| Show smith declares controls NO rols threaten natural gas indest industry ry N NOTE OT E the fol following lowIn 9 affa article cle was written by mr A T S smith i lh ch chairman ir ma rocky moun mountain t a in region national Mat lonal naas gas oil reso resources u aces committee and general counsel of the continental oil co denver office regulation of the price at which natural gas producers sell their gas threatens the exploration and development of natural gas throughout the colorado plateau region as well as other major gas producing areas in order to inform the public of he the serious situation confronting nat natural ural gas producers the american petroleum institute established the natural gas and oil resources committee with L F mccollum president of continental tin oil company as chairman and paul kayser president of el paso natural gas company as vice chairman this committee Is dedicated to giving the public the acts facts about natural gas one of the most misunderstood features of the natural gas controversy tro versy is the simple fact that the production of natural gas Is a highly competitive industry with upwards of five live thousand independent producers in the business the natural gas act of 1938 which was originally passed to regulate the great transmission companies has now after sixteen years been made by supreme court decision applicable to natural gas producers unlike the I 1 transmission ran lines the producer has no franchise to find and produce gas he has none of the exclusive josiv privileges leges of the pipe line transi transmission sion companies he must compete w with ith all other gas producers and sell his gas in the open market there Is no more reason why the production of natural gas should sh uld be regulated than any other commodity commodity As a matter of fact there is no other commodity which is now subject to regulation in n this county at the point of production except natural gas As a h heating eating fuel natural gas competes with oil and coal neither of which is subject to regulation yet natural gas has when free of regulation been able to undersell both that the regulation of natural gas will result in reduced prices to the consumers is highly doubtful more likely it will result in reduced supplies this is particularly so as natural gas producers wili will be inclined to look for local markets k e t s in their own states where the p price r ce is free from regulation rather than to sell to the interstate transmission n lines where the federal power comm commission I 1 assion will have control one oe of the most adverse results of this regulation will be the way it will discourage the exploration an and d development of natural gas as a source of power and energy this cannot help but greatly reduce values value of oil and gas properties in all producing areas and reduce the royalties which land owners might reasonably expect from ex upon their lands the emall independent natural gas producer just cannot remain in bus busl ness if the federal commission Is going to be forever looking over his shoulder and requiring of him burdensome reports and accountings that are required requited of transmission companies he ile does not have the resources and personnel to go through all this red tape in the interest of the future development of this great source of power and energy the natural gas producers must be free of this type of regulation |
