007 with Consolidated Edison’s Living our Values Award – it is the most prestigious honor the company bestows on an employee.  This award recognizes employees who personify the corporate values of service, honesty, concern, courtesy, excellence, and teamwork, at work and home.

Mary Jane’s record of leadership in our industry has been exemplary.  Her hard work and dedication to excellence throughout her entire career has been a model for all.  Through her efforts, our industry has been able to successfully navigate many significant challenges.

When AGA formed the Government Relations Policy Committee in 1996 to guide AGA in its core mission, advocacy, Mary Jane was one of the first asked to serve, and her knowledge, wisdom and leadership never failed to advance the cause and interests of AGA members.  She continuously served on that committee from 1996 to 2009.

Whenever the natural gas sector needed to come together to solve a problem, she was among the first asked to help guide the effort, if not lead it.  She was a very active and vocal member in AGA’s Climate Change Task Force, Demand Task Force, Leadership Council, Marketing Communications Committee, Research Committee, Supply Task Force and Taxation Committee.

In addition to AGA, the organizations in which she served or led include the Gas Technology Institute (from which she retired as chairman); the Gas Industry Standards Board; the North American Energy Standards Board; the Northeast Gas Association, the International Gas Union; and the Society of Gas Lighters.

Certainly our industry, and our association, owes a huge debt of gratitude to Mary Jane, one that we can only partially pay by recognizing her with AGA’s Distinguished Service Award.

Mary Jane, so glad that you and your husband George could take time from your valuable personal time to travel down from New York to join us.

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Mike Pomorski A different kind of excise tax

In a recent AP article, a senior executive for a national energy industry organization was quoted saying about the state of Wyoming, “it is very disturbing to hear that one of the great states for resources wants to tax the industry and discourage the development of jobs in their state.”   We hear a lot about excise tax issues as they relate to natural gas production, most recently in the ongoing discussion in Pennsylvania.

But that quote does not come from a natural gas production group.   It comes from Denise Bode, the CEO of the American Wind Energy Association.   But to be frank, we are not surprised that Ms. Bode is taking on this issue as she is a long history of supporting the oil and natural gas industry.

As it turns out, Wyoming, a state with impressive wind energy potential, is considering taxing wind generation.  The proposal would place a three dollar excise tax on each MWh of commercial wind power generated in the state.  Granted, comparing fossil fuel excise taxes and the Wyoming wind proposal is not straightforward given significant differences in each industry, but in the abstract these taxes are similar in that they both require a producer of an energy resource to pay a tax that reflects the impact the legislature believes the production has on the community (whether that impact be environmental, associated with water resources or other land use, aesthetics, etc.).

Wyoming is a major fossil fuel producer (and the second largest producer of natural gas, after Texas, by gross withdrawals in the onshore lower 48 in 2007), so you could certainly debate the motives behind the proposal.  Nonetheless, it will be interesting to see if the continued growth in wind generation nationally leads to similar calls for excise taxes in other states, and, if it does, how those taxes will affect the economics of wind generation.

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Mike Pomorski Natural Gas Market Indicators

100215.ngmi .sm  Natural Gas Market Indicators

Record amounts of snow in the mid-Atlantic and periodic cold temperatures in many regions of the country have not been able to shake-off the relative strength of U.S. natural gas supply this winter heating season. Henry Hub cash and futures prices remain stable in a $5.30-6.00 per MMBtu range and seem to be rational in a market still sporting high levels of working gas in underground storage, firm daily production and demonstrated flexibility from Canadian and LNG sources.

To some waiting for a domestic production fall, it remains remarkable that rig operations in the United States are on the increase again and that the majority are clearly targeted to sustain and grow more natural gas production capability in the country.

Visit this link to download the full Natural Gas Market Indicator. Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

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Dan Gibson Hackers Steal Millions in Carbon Credits

There’s a lot of debate about cap and trade here in the States. The debate makes for interesting reading. There are a number of different scenarios and ideas surrounding the whole cap and trade concept. One concept I hadn’t considered, and maybe I should, is theft. Not sure what I mean?

Give this article at Wired a quick read. Basically a group of hackers launched a phishing campaign against employees of some companies in Europe, New Zealand and Japan. Phishing is when a hacker sends an email to someone directing them to a fake Web site trying to get the person to enter in sensitive information like their password. The site captures the information and the hacker can use it later to access the account.

In this case, the emails appeared to come from the German Emissions Trading Authority that records carbon credits and transactions. The employees were told that their companies needed to re-register their accounts with the Authority and were directed to a fake Web site to enter the information.

According to an estimate from the BBC, the hackers stole 250,000 carbon credit permits from six companies worth more than $4 million. At least seven out of 2,000 German firms that were targeted in the phishing attack fell for it, including one firm that lost $2.1 million in credits in the fraud.

The buyers of the credits have not been named and the German Emissions Trading Authority has suspended access to its databases while an investigation is underway.

Has anyone else heard any stories like these?

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