About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

EMD-78-47 1 (1978-07-10)

handle is hein.gao/gaobaaxoc0001 and id is 1 raw text is: DOCUMENT RESUME~ 06487 - I B19469601 The Advance Payment Program: An Uncontrolled Experiment. EMD-78-47; 6-181503. July 10, 1978. Feleased July 17, 1978. 22 p). heport to Rep. Harley 0. Staggers, Chairman, House Committee on Interstate and Foreiqn Commerce; Hep. John E. Moss, Chairman, House Committee on Interstate and Fcreign Ccmmerce: Cversigat and investiqatioLs Subcommittee; by timer E. Staats, Ccmptrcller General. issue Area: Energy: Role of rossil Fuels in meeting future Needs (1609) ;Enerqy: Executive Branch Crganizaticn and Processes for Dealing with Energy Problems (1611);Energy: Effect of Federal Financial Incentives, Tax Policies, and Begulatory Policies on Energy Supply (161C). Contact: Energy and rinerals Div. udqet Furction: Natural Resources, Envircnment, and Energy: Energy (305). Orqanization. Concerned: Federal Power Commission; Federal Energy bequlatory Commibsion. Congressional. Relevance: House Committee on Interstate and Foreiqn Commerce; House Committee on Interstate and Foreign Commerce: Oversight and Investigations Sutccmaittee. Rep. Harley 0. Staqqers; Rep. John E. Mess. Authokity: Energy Policy and Conservaticr. Act, title V (E.I. 94-16 ). The Federal Power Commission (FPC), whose responsibilities were transferred to the Federal Energy Pequlatory Commission (FERC), approved an experimental rrcgram in 1970 that permitted interstate pipelines to provide natural qas producers with advance payments. 7he expectation was that this would bring additional quantities of gas to the interstate markct. These advances were interest-free loans to be used by producers to cover the cost of exploration, development, and production of natural gas. About $3. 3 tillicn in fixed advance payment commitments were made during the prxcram, and about 12.2 villion in indetinite advances can still te made tc iroducers until December 31, 1980. As a result of a 1S74 suit filed by the Public Service Commission of New York, the FPC was ordered to evaluate the program tully. Findings/Conclusions: The FP did not adequately evalute the program's results ncr provi-ie adequate and timely guidance to participants an allowed tL.e program to continue tor about 5 yeats without knowing whether or not it was meeting its goals. The program probably played a relatively minor role in bringing additional gas reservef to the interstate market OL in bringing them in sconer. Advances may have expedited development of proven reserves in scue cases, but this cannot be determined explicitly. Some customers paid increased rates for gas, and producers benefited financially. Producers' expenditures on advance payment properties were

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most