Bruce Kauffmann A Talk with Transportation Secretary Ray LaHood

The cover story for the June issue of American Gas magazine, titled “Safe & Sound,” is actually an interview with U.S. Department of Transportation Secretary Ray LaHood, among whose many responsibilities is partnering with the natural gas industry to ensure that our natural gas pipeline delivery system, which is the safest energy delivery system in America, becomes even safer.

As far back as February of this year Secretary LaHood had visited AGA’s headquarter in order to talk with our board of directors about how, together, we can improve pipeline safety.  As he said to our board, a first step is to improve communication among all of the pipeline safety stakeholders, which is why in April he hosted the first-ever Pipeline Safety Forum, whose goal was to determine the best methods to “rehabilitate, repair and, where necessary, replace critical pipeline infrastructure”—all to ensure the safe and reliable delivery of natural gas to the 175 million Americans who depend on it every day.

As Secretary LaHood notes in our interview with him, the Pipeline Safety Forum was an excellent first step, but only a first step in enhancing pipeline safety, while also making sure that all stakeholders, including natural gas customers, are aware of the individual actions they can take to improve the safety of the pipeline system.  To give just one example, the number-one cause of pipeline incidents is damage done to pipelines by outside excavators, including folks digging or planting in their own back yards, who are unaware that underground pipe lies beneath them.  A simple call to the “Call Before You Dig” safety hotline—just dial 811 anywhere in the country—and you will be alerted to the location of underground pipe and/or wire in your digging area.

As the interview makes clear, Secretary LaHood is a firm believer in interaction, communication and collaboration. “I know that each time we bring people together we learn more,” he says.

By reading this interview, you too can learn more about Secretary LaHood’s views on pipeline safety and how the U.S. Department of Transportation, the natural gas industry and our many other involved stakeholders, both nationally and in each of our 50 states, can more effectively work together to improve it.

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Lydia Meigs AGA Testifies at U.S. House of Representatives Pipeline Safety Oversight Hearing

Yesterday, Charles Dippo, vice president of South Jersey Gas and chairman of the American Gas Association (AGA) Operating Section, testified on behalf of AGA in front of the U.S. House of Representatives Energy and Commerce Committee’s Subcommittee on Energy and Power at a hearing focused on the pipeline safety oversight proposed in the Senate’s Pipeline Transportation Safety Improvement Act of 2011, S. 275.

In short, the bill prescribes or revises requirements for safety and environmental protection in pipeline transportation.

Dippo was joined by industry experts: Andrew Black, from the American Petroleum Institute (API), Christopher Helms of the Interstate Natural Gas Association of America (INGAA), Carl Weimer of the Pipeline Safety Trust, and Anthony Swift of the Natural Resources Defense Council (NRDC). Also testifying was the Honorable Cynthia Quarterman, Administrator of the Pipeline and Hazardous Materials Safety Administration (PHMSA).

In Dippo’s written testimony he emphasized AGA and the industry’s continued dedication to upholding and advancing safety standards. He noted that this commitment is exemplified by the recent principles adopted by the AGA Board of Directors for responsible natural gas resource development. Dippo explained that these principles “address a foundation for the sustainable and responsible development of all natural gas resources in our country and underscore the commitment of local natural gas utilities to the communities they serve.” AGA is committed to safe practices throughout the entire lifecycle of the natural gas industry—from wellhead to burner tip.

All members of Congress in attendance acknowledged the importance of continued focus on pipeline safety and all expressed strong support for the bill—it’s encouraging to know that Congress supports the industry’s commitment to safety. We look forward to continued work with Congress to

The natural gas industry delivers natural gas through 2.4 million miles of transmission and distribution pipelines, which provides service to more than 175 million Americans every day, and AGA looks forward to continued work with Congress and other stakeholders to ensure the continued advancement of the safe and reliable delivery of this foundation fuel.

Follow these links to read Dippo’s full testimony and AGA’s press release.

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Chris McGill Natural Gas Market Indicators

Natural gas prices have swung up and down since the end of May on news of warm weather (power generation demand) and storage injections. Working gas injections tend to run highest during late May and June and analysts are pointing out that average injections of 80+ Bcf per week will be needed to reach 3.8-3.9 Tcf in storage by the beginning of the 2011-2012 winter heating season. Even with a decline in gas-directed drilling investment compared to oil targets, dry gas production is up 5.6 percent over the same period last year as we enter the summer. Pipeline imports from Canada seem to ramp up temporarily to balance power generation load and LNG imports remain subdued.

On the demand side, natural gas to power generation has already reached 28 Bcf per day, though peak summer gas load has been as high as 38 Bcf per day for cooling needs in the past, according to Bentek Energy LLC.

Visit this link to download the full Natural Gas Market Indicators. 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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Lydia Meigs LIHEAP Gains Momentum on the Hill

Unprecedented Support from Congress for LIHEAP Funding

Last week, the American Gas Association (AGA) sent an open letter of appeal to the U.S. Senate and House of Representatives to continue funding the Low Income Home Energy Assistance Program (LIHEAP) at $5.1 Billion in Fiscal Year 2012.

The resounding bipartisan support from the halls of Congress was incredibly strong, demonstrating how critical this program really is. There were a grand total of 614 people who signed onto the letter, and we are sure you will agree, this support is both impressive and encouraging.

So, why is this support so critical?

LIHEAP is an efficient and highly effective program that delivers critical short-term seasonal aid to our most vulnerable neighbors, especially the elderly, many of whom are on fixed incomes.  These payments serve as “bridges,” making it possible to avoid shutoffs so that these households do not have to make the difficult choice between paying for their home energy bills or food, medicine and other necessities.

The increased demand for LIHEAP assistance across the country is undeniable.  In 2008, 33.8 million households met LIHEAP’s strict eligibility requirements. Yet, there was only enough money in the program to serve 5.7 million households.  Since then, rising unemployment has driven record numbers of Americans, many for the first time, to seek help from this program. 

In addition, energy prices have increased substantially in recent years and are projected to remain high in many parts of the country. For example, the U.S. Energy Information Administration (EIA) confirms that the average cost of heating with heating oil jumped 59 percent from $1,337 to $2,124 this winter.

These increases, along with the doubling of gasoline prices in the last two years and the increase in poverty rates have placed incredible pressures on at-risk Americans. LIHEAP is not an entitlement.  It can only provide assistance if Congress appropriates these vital funds, which are very urgently needed.

This is why AGA is so pleased to inform you about the recent show of support and we hope to see it continue as we head in to the hot summer months.

 

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