Natural Gas Supply Challenges In The West and Washington

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Natural Gas SupplyChallenges In The West and
Washington

• Darrell Henry
• Western Business Roundtable

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Western Business Roundtable

• The WBRT is a non-profit, 501(c)(6) organization
  that unites a wide variety of business and
  industry leaders from across the West to work on
  a bipartisan basis for public policies that
  promote a common sense balance between economic
  growth and environmental conservation.

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Challenges and Factors

• Preserving EPACT 95
• Impediments
• On the ground in the states
• Other looming issues ESA, climate

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Preserving EPACT 95

• Schumer Tax Bill
• Resources Committee
• Markey Miller
• Enviros feel theyre owed
• The Senates our friend!

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Impediments to More Supply

• Access, Access, Access
• Permitting
• Agency staffing and resources
• Appropriations
• Timing
• Site specific, i.e. Roan Plateau, Utah BLM field
  offices
• Categorical Exclusions
• Cost Differential (CO oil far from refineries)

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On the Ground in the States

• CO
• Gov and Legislature Serving Environmental
  Constituency
• Perceived Over Growth and need to do something
• Higher Cost of Gas Have Hit Consumers
• Tax Revenues Key to Growth
• UT
• 3 Outstanding RMPs
• BLM Field Office Issue
• WY
• Perception industry growth gone out of control
• Pinedale EIS
• Spit Estate
• Tax revenue not as big a factor, less industry
  leverage

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Other Issues

• Transportation better, but still an issue
• WGA Cat Ex Resolution
• Wilderness
• Labor Shortage
• Oberstar Clean Water Bill

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Endangered Species Act

• Proposed Polar Bear Listing
• Climate Change Proxy, Back Door Regulation
• APA Petition (SCOTUS Clean Air Factor?)
• Species Issues Across the West
• Attacking on sub-species
• Grouse, Prairie Dogs, and Jumping Mice
• Potential for 75 of CO to become critical
  habitat
• Potential Administration ESA Regulations

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Bi-Polar Polar Bears
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Polar Bears

• Stable and managed population throughout the
  world21-25,000 bears
• Population 2-3 times greater than 30 years ago
• American and international conservation
  agreements and efforts are working
• Biggest threat to polar bears is hunting
• Polar bear have survived two previous dramatic
  warming periods

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Governor Palin on the Listing

• It remains true that listing the polar bears
  under the ESA has the potential to damage
  Alaskas and the nations economy without any
  benefit to the polar bears numbers or their
  habitat

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Governor Palin on the Listing

• It is highly probable that among the
  unintended effects will be third-party
  lawsuits, from litigants with a variety of
  motivations, to list large portions of Alaska's
  North Slope as Critical Habitat or to limit the
  emission of greenhouse gasses throughout the
  United States."

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Alaska on Proposed Listing

• Extraordinary policy precedent of listing on the
  mere existence of a risk w/out hard scientific
  data showing a species decline
• Best available science and information was not
  uses as required
• Data is incomplete and often statistically
  insignificant or anecdotal
• Selective use of models predicting sea ice loss,
  no recognition of model uncertainty

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Climate Change
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Climate Change Regulation

• 2 multi-state regional regulatory agreements
• Pending action in Congress unknown
• Industry becoming increasingly divided
• Some looking for certainty
• Some are rent seekers
• Huge potential pressure on natural gas
• How much will we all pay for power???
• No thought given to producing more

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Wrap-Up

• Legislative threats, not opportunities
• Key to more supply in appropriations, regulatory
  arena, and in the states
• Challenges differ state-by-state
• Labor timing issues also impact supply
• ESA issues a constant threat to access and
  economic activity
• Climate Change Regulation Looms