Print
E-mail
Comment
Rate
Clayton Williams challenges state leaders on 'broken' gas markets
 |
by Staff Reports
Midland Reporter-Telegram
Midland oilman and former gubernatorial candidate Clayton W. Williams Jr., challenged Texas leaders and the Railroad Commission to deal with problems in Texas natural gas markets with a hard-hitting address to independent oil and gas producers earlier this month. Declaring that "natural gas markets in Texas are broken," Williams voiced his concern that the federal government would effectively take over the state's job in policing Texas markets. Williams called for "action, not just talk."
He spoke to a standing room only crowd at the Texas Independent Producers & Royalty Owners Association's TIPRO Tuesday luncheon at the Dallas Petroleum Club.
Williams observed that ineffective state regulation and lack of enforcement of laws passed to control pipeline monopolies hurt producers and consumers alike. Williams made clear his concern that the Texas Railroad Commission had fallen short in its responsibility to enforce the state's oil and gas and pipeline laws. Referring to a line used by the Commission in recent years, Williams spoke directly: "There might be a place for light-handed regulation but this is not it ... If you mess with the free market and/or use monopoly power to prevent open competition, you deserve to be treated harshly."
Only pipelines in Texas enjoy a broad exemption from public disclosure of volumes, rates, fees and tariffs. Both the Federal Energy Regulatory Commission (FERC) and the Commodities Futures Trading Commission (CFTC) have increased their enforcement activities against natural gas pipelines this year. Congress is also looking into the market manipulation and has hearings scheduled on this topic.
Williams made clear his thoughts that the Railroad Commission must understand the importance of open and competitive gas markets, fight for an adequate budget, and "spend money to hire and keep qualified people" in order to address the "issues that we are facing in the industry." Williams observed, "When our state produces about 30 percent of the natural gas for the nation, the Railroad Commission needs to know what is going on in the Texas market. They have a responsibility to the state to know, to understand, and to act."
Williams further commented on pipelines' ability to use eminent domain. "They are not just like any other business ... at the very least, these pipelines have a high duty to the public in exchange for having the right to condemn."
He called for the commission to reform its practice of allowing the pipelines to file tariffs or rate schedules that are coded to make them secret from the public.
Addressing problems with index pricing for natural gas, Williams called for open disclosure and for a "reliable platform for reporting the market" that would not be the federal government. When one publishing company determines the price for all natural gas in the U.S. that is priced off some published INDEX and claims the First Amendment right of the press to prevent examination of the procedures they use -- something is wrong. In calling for action, he noted the failure of state leaders to act in the fact of widespread reports of market manipulation in Texas natural gas markets.
After covering topics ranging from pipeline tariffs to market competition, Williams warned the group of small business owners, " ... it is no wonder that FERC is looking at what is happening in Texas. I am deeply concerned that the federal government will step in if we do not deal with the market failures here at the state level."
Calling for action, Williams told his fellow producers that "we need real solutions before we are all dead or out of business."
Editor's Note: Midlander Clayton Williams recently addressed the Texas Independent Producers & Royalty Owners Association luncheon, declaring the state's natural gas markets broken.
He spoke to a standing room only crowd at the Texas Independent Producers & Royalty Owners Association's TIPRO Tuesday luncheon at the Dallas Petroleum Club.
Williams observed that ineffective state regulation and lack of enforcement of laws passed to control pipeline monopolies hurt producers and consumers alike. Williams made clear his concern that the Texas Railroad Commission had fallen short in its responsibility to enforce the state's oil and gas and pipeline laws. Referring to a line used by the Commission in recent years, Williams spoke directly: "There might be a place for light-handed regulation but this is not it ... If you mess with the free market and/or use monopoly power to prevent open competition, you deserve to be treated harshly."
Only pipelines in Texas enjoy a broad exemption from public disclosure of volumes, rates, fees and tariffs. Both the Federal Energy Regulatory Commission (FERC) and the Commodities Futures Trading Commission (CFTC) have increased their enforcement activities against natural gas pipelines this year. Congress is also looking into the market manipulation and has hearings scheduled on this topic.
Williams made clear his thoughts that the Railroad Commission must understand the importance of open and competitive gas markets, fight for an adequate budget, and "spend money to hire and keep qualified people" in order to address the "issues that we are facing in the industry." Williams observed, "When our state produces about 30 percent of the natural gas for the nation, the Railroad Commission needs to know what is going on in the Texas market. They have a responsibility to the state to know, to understand, and to act."
Williams further commented on pipelines' ability to use eminent domain. "They are not just like any other business ... at the very least, these pipelines have a high duty to the public in exchange for having the right to condemn."
He called for the commission to reform its practice of allowing the pipelines to file tariffs or rate schedules that are coded to make them secret from the public.
Addressing problems with index pricing for natural gas, Williams called for open disclosure and for a "reliable platform for reporting the market" that would not be the federal government. When one publishing company determines the price for all natural gas in the U.S. that is priced off some published INDEX and claims the First Amendment right of the press to prevent examination of the procedures they use -- something is wrong. In calling for action, he noted the failure of state leaders to act in the fact of widespread reports of market manipulation in Texas natural gas markets.
After covering topics ranging from pipeline tariffs to market competition, Williams warned the group of small business owners, " ... it is no wonder that FERC is looking at what is happening in Texas. I am deeply concerned that the federal government will step in if we do not deal with the market failures here at the state level."
Calling for action, Williams told his fellow producers that "we need real solutions before we are all dead or out of business."
Editor's Note: Midlander Clayton Williams recently addressed the Texas Independent Producers & Royalty Owners Association luncheon, declaring the state's natural gas markets broken.
 |
 |
|
| FOX News Analyst Frank Luntz Addresses IPAA Midyear Meeting | OPEC's lack of spare capacity limits its ability to reduce prices |
Article Rating
Reader Comments
The following are comments from the readers. In no way do they represent the view of mywesttexas.com.
Submit a Comment
We encourage your feedback and dialog, however we reserve the right to delete any post we see that may be considered slanderous, excessive and/or foul language, or any post that we may deem inappropriate.
You must register with a valid email to post comments. Only your Member ID will be posted with the comments.
Registered users sign in here: |
Become a Registered User |
News
Sports
Business
Entertain
Life
