LP Gas, July 2014

Winter of 2013 14 THE cHallEngEs THE sOlUTIOns Part 4 of 6 government Federal intervention Propane leaders reach out to legislators agencies in effort to strengthen supply distribution chain after last winters struggles By Kevin yaniK ManagIng EdITOr kyanik@ northcoastmedia net P ipeline transparency Federal information and data collection The Department of Commerce restriction on the Propane Education Research Council PERC Hours of service HOS exemptions These and other supply related issues took center stage at Propane Days the National Propane Gas Associations NPGA annual lobbying event in Washington D C where propane marketers suppliers and allied trade representatives visited Capitol Hill to brief legislators on ways the federal government can help ease propane supply and distribution for future winters All of these are things we believe can make a material difference in how we operate in the winter said Phil Squair NPGAs senior vice president of public and governmental affairs as he briefed a roomful of Propane Days attendees before they headed to the Hill The people on the other side of the table are going to know you had a tough winter but our industry served customers even if it cost us more to do so If there was some short filling tell legislators we voluntarily increased our transportation costs so that no customer would go unserved Thats a pretty powerful message you can communicate to the people on the other side of the table Sen Al Franken D Minn who also addressed Propane Days attendees is actively crafting a bill with Sen Tammy Baldwin D Wis thats intended to help alleviate some of the industrys winter supply and distribution concerns A Department of Energy DOE study that determines the cost benefits of a propane reserve which Franken publicly proposed as a Midwest solution could potentially be part of the bill We shouldnt be having these problems in the 21st century of the United States Franken said at Propane Days We shouldnt have people shivering in their homes scraping by to keep their livestock alive Thats why Im working now to do everything I can to help prevent this from happening again Although the idea of a propane reserve has gained some traction in the mainstream media some of Frankens constituents specifically propane marketers have reservations about a reserve as a solution In theory a propane reserve sounds good but there is a limited amount of storage right now said Bradley Box energy division manager at Northern Star Cooperative Services in a meeting with a legislative assistant to Rep Collin C Peterson D Minn A SIX MONTH SERIES FROM BROUGHT TO YOU BY CreStWooD SPeCiaL rePort from LP GAS The propane industry experienced one of the most challenging winter heating seasons on record in 2013 14 In preparation for future winters amid a changing energy environment LP Gas is examining the issues that led to what some called a crisis supply situation We are reaching out to all segments of the industry to explore our past and future bringing attention to key subjects initiating industry dialogue and providing necessary education to our readers So if the government takes any supply for a reserve that will create some problems Storage is tight as it is Box suggested a propane reserve positioned in the crude oil heavy Bakken region of the Upper Midwest might be a worthwhile solution But the problem Midwestern marketers like Box face is getting propane from where its available to where its needed And in Minnesota where the Cochin Pipeline is no longer a source for marketers the alternative source is rail In Minnesota were focused on putting all of our eggs in the rail industry Box said Were trying to replace the greatest majority of supply by rail Are there enough railcars We have pressure from oil coming over from the Bakken said Will Norman co president and COO at Como Oil Propane adding that an argument can be made that a rail crisis is coming Drew Combs vice president of propane for CHS supported Normans comment saying rail companies will prioritize Canadian oil over propane All things come back to educating consumers about how propane delivery works Combs said It helps to educate them that they need to fill earlier www LPGasmagazine com July 2014 LPGas 41